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1 E-commerce State of the Art Report

INTRODUCING A COLLABORATIVE BUSINESS

MODEL FOR EUROPEAN ERP VALUE CHAINS OF

SMEs:

The “PANDA” EU Project

Ioannis Ignatiadis

(Centre for Applied Research in Information Systems, Kingston University, UK)

Jonathan Briggs

(Centre for Applied Research in Information Systems, Kingston University, UK)

Adomas Svirskas

(Department of Computer Science, Vilnius University, Lithuania)

Kostas Bougiouklis

(Q-Plan North Greece, Thessaloniki, Greece)

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2 E-commerce State of the Art Report

Business Models

Business Model Concept Business Model Type Business Model Type Business Model of Dell Business Model of Amazon Business Model of eBay

Dell Amazon eBay

DEFINITION

What is a business model? META-MODEL

What elements belong into a business model?

TAXONOMY OF TYPES

Which business models resemble each other?

SUB-(META)-MODELS

What are the common characteristics?

INSTANCES (VIEW OF COMPANY)

MODELLED INSTANCE REAL WORLD COMPANY

C on ce ptu al le ve ls In sta nc e l ev els 1 2 3

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3 E-commerce State of the Art Report

The “PANDA” Project

“Collaborative Process Automation Support using Service Level

Agreements and Intelligent dynamic Agents in SME clusters”

Validation in two large international ‘informal’ ERP value chains, involving 2 ERP vendors, 200 ERP national representatives, and dealers, 50 IT consultants, and 40,000 end customers in 7 European countries.

Address current inefficiencies in ERP value chains and increase the level of services for the end customers

• Facilitate efficient value chain operations

Broaden opportunities for international e-collaborations (European clusters in ERP industry).

• The outcome of PANDA is an advanced B2B web platform, dedicated on

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4 E-commerce State of the Art Report

Business Models

lower Degree of Innovation higher

Functional Integration Single Function Multiple Functions/ Integrated E-Shop E-Procurement E-Mall Info Brokerage Trust Services E-Auction

Value Chain Service Provider Value Chain Integrator Third Party Marketplace Collaboration Platform Virtual Community

PANDA

PANDA PANDA Source: Timmers (1998)

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5 E-commerce State of the Art Report

Target Market

• Vendor Types:

SME ERP vendors with mainly national and/or partially international activities – Solutions and services in the small – medium ERP market segment

– Their value chains consisting of thousands of service providers in the ERP industry

• ERP Projects:

– large international or interregional ERP projects requiring cooperation of at least 2 partners

• Users:

– ERP Vendors – National Representatives – Dealers – Consultants

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6 E-commerce State of the Art Report

Supported Value Chains

Hierarchical Value Chains

Proprietary solution (ERP system) developed by one vendor – Standard modules are offered with sufficient functionality – Possibility to be adapted to customer needs

Wide value-chain network providing sales, consulting and customer technical support

Flat Value Chains

Open source solution (ERP system)

– Promoted as commodity through resellers

Subscription-based business for the provision of services (support) – Low-entry level for customers

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Supported ERP Projects

1. ERP implementation (software installation, customisation, data transition, training, technical support for a specific period, update with new versions for a specific period and the related services, etc)

2. New ERP versions (e.g. new licences & technical support for the installation of new versions)

3. Upgrade of existing ERP (e.g. the customer has a basic version of an ERP and decides to buy additional modules and/or include additional premises (in other regions), etc)

4. Technical support (e.g. New contract for technical support of existing customer for a specific period)

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The PANDA Solution

Form Request-Based Virtual Organisations (RBVOs) as flexible clusters reflecting European ERP value chains.

Use sector-specific Service Level Agreements (SLAs), acting as the regulating framework, among value chain members, for RBVOs operations.

Utilise a community of Intelligent Software Agents (Multi-Agent System) that aorchestrate and automate procedures and operations of RBVOs (partner

identification and selection, monitoring of project status, etc) in a predefined, standardized and automatically generated manner.

Use SOA (Web Services) for adaptation in different ERP value chain characteristics.

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9 E-commerce State of the Art Report

PANDA

Multi-Agent System B2B Integrated e-collaboration platform (SOA) RBVO e-Business Model Service-Level Agreements

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PANDA Supported Activities

1. Pre-sales activity: formulation and submission of an offer to an end customer, providing necessary references, such as estimation of time schedule and cost, general conditions for project implementation, etc.

2. Formation of consortium per ERP project: searching for potential partners based on the “Collaboration Request” which incorporates major characteristics of the ERP project as well as specific conditions set by the client.

3. Overall monitoring / management of the consortium during

implementation: including (if needed) re-planning of the project and/or reconfiguration of the RBVO, and

4. Management of partner profiles: automatic update of the profiles of all partners-members of an RBVO following project termination (reputation management).

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Functionality: VO Life-cycle in Collaborative

ERP Projects

Opera-tion Termi-nation Reconfi-guration

Identifi-cation Forma-tion

ERP Project at Customer Site(s):

Identify Suitable Implementation Partners

Sign SLA Agreements amongst Implementation Partners and Start Project

at Customer Monitor Project and Partner Performance Close Project, Rate Partners, Archive Results

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12 E-commerce State of the Art Report

Market Complementarities

Partner Relationship Management Systems

– Define groups of collaborating organizations (partners) and manage their relations – E.g. Onyx Partner Portal, OpenBox Partner Management, Siebel PRM

Web-based Project Management Systems

– collaborative management of project resources online

Xcolla, Project Activator, BPS Project, ValleySpeak Project ServerERP Industry Portals

– Partner Accreditation, Manage Partner Relationships, Partner Support

SAP Service Market-place, Oracle Partner Network Access, Compiere ERP Business Solutions

Web-based Supply Chain Planning Systems

– Sharing Product Description Catalogue, Order Status Information, Inventory Data, Demand Projections

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PANDA Differentiation

• Focus on SMEs (ERP Vendors, Dealers, National Representatives, Consultants)

Web 2.0 characteristics, easy to use

No tie-in to particular ERP Vendors (also allows for possibility to choose amongst competing ERP solutions)

Adaptability of platform to different ERP value chains characteristics (business, operational, legal issues)

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User Needs

Automatic partner identification by agents’ system

Personal contacts and recommendations

Partner Identification

PANDA Platform

Current Solution

Need

Holding of project data in system database

Mostly by telephone and e-mail

Communication of project requirements and status

History of completed projects, including solutions provided, approaches and issues

Mostly personal contacts

Experience sharing from previous similar projects

Storage of SLA templates Ad-hoc formation of

contracts

Standardisation of contracts for

international projects

Online archival of project

results and partner performance Not implemented, or paper-based Availability of feedback regarding project outcome Management (registration, examination, rating, etc) of companies Offline, or other specialised systems (Excel, CRM, etc) Maintenance of a pool of partners (VBE)

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Conclusions – Collaborative Business Model Benefits

• Reduction of transaction costs

• Expansion of geographical activities

• Building of new networks and strategic alliances

• Optimisation of efficiency of business processes

• Better promotion of company’s products and services

• Enrichment of know-how with regards to e-business processes

• Acceleration of negotiation and contracting processes

• Addressing peculiarities of value chains

• Lower cost of participation compared to proprietary e-business

solutions

• Establishment and maintenance of a VBE in the European ERP

Industry (SMEs)

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Questions?

INTRODUCING A COLLABORATIVE

BUSINESS MODEL FOR EUROPEAN ERP

VALUE CHAINS OF SMEs:

The PANDA EU Project

www.panda-project.com

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