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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)Click to edit Master title style
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Business Models
Business Model Concept Business Model Type Business Model Type Business Model of Dell Business Model of Amazon Business Model of eBayDell 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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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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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)Click to edit Master title style
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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 – ConsultantsClick to edit Master title style
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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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PANDA
Multi-Agent System B2B Integrated e-collaboration platform (SOA) RBVO e-Business Model Service-Level AgreementsClick to edit Master title style
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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-gurationIdentifi-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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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 Server • ERP 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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