Ex B2Bc Models Staples Fed Ex

8/16/2019 Ex B2Bc Models Staples Fed Ex

1/22

The Balanced Scorecard ApproachThe Balanced Scorecard Approach

for Business to Businessfor Business to Business

Michael Ebert

Michael Haag

Beth Huston

Rod Kerezsi


2/22

Agenda

• B2B Oerie! Mi"e Haag

• Mini#$ase Studies

$o%pan& Oerie!' B2B Strateg&' Balance Scorecard

uni(ue ele%ents

) *nfo Bro"erage +,ahoo-. Beth Huston

) /irtual Mar"etplace +Staples. Mi"e Ebert

) /alue $hain *ntegration +0E1 E. Rod Kerezsi

• $onclusions Mi"e Haag


3/22

E#Enterprise Applications

E#Business3 B2BE#Business3 B2B

• /irtual Mar"etplace

• 4rocure%ent5Resource

Manage%ent

• /alue $hain *ntegration

• $usto%er Relationship

Manage%ent

• *nfo Bro"erage

E#$o%%erce3B2$E#$o%%erce3B2$

• E#Tailing5$usto%er 4ortals

) A%azon6co%' $17O8

• Bidding and Auctioning

) 4riceline'eBa&

• $onsu%er $are5$usto%er

Manage%ent

) Merrill 9&nch

• Electronic Bill 4a&%ent

) AT:T' M$* 8orldco%


4/22

*%portance of B2B

• B2B pro;ections ) '>>> co%panies !ith B2B serices b& 2>>2 ) ?>@ of e#co%%erce b& 2>>=

) =>@ of the !orld econo%& b& 2>>

“Where does the Internet rank in Priority? It’s No. 1, 2, 3 ,4.”

Jack Welch, Chairan! C"#, $eneral "lectric


5/22

/irtual Mar"etplace

ApplicationA

pplication

• Selling oods and Serices to other businesses

Ob;ectiesO

b;ecties

• *ncrease custo%er base

• 1ecrease %ar"eting and product pro%otion costs

• 1ecrease inentor& costs

• *%proe custo%er bu&ing eCperience

ECa%plesECa%

ples

• $*S$O $onnection Online

• Staples


6/22

4rocure%ent5Resource Manage%ent

ApplicationA

pplication

• Bu&ing goods and serices fro% other businesses

Ob;ectiesOb

;ecties

• Manage long#ter% relationship !ith suppliers

• 9o!er re(uisitioning costs

• Reduce supplier costs

• *ncrease accountabilit& and control

• Opti%ize purchases• Shorter c&cle ti%es5reduced inentor&

ECa%plesECa%

ples

• Boeing


7/22

/alue $hain *ntegration

ApplicationApplication

• Sharing enterprise infor%ation !ith suppliers and bu&ers to enable %ore

efficient real#ti%e planning +suppl&' de%and' and production. and logistics

Ob;ectiesOb ;ecties

• *%proe c&cle ti%e

• Reduce inentor&

• 9o!er operating eCpenses

• Supplier integration +especiall& s%all to %ediu% suppliers.

ECa%plesECa% ples

• $ar %anufacturers # DOrder to 1elier& 4roduction 4rocesses

• 0edEC # 9ogistics processes


8/22

$usto%er Relationship Manage%ent

ApplicationA pplication

• *%proing $usto%er care # 4re#Sales' 4ost#Sales

Ob;ectiesO b;ecties

• *%proe care through indiidual treat%ent

• Reduce costs through custo%er self#serice

• *ncrease repeat bu&ing through long#ter% custo%er relationships

ECa%plesECa% ples

• He!lett 4ac"ard


9/22

*nfo Bro"erage

ApplicationA pplication

• $apitalize on *nternet related business opportunities

Ob;ectiesO b;ecties

• enerate Mar"et ro!th

• enerate Mar"et Share +7ear#Ter%.

• enerate 7et *nco%e +9ong#ter%.

ECa%plesECa% ples

• *nternet adertising 3 ,ahoo-' ECcite' 9&cos


10/22

/irtual Mar"etplace

• This is the !eb %ar"eting of a co%pan& or

shopF an electronic ersion of the traditional

!a& of selling6• Staples6co% is the online ar% of Staples *nc6

• $alled a single cross#oer or a Dclic"#and#

%ortar6• Seres the needs of its custo%ers in the office

products %ar"et6


11/22

B2B Strateg&

• To grab a substantial %ar"et share in the

s%all business and SOHO +s%all

office5ho%e office. %ar"et6• To proide a single online destination !here

businesses can procure a !ide arra& of

office products and business serices' accessand eCchange electronic co%%erce

transactions !ith each other6


12/22

Balanced Scorecard

Goal Measure Unit

$ontinuall& i%proeuser friendliness6

Site logs Trac"s !here custo%ers go'!hich pages are %ost popular'ho! %uch ti%e is spent and ho!%a& users return

*ncrease serices offeredto s%all businesses andendors to enhancecusto%er eCperience

Such sericesoffered

Ho! %an& ne! ones areestablished

Build brand a!areness 7e! of custo%er ac(uisitions

7u%ber of ne! custo%ers

C%&'#(") P")&P"C'I*"


13/22

Balanced Scorecard

Goal Measure Unit

Strong financial perfor%ance

Staples6co% stoc" Share price

+INNCI- P")&P"C'I*"


14/22

Balanced Scorecard

Goal Measure Unit

ECpand Strategic

Alliances

$o%panies !ith !ho%

strategic agree%ents are

%ade

7u%ber of ne!

agree%ents6

ECploit adantages of

being established Bric"

and Mortar

ro!th of sales and reenue

co%pared to co%petition

1ollars

ECpand *nternationall& Sites in foreign countries 7u%ber of ne!

countries reached

Build online brand

a!areness through

adertising in con;unction

!ith Staples *nc6

The proportional increase in

reenue Staples *nc6 that is

attributable to Staples6co%

1ollars

IN'")N- %&IN"&& P)#C"&&"&


15/22

Balanced Scorecard

Goal Measure Unit

$ontinue toreealuate thecusto%er !ants andneeds

$o%pletion of effectie sure&s'focus groups' andin#house user

groups

7u%ber of suchstudies co%pleted

-")NIN$ #)$NI/'I#N


16/22

• a G?#billion global enterprise

• the !orlds largest eCpress transportation co%pan&

• 7As 2nd#largest proider of ground s%all#pac"agedelier&

• a global logistics and transportation %anage%ent

co%pan&

• the !orlds largest surface eCpedited carrier

• a high#tech custo%s bro"er and trade facilitator

/alue $hain *ntegration/alue $hain *ntegration


17/22

• Attract ne! business fro% s%all :

%ediu%#sized custo%ers

• $reate ne! reenue strea%s

• ECpand the high#%argin international

business

• $apitalize on e#co%%erce

• 4roide %eaningful suppl& chain solutions

B2B Strateg&B2B Strateg&


18/22

Balanced ScorecardBalanced Scorecard

oal Measure Init

Broaden Serices Serices : Reenue J Serices : 1ollars

On#Ti%e 4ic"#up :1elier&

9ateness J Ti%es 9ate

4ac"age Trac"ing

Accurac&

S&ste% 1o!n Ti%e Minutes

8eb 4age Si%plicit& Order Ti%e

0ailed Atte%pts

Minutes5Seconds

J 0ailed Atte%pts

Be 4erceied as

9eader

Mar"et Studies

4ositie 4ublicit&

$usto%er Satisfaction Rating

J A!ards

7e!s $oerage Ti%e

1elier Kualit&

Serice ECperience

Mar"et Studies $usto%er Satisfaction Rating

C%&'#(") P")&P"C'I*"


19/22


oal Measure Init

*ncrease Strategic

4artnerships

4artnerships :

Reenue

J 4artnerships : 1ollars

Return $usto%ers Return $usto%ers J Return $usto%ers

*ncrease Reenue Reenue 1ollars

*ncrease 4rofit 4rofit 1ollars

9o!er $osts $osts 1ollars

+INNCI- P")&P"C'I*"


20/22


oal Measure Init

*%ple%entTechnolog&

Budget : Schedule 1ollars : 8ee"s

*%proe Mgt : 1istbof 1ocs

Reduce Ti%e : $ost Hours : 1ollars

MaCi%ize the *nternet Budget J Hits

IN'")N- %&IN"&& P)#C"&&

-")NIN$ #)$NI/'I#N

Boal Measure Init

Establish $utting#

Edge Technolog&

7e! Technolog& J 7e! Applications


21/22

$onclusions

• The internet reolution has presented businesses !ith uni(ue opportunities and

threats

• B2B applications are beco%ing an increasing realit& and need to be effectiel&

%anaged

• 0or %ost enterprises' B2B applications are ;ust one facet of the business

strateg& +Bric" and %ortar' B2$' B2 are others.

• A B2B %easures should co%pli%ent other %easures in a balanced scorecard6

0ocus !ill depend on particular B2B application

• B2B %easures !ill change oer ti%e


22/22

Balanced Scorecard in B2B Eniron%ent

Business Processes

Procurement/Resource Mgmt Value Chain Integration

Organization Learning Customer Relationship Mgmt

Info BrokerageVirtual marketplace

Customer Perspective

Customer Relationship Mgmt Info Brokerage

Financial Perspective

Procurement/Resource Mgmt Value Chain Integration

Virtual Marketplace

Vision &

Strategy

Documents

Ex B2Bc Models Staples Fed Ex