e-roadmapping This page intentionally left blank e-roadmapping digital strategising for the new economy by Stefan P. Bornheim with Jutta Weppler and Oliver Ohlen with case studies from DaimlerChrysler, getmobile.de, GoIndustry.com and Siemens © Stefan P.Bornheim 2001 Softcover reprint of the hardcover 1st edition 2001 978-0-333-78695-6 All rights reserved.No reproduction,copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced,copied or transmitted save with written permission or in accordance with the provisions of the Copyright,Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency,90 Tottenham Court Road,London W1P 0LP. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The author has asserted his right to be identified as the author of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2001 by PALGRAVE Houndmills,Basingstoke,Hampshire RG21 6XS and 175 Fifth Avenue,New York,N.Y.10010 Companies and representatives throughout the world PALGRAVE is the new global academic imprint of St.Martin’s Press LLC Scholarly and Reference Division and Palgrave Publishers Ltd (formerly Macmillan Press Ltd). ISBN 978-1-349-41858-9 ISBN 978-0-230-50844-6 (eBook) DOI 10.1057/9780230508446 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. A catalogue record for this book is available from the British Library. Library of Congress Cataloging-in-Publication Data Bornheim,Stefan P. E-roadmapping :digital strategising for the new economy / Stefan P.Bornheim ;with assistance from Jutta Weppler and Oliver Ohlen. p.cm. Includes bibliographical references and index. ISBN 978-1-349-41858-9 1.Electronic commerce.2.Business enterprises—Data processing.I.Weppler,Jutta.II.Ohlen,Oliver.III.Title. HF5548.32 .B665 2001 658.8’4—dc21 2001021887 Editing and origination by Aardvark Editorial,Mendham,Suffolk 10 9 8 7 6 5 4 3 2 1 10 09 08 07 06 05 04 03 02 01 C ONTENTS List of Figures viii List of Tables x Preface xi List of Abbreviations xiv Introduction 1 Chapter 1 Challenges of Change 5 Literature review 5 Definitions 6 Digital patterns and laws 7 From ERP to EAI and ASP 15 From e-commerce to m-commerce,WAP and UMTS 17 From mere information access to total transparency and 1-2-1 marketing 21 From hierarchies to networks and digital value chains 23 Summary 25 References 26 Chapter 2 Shift in Competition 27 Drivers of competition 28 Competitive output:digital landscape 33 Strategies derived from organisational consequences of blurring boundaries and complex systems 38 Summary 41 References 41 Chapter 3 Strategising in the Digital Economy: e-roadmapping 42 Strategising in the Digital Economy:e-roadmapping 42 Analysis 42 Design 44 End-product 46 e-roadmapping:a concrete example 46 e-roadmapping:an automotive example 52 v Contents vi Concretising an automotive e-roadmap:mobility provider 57 The e-roadmapping index (eRI) 59 References 70 Chapter 4.1 Introduction to the Cases 71 Chapter 4.2 Materialising e-business:From Idea to Realisation 73 Johannes Schmohl,Senior Manager,marchFIRST Preface 73 Idea identification 74 Design 79 Execution 89 Summary 93 Chapter 4.3 getmobile.de:Digital Strategising of a High-growth Internet Start-up 94 Oliver Ohlen,Manager e-Commerce,getmobile AG Introduction 94 Development path of the digital strategy 95 Summary – getmobile.de’s digital strategy at a glance 105 The e-roadmapping analysis 105 References 111 Chapter 4.4 GoIndustry.com:Surplus Equipment Online 112 Paul Vega,Business Development Group,GoIndustry.com Introduction 112 Why focus on business-to-business? 113 The B2B auction opportunity 122 The business model of GoIndustry 123 Summary of GoIndustry’s benefits to buyers and sellers 127 Categorisation and roll-out approach 127 Competitive factors 128 Strategy and the road ahead 129 The e-roadmapping analysis 135 Chapter 4.5 DaimlerChrysler Five Star Market Center: A Roadmap for Small Business e-procurement 140 Market Center Development Team,eConnect Platform, DaimlerChrysler Introduction 140 Business model 141 Organisation and core competencies 147 Market and competition 150 Contents vii Structural competitive advantage 152 The e-roadmapping analysis 153 Chapter 4.6 Siemens:The Transformation into an Application Service Provider 155 Stefan Holler,Vice-President,Siemens Business Services, Management Consulting Anatomy of Siemens I&C for ASP providing 155 Application service provision:an overview 158 Positioning Siemens Business Services in today’s ASP market 169 Conclusion 173 The e-roadmapping analysis 173 Chapter 5 The Quest for Total Connectivity 176 Collaborative commerce 176 Summary 188 Index 190 L F IST OF IGURES 0.1 Roadmap of Chapters 1–3 4 1.1 Second generation profit models 11 1.2 Playing the digital game 12 1.3 The strategy web 14 1.4 From ERP to EAI and ASP 17 1.5 From e-commerce to m-commerce,WAP and UMTS 20 1.6 From information access to total transparency and 1-2-1 marketing 22 1.7 From hierarchies to networks and digital value chains 25 3.1 The e-roadmapping process 43 3.2 e-roadmapping strategic axis 45 3.3 Positioning today and in the future 48 3.4 Portfolio of strategy webs 50 3.5 Community of co-opetition 51 3.6 The e-business model for the automotive industry 54 3.7 Unbundling the traditional organisation 56 3.8 The customer-driven network for the automotive industry 58 3.9 Value proposition of a mobility provider 59 3.10 The e-roadmapping index (eRI) 69 4.1.1 Case matrix 71 4.1.2 The strategy web and the cases 72 4.2.1 e-business orientations for new business development 76 4.2.2 e-business positioning options 80 4.2.3 Definition of value proposition – example portals and marketplaces 82 4.2.4 Materialising e-business – overall concept 88 4.2.5 Detailing of value proposition – example information and education 90 4.2.6 Online business logic 91 4.3.1 getmobile.de’s one-stop shopping solution for mobile communication devices 96 4.3.2 One-step order process 96 4.3.3 Motorola’s online shop realised and hosted by getmobile.de 98 4.3.4 The basic business model of tel2bmarket.net 101 4.3.5 Basic functionality of the cardmaxx.de business model 104 4.3.6 getmobile.de – partner of choice for Old Economy players 104 4.3.7 getmobile.de’s eRI score 107 4.3.8 getmobile.de’s value chain and future opportunities 109 viii List of Figures ix 4.4.1 B2C Lastminute.com stock price vs.FTSE 100 114 4.4.2 Vertical and horizontal markets (illustrative example) 115 4.4.3 Fragmented domestic auction market 118 4.4.4 Fragmented auction markets with geographical clusters 119 4.4.5 Margin structures and inefficient transactions in B2B auctions 121 4.4.6 Western European B2B Internet auctions 123 4.4.7 The GoIndustry trading platform concept 124 4.4.8 Multi-lingual,multi-currency trading platform 125 4.4.9 Market adoption with risks 130 4.4.10 Online B2B network effects in an SD model 135 4.4.11 GoIndustry eRI score 137 4.5.1 Market Center vision 142 4.5.2 Revised value proposition 145 4.5.3 The partnership business model 146 4.5.4 Core competencies 147 4.5.5 Auto dealer e-procurement options 150 4.6.1 Siemens I&C content 157 4.6.2 Domains of enterprise application outsourcing 158 4.6.3 Contrasting ASP and outsourcing 160 4.6.4 Enterprise computing in the Internet age 161 4.6.5 Comparing cost:traditional vs.ASP enterprise computing 163 4.6.6 Potential ASP players 166 4.6.7 The ASP value chain 168 4.6.8 Positioning the SBS ASP offering 169 4.6.9 The SBS ASP value chain 171 4.6.10 Siemens Business Services eRI score 174 5.1 Current market landscape 179 5.2 B2C and B2B statistics 181 5.3 Components of the collaborative commerce vision 184 5.4 Vision of collaborative commerce in action 186 5.5 Strategic complementarity map for collaborative commerce vision 188