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Supply Chain Management to Supply Chain Management to optimise the Digital Value optimise the Digital Value
ChainChain
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Within the scope of the TEDIP-Survey and
on the basis of digital libraries!
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Diploma thesis:
Elisabeth Bergner
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ContentContent1.1 Definition of the Network Economy
1.2 Value Chain
1.3 Digital Value Chain
1.4 Definition of the digital Supply Chain
1.5 E-Supply Chain Management
2 Digital library
2.1 The Value Chain of the digital library
2.2 Services offered by the digital library
2.3 Models of service provision
2.4 Charging service provision
2.5 Cost Model for the digital library
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• A digital library decide on opening a new business segment, namely to assemble and to distribute knowledge objectsknowledge objects in the context of customised scheduled multi-media based documents on certain topics.
• The aim of the presentation is to get an idea of what is meant by digital supply chain in this context.
Starting positionStarting position
1.1 Definition of the Network Economy
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Network Economy
• What investigates TEDIPTEDIP?• Economic mechanism of action of the
digital economy that is the digital supply chain. In order to form the basis of E-Business and E-Commerce.
• What is the point?- Focus on digital knowledge objects and their
relating effects.
1.1 Definition of the Network Economy
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Value Chain
• The value chain represents the value activity of the enterprise.
• The value chain analyses the potential for cost reduction and differentation.
• The value chain is different for each enterprise.
• There is a relation to the ressourced based view.
1.2 Value Chain
ProcurProcurementement
Serviceprovision
SALESALE
Trans-sectoral planning and controlling.
Optimisation of planning and controlling.
Procurement
Serviceprovision
SALESALE
Procurement
ServiceServiceprovisionprovision
SALESALE
Procurement
ServiceServiceprovisionprovision
SALESALE
Procurement
Serviceprovision
SALESALE
Trans-organisational planning and controlling.
Procurement
ServiceServiceprovisionprovision
SALESALE
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Digital Value Chain
• The information of the physical value chain are prepared and are available by the information-system.
• Single physical processes of the value chain are sustained through digital value chain processes.
• Additional values are generate the basis of digital value chain processes.
• New business models and services are generated in the digital value chain.
1.3 Digital Value Chain
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Critisism of the value chain
• It is difficult to distinguish between the different value activities of the value chain.
• The restriction of the generic strategies
• Structur-Behaviour-Result Paradigma
• „Inside-out“ und „outside-in“
• Dynamic of the market or solid structur of the market
1.2 Value Chain
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SCM
• Definition of Supply Chain Management:– Value Chain Management– Management of a Value-Network
1.4 E-Supply Chain Management
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Ultimatecustomer
Supplier of thesupplier
Service provision
supplierCustomer
Plan | Market
procure| handling | distribute
Informations-, Information, Service and Payment Flow
Quelle: A.T.Kearney, 1994.
authorauthor
publisherspublishers
Digital Digital LibraryLibrary
UniversityUniversityPublishersPublishers
StudentsStudentsReadersReaders
AssemleAssemleKnowledgeKnowledge
ObjectsObjects
1.4 Definition of the digital Supply Chain/ 2 Digital Library
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Optimisation through supply chainmanagement (SCM)
• Optimisation through the introduction of Value Chains in an enterprise
• Optimisation through enhancement of present Value Chains
1.5 E-Supply Chain Management
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Orientation Strategical OperationalInternalInternal - Strategies to start up with
processes- for service provision- Outsourcing or inhousing- Quality Management
- Quality assurance- Purchase order quantity- Optimise process- Systems for planning, and controlling orders.
MarketviewMarketview - Develop a SCM – mission statement- Procurement- and Distribution strategies- Supplier- und customer management- Develop a SCM – Controlling – und Benchmarking-System
- Internet presentation- Procurement- and Sales market research- Supplier evaluation and –assortment- Procurement
CollaborationCollaboration - Supplier and Customer Structur policy- Agreement of SCM – Strategies with business partners - Legal definition of the collaboration- Enhance business processes together with the collaboration partners
- Manage organisational and technical interfaces- to business partners Communication strategies in consideration of special technical systems.
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Process OptimisationProcess Optimisation
• Building material and information flows between the Building material and information flows between the enterprises of a Value Chain is a good starting point for enterprises of a Value Chain is a good starting point for the optimisation and survey. the optimisation and survey.
• Process optimisation leads through lower costs or Process optimisation leads through lower costs or enhanced service provision of the chain. enhanced service provision of the chain.
• Costreduction is the consequence of optimizing other Costreduction is the consequence of optimizing other categories: Quality, Marketing, Collaboration, categories: Quality, Marketing, Collaboration, Scheduling and Controlling.Scheduling and Controlling.
• Introducing Information Technologie for example, Introducing Information Technologie for example, ECR (Efficient Consumer Response) makes it possible ECR (Efficient Consumer Response) makes it possible to reduce cycle time through the whole value chain.to reduce cycle time through the whole value chain.
1.5 E-Supply Chain Management
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Supply NetworksVirtual NetworkVirtual Network
1.1. CollaborationCollaboration
2.2. Core competence (Outsourcing)Core competence (Outsourcing)
3.3. Interorganisational systems for digital Supply Interorganisational systems for digital Supply Chain CollaborationChain Collaboration
Distinction to the value chain:Distinction to the value chain:
„Transaction still mainly occur between two partners at one time“
1.5 E-Supply Chain Management
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Global InformationNetwork
ElectronicAdvertising
MARKETResearch
ElectronicOrdering
ElectronicMarkets
ElectronicPayments
InformationServices
ElectronicCommunication
Suppliers
Sales/Order ProcInventory Mgmt.Service PlanningDistribution Mgmt.Payment SystemsDatabase SystemsTransactionNetwork Interface
Suppliers
Sales/Order ProcInventory Mgmt.Service PlanningDistribution Mgmt.Payment SystemsDatabase SystemsTransactionNetwork Interface
Supply Chain Database
Demand ForecastSales DataInventory DataService DataDistribution Data
Supply Chain Database
Demand ForecastSales DataInventory DataService DataDistribution Data
Service-Sales/Order Proc.-Inventory Mgmt-Service Plan-Distribution Mgmt-Payment Service-Database Systems-Transaction--Network Interface
Service-Sales/Order Proc.-Inventory Mgmt-Service Plan-Distribution Mgmt-Payment Service-Database Systems-Transaction--Network Interface
Distributers-Sales /Order Proc.-Inventory Mgmt.-Service Plan-Purchasing-Distribution Mgmt.-Payment Systems-Database Systems-Transaction-Network Interface
Customers(Readers, Journals)
Customer Service Database
Order Status Data
Customer Service Database
Order Status Data
= Orders andPayments
SUPPLY CHAIN NETWORK
Trans-organisational planning and controllingTrans-organisational planning and controllingof a virtual libraryof a virtual library
Library ILibrary ILibrary ILibrary I Library IILibrary IILibrary IILibrary IILibrary IIILibrary IIILibrary IIILibrary III
Trans-organisational planning and controllingTrans-organisational planning and controllingof a virtual libraryof a virtual library
Library ILibrary ILibrary ILibrary I Library IILibrary IILibrary IILibrary IILibrary IIILibrary IIILibrary IIILibrary III
Trans-organisational Trans-organisational planningplanning of a virtual libraryof a virtual library
Library ILibrary ILibrary ILibrary I Library IIILibrary IIILibrary IIILibrary III
PublisherPublisherPublisherPublisher PublisherPublisherPublisherPublisher
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Value Chain
• Shorten inherent waiting time in the system: no bundling of publications
Single copy for specific target group
• IT influences VC.
2.1 The Value Chain of the digital library
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Services of the digital library
• Resourcing:- Digitale books and journals
- Metadata
- Search and Profilservices
• Digital service:- Interlending
- Konvertation
- Print orders
2.2 Services offered by the digital library
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Service Models
• Activ supply
• Passive supply
• Activ collection
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Cost models for the digital library
• Single subscription
• Licences for user groups
• Costs per demand
• Costs per accomplishment
• Costs per document
• Costs per supply
• Costs per time (for non discret services)
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Process-Cost-Management
• Where use Activity Based Costing?
• Activity based Budgeting
• Activity based Performance Measurement
• Activity based calculating
• The aim is to calculate the product price Target Costing
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Value Chain - Survey
• The value chain is very important for the cost management.
• The three elements of the survey are:
1. Strategical position
2. Analysis the cost drivers
3. Analysis the value chain
1.2 Value Chain
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Charging Service
• known Users
• anonymous Users
• Cooperation among digital libraries
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Supply Chain Collaboration
Costs and BenefistsCosts and Benefists Performance MeasuresPerformance Measures ResultsResults
System Implemenation
and Integration Cost
Process Coordination
and Integration Cost
Data Translation
and Intgeration Cost
Partnership Instability Cost
Total Cost of
Ownership of
System
Switching Cost
Partnership
Opportunity Cost
Cycle Time Reduction
Process Cost Reduction
Supply Chain
Cost Reduction
Net
Benefit
Of
SCM
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• With TCO TCO (Total Cost of Ownership) and
the Interorganisational Cost Management (IOCM)Interorganisational Cost Management (IOCM) are two areas that cover the Supply Chain Costing. It is important is to divide the determination for costs in the following three parts.
• Direct costs• Costs of the proceedings• Transaction costs
Through this division you are able to come up to the requirements of the value chain.
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Costs levels of the value chain
Direct costsDirect costs
Proceeding costsProceeding costs
TRANSACTION COSTSTRANSACTION COSTS
Direct costsDirect costs
Proceeding costsProceeding costs
ENTERPRISE 1ENTERPRISE 1
ENTERPRISE 2ENTERPRISE 2
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Transaction costs
• The starting point of the critisim is cost accounting, that is not able to represent costs thereby incurred outside the service provision.
• Transactions costs of procurement and sale• cost accounting could be extended by transaction
costs and collaboration costs.• Transactions costs can only be limited connected
with present financial instruments.• Criticism: Devision into direct and indirect costs!
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Assignability of transaction costs
• Nevertheless of critisism there are starting points to introduce transaction costs due to the following reasons:
• Align transaction costs with the value chain• Strategic position is possible• Structural cost drivers can be integrated • Customers are the starting point.
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Process costs within the value chainProcess costs within the value chain
• SCORSCOR Model for the VC (Top Down)• Activity based Costing is bottom up• Begin with the level of the costs centers and
analyse these activities. Then comprimise them to processes.
• Standardised process definition in the enterprise has the advantage, that due to process description and the relating cost data of an enterprise, these cost data and process description could be compared.
• Different indirect costs.
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Distribution
P l a n n i n g
CUSTOMER
Procurement Service
SCOR
Process
Cost center 1 Cost center 2 Cost center 3
ActivitiesActivities ActivitiesActivities ActivitiesActivities
1.11.1
1.21.2
1.31.3
2.12.1
3.33.3
3.23.2
3.13.1
2.22.2
Distribution
Library ILibrary ILibrary ILibrary I Library IILibrary IILibrary IILibrary II
PublisherPublisherPublisherPublisher PublisherPublisherPublisherPublisher
P l a n n i n g
Procurement SupplyService
Cost centersLibrary II
Cost centersLibrary I
Cost centersPublisher
Cost centersPublisher
ActivityActivity
1.11.1
1.21.2
1.31.3
ActivityActivity
2.12.1
2.22.2
2.32.3
ActivityActivity
3.13.1
3.23.2
3.33.3
ActivityActivity
4.14.1
4.24.2
4.34.3
ProcessesProcesses
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Literature/ URLhttp://silmaril.smeal.psu.edu/misc/supply_chain_intro.html 13-01-2003.http://www.otp.org Abruf 7.12.2002 http://www.mastercard.com/sethttp://www.graphics.uni-bonn.de/dfgspp.v3d2Abruf 5.12.2002http://www.milicent.digital.comAbruf 4.12.2002http://www.hrl.il.ibm.com/mpayAbruf 3.12.2002http://www.digicash.comAbruf 2.12.2002http://www.cybercash.deAbruf 2.12.2002http://elektra.informatik.tu-muenchen.deAbruf 1.12.2003
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Literature/ URL• http://medoc.informatik.tu-muenchen.de
• http://www.global-info.org
• http://link.springer.de
• http://opera.iiie.org
• http://ist.unibw-muenchen.de/Lectures/WT2002/DigiBib/Frank/PraesentationDigitaleBibliotheken.pdf
• http://www.dlib.org/dlib/december02/soergel/12soergel.html
• http://www.cni.org/regconfs/1997/ukoln-content/repor~24.html
• http://www.firstmonday.org/issues/issue7_5/lynch/index.html
• http://www.fiz-karlsruhe.de/pressroom/getinfoe02.html
• http://www.bl.uk/services/publications.html
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Literature/ URLAndersen Andersen http://www.business.auc.dk/evolution/esapapers/welcome.html
McLarenMcLaren et.al.: Supply Chain collaboration alternatives.S349.
http://www.emeraldinsight.com/1066-2243.htm
39
literature/ TEDIP Report
Keszi,R;Makó,C:Keszi,R;Makó,C: Outsourcing as An Indicator of Regional Competitiveness in the E-Economy. A Methodological Attempt to Analyse 18-Countries Data of EMERGENCE Project
40
H.BullingerH.Bullinger:Optimierung der Abläufe, in:ZWF Jahrg.97,(2002)
Boutellier, R.,Locker,ABoutellier, R.,Locker,A.:Beschaffungslogistik: mit praxiserprobten Konzepten zum Erfolg, München-Wien, Hanser, 1998.
The third ACM Conference on Digital Libraries, Pittsburgh, 1998.
Horvàth und Partner(Hrsg.): Horvàth und Partner(Hrsg.): Qualitätscontrolling/Ein Leitfaden zur betrieblichen Navigation auf dem Weg zum Total Quality Management, Stuttgart, 1997.
Wildemann, H.:,Wildemann, H.:,Supply Chain Management und E-Technologien in: Reihe BWL aktuell, Klagenfurt,2001..
Ziegenbein,K.:Ziegenbein,K.:Controlling in: Kompendium der praktischen Betriebswirtschaft, Hrsg.: Olfert, K., Leipzig, 2002.
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Literature /periodicals
Houlihan, J.:Houlihan, J.:International Supply Chain Management in: International Journal of Physical Distribution and Logistics Management, Vol.15, No.1, p.22-38, 1985.
Jones,T.and Reilly,DJones,T.and Reilly,D.: Using Inventory for Competitive Advantage through Supply Chain Management in: International Journal of Physical Distribution and Lgoistics Management, Vol. 15, No.5, p.16-22, 1985.in ZWF: Jahrg.95(2000)7-8, Prozessoptimierung, S.349.
McLaren, Head et.al:McLaren, Head et.al:Supply Chain collaboratives: understanding the expected costs and benefits.http://www.emeraldinsight.com/1066-2243.htm Abruf 10.12.2002