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On Demand Services: An Enabler of Supply Chain Strategy

Scott Needham Managing Director, Leadtec

• What is an On Demand Service?• On Demand as an Enabler of Supply

Chain Strategy

What will be Covered?

What is an On Demand Service?

• An On Demand Service is Software as a Service (SaaS)

• “Software Deployed as a Hosted Service and Accessed Over the Internet”

• Key Innovations Beyond Hosted Service:– Multi-tenant Architecture – Scalability – Customisable

• Reduces Risk, Brings IT Spending in Line with Business Returns

On Demand Services – Main Stream

• Search: The Original On Demand Service• Google and Yahoo Enter the Business World:

– Gmail for Domains, Yahoo Business Mail– Writely, Google’s On Demand Word Processor– Google Spreadsheets

• “Services Disruption” – Ray Ozzie takes over from Bill Gates

• Microsoft Responds with Office Live…• Enablers for SME Businesses

On Demand Services – Business

• Leadtec’s CRM Story - On Demand as an Enabler

• “The Business Web” – Marc Benioff Berates, Mocks the Big Software Providers…

• Over 22,000 Clients, 400,000 Users• The AppExchange, 200 On Demand

Application Vendors• Creation of New Markets

On Demand Services - Supply Chain

• The Supply Chain is Inherently Distributed – On Demand Services are Well Suited

• Example – On Demand Communications and Translation Services

Trading Partner A

Trading Partner B

Trading Partner C

Trading Partner D

Supplier 1

Supplier 2 Supplier N

Communication

ERP-Accounting

FTPHTTP AS2 Web

Services

“EDI over the internet is free…”

…

Traditional Software Solution…

…

Trading Partner A

Trading Partner B

Trading Partner C

Trading Partner D

Supplier 1

Supplier 2 Supplier N

Communication

ERP-Accounting

“We’ll all use an industry standard…”

EDI EDIFACT

EDI X12 XML Flat File

Translation

• $10Ks of Software, Consulting & Maintenance• $10Ks of Infrastructure, Data Center , DR sites

• 1-3 Full-time Equivalent Support Staff…Support: 24-7 or just Business Hours ?

Traditional Software Solution…

Supplier 1Supplier 2 Supplier 3…

Protocol of Choice

Trading Partner A

Trading Partner B

Trading Partner C

Trading Partner D

ERP-Accounting

Communi-cations

FTP HTTP AS2 Web Services

On Demand Service…

Communi-cations

EDI X12

EDI EFIFACT XML Flat File

Supplier 1Supplier 2 Supplier 3…

Format of Choice

Trading Partner A

Trading Partner B

Trading Partner C

Trading Partner D

Trans-lation

ERP-Accounting

On Demand Service…

• Typically Less than $10K Up-Front• Often Less than $500 per Month

• Includes 24-7 Support, Disaster Recovery, Specialist Expertise

On Demand Services - Supply Chain

• Powerful and Cost Effective Solution for Large Enterprises

• An Enabler for the Medium and Small Enterprise

Challenges to On Demand• Reliability: What if the service goes down?

– On Demand Service Providers Invest More in Availability and Reliability

• Security: Is my data safe?– On Demand Service Provider Invest More in

Security• Useability: Do I have to wait for web browser

refreshes?– Smart Clients and move to the “Business Web”

Other On Demand Services…

ERP-Accounting

EANnetCommunity

ManagementGS1 CMT

Head Office

Head Office …

Product Data

Synch

The Future…

ERP-Accounting

Warehouse 1 Warehouse n

Scan Packing/Logistics

Business Intelligence

Trans-action Server

Communi-cations Server

Overview• On Demand Services are Here and the

Way of the Future• On Demand Services are Enabling Supply

Chain Strategies Today• Exciting On Demand Services are in the

Pipeline.

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Thank You

Scott Needham Managing DirectorLeadtec