ONLINE FILE W7.1 LAND O’LAKES COLLABORATES ...wps.prenhall.com/wps/media/objects/5073/5195381/pdf/...Chapter Seven: E-Supply Chains, Collaborative Commerce, and Corporate Portals

Chapter Seven: E-Supply Chains, Collaborative Commerce, and Corporate Portals 1

ONLINE FILE W7.1

LAND O’LAKES COLLABORATES WITH COMPETITORS TO IMPROVE ITS LOGISTICSThe ProblemLand O’Lakes, Inc. (landolakesinc.com) is a $6 billion nationalfood and agricultural cooperative owned by and servingthousands of producer-members, many of which are commu-nity cooperatives. It is the nation’s second-largest dairycooperative and has the largest market share of butter anddeli cheese.

Land O’Lakes ran into trouble in 2002 in every majorarea of operations. Sales fell $712 million from the previousyear, to $5.8 billion, partly due to smaller markets forbranded dairy products as a result of the slow economy.Land O’Lakes also was burdened with debt from its 2001acquisition of Purina Mills.

Another factor was Wal-Mart, which was moving furtherinto the grocery business. Wal-Mart’s renowned distributionsystem includes super-efficient regional distribution centersacross the country, where trucks that bring goods in and takethem out can “cross-dock” without having to keep largeamounts of inventory in a holding area. Land O’Lakes (and itscompetitors) had to be able to accommodate Wal-Mart’sdemanding schedules by having trucks show up at preciselythe required time.

Land O’Lakes also has to compete for space insupermarkets’ refrigerated sections with huge competitorssuch as General Mills and Kraft Foods. These giants use theirsize, clout, and relationships with supermarket retailers,paying slotting allowances (up-front payments that a foodmanufacturer must pay to a supermarket for access to itsshelves) and engaging in other practices that make the fightfor shelf space extremely competitive. Therefore, LandO’Lakes must deliver more frequently in order to keep enoughstock at the stores.

The SolutionDelivery trucks were empty about 25 percent of the time.Just 2 years ago, Land O’Lakes truckers—some 50 differentcarriers—spent much of their time shuttling empty trucksdown slow-moving highways, wasting several million dollarsannually.

Land O’Lakes had to find ways to become more efficientin order to reduce costs. To address inefficiencies, LandO’Lakes started using Web-based collaborative logistics. Thecompany turned to Nistevo (nistevo.com), a hosted softwareservice that enables manufactures, retailers, and carriers toplan and execute their inbound and outbound logistics.

Nistevo’s collaborative logistics system continuouslyupdates and consolidates information about routes, loads,and schedules from members’ in-house logistics schedulingsystems. Only Nistevo sees the whole picture. For example, ifGeneral Mills and Land O’Lakes are sharing a route, LandO’Lakes routes are not shown to General Mills, and vice versa.Nistevo scans the millions of possible route configurationsand route-load combinations to look for empty trucksand less-than-truckload product amounts. When it findsthese situations, Nistevo can merge loads from differentcompanies, even competitors, bound for the samedestination, or destinations along the way.

The ResultsTo join Nistevo’s network, Land O’Lakes paid an initialsubscription fee of $250,000, and the co-op incurredanother $250,000 in related startup costs, such as trainingits 10-person logistics staff to use the collaborative system.However, the company says that savings from its logisticsstrategy covered those fees within the first 6 months of use.In fact, the new logistics strategy is cutting freight costs by15 percent annually, for an annual savings of over $2 million.

Now, thanks to the Web, the company can identifyempty trucks and the best carriers and find the fastestroutes, piggybacking Land O’Lakes onto dozens of GeneralMills’ and Georgia-Pacific Corp.’s routes to gain savings.

Questions1. Enter nistevo.com and learn more about how it serves

the transport industry.

2. What role does EC technology play at Nistevo?

REFERENCES FOR ONLINE FILE W7.1Buss, D. “Land O’Lakes Shares the Load.” CIO Insight,

May 9, 2003.Karolefski, J. “Driving Up Costs.” Food Logistics, February 1,

2005. archives.foodlogistics.com/publication/article.jsp?pubId=1&id=101# (accessed January 2007).

Nistevo.com. “Land O’Lakes Reduces Supply Chain CostsThrough Online Execution of Logistics Operations.”nistevo.com/v1/pdfs/LOL_Case_Study.pdf (accessedJanuary 2007).

2 Part 3: Business-to-Business E-Commerce

Online File W7.2 What Is RFID?

Radio Frequency Identification (RFID) tags can be attached to or embedded in objects, animals, or humans and use radio wavesto communicate with a reader for the purpose of uniquely identifying the object or transmitting data and/or storing informa-tion about the object. How RFID tags can smooth supply chains is shown in Exhibit W7.2.1.

EXHIBIT W7.2.2 Comparison of Active vs Passive RFID TagsPassive RFID Tags Active RFID Tags

Internal power supply No, rely on energy from reader Yes, small internal batteryRequired signal strength from reader Relatively strong Relatively weakAbility to send and receive data Can only send or receive in range Can continuously monitor and

of reader record dataProximity to reader Relatively close—up to 3 meters Relatively distant—100 meters or moreCost Generally cheaper Generally more expensiveSize Generally smaller Generally largerSuitable applications Single, relatively few tag reads, highly Multiple tag reads required, up to

structured repetitive processes 100 mph past reader

Sources: Tech-faq.com (2006) and Wikipedia (2007).

Manufacturer’s logisticssoftware locatessupplier’s trucks, readsRFID tags of contents,routes trucks toproduction

Shipments to manufacturers

Finishedgoodstrucks

SHOPWELL

Supply chainmanagement systemrecognizes need forinventory

Supply chain managementsoftware also places orders forraw materials to begin productionof additional products

Inventorymanagementsystem sendsrequest for more

Grocery

RetailerusingRFID

Warehousesends whatinventoryit can

Retailers warehouse

RFID at warehousedirects trucks to docks

INVENTORYNEEDED

Manufacturer Suppliers

EXHIBIT W7.2.1 How RFID Tags Smooth Supply Chains

There are two main types of RFID tags, usually referred to as passive and active tags, each with quite different character-istics and capabilities. Each is better suited to somewhat different types of application (see Exhibit W7.2.2).

One of the critical differences relates to the source of power for the tag. Passive tags do not contain their own internalpower supply but, rather, reflect energy from a reader or temporarily store minute amounts of energy from a reader that is usedto send back its response. Therefore, passive tags require relatively strong signals to be sent from the reader, but the signalreturned to the reader is generally relatively weak. Out of range of the reader, they can neither send nor receive information.Passive tags are inexpensive, relatively small, and must be in close proximity to their readers (3 meters or less). By contrast,active tags do contain an internal power supply, generally a small battery, which continuously powers the tag. Therefore, theactive tag requires only low-powered signals from a reader, because it can respond using its own internal power supply. Because


REFERENCES FOR ONLINE FILE W7.2A.T. Kearney. “RFID/EPC: Managing the Transition.” 2004.

atkearney.com/shared_res/pdf/RFID-EPC_S.pdf(accessed October 2006).

Autoid.org. “Part 1: Active and Passive RFID: Two Distinct,But Complementary Technologies for Real-Time SupplyChain Visibility.” 2002. autoid.org/2002_Documents/

sc31_wg4/docs_501-520/520_18000-7_WhitePaper.pdf(accessed December 2006).

TechFaq.com. “What is RFID?” techfaq.com/rfid.shtml(accessed December 2006).

Wikipedia. “RFID.” 2007. en.wikipedia.org/wiki/RFID(accessed January 2007).

of constant supply of power, active tags can continuously monitor and record information and record dates and times associatedwith particular events, irrespective of their proximity to a reader. Active tags are generally larger than passive tags and are moreexpensive; however, they can be much further from their readers and still communicate effectively (100 meters or more).

The power supply difference has other critical impacts on the functionality of RFID tags. Passive tags are not well suited totransmitting multiple-tag data rapidly (such as when a loaded truck or forklift passes by a reader, with tags attached to pallets,cartons, and individual items in that load). Each tag must communicate with the reader, and without any internal power supply,this takes some time. Thus, loads containing passive tags must be driven very slowly and close by a reader. In addition, theyare prone to interference between tags as the number of tags increases.

Active tags are much better suited for multiple-tag data collection because the readers are able to collect data from manymore tags quickly at a much further distance. Active tags can pass by readers at speeds of 100 mph and still be accurately read.

Passive tags have very limited storage capability, approximately 128 bytes but do not have any search capability. Activetags, by contrast, are able to store about 1 Mg of data and do have search capabilities. Thus, in most organizations, supplychain operations may require a mix of active and passive tags, depending on the nature of the activities and processesinvolved.

Passive tags are generally better suited to highly structured, repetitive processes, such as conveyor belts moving boxes,luggage, or individual items. Active tags are better when there is less structured movement, where there are security and moni-toring requirements, when there is a substantial area to be monitored, and where multiple tags need to be read simultaneouslyand rapidly (TechFaq.com 2006; Wikipedia 2007; Autoid.org 2006).

RFID chips vary quite substantially in terms of size and cost, and both of these factors are connected to the power andfunctionality associated with a particular chip. Images of different sizes and types of tags are available at SpyChips(see spychips.com/devices/tag_images.html). Although some RFID tags are reportedly very small (about the size of a grain ofrice), most are much larger, ranging from 3 to 6 inches in length. The RFID tag includes an antenna and a chip that containsan electronic product code (EPC). The EPC stores much more information than a regular bar code (e.g., when and where theitem was made, where the components are from, and when the item might expire).

The prospect of affordable tags has retailers interested in the potential benefits. If every item in a shop were tagged,retailers could both improve customer service and combat top-line losses, which are typically 2 to 15 percent of sales. RFIDtechnology could be used to locate mislaid products, deter theft, and even offer customers personalized sales pitches throughdisplays mounted in dressing rooms. Ultimately, tags and readers could replace bar codes and checkout labor altogether.

RFID technologies are still somewhat limited in their real-life uptake, but many firms are trialing them for a range ofpurposes, and there is every indication that areas of application will increase over the next few years. Many large companies,including Wal-Mart, have already implemented RFID technologies in some of their operations, and many more are currently invarious stages of pilot programs, such as Patties Pies, Australia Post, and Australian Air Express in Australia.

RFID promises substantial benefits. RFID tags on pallets, cartons, and individual items offer better tracking of goods alongthe supply chain and should help reduce to eliminate unwanted stock outs. They should also ensure accuracy of goods suppliedagainst purchase orders and invoices, thus reducing need for reconciling payments against shipments and the like. They alsoshould help reduce spoilage of goods with specific use-by dates. And finally, they should help ensure that goods are shipped tothe correct destinations, both when and where they are needed (A. T. Kearney 2004). However, these are just few of thebenefits that have been reported from RFID initiatives. Innovative uses of RFID tags have achieved these and some otherpromising benefits. Many of these benefits will have application to a much larger range of industries and goods.


ONLINE FILE W7.4

INTERORGANIZATIONAL COLLABORATION AT NYGARD OF CANADAThe apparel industry is one of the most competitiveindustries, and global manufacturers are often forced tooperate with razor-thin margins. IT is often adopted asa major competitive weapon. Nygard International(nygard.com) of Winnipeg, Canada, is a leader in adopting ITand e-commerce in the apparel industry.

Nygard developed an ERP and SCM system that controlsall internal operations, purchasing, product development,accounting, production planning, and sales. This enabled thecompany to develop tight integration with its tradingpartners. For example, the moment that a customer buys apair of pants at a retail store, the information moves fromthe point-of-sale terminal to an inventory system, whichautomatically generates a reorder when the pants inventorydecreases to a prespecified level.

In the apparel industry, it is most important to use ECtools on the procurement side. When sales are sufficient totrigger orders, Nygard’s manufacturing specifications storedin the ERP system automatically trigger records on all rawmaterials, such as fabrics, zippers, and buttons. When eachraw material falls below a certain level, an automaticreorder is generated. The system not only matches orderswith the right fabrics, but it searches a database for themost efficient combinations of other raw materials to beused with those fabrics. This allows just-in-time productionand delivery of customized orders—sometimes even on thesame day the order is received. To ensure just-in-time deliv-ery, Nygard must have visibility not only into its suppliers’systems but also into its suppliers’ suppliers’ systems. Withsuch information, Nygard can make commitments to its

REFERENCES FOR ONLINE FILE W7.3DiCarlo, L. “Case Study: Webcor Builders.” PC Computing,

December 1999, pp. 108–120. Webcor Builders.webcor.com (accessed January 2007).

ONLINE FILE W7.3

WEBCOR BUILDERS GOES ONLINE WITH ITS PARTNERSWebcor Builders (webcor.com) builds apartment buildings,hotels, and office parks and earns revenues in excess of$1 billion a year. For years, the company suffered from poorcommunication with its partners (architects, designers,building owners, subcontractors) and struggled with toomuch paperwork. Reams of paper documents were sent backand forth via “snail mail.” In a very competitive industry,inefficiencies can be costly. Therefore, Webcor decided tointroduce c-commerce into its operations. Webcor’s goal wasto turn its CAD drawings, memos, and other information intoshared digital information.

To enable online collaboration, Webcor uses an ASP thathosts Webcor’s projects using ProjectNet software on asecured extranet. The software is complex; it was difficult toget everyone to accept ProjectNet, and some user trainingwas necessary. However, Webcor found itself in a strongenough market position to be able to say that in the nearfuture, it would not partner with anyone who would not useProjectNet.

With everyone on the ProjectNet system, Webcor’s busi-ness partners can post, send, or edit complex CAD drawings,

digital photos, memos, status reports, and project histories.ProjectNet provides a central meeting place where users canboth download and transmit information to all parties.Everyone involved in a project is more accountable becausethere is a digital trail, and partners now get instant access tonew drawings.

One of the major benefits of ProjectNet is that employ-ees now spend more time managing their work and less timeon administrative paperwork. Several clerical workers werelaid off, and the saved cost of their salaries is covering thesoftware rental fees.

Questions1. Draw the supply chain of Webcor before ProjectNet.

2. What B2B model is this (e.g., sell-side, buy-side, etc.)?

3. What are the benefits of this c-commerce project toWebcor?

4. What are the benefits of this c-commerce project toWebcor’s clients?

(continued)


ONLINE FILE W7.5

CADENCE DESIGN SYSTEMS: DEPLOYING A CORPORATE PORTAL ON ITS INTRANETCadence Design Systems, Inc., is a leading supplier ofelectronic design automation (EDA) software tools andprofessional services for managing and accelerating thedesign of semiconductors, computer systems, networking andtelecommunications equipment, consumer electronics, andother electronics-related products. The San Jose–basedcompany employs more than 5,000 people worldwide tosupport the development requirements of the world’s leadingelectronics manufacturers.

In the late 1990s, Cadence recognized that the businessmodel for EDA products was beginning to evolve from atools-oriented model to one where software and consultingservices held the potential for the greatest revenue growth.To address this changing model, Cadence identified two areasof customer interaction: sales and logistics. The new salesstrategy required the sales force to have an in-depth under-standing of Cadence’s product line of almost 1,000 productsand services. With two separate organizations (sales andlogistics) interacting with customers, coordination and

communication were needed to ensure an effective andconsistent relationship built on a real understanding of thecustomers’ issues.

For almost a year, Cadence worked with a consultingfirm to create an intranet-based corporate portal to supportits sales organization. The system, called OnTrack, uses ahomepage with links to other pages, information sources,and custom applications to map each phase of the salesprocess with supporting materials and reference information.

With OnTrack, the sales representative now has a singleunified tool that provides all the information and dataneeded for the sales process, from finding new clients toclosing a deal to managing the account. In addition, globalaccount teams have their own homepages where they cancollaborate and share information. However, OnTrack is muchmore than a static road map. For example, information on acustomer or competitor is now available instantly throughaccess to an outside provider of custom news. The sales repalso can use a search engine to locate everything from

REFERENCES FOR ONLINE FILE W7.4Carlyle, B., and D. Carlyle. “Managing the Supply Chain.”

Applied Apparel Magazine, March 4, 1999.Gxs.com. “GXS First Annual Customer Awards Program

Winners.” gxs.com/customers/customer_awards.htm(accessed January 2007).

Nygard.com. nygard.com (accessed January 2007).Stephenson, W. “Nygard Goes Electronic.” Winnipeg Sun,

June 3, 1999.

customers that it can fulfill. If raw materials are not deliv-ered as promised, the supplier pays Nygard a delay penalty.This rarely happens.

In addition, a Web-based control system enables thecompany to conduct detailed profitability studies; thus everyproposal and decision is evaluated by its impact on the bot-tom line. Decision support system (DSS) models are used forthis purpose.

More recently, Nygard selected the GXS Trading Grid as akey component of its Web-based Retail Fashion Expert (RFX)order system. Nygard realized that handling paper wasexpensive and time consuming, especially when EC is moretransparent and immediate. As a result of its deployment ofEC, Nygard has reduced order processing lead times by8 days, has reduced buyers’ workloads by 75 percent, andhas increased sales by more than 42 percent.

One of the major issues in the apparel industry is thetransfer of manufacturing operations to countries where laboris inexpensive. Nygard decided not to outsource to othercountries because doing so can double the cycle time as wellas the needed inventory levels. To stay in Canada and remaincompetitive, the company must use EC to control its laborand manufacturing costs.

Questions1. What drives Nygard’s EC applications?

2. What is the role of SCM and ERP at Nygard?

3. With whom does Nygard collaborate? How is it done?

4. How can Nygard make deliveries at the specific dateand time requested by customers?

ONLINE FILE W7.4 (continued)

INTERORGANIZATIONAL COLLABORATION AT NYGARD OF CANADA

(continued)


REFERENCES FOR ONLINE FILE W7.5Cadence. cadence.com (press releases January 21, 2002,

June 27, 2002, and July 22, 2002).EMC. “Customer Success Story: Cadence Design Systems.”

2002. software.emc.com/about_us/customer/profiles/cadence.htm (accessed February 2007).

ONLINE FILE W7.5 (continued)

financial information to recent news articles and pressreleases about clients or competitors. In addition, the systemis used to disseminate Cadence news and other information.

All creators of information in the company, from salesreps to marketing and management personnel, are responsi-ble for maintaining the information contained in OnTrack.With a wide range of people entering data, a simple-to-useinformation submission process was needed. To avoid theneed to understand HTML, electronic forms were created toallow submission or modification of any part of the informa-tion in the OnTrack system. Anyone with appropriate accesscan now add a new message to the daily alerts, modify a stepin the sales process, or update a customer presentation byusing these custom tools.

Feedback is a key part of OnTrack. Reports highlightfrequently accessed pages and documents, and reviews offrequent searches identify new information to include in thesystem to make critical information even easier to access.

Managers who made the decision to implement theOnTrack system learned several lessons. First, although theuse of a browser and the navigation of a Web page requiredonly minimal employee training, the application of theOnTrack system to the daily activities of the sales reps wasnot as easy. A second lesson was the holistic approachCadence took in unifying the technology with the process.Rather than mandate a new process or install a new softwaresystem, Cadence did both. The combination of an easy-to-use

technology, a refined process, and the appropriate supportsystems created a single coherent system that could supportthe new sales paradigm.

OnTrack was implemented at a relatively low cost.Cadence leveraged its existing infrastructure and wisely hiredoutside experts to create the application rather than devot-ing internal resources to it. This choice allowed the companyto focus its efforts on defining the process and tools neededto support the sales force rather than designing software.

Finally, the greatest impact of OnTrack has been theresult of the shortened training time for new sales reps. Anew salesperson stated that he had learned in 2 days fromOnTrack what it took months to learn at a previous company.With 40 new reps hired in the first year and 40 planned foreach of the next 2 years, reducing the training time for newsales personnel has created additional profits for Cadence.Cadence calculates that OnTrack has achieved a high returnon investment, well over 100 percent!

Questions1. How does the corporate portal assist sales

representatives?

2. What were the major lessons learned by Cadence?Identify EC models and transactions used in this case.

3. How can the portal system accelerate training?


ONLINE FILE W7.6

INTEGRATING EC AND ERP AT CYBEXIn the late 1990s, Cybex International (cybexintl.com),a global maker of fitness machines, was having troublemeeting the soaring demand for its popular products. Tomeet demand, the company had to work with rush ordersfrom its almost 1,000 suppliers at an extremely high cost.This was a result of poor demand forecasting for themachine’s components that was caused by using threedifferent legacy systems that Cybex had inherited frommerger partners.

After examining existing vendors’ supply chainsoftware, Cybex decided to install an ERP system for itssupply chain planning and manufacturing applications.Together with the software installation, the companyanalyzed its business processes and made the necessaryimprovements. It also reduced the number of partssuppliers from 1,000 to 550.

Here is how the system works: Customer orders areaccepted at the corporate Web site and are instantlyforwarded to the appropriate manufacturing plant (the company has two specialized plants). The ERP uses itsplanning module to calculate which parts are needed for eachmodel. Then, the ERP’s product configurator constructs acomponent list and a bill-of-materials needed for each spe-cific order. This takes seconds and expedites shipment.

The ERP system helps with other processes as well. Forexample, Cybex can e-mail a vendor detailed purchase orderswith engineering changes clearly outlined. These changes arevisible to everyone, so if one engineer leaves the company,his or her knowledge is in the system and is easy to find.Furthermore, dealers now know that they will get deliveriesin less than 2 weeks instead of the previous 4 weeks, andthey can now track the status of each order. The system alsohelps Cybex to better manage its 550 suppliers. For example,the planning engine looks at price variations across product

REFERENCES FOR ONLINE FILE W7.6Barles, D. “PeopleSoft Works Out with Cybex.”

Line56.com, August 28, 2002. line56.com/articles/default.asp?ArticleID=3971 (accessed February 2007).

Gustke, C. “No More Heavy Lifting at Cybex.” Forbes(supplement), October 7, 2002, and from CybexInternational.

cybexintl.com (accessed 2002–2004).

lines, detecting opportunities to negotiate price reductionsby showing suppliers that their competitors offer the sameproducts at lower prices.

The new system gives Cybex’s suppliers projectedlong-term and short-term production schedules. This helpssuppliers with their own planning, and it helps Cybexensure that all parts and materials are available whenneeded. More timely delivery of parts and materials alsoreduces the inventory level at Cybex. Furthermore,suppliers that cannot meet the required dates are replacedafter quarterly reviews.

Some of the most impressive results included cuttingCybex’s bill-of-material counts from 15,200 to 200, reducingthe number of vendors from 1,000 to 550, decreasing paper-work by two-thirds, and reducing build-to-order time from4 to 2 weeks. Despite intense industry price cuts over the lastfew years, Cybex has remained very profitable, mainly due toits e-supply chain. Introducing the integrated ERP systemcost money, of course. In addition to the software, the tech-nology staff has been increased from 3 to 12. However, thecompany feels that the investment has been more than justi-fied, especially because it provided for much greater harmonybetween Cybex and its customers and suppliers.

Questions1. Discuss the relationships between the EC applications

and the ERP system. (Try to identify as many relation-ships as possible.)

2. What is the role of the planning module?

3. Summarize all of the activities needed for successfulimplementation of the ERP system at Cybex.

4. List some of the benefits of the ERP system to Cybex.


Online File W7.7 Key Steps to Corporate Portal Strategy

In a recent report, Forrester (2006) argued that effective and efficient corporate portals were not at all easy to build and wereextremely difficult to justify in terms of ROI. Forrester suggested five steps in defining a corporate portal strategy:

1. Leadership. It is essential to recruit a leader who can span many different organizational functions and who is supported bya multifunctional team.

2. Business context. Understanding the context of the portal is essential.3. User needs. The needs of users should drive the portal design, so that the portal adequately supports key user tasks and

activities.4. Prioritization. It is important to prioritize activities supported by the portals and develop the portal portfolio based on

those priorities and time horizons.5. Portal as destination. The portal should be thought of as support for knowledge workers rather than as a technology.

Managing change is critical to portal success.

More operational advice is offered in the steps below:

1. Identify the content that is or will be available and identify where this content resides.2. Leverage existing systems, resources, and repositories.3. Include both structured and unstructured information.4. Organize content into categories that can be browsed and searched.5. Integrate search functionality across multiple information repositories.6. Build a platform for publishing and subscribing to content.7. Deliver personalized content and services to users based on their responsibilities and roles.8. Develop the corporate portal in phases.9. Create online communities to connect people and enable collaborative work.

10. Develop an extensible architecture that allows for extended functionality.11. Sustain a collaborative portal by institutionalizing it within daily business operations and weaving it into long-term

strategies.12. Purchase an integrated portal product rather than building custom portal functionality.

REFERENCES FOR ONLINE FILE W7.7Aneja, A., C. Rowan, and B. Brooksby. “Corporate Portal

Framework for Transforming Content Chaos onIntranets.” Intel Technology Journal Q1 (2000).

Forrester. “Too Much Portal, Not Enough Portal Strategy.”January 12, 2006. forrester.com/Research/Document/

Excerpt/0,7211,38528,00.html (accessed January2007). plumtree.com (accessed January 2007).


Online File W7.8 Functionalities of Workflow Management Systems

The functionalities of workflow management systems (WFMSs) support the automated coordination and control of workprocesses. In supporting coordination, these systems initiate activities, determine the flow of work, assign staff to tasks, routework items, schedule completion dates, send reminders, and manage complex transactions. Some WFMSs will provide all thenecessary data (e.g., files, images) to employees in various departments who work on a given job. In controlling work, theymonitor progress, detect delays, enforce deadlines, ensure proper authorization, escalate work, measure performance, andprovide feedback to performers.

Implementations of WFMSs differ, depending on the vendor and the product. For example, messaging-based systems addworkflow capabilities to e-mail (e.g., Microsoft Exchange; InTempo from Jetform). Document-oriented WFMSs add workflowcapabilities to document management (e.g., Lotus Notes/Domino; Documentum Corp). Finally, production WFMSs supportcomplex workflows and communicate with the corporate database, legacy systems, Web-based systems, and so on (e.g., IBMFlowMark; Ensemble from Filenet).


ONLINE FILE W7.9 Characteristics of eRooms (Now a Documentum Company)

Feature DescriptionCalendar • Easy-to-use, effective mechanism for picking people to invite to a meeting.

Database • Convenient way to store data without having to create SQL server tables and generate a front-enduser interface for those tables.

• Includes several predefined databases.

Discussion • Very functional.

• Different from traditional news-reader products (e.g., Microsoft Outlook, Forté Agent).

• Not as easy to read as Lotus Notes/Domino’s discussion database template.

Folder • With plug-in, you can drag files from your desktop or Microsoft Explorer directly into the folder.

• Integration with routine Windows desktop interaction.

Inbox • Can be linked to a POP3 account on your enterprise server or external server.

• Need not belong to an individual; a project can have its own inbox.

• Easy for archiving projects.

Link • User can group all information about a project, including relevant URL links, within the project’seRoom.

• Helps consolidate project knowledge for staff.

Poll • Like voting machines.

• Helps gather and count the group’s opinions.

• Can be stand-alone or contained within other items, such as notes or discussion.

How It Works• Facilitator creates eRoom Facility and assigns all security permissions for the individual items.

(Security is effective, yet unobtrusive.)• Individuals can read an item, participate within an item, or create their own items to share with

the group.• Bring staff into eRoom by sending invitation, using enterprise’s Lightweight Directory Access

Protocol (LDAP) server to identify people to be invited, using Intercom (chat function) or e-mail.• Configure the server to monitor changes within eRoom items and to send a summary e-mail

(includes subject and URL link to the right item) when it detects changes.

Other Advantages• OK and Cancel buttons are at the top of the screen; they are easy to find without scrolling.• Icons for links can be customized; easily identify the subject.• Error messages.

Extensibility• Still some limits.• Ways to increase functionality.• Provides connector for Microsoft Exchange; can archive project information to Exchange folders for

easier access.• Separate connector for Lotus Notes/Domino and Documentation EDMS.• Includes a Microsoft Component Object Model (COM) interface for its server components.


Online File W7.10 Sampler of Collaborative Applications

◗ Powerway (powerway.com) makes quality-management software that monitors the development of new automotive partsthrough their completion at the factory. Powerway systems are used by GM and other auto manufacturers.

◗ To help contractors work with partners on new designs in the aerospace industry, Exostar Corp. (exostar.com) offers ForumPass.It greatly improves communication.

◗ Manhattan Associates (manh.com) offers warehouse management tools. For example, PKMS software manages shipping, tracksorders, and counts inventory.

◗ Eqos Ltd. (eqos.com) provides tools for collaborative planning and event management. Its collaborator software enablessuppliers to integrate their customers’ supply and demand and product data with their own systems. It facilitates SRM.

◗ Agile (agile.com) offers an intercompany collaboration software product to its customers with a guaranteed ROI—if thesoftware does not save the customer enough money, the customer does not pay.

◗ WebOffice from WebEx (weboffice.com) provides an easy way for online multimedia conferencing with multiple people. Whetherconnected via the Internet or a corporate intranet, dial-up modem, or broadband, employees and customers can have meetingsanytime, anywhere. If the person you are looking for is not online, you can leave a multimedia message.

◗ Netscape Collabra Server, a component of SuiteSpot from Netscape, provides collaboration services through discussion groups,shared multimedia documents, and a Web browser interface. Anytime/anyplace virtual meetings can be structured withinCollabra. It includes open e-mail, groupware, editing, calendaring, document access, and Web browsing.

◗ NexPrise’s (nexprise.com) c-commerce solution allows users to create environments where people from multiple companies andacross geographic boundaries can create secure virtual workspaces in which they can collaborate on a number of key processes.

◗ Dassault Systems (3ds.com) provides a PLM solution. A pioneer in the software market since 1981, Dassault develops andmarkets PLM application software and services that support industrial processes and provide a 3D vision of the entire life cycleof products from conception to retirement. The company’s offerings include integrated mainstream product design tools and3D components.