E-Commerce @MIT
EDUCAUSE 2000October 11, 2000
Bob Ferrara, Director, I/T DeliveryLorraine Rappaport, E-Commerce Project Manager
Agenda - E-Commerce@MIT
Overview of MIT’s initiatives Bob Ferrara
Electronic Catalog (ECAT) demo Lorraine Rappaport
What we have learned Bob Ferrara
MIT E-Commerce Goals
Strategy based on MIT ReEngineering objectives from mid-1990sGoals included: Consolidate suppliers Reduce paper-based transactions Outsource lab and office supplies Leverage buying power
MIT E-Commerce Landscape
Buy-side initiatives came first ECAT – two generations of web ordering from
partner vendors VIP Card – procurement credit card SAPweb – online web requisitioning No personalized portals, e-marketplaces…yet
Infrastructure developed X.509 certificate authority for authentication EDI server deployed for vendor transactions SAP for authorizations and approvals
MIT E-Commerce Landscape
Sell-side efforts are current focus Online ordering through Internal
Providers for intra-MIT transactions Web ordering and online credit card
processing for MIT merchants ShopSite for catalog development CyberCash and/or other software for
credit card processing
The Museum Shop
VIP Card
The VIP Card is a just credit card but… MIT pays the invoices SAP receives daily batch of invoices Approvers may distribute charges Transaction history maintained in SAP and
MIT data warehouse
Average transactions/month: 6,000+ or 44% of all procurement transactionsAverage dollar volume/month: $1.2mAverage transaction value: $196
SAPweb Requisitioning
SAPweb is a simpler, home-grown extension of the SAP GUI screensFour functions: Create Requisition Display Requisition List Requisitions Display PO (including payment history)
Avoided deployment of SAPgui all over campusAverage number of reqs./month: 3,000+ or 25% of all procurement transactions
SAPWeb Create Screen Shot
SAPWeb Req.1 Screen Shot
SAPWeb Req.2 Screen Shot
SAPWeb Req. # Screen Shot
SAPWeb Display Req. Screen Shot
ECAT
ECAT (short for Electronic CATalog) is MIT’s system for online ordering from our preferred vendors for commodity items. ECAT is fully integrated with our SAP R/3 system for requisitioning, workflow approvals, and invoicing.
ECAT Design Strategy
Preferred vendor relationshipsVendor-managed product catalogsVendor capabilities – OBI, EDIAuthentication – x.509 digital certificatesIntegration with SAP for requisitioning, authorizations, approvals, payment processing, reporting, etc.
ECAT Implementation
First vendor, NECX, rolled out in February, 1999Office Depot, BOC Gases, and VWR Scientific Products added laterAverage transactions/month: 2,000+ or approximately 15% of all transactions Discussions underway with four prospective new ECAT partners
ECAT demo (or following screenshots)
OD main page
OD category listing
OD subcategory listing
OD quick order
OD shopping basket
OD submit
Ecat2req 1
Ecat2req 2
Req submit
Displayreq 1
Displayreq 2
ECAT Design
Why Not Use the VIP Card for ECAT?
Many fewer VIP Cards than users with requisitioning authority in SAP (1500 cards vs. 4000 requisitioners)Equipment purchases not allowed on VIP CardVIP Card purchases limited to $3,000 (was $500 when we started)Very limited reporting of VIP Card transactions in SAPOur prices would likely be higher as vendors would pay transaction fees
Advantages of the ECAT Model
Fully integrated with SAPModular designFamiliar look-and-feel for usersTakes full advantage of vendors’ value-added features (e.g., MIT recommended products, MSDS, searches, etc.)Allows procurement staff to focus on vendor relationship management and outreach
Disadvantages of the ECAT Model
Multiple vendor sites – different capabilities and navigationDirect connections to each vendorMany components to maintainNot scalable to all vendorsBack-end batch processing in SAP and at vendor sites mean that order placement is not quite real time
The Road from Here
Are we having fun yet? Success measuresLooking aheadLessons Learned
Are we having fun yet? How do we measure success?
Results: Achieved goals; statistical measures
Relationships: Vendors - managing relationships has high
costs Internal relationships - end-user, centralized
/ de-centralized experience, communication, training
Above all - managing the change issues
Process: understand business before technology
Statistical Measures
Paper6%
Partner Flat File
10%
ECAT15%
VIP Card44%
SAP/SAPWeb25%
Looking Ahead
Can commercial solutions fit? Greater aggregation and coherence for customer – catalog experienceIndividual relationships vs. catalog aggregators and marketplacesGreater influence on vendors: Emphasize de-centralized purchasing Authentication and authorizations
Standards – OBI, EDI, and XMLFocus and development on internal providers strategies
Lessons Learned: if you’re thinking of doing e-commerce
“E-business is just business” – understand your business objectives firstDon’t be afraid to dabble – you don’t have to get it right the first timeMake sure your solution is flexible enough to adapt to evolving technology and user requirements
Lessons Learned: continuedInterdependencies carry some risks: Reliance on other systems and their
schedules, interfaces, and support
Communication and collaboration are critical to successUnderstand the impact of change on vendors, customers, and central office staffHave fun. This is cool stuff.
For more information
Main SAPweb page: http://web.mit.edu/sapweb
Main ECAT page: http://web.mit.edu/ecat
ECAT design specifications: http://web.mit.edu/ljr/www/ecat_spec.html
This presentation: http://web.mit.edu/ljr/www/presentations/educause2000.ppt
Contacts
Lorraine Rappaport, [email protected], 617-253-0749Bob Ferrara, [email protected], 617-253-7495
Appendix on e-marketplaces
Intriguing concept with many benefits: Access to wide variety of suppliers Easier to add new vendors
Some offerings are very expensive for buyers and sellersIntegration with buyers’ internal systems still needs workDo they help or hinder vendor partnerships?
Appendix on XML
We are hoping to experiment with XML with one or two new vendorsExpected benefits: XML should lower barriers for small and medium
size vendors XML provides ability to use same data in
different ways for different audiences
Current limitations: Many different and proprietary versions of XML
ebXML and RosettaNet initiatives may resolve some problems
Appendix on XML (cont.)
The ebXML and RosettaNet consortia initiatives may resolve some problems by developing a technical framework for for utilizing XML to exchange business data http://www.ebxml.org http://www.rosettanet.org The two initiatives overlap and are
expected to converge