The document discusses creating an e-commerce scorecard to measure and justify investments in e-commerce maturity. It provides examples of metrics that can be tracked, such as cost of sales, revenue, and capabilities across different areas. Sample scorecards from HP, Fastenal, and Insight are presented that measure key performance indicators like sales growth through e-commerce channels and time to onboard new customers. The importance of executive sponsorship, cross-functional collaboration, and flexibility in implementation are highlighted as best practices for effective use of e-commerce scorecards.
Messages:eCommerce maturity is tied to obtaining resources and infrastructureThe eCommerce scorecard measures and justifies these resources/infrastructure
* Messages: executive visibility, team alignment with business goals, ??????
Lead, CPQ, Order Capture, Order Mgmt, Invoicing, Payment, and Post Order SupportSecondary TierTertiary Tier
Local product and local people: 3,000+ store locations with10,000+ people operating them. When our customers think of Fastenal, they don't think of some remote corporation; they think of the local "Blue Team" that serves them on a daily basis.Backed by our global sourcing, quality, and logistics operations, each store is a local, one-stop source for a spectrum of OEM, MRO and Construction supplies: standard and custom productsDecentralized environment, store personnel take a flexible approach to support local customers: sourcing products, making emergency deliveries, managing a lean flow of inventory to points of use, and leveraging our services, solutions and specialists to drive business improvements.* When you hear us talk about our thousands of stores, remember that we're not talking about how big we are; we're talking about how local we are. And that's what Fastenal is all about – using our corporate resources to be the best local supplier in every market we serve.
Purple represents Ariba Trading Partners
Initial launch of Insight.com – 1996Why? Client acquisition and client retention1st Ariba supplier connection – 1999 (Software Spectrum – acquisition)Why? Client retentionKey steps: 2006 electronic invoicesLesson learned: capture data required on invoice within inbound PO. It’s easier to implement eInvoices when electronic POs are completed first.2008-current: Through established processes and methodology, we’ve created a manageable and repeatable process that has proven successful2012 – Global landing pageThe global landing page allows those clients who do business with us across our ERP systems a single entry point, streamlining the user’s experience from an entry perspective
Through our eCommerce and Ariba evolution, we have been able to drive:Operational efficiency – through automationCompetitive differentiation – through the ability to customize eCommerce solutions with our tool-setIncreased sales – supplier consolidationClient entanglement – proven flexibility and customization drives entanglement and partnership#’s109 clients utilize Ariba with InsightReceived 150K orders in 2013Transmitted 103K invoices through Ariba to our clients
Business Performance MetricsMeasure sales through eCommerce solutions: B2B + traditional web vs. manual methods% of electronic transactions compared to manual methods (phone, email, fax)Monthly view of new client accountsOf our clients utilizing a B2B type solution – throughout Insight’s system and business transformation over the years, we’ve lost 1 client in 2013. IT MetricsWebsite performance metrics – site responsiveness, search type metricsOnboarding a new client – time required to implement from initial request to implementation dateComplexity level – level to which the experience is customized/personalizedCustomized: extremely customized, often requires IT involvement to setup initiallyConfigured: customized, yet can be managed by eCommerce business and/or sales teamsStandard: no customization – represents opportunity for entanglement1512 Customized (B2B, EDI, SPLA or GWP – customized with assistance from IT)13642 Configured (Approval routing, Custom catalog, Company Standards – configured by eCommerce/Sales)26,265 Standard (no customizations)
Overall – our eCommerce orders account for 44% of the complete transactions we processWithin our Enterprise level clients – 55% of the transactions are electronic – The Enterprise space is through our processes and experience where we have established partnership with our largest clientsOur scorecard and metrics evolve as our business changes. We continue to evaluate and augment our scorecard to ensure its aligned with Insight’s overall strategic objectives.
Insight’s success story is how score carding helped us gain funding & investment for our eCommerce efforts Through our success in implementing clients over the years, Insight has recognized the importance of eCommerce and:1. The team has expanded in sizeeCom Sales Ops Team: Insight eCommerce benefit presentations and client supporteCommerce B2B Implementation Team: Client implementation project managementeCommerce Technical team: Technical solution development 2. Executive Sponsorship is solidified3. Financial investments continue to be made
For those of you who are Buyers and are implementing Ariba internally:Secure the internal investmentRecognize the change management required in such an implementation – it will change the way you do businessEstablish a project timeline and identify stakeholdersFor those of you who are SELLERS and are managing client implementationsEnsure your scorecard is part of the overall scorecard in order to measure your performance for increased investmentDevelop tool-set for implementation management - Establish prioritization criteriaFlexibility is critical – clients will have a variety of requests, establish a way to handle these requests to achieve client satisfaction. In addition, clients schedules will change and priorities will shift, you have to have nimble processes to adapt.