3Com outlines e-Business strategy and programme

Global networking leader 3Com Corporation has outlined accomplishments the company has made in implementing its worldwide e-Business infrastructure. Today, 3Com`s electronic business-to-business transactions are responsible for 30 percent of its total revenue, or approximately $2-Billion.

By the end of calendar year 1999, as a result of the completion of a global, real-time, Web-based infrastructure, 3Com`s channel partners, end-user customers, suppliers and employees will have instant, direct access to the online, real-time information they need to conduct business with 3Com anywhere in the world, explains 3Com SA`s pre-sales manager, Paul Ruinaard.

"In addition to offering expanded capabilities for enabling customers to purchase products online, this new system will also provide up-to-the-minute information on product availability and delivery, order management, distribution, logistics and shipping schedules," he says. "3Com projects that 80% of its total revenue will be derived from business-to-business transactions by the end of calendar year 1999."

He points out that 3Com`s Web site is designed to handle the growing demand of e-Business customers. It is already the most frequently visited site in the networking industry, averaging more than one million visits per week.

"The advent and implementation of new e-Business systems and tools are enabling significant improvements in the quality and timeliness of information that companies use to conduct business," says Tom Thomas, 3Com`s chief information officer and senior vice press of e-Business operations. "We are creating a new model for how we work with our customers, partners and suppliers, and we view this evolutionary transition as the next step in bringing revolutionary business practice improvements not only to the networking industry but also to the information technology industry at large."

3Com`s e-Business operations will enable the company to take advantage of many operational efficiencies and opportunities for increased profitability. The company plans to further develop its global e-Business systems by utilising state-of-the-art technology with suppliers, channel partners and companies with whom 3Com has formed strategic alliances. Sun, enCommerce, TIBCO and Inso Corporation are among key companies combining with 3Com to collectively target the exploding e-Business market.

"3Com`s vision of global access to networked applications, achieved through the deployment of highly available and scalable back-end computing systems, is a shining example of how information technology is aligning itself with core business objectives and operations," says Clark Masters, vice president and general manager of Sun Microsystems` High Performance Products Group. "We`re thrilled that Sun solutions can contribute to that vision, and it serves as a friendly reminder that Sun really does put the `.com` in big business."

"Increasing numbers of businesses are becoming interested in the advantages of an integrated system and the ability to deliver real-time information throughout the supply chain," says Vivek Ranadivé, chairman and CEO of US-based TIBCO Software Inc. "TIBCO is proud to be part of 3Com`s e-business initiative by providing integration technology which enables corporations to extend their business to the Web."

3Com Provides Specific e-Business Advantages

"3Com is among the top companies in the networking industry to put into place a global real-time information infrastructure," says 3Com`s Ruinaard. "Through the implementation of a common infrastructure and the e-Business tools which it enables, 3Com projects a cost savings of more than $100 million this calendar year, due to a company-wide increase in productivity and a reduction of inventory associated with operational efficiencies."

Ruinaard outlines five key components comprise 3Com`s e-Business operations:

Integrated Order Management is being implemented company-wide and will provide accurate, real-time information on pricing and availability of products, entry and status of orders, account backlog and returns.

Global Customer Support provides information to customers more quickly and simply. One application, 3Com Knowledgebase, allows customers to input their particular question or problem, and receive accurate answers instantaneously, directly through the Web. The cost to handle this type of call has been reduced from a minimum of $10 when the call was answered by a technician, to $0.50. Customer satisfaction has increased as a result of improved support and other benefits they can receive, including software downloads and training. 3Com Knowledgebase is a popular service, with 132 000 registered users worldwide.

Supply Chain Management allows companies and suppliers to share information and work together more efficiently. Inventory can be replenished automatically as needed, eliminating large amounts of products from being delivered until they are required.

e-Marketing enables companies to capture information about their Web customers. 3Com`s Web site receives approximately 500 000 unique visits each week. The company is now able to focus on specific customer preferences and offer proactive marketing campaigns targeted directly to their interests.

Employee Communication Intranet offers the company`s 13 000 employees direct answers to work related questions through the Web. In addition to supplying important information for 401K plans, medical and dental benefits and stock purchases, 3Com employees are able to view and interact with their corporate leaders quarterly in a CEO forum, submitting questions in real-time. Collaboration is enabled and encouraged throughout the company as technical papers are entered and shared online.