Companies across the globe are leaving billions of rands on the table by neglecting to enable new e-business models and improve operational efficiencies, according to a new book co-authored by experts at Computer Sciences Corporation and AMR Research.
Commissioned by the Council of Logistics Management (CLM), the book, "e-Business: The Strategic Impact on Supply Chain and Logistics," defines the impact of e-business on supply chain and logistics business operating models.
Authors Michael Bauer and Chuck Poirier of CSC, and Dr Larry Lapide of AMR Research, conclude that even in an economic downturn, companies must incorporate the Internet to achieve immediate savings and remain competitive.
Executives need to prepare their organisations for economic recovery by creating new operating models that serve current as well as prospective customers.
"Survival now means prosperity tomorrow," said Bauer, a partner in CSC`s North American Automotive Practice. "Executives need to think carefully about making the right strategic moves now to position their companies for competitive advantage in the future. They will need a proven methodology and a practical roadmap to use the Internet for the improvement of business processes and the creation of new business models." The book, based on exhaustive research, interviews and the insights of the world`s leading e-business and supply chain experts, supports the view that the benefits of e-business will cover more than supply chain and logistics.
In fact, the benefits can be realised across the board, from customer self-service to complicated B2B networks. According to AMR Research`s "Report on Supply Chain Management" (October 2000), Bristol-Meyers Squibb estimated its savings in procurement to be $100 million in 2000.
Earlier this year the New York Times reported that Janus, the mutual fund giant, was able to reduce its call centre staff by 465 people, largely due to its customers accessing account information via the Janus Web site.
"Like all new technologies that have preceded it, the Internet is another tool for businesses to compete with," states Lapide, vice president and general manager, Benchmarking Services, AMR Research. Lapide - recently named one of four top thought leaders in this area by Supply Chain Technology News - added: "Our research shows that leading so-called old-economy companies have recognised this and have started to leverage it to their advantage with strategies that start small and build from there. Our key conclusion is that e-business can be beneficially leveraged by companies of all shapes and sizes in a supply chain, not just by the channel or network masters."
The book, which is available through CLM`s Web site at www.clm1.org, will be formally introduced at CLM`s Annual Conference from 30 September to 3 October in Kansas City, USA.
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CSC offers the South African market a wide range of services, including e-Business, Financial Services Solutions, Customer Relationship Management (CRM), Application Services, Business Process Outsourcing and Infrastructure Services.
By combining international best-practice with local expertise and knowledge, CSC in South Africa is striving to become the leading IT services partner of choice, adding value to all stakeholders in the local market through its innovative culture and collaborative approach to delivering fast, flexible solutions.
CSC opened its doors in SA in November 1999 and already boasts over 600 employees across SA, with offices in both Cape Town and Johannesburg. It is continuing to expand rapidly in SA and is extending its services to the rest of Africa. For more information, contact 021 529 6500 or 011 686 5400.
Computer Sciences Corporation, one of the world`s leading consulting and IT services firms, helps clients in industry and government achieve strategic and operational results through the use of technology. The company`s success is based on its culture of working collaboratively with clients to develop innovative technology strategies and solutions that address specific business challenges.
Having guided clients through every major wave of change in information technology since 1959, CSC combines the newest technologies with its capabilities in consulting, systems design and integration, IT and business process outsourcing, applications software, and Web and application hosting to meet the individual needs of global corporations and organisations. With nearly 68,000 employees in locations worldwide, CSC had revenues of $10.8 billion for the 12 months ended 29 June 2001. It is headquartered in El Segundo, California. For more information, visit the company`s Web site at www.csc.com.
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