Posts Tagged ‘order management hubs’

Speaking Engagement: Forrester Teleconference – Achieving A Perfect Order To Combat The Evil Forces Of A Recession

Thursday, February 19, 2009, 1:00 p.m.-2:00 p.m. Eastern time (18:00-19:00 UK time)

Presented By:

R R "Ray" Wang Vice President, Principal Analyst Forrester Research, Inc.
Cost:  Please check the registration page Register Who should attend: Business Process & Applications professionals, CIO's, Application Delivery and Program Management Professionals. Description: Declining sales, shrinking operating margins, and labor force reductions, drive Business Process & Applications professionals to streamline core business processes such as opportunity to cash. Efficient and effective delivery of orders that consistently meet a stakeholder's (e.g., customer, supplier, partner, and employee) expectation is known as a "perfect order." Because the delivery of a perfect order is complex, many organizations rely on software solutions to automate, simplify, and integrate. So how does a BPA pro know what the key steps to supporting a perfect order are? What technology is required to deliver on all the steps of a perfect order? How well does the organization support the people, process, and technology requirements for a perfect order? To help BPA professionals answer those questions, Forrester has developed a checklist of the 20 best steps required to support a perfect order and to enable BPA pros to score themselves on their ability to achieve the delivery of a perfect order. Agenda:
  • Understand the business imperative to achieve a perfect order in this economy.
  • Learn the 20 best practices of the perfect order.
  • Measure outcomes with a perfect order index.
Vendors mentioned: Amdocs, Epicor Software, GSI Commerce, Infor, Infosys, Manhattan Associates, Microsoft, Oracle, SAP, and Sterling Commerce Related Research:

The Forrester Wave™: Order Management Hubs, Q4 2008

by R "Ray" Wang, November 14, 2008

Technical requirements: An Internet connection with a browser is required for the visual presentation. For the audio component, a separate phone line is required. You will receive dialing and WebEx instructions via email prior to the Event. If you have any problems accessing the teleconference presentation, please call the Client Resource Center at +1 866.FORRESTER (367.7378) or +1 617.613.5730 and identify yourself as a teleconference attendee.

Monday’s Musings: A Year of Extremes Brings Us Back Full Circle to the Beginning of the Dot.Com Bust

With a few days left in the year, it's hard to believe that 2008 is almost over.  Just like our paltry .401K's and lowered gas prices, it's like we reverted to the Dot Com bust.  Extreme contrasts in positions and tremendous change made 2008 both exciting, suspenseful, and frankly sobering like 2002.  In fact, it wasn't just the pace of change, it was an intensity of change like no other.  For example in the topical areas I cover:
Software vendor economics: End user enterprise apps (ERP) strategy
  • Engaging in large vendor selection projects to reducing the number of vendor suppliers
  • Building the best SOA strategy to figuring out how to justify all the investment
  • Sole sourcing from one vendor to considering purpose built apps
  • Dismissing SaaS as as fad to embracing Cloud Computing as a cost savings tool
  • Adopting standard middleware platforms to exploring PaaS and hybrid deployment options and related integration options
  • Focusing on growth and strategy business drivers to reverting to operational efficiency and compliance business drivers
  • Crafting a long term apps strategy to recession proofing an apps strategy
  • Moving to all packaged apps to reviving custom development
Software Licensing, Pricing, and Contract Negotiations
  • Locking in new license pricing to reducing shelf ware
  • Negotiating on new license prices to zeroing in on the cost of maintenance
  • Focusing on future product road maps  to avoiding the risk of a revenue led software audit
  • Planning for upgrades to contemplating third party maintenance
  • Worrying about vendor consolidation to considering vendor viability and the need for software escrows
  • Thinking about maintenance as an insurance policy to seeking value from maintenance contracts
Master Data Management - Customer Data Integration
  • Contemplating deployment of multiple data entity MDM to proving the value of one data entity with the ambition of multiple data entities
  • Applauding rapid implementation times of 1 year to expecting results in 6 to 8 months
  • Expanding data governance roles to focusing on specific stakeholder data processes
  • Turning to the incumbent ERP vendor for one throat to choke to considering all options
  • Ignoring BI strategy and focusing on enterprise architecture to incorporating BI into MDM projects
Order Management
  • Reducing inventory to improving transportation management costs and back again
  • Focusing on multi-channel selling to driving efficiencies in multi-channel fulfillment in a perfect order
  • Emphasizing partner channels to taking back ownership of distribution
  • Moving away from piecemeal solutions to purpose built order management hubs
Project Based Solutions
  • Considering PPM apps to seeking broader Project Based Solutions
  • Standardizing on project management methodology to reducing the barriers to adoption
  • Deploying only in one option to expecting various deployment options such as mobile, SaaS, and offline
The Bottom Line - Customers Still Have High Expectations For Enterprise 2.0 Apps Despite the bleak economic outlook, like in 2002, we can expect significant innovation to emerge as new business models meet technology innovations.  Conversations with over 1000 end users this year highlight that customers still expect to see Enterprise 2.0 innovations in the next 3 to 5 years, despite any downturn.  The top seven key Enterprise 2.0 innovations include:
  1. Richer user experiences - role based scenarios across various usability paradigms
  2. Business process orientation - support for end to end business processes
  3. Configurable change - designing with flexible models and rules instead of customizations
  4. Actionable insight - pulling all the key information to make a decision in the context of business process and user role
  5. Collaboration - providing secure private interactions and open and innovative connection with stakeholders
  6. Intelligent response - responding to contextual models and business events
  7. Hybrid deployment - deploying all models from on-premise, hosted, instance virtualization, multi-tenant SaaS, and cloud based BPO.
Let's just hope these humble 2009 industry analyst predictions hold some water. Your POV. Do you believe we'll turn the corner like 2002?  Are you experiencing different trends?  You can post here or send me a private email to rwang0@gmail.com. Copyright © 2008 R Wang. All rights reserved.

Research Summary: The Forrester WaveTM: Order Management Hubs, Q4 2008 – Sterling Commerce, Oracle, SAP, and Epicor Emerge As Leading Solutions That Support The Delivery Of A Perfect Order

FORWARD AND COMMENTARY In the second update to the industry's only business process-focused assessment of its kind, we evaluated eight leading order management hubs in a 152-criteria evaluation. The Forrester Wave provided head to head comparison of which order management hub solution would best support the 20 steps in a perfect order.  Importantly, the end to end business process included four major sub processes: Opportunity to Order Capture, Order Capture to Order Fulfillment, Order Fulfillment to order Completion, and Order Completion to Cash. These demo-based product evaluations were conducted from April 2008 to August 2008 and interviewed eight vendor and 40 user companies including: Amdocs, Epicor Software, Infor, Manhattan Associates, Microsoft, Oracle (E-Business Suite and Siebel), SAP, and Sterling Commerce.  Unlike other analyst evaluations, the Forrester Wave contains no "magic" and provides end users with both transparency of the scoring process and flexibility to personalize weightings to best meet an end user's scenario.  The tool is accessible via an XL spreadsheet. RESEARCH HIGHLIGHTS Introduction Perfect orders drive a direct correlation to positive stakeholder satisfaction scores. Despite the benefits, success in consistently delivering a perfect order eludes many enterprises because existing systems lack the process and functional flexibility to deftly move orders across the end-to-end order management cycle. With pressure on enterprises to seek new ways to create market differentiation, order management hubs rise to prominence because:
  • Process-centric views trump yesterday's functional fiefdoms.
  • Standardized best practices provide little value in today's constant world of change.
Research Findings We found that Sterling Commerce and Oracle E-Business Suite led the pack among the Leaders who delivered technologies that support the perfect order. Meanwhile, Oracle Siebel, SAP, and Epicor Software earned their Leader designation because of their strong support for end-to-end order management processes and forward-looking product strategies. Microsoft, Amdocs, and Manhattan Associates placed in the Strong Performer category for their specialization in targeted markets. The solutions evaluated represent eight of the top 10 to be considered in shortlist discussions for order management hubs customers seeking to achieve a perfect order: (See Figure 1.) Figure 1: The Forrester WaveTM: Order Management Hubs, Q4 '08 Main Graphic for OMH Wave Q4, 2008

Source: Forrester Research, Inc.

Report Links Click on the link for the in-depth details and scores related to the 152 criteria used in this Forrester report: The Forrester WaveTM: Order Management Hubs, Q4 2008.  For media courtesy requests, please send me an email to rwang@forrester.com Your POV. Would love your feedback on the report.  You can post here or send me a private email to rwang0@gmail.com. Copyright © 2008 R Wang. All rights reserved.

Order Management Hubs: 20 Steps to a Perfect Order

A Perfect Order still means many things to many people Recent studies show that enterprises who deliver perfect orders have a direct correlation to positive customer satisfaction scores. Despite the stakes, success in consistently delivering a perfect order continues to elude many enterprises because existing systems lack the flexibility to move orders across the order management cycle. Process views should trump functional fiefdoms One source of confusion stems from the lack of clarity in what the components of a perfect order should entail. Confusion often stems from a functional perspective which may be predisposted from an ERP, CRM, eCommerce, or Supply chain heritage. Tossing out the three letter acronyms, order management hubs are about 4 key business processes:
  1. Opportunity to order capture - all the stuff to capture information for the order and send it on to the next step
  2. Order capture to order fulfillment - the guts and logistics of fulfilling an order from pick,pack, ship to TMS, WMS.
  3. Order fulfillment to order completion - the processes that may occur before an order is satisified such as returns, after market service, installation scheduling, and warranty claims.
  4. Order completion to order settlement - invoicing, AP/AR, financial stuff.
Moving from 10 steps to 20 steps towards a Perfect Order The basic notion is a stakeholder gets an order and they have their expectations to have this filled every time, without question and with minimal effort. In previous discussions on Perfect Orders, 10 steps were identified. The definition has now been expanded to cover 20 key steps which include the delivery of an order:
1. Through any channel at any time
2 . Multiple types of stakeholders can
3 . Engage in a consistent brand experience by
4 . Selecting the right product or service with
5 . The correct quantity and configuration that
6 . Meets the acceptable levels of quality for
7 . The stakeholder's entitled pricing policy
8 . Supplied from the agreed upon sources
9 . Delivered to or installed with the right customer within
10 . An agreed upon period of time to
11 . The correct locations in
12 . The most appropriate packaging that
13 . Includes the right documentation over
14 . The right frequency with
15 . An accurate invoice that can be
16 . Collected and efficiently settled and/or
17 . Returned via any channel for
18 . Warranty claims against defects and/or
19 . Scheduled for repair based on
20 . Agreed upon service contracts
The bottom line for end users Achieving a perfect order requires enterprises to revisit how existing order processes support multiple selling channels, multiple fulfillment scenarios, across functional areas. Ultimately, these business processes must be measured against metrics and key performance indicators (KPIs) such as:
  1. Availability to promise visibility
  2. Order status across all stages
  3. Picking error rate
  4. On-time delivery percentage
  5. Cases shipped vs. ordered ratios
  6. Type and percentage of unsellables
  7. Days of supply
  8. Order cycle time
  9. Shelf level service ratios
  10. Warehouse to store fill rate
  11. Order accuracy percentages
  12. Accurate and timely invoices percentages
  13. Percentage of data synchronization
  14. Stakeholder satisfaction
  15. Lifetime monetary value of stakeholder.