Columbus (2003) states that Special Pricing Requests (SPR) processing can yield triple digit ROIs over time, as it saves significant time in responding to customers' unique pricing needs.
Website
Channel Utilities and Conflicts
Hewlett-Packard
HP has a world class Partner Relationship Management System complete with applications for lead management and escalation, channel training, special pricing request analysis and completion, and also mitigating channel conflict through the use of lead escalation strategies included in application logic. Columbus (2001) make the point that channel-based selling tools allow for the sales of high velocity, low margin products, using the PRM platforms supporting them as the foundation for portals.
Lenovo
Lenovo is entirely focused on the effiency and speed of their supply chain as it relates to fulfilling customer demand, and focuses on making their entire channel more effective at forecasting and demand management. Lenovo is also more focused on a pick/pack/ship model as it relates to fulfilling orders from resellers. This has been a disadvantage for the company as it has curtailed the depth of configuration logic that HP uses in conjunction with its payment logic workflows, which is presented later in this paper.
Website example from HP:
Website example from Lenovo:
Security
In terms of security, both companies have adopted as part of their SOA architectures, a layered and highly effective approach to managing security at the website, portal, and individual transaction level. Beginning with HP, Figure 7 shows a stacked diagram of their approach to defining where security fits within the context of their authentication approach, integrating this approach right before payment and tax are calculated on a per order basis. Figure 7 operates in much the same manner as an OSI model.
Figure 7: HP's approach to security is to embed it as part of their overall stack of functions in their
SOA Architecture
Lenovo relies on IBM Websphere Commerce Suite for transaction validation in addition to SAP NetWeaver platform integration. IBM has not published any schematics of how this specific integration works publicly, yet insists that pricing and price exception management are handled through a secured Kerberos Gateway. For Lenovo the most critical security areas are in the integration to supply chain suppliers globally and the need for cutting down on theft and corruption in their Chinese suppliers. The validation of shipments and quantities is a critical security concern, as are the many challenges the company has of keeping their suppliers coordination and accountable for shipment and quantity levels.
Website
Security
Hewlett-Packard
Excellent levels of security built into their protocol stack specifically in their implementation of their SOA platforms strategies. This has given HP a decided competitive advantage in accomplishing their key process area performance objectives.
Lenovo
Security levels for suppliers are critical for Lenovo. Their approach to supply chain velocity and synchronization are critical to their core e-business model. Lenovo relies on IBM WebSphere integration to SAP's NetWeaver platform.
Website example from HP:
Website example from Lenovo:
Lenovo has not published any of their internal screens for use
Payment
The workflows specifically on payment processes are integrated into the product configuration processes for HP's core e-business model. Figure 8 shows the workflow for integrating product customization and payment processes at the same time.
Figure 8: HP's approach to integrating payment and transactions
Lenovo's approach payment management is through the IBM WebSphere Commerce platform using the web screen shown below for modeling the process itself. Lenovo relies on their approach as shown in Figures 2 and 3 to make the payment process an integral part of the enterprise workflow.
Website
Payment
Hewlett-Packard
HP integrates their order payment processes directly into their order capture and management workflows, and relies on the SOA platform to specifically manage these tasks. Their approach to generating metrics of performance is also focused on creating visibility across all channels as to order status, order management, and order fulfillment.
Lenovo
Lenovo uses a Business Process Management (BPM) approach to integrating order capture and payment, as is shown in the following screen capture of their internal system for designing order process workflows.
Website example from...
Trust takes a long time to create with customers and can be lost very quickly and as a result the entire process of creating it is more stepwise and less of a binary (on/off) type of accomplishment. Factors that tend to create trust are high levels of security and fulfilling orders on or before delivery dates. The concept of trust is also one that requires high levels of security while at the same time delivering a high level of authenticity as well.
In terms of accomplishing trust, HP relies on their ability to ship both customized and configured products to the right customer, at the right time, for the correct price. The combination of HP's SOA platform allows for this to happen. HP's brand is also very well-known and trusted from the standpoint of high quality, engineering-centric products.
Lenovo's reputation is not as solid, and requires more of a focus on execution and strength of supply chain integration and development. Lenovo's biggest unknown is their approach to managing channels and specifically growing the use of the IBM PC Company indirect channels that were part of the broader acquisition.
Ultimately the level of trust in either of these companies rest more on their ability to integrate systems, deliver supply chain visibility and synchronization, and build customer relationships through execution. The table below comments on the extent to which both of these websites foster and sustain trust through their use of applications:
Website
Trust
Hewlett-Packard
HP's many applications online including order status, order management, lead generation and escalation for indirect channel partners, and the use of dashboards internally all serve to deliver exceptional high levels of visibility both inside and outside the company. Ultimately the ability of the company to create trust through making and keeping commitments, even for complex products, are the critical path to creating trust. Columbus and Murphy (2002) state that Enterprise Content Management (ECM) is the basis of a lasting competitive advantage and requires a high level of commitment in organizations to sustain its creation and use. The commitment to content is pervasive throughout HP as is illustrated by the depth of product knowledge and solution sets throughout the website.
Lenovo
Of the two companies, Lenovo has by far the greater challenge in creating trust, as their systems rely on an integration of the IBM WebSphere application suite and the SAP NetWeaver platform overall. The need for creating and sustaining trust with the existing platform relies on supply chain integration and visibility, and the ability to be demand-driven from a customer standpoint.
References
AMR Research (2003) - Configuration is the Heart of Customer Fulfillment for Complex Product Manufacturers. AMR Research Report. Monday March 31, 2003. Retrieved from the Internet on May 18, 2007 at http://lwcresearch.com/filesfordownloads/ConfigurationIstheHeartofCustomerFulfillmentforComplexProductManufacturers.pdf
Askegar and Columbus (2002) - Channel Management Best Practices: It's All About Orders. AMR Research Report. Monday September 9, 2002. Retrieved from the Internet on May 18, 2007:
http://lwcresearch.com/filesfordownloads/SqueezetheRevenueOutofSPRs.pdf
Columbus (2002) - the Sell-Side E-Commerce Market: It's All About Integration. AMR Research Report. Monday April 1, 2002. Retrieved from the Internet on May 18, 2007:
http://lwcresearch.com/filesfordownloads/SellSideECommerceMarketIsAllAboutIntegration.pdf
Columbus (2001) - Defining Your Direction in Guided Selling. AMR Research Report. October, 2001. Retrieved from the Internet on May 18, 2007 at http://www.lwcresearch.com/filesfordownloads/DefiningYourDirectioninGuidedSellin.pdf
Columbus (2003) - Squeeze the revenue out of your Special Pricing Requests. AMR Research Alert. Tuesday November 11, 2003. Retrieved from the Internet on May 18, 2007:
http://lwcresearch.com/filesfordownloads/SqueezetheRevenueOutofSPRs.pdf
Columbus and Murphy (2002) - Re-orienting Your Content and Knowledge Management Strategies. AMR Research. Boston, MA. Report and research findings published October 2002. Retrieved May 18, 2007:
http://www.lwcresearch.com/filesfordownloads/ReorientingYourContentandKnowledgeMgmtStrategy.pdf
