咨询管理战略组织项目麦肯锡工具评估 MUC-0061-81010-02-08.ppt

-1-The internet in the steel industry:A business revolution or just efficiency gains?Industry survey Munich,February 2000MUC-0061-81010-02-08.ppt-2-ContentsPageA.The internet revolutionizes business-to-business 4B.The internet will have a major impact also on steel industry 8C.The steel industry,especially in Europe,is only starting to exploit the internet 17D.Thorough planning is required for e-success28E.Roland Berger&Partners have gathered valuable experience in e-commerce41This document was created for the exclusive use of our clients.It is not complete unless supported by the underlying detailed analyses and oral presentation.It must not be passed on to third parties except with the explicit prior consent of Roland Berger&Partners.MUC-0061-81010-02-08.ppt-3-25 companies from 12 different countries participated in the Roland Berger&Partners studyand also:GRUPPO RIVASUMITOMO METALSSIDSTAHLOLYMPIC STEELSource:Roland Berger&Partners-StudyMEGASAMUC-0061-81010-02-08.ppt-4-A.The internet revolutionizes business-to-businessMUC-0061-81010-02-08.ppt-5-B2B internet solutions target all the transactions occurring along the value chainLogistics/processing/servicesProducts/systemsWholesaler/retailerConsumerRaw materialsSource:Roland Berger&Partners Business-to-Business(B2B)Business-to-Consumer(B2C)Business-to-Distributor(B2D)Steel value chainSemi-finishedproducts/componentsSteel industryDistributors/SSCsOEMs/assemblersMUC-0061-81010-02-08.ppt-6-E-business will have its strongest impact in B2B and is expected to change the major market places dramaticallyImpact of the internet in the U.S.ExampleSource:Roland Berger&Partners analysisInternet revenuesbn US$Share of internet revenues in 2004%of totalB2CB2BComputer&electronicsAutomotive industryPetrochemicalsUtilitiesPharma&medical industryShipping&warehousingConstructionIndustrial equipment35%15%20%20%15%10%5%5%MUC-0061-81010-02-08.ppt-7-Customer Business-to-business(B2B)Business-to-consumer(B2C)Relatively small number(thousands)Known entitiesVery large number(millions)Usually anonymousBuyer/customer driven Mostly customized(build-to-order items)Seller/producer driven Standardized(list items)Case by case negotiationsHigh level of differentiation Homogeneous pricesHigh transparency on final price Bank transactions Letters of creditCash paymentsCredit cardsDirectCaptive channelsIndirect(retail)Non-captive channelsProducts Pricing Payment Distribution The use of the internet in B2B industries will vary significantly from B2C-as transactions are quite distinct tooGeneral characteristics of B2B and B2C transactionsSource:Roland Berger&PartnersMUC-0061-81010-02-08.ppt-8-B.The internet will have a major impact also on steel industryMUC-0061-81010-02-08.ppt-9-Most survey participants expect the internet to bring major changes to the steel industry in less than 3 yearsSource:Roland Berger&Partners-surveyCurrent and future impact of the internet on the steel market%of participantsQuestion:How big an impact does/will internet have in the global steel marketplace?In three yearsTodayThe use of the internet will help us to get rid of the middle menThe internet is the most cost efficient channel to offer services to your clients and to create new revenue streams Overseas business will become so much cheaperThe internet will gain critical mass in the steel industry within the next 6 monthsMUC-0061-81010-02-08.ppt-10-The opportunities linked to the internet are considered more important than the threatsSource:Roland Berger&Partners-surveyQuestion:How important do you consider the following opportunities/threats that open up due to the internet?SlightlyimportantImportantVeryimportantIncreased mediacoverageImproved information(products/company)Optimizecustomer retentionGenerate newrevenue streamsAccess newmarkets worldwideShorten distribution chainCut costs/increase efficienciesSlightlyimportantImportantVeryimportantUpheaval of current distribution chainAppearance of powerful purchasing toolsLoss of market share to new competitorsLoss of customer contactIncreased price transparency and pressureOpportunitiesThreatsMUC-0061-81010-02-08.ppt-11-Furthermore,the internet is expected to primarily affect the sales of steel commodity productsFlat steel products in the EU-15%of total market1)production surplus,out-of-spec,downgradesSource:Roland Berger&PartnersNon primes1)CommoditySpecialtiesStrong impactList/stock productsList pricesPrimarily trade salesCost sensitive customers Weak impactBuilt-to-order/customized productsNegotiated pricesPrimarily direct salesQuality sensitive customersMUC-0061-81010-02-08.ppt-12-Everything we sell,we will offer it over the internet ”It will take some time for built-to-order products to be sold over the internet”“We can achieve better revenues for production surpluses on the internet”List items(apart from non-primes)will clearly be the first steel products subject to e-commerceSource:Roland Berger&Partners-surveySteel products sold over the internet multiple repliesQuestion:What types of products do/will you market over the internet?TodayIn 3 yearsMUC-0061-81010-02-08.ppt-13-Steel industrys perception is that,in the future,the distributors will focus increasingly on service and adviceSource:Roland Berger&Partners-surveyThe role of the traditional distributors in the e-futuremultiple answersQuestion:How will internet affect the role of traditional distributors?The distribution chainwill remain the same as.distributors are better in breaking down and redistributing orders and in customizing the productsdistributors will have the chance to enter markets that they could not access beforeVertical integration will happen as.the distribution chain will become more focused on the end-userif we can contact our customer directly,why should we use a distributor?MUC-0061-81010-02-08.ppt-14-At the same time,it must be acknowledged that since 1997,a large number of players offer e-commerce services to the steel industryMajor steel portalsMetalworldSpot MetalsOnlineMUC-0061-81010-02-08.ppt-15-Such new virtual trading places have the potential to disrupt the old market structure Selected internet steel trading portals(as of January 2000)Start-upPromotersMembersVolumeCommissionsMetalSiteAug 1998Steel mills7,200(40 sellers)150,000 t/month1/4 2%e-STEELSep 1999Former steel execs.1,000(60 mills)n/a7/8 1%iSteelAsiaNov 1999Steel millsn/an/a800MetalAUCTIONSJan 2000n/an/a1,5%n/aSteelScreenNot yetFormer steel execs.n/an/an/aSpotMetals1997n/aNo membershiprequired2 m tons sincestart-upnoneSource:Roland Berger&Partners analysis MUC-0061-81010-02-08.ppt-16-Procurement over the internet has also become a major issue for American steel companies,while Europeans are still indecisiveQuestion:What products will you buy over the internet in the future?Source:Roland Berger&Partners-survey Procurement over the internet next year%of participantsType of products for internet procurementmultiple answersYesUSA100%Europe/Asia100%No/dont knowYesNo/dont knowMUC-0061-81010-02-08.ppt-17-C.The steel industry,especially in Europe,is only starting to exploit the internetMUC-0061-81010-02-08.ppt-18-The internet must be seen as a tool for efficiency gains as well as for business innovationE-pathValue addedfor thecustomerSource:Roland Berger&Partners InteractionInformation-on-demandOff-line inquiry/inventory statuse-commerceTransactionOn-line selling/purchasingLogistics managemente-businessIntegrationIntegration with internal operationsClient&supplier partnershipse-revolutionInnovationNew business model(electronic marketplaces)Generation of new revenue streams(i.e.cross-selling opportunities)Time,experienceInformationCompany presen-tationProduct informationWeb site12345MUC-0061-81010-02-08.ppt-19-In the USA,steel producers pursue very distinct approaches:from early movers to late entrantsInformationWeirton Steel1Interaction2Transaction3Integration4Innovation5BethlehemSteelInlandU.S.SteelWorthingtonIndustriesBirminghamSteelNationalSteelInternet presence selected American steel producersnonestrongSource:Roland Berger&Partners analysis Back-upMUC-0061-81010-02-08.ppt-20-European steel players are slowly gaining momentum.However,new business models are not(yet)on the agendaInternet presence selected European steel producersnonestrongSource:Roland Berger&Partners analysis InformationArbed1Interaction2Transaction3Integration4Innovation5UsinorCorusThyssen KruppSSABVA StahlLucchiniBack-upMUC-0061-81010-02-08.ppt-21-Also Asian and South American players have not decided on a clear approachInternet presence selected Asian/South American steel producersInformationNippon Steel1Interaction2Transaction3Integration4Innovation5PoscoEssarBaoshanTata SteelUsiminasCSNnonestrongSource:Roland Berger&Partners analysis Back-upMUC-0061-81010-02-08.ppt-22-In general,American(and Asian)steel companies seem to be better prepared for the use of the internet than their European counterpartsSource:Roland Berger&Partners-survey Internet enthusiasm-readiness matrixInternet enthusiasm indexInternet readiness indexRoll-outState-of-the-artFirst stepsPositiveEnthusiasticVery enthusiasticScepticalInquisitiveUSAEUROPEASIAMUC-0061-81010-02-08.ppt-23-For the moment,the majority of the steel companies use their web sites more for traditional uses than as an advanced tool to extend their businessSource:Roland Berger&Partners-survey No web site(or under construction)Functioning web sites8%92%Services offered by steel companies on their web sites%of participantsCompany infoProductinfoCommuni-cation with clientsAdditional information offersOrder trackingOrder placing and invoicingPaymentQuestion:What kind of transactions/services are offered on your web site?Steel industry web site statusMUC-0061-81010-02-08.ppt-24-Experiences from other industries indicate a potential to create additional value from the internetSource:Roland Berger&Partners-survey Use of web site as new business generatormultiple answersQuestion:Do you provide in your web site content,cross-selling opportunities or advertising for other companies?1)Such as oil&gas,chemicals and utilitiesOther B2B industries1)Steel industryB2C industries Complementary products(steel/non-steel)Product range expansionService partnershipsInteractivityCommunity of interestLinksSpots for 3rd party productsData base marketingMUC-0061-81010-02-08.ppt-25-Corporate strategies in the steel industry do not(yet)evolve around e-business(while other B2B industries do)Level of integration of the internet activities in the corporate strategy%of the participantsQuestion:To which extent are internet activities integrated in your corporate strategy?Source:Roland Berger&Partners-survey12%Only U.S.companiesOther B2B industriesSteel industryB2C industries MUC-0061-81010-02-08.ppt-26-Although recognizing the importance of the internet,most companies have their internet activities(still)reporting to ITSource:Roland Berger&Partners-survey1)In most of the cases Corporate Communications or Corporate AffairsQuestion:Which department in your company is responsible today for your internet activities?The IT department is doing everything and reports to the sales The internet issue has become a political football between different departments We operate through steering committees(but results are poor)Responsible departments for the internet activitiesmultiple answersTopmanage-mentData processing/IT systemsSalesMarketingPurchasingOthers1)NoneMUC-0061-81010-02-08.ppt-27-To succeed in the internet steel companies must cope with external(as well as internal)barriersSource:Roland Berger&Partners-surveyBarriers for the penetration of e-commercemultiple repliesQuestion:Which do you consider as the main barriers in your company for the implementation of e-commerce?E-commerce does not fit in our marketing strategy for the momentOperations are afraid that we might eventually reveal sensitive information to the competitionWe have not had a single request from our clients to sell through the internetThere is no risk or barrier everybody will eventually do itInternal conflictwith sales forceLack of market acceptanceChannel conflictwith distributorsLack of know-how ofthe internal resources No support fromthe top management High required investments No barriers at all or otherInternal barriersExternal barriersMUC-0061-81010-02-08.ppt-28-D.Thorough planning is required for e-successMUC-0061-81010-02-08.ppt-29-E-business relates not only to suppliers and industrial customers,but also to the major stakeholdersSource:Roland Berger&PartnersInternet ExtranetOrders Requests for payment Production plans.Marketing Orders Payments.Payment instructions Credit investigationChecking accounts.SuppliersSteel customersDistributors/tradersMaterial consumptionOrders.Reduction of procurement costs viaE-PurchasingSupply chain management Enterprise resource planningReduction of production costsBoost to sales/resultsvia e-businessOptimization of payment behaviorJob applicantsSuccessful recruiting of high potentialsAlternative job offersAttractiveness of future employerFinancial communityMUC-0061-81010-02-08.ppt-30-Top managementcommitmentRight timing1Assess market potential2345Size of e-marketsChannel dynamicsBargaining powerLeverage industry expertiseKnow-how of industry dynamicsLevel of vertical integrationProduct/client mixDevelop required skills&infrastructureIntegration with internal operationse-frastructureExperience on web based technologiesInvest in marketing&logisticsBrandingDistribution capabilitiesLogistics organizationDecide on strategy/business modelMarketplace modelVertical vs.horizontal marketsIn-house vs.outsourcing solutionsAdoption of e-commerce represents a major turning point also for the steel and requires solid planningMUC-0061-81010-02-08.ppt-31-The impact of the internet on steel sales must be assessed for every product-market-segmentExpected impact of e-commerce1)production surplus,out-of-spec,downgradesSource:Roland Berger&PartnersTradersStockholders/distributorsSmall accounts(B/C clients)Large accounts(A clients)Commodityproducts Primes Non primes1)Specialty products MUC-0061-81010-02-08.ppt-32-Strong industry expertise as well as a differentiated approach(according to the specific customer needs)is required in order to succeed in the internetMain steel distribution approachesMedium/large customers e.g.from automotive suppliers,mechanical engineeringSmall customers/end users e.g.from construction industry,steel constructionLarge customers e.g.from steel industry,wholesalersLarge customers,e.g.from automotive,packaging cold-rollersCold-rolled-and OC-sheetsLong products(e.g.steel bar,wire rod),quatro sheet,tubesSemi-finished goods(e.g.hot rolled coils)Hot-rolled-,cold-rolled-and OC-sheetsShort term ability to deliverCustomer specific tailoringMix between captive and 3rd party productsProduct rangeFlexible storekeepingOn-site presence(handling,invoicing,collection)LocationGlobal brand network and know-howSecured buy/sell position(advanced payment,securitiz