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Siemens Presentation

RAJAT GARG
RAJAT GARG

This document evaluates the market potential and go-to-market strategy for e-commerce of Standard Motors. It analyzes the current online motor industry, finding that while major brands sell limited products on third-party sites, their full catalogs and technical specifications are not available. It also conducted primary research that found customers value real-time inventory, next-day delivery, and self-service accounts the most. The research suggests Standard Motors' customers fit the "ServeMe Buyer" category that prefers an online "Order Taker" sales model, indicating e-commerce is feasible. It identifies advantages of an e-commerce platform like standardizing prices, electronic invoicing, and improved logistics planning.

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EVALUATION OF MARKET POTENTIAL AND GO TO MARKET STRATEGY FOR E-COMMERCE FOR STANDARD MOTORS RAJAT GARG | NEHA AGGARWAL | DONGALA SSSK TEJA TEAM SYNCHRO30-11-2016 1
TEAM SYNCHRO30-11-2016 2 INDUSTRY OVERVIEW
TEAM SYNCHRO30-11-2016 3 CROMPTON GREAVES/ABB/BHARAT BIJLEE/SIEMENS/GE All are sellingmotors, pumps, drives, startersonlineonindustrybuying.com Snapdeal.com too has pumps, washing machines, motors from some of the brands.Very limitedSKUs These are sold by distributors/retailers and not directly by the companies on the popularmarketplaceslikeflipkartandsnapdeal Most of the questions asked and reviews given on the e-commerce marketplaces are byindividual buyers. No complaints were noted due to delivery problems or logistics issues which showsthat deliveryandlogisticsare not a problem There is a constant problem regarding suitability of product for the specific customer needs which gives rise to multiple questions and negative reviews in case of underperformancedue towrong purchases It is also noted that sellers of branded products online try to get the customer to purchase directly from retailer personnel or distributor website by sharing these details as an answerto customerqueries The entire range of products is not available online onthese thirdpartyplatforms. Difficult to find motor of right specifications since filters on these platforms do not give motorparameterfilteringoptions. Most of the questions asked on these platforms are about specifications as the user is not able to get all his doubts cleared from the specifications sharedonline. Authenticity of products is questionable as some of the questions asked by prospective buyersare aboutauthenticity F I N D I N G S 1 2 3 4 5 6 7 THE APP GElaunchedtheMotor and Generator Storefor customers to quickly access keytechnical information , obtain quotes & order products KEY FEATURES Pricing Availability Features Specifications Ordering Tracking Reviews Ratings ADDITIONAL OPTIONS Straight quotes ifthey are using or stocking machines Quoting on behalfoftheir customers (ifthey areOEMs or distributors) SUPPORTOPTIONS Library ofproduct literature, white papers andmaintenance manuals. Base ratings anddata packs, which contain specifications, performancedata, speed/torque curves, line drawings, wiring diagrams and engineering notes. GE MOTOR & GENERATOR STORE
TEAM SYNCHRO30-11-2016 4 FEASIBILITY FRAMEWORK ServeMe Buyer Order Taker Sales Model May or may not require human intervention Customers questions are best addressed online PERFECT FOR DIGITALLY ENABLED SALES MODELS ShowMe Buyer Explainer Sales Model Budget oriented purchasers with a pre- defined sales path to follow Explainers help buyer navigate information, compare products and reach final decision NOT SUITED FOR DIGITAL SPACE Guide Me Buyer Navigator Sales Model Know what they want to buy, but may need help from a sales person in mapping, navigating and orchestrating multiple stakeholders and/or budget resources. CAN BE CUSTOMISED FOR DIGITALLY ENABLED SALES MODELS Enlighten Me Buyer Consultant Sales Model Never individuals but multiple stakeholders involved in a complex buying environment The buying team may be undecided or unaligned as to what they need, who best to buy it from, and how to finesse the entire process. CAN BE CUSTOMISED FOR DIGITALLY ENABLED SALES MODELS StandardMotor purchasers fall under the ServeMe Buyer category StandardMotor manufacturers & distributorsneedto focus on the Order Taker sales model SELLING STANDARD MOTORS ONLINE IS A FEASIBLE SALES MODEL
TEAM SYNCHRO30-11-2016 5 PRIMARY RESEARCH METHODOLOGY Rank each of these on a scale: Very Important, Important, Would like if available (Not so important), Indifferent1 How important are the following when you are making work- related purchase online? Deliver the next day Make real-time inventory information available online Self-service my account and orders Download product information and sales sheets Schedule delivery by time of day View recommendations based on past purchases and my interests/ profile Look up product information (across any channel) View my activities across all channels Return or exchange across different channels Share unified account and order history across channels
TEAM SYNCHRO30-11-2016 6 RESULTS- QUESTION 1 70% 10% 10% 10% Real Time Inventory Very Important Important Not So Important Indifferent 10% 20% 70% 0% Next Day Delivery Very Important Important Not So Important Indifferent 70% 30% Self Serving Accounts Very Important Important Not So Important Indifferent 0% 80% 10% 10% Scheduled Delivery Very Important Important Not So Important Indifferent 0% 40% 50% 10% Downoad Product Information Very Important Important Not So Important Indifferent 0% 30% 50% 20% Purchase Recommendation Very Important Important Not So Important Indifferent
TEAM SYNCHRO30-11-2016 7 RESULTS- QUESTION 1 50% 40% 10% 0% CrossChannel ProductInformation Very Important Important Not So Important Indifferent 40% 50% 10% 0% CrossChannel Account Information Very Important Important Not So Important Indifferent 90% 10% 0% 0% CrossChannel Return/Exchange Very Important Important Not So Important Indifferent 10% 70% 20% 0% CrossChannel Account Information Very Important Important Not So Important Indifferent
WHAT FACTORS AFFECT PURCHASE OF STANDARD MOTORS Total Variance Explained Component InitialEigenvalues Extraction Sums ofSquared Loadings RotationSums ofSquared Loadings Total % ofVariance Cumulative% Total % of Variance Cumulative% Total % ofVariance Cumulative% 1 4.512 45.118 45.118 4.512 45.118 45.118 3.570 35.699 35.699 2 2.168 21.676 66.794 2.168 21.676 66.794 2.362 23.618 59.317 3 1.448 14.477 81.271 1.448 14.477 81.271 1.914 19.145 78.462 4 1.045 10.449 91.720 1.045 10.449 91.720 1.326 13.258 91.720 5 .562 5.624 97.344 6 .232 2.317 99.661 7 .034 .339 100.000 8 3.602E-16 3.602E-15 100.000 9 -1.159E-16 -1.159E-15 100.000 10 -4.872E-16 -4.872E-15 100.000 Rotated Component Matrix Component 1 2 3 4 CrossChannelProductInfo -.034 .863 -.023 -.388 CrossChannelActivityInfo .176 .094 .926 .179 CrossChannelReturnExchange -.152 -.162 .086 .820 CrossChannelAccountInfo .075 -.161 -.936 .033 NextDayDelivery -.967 -.155 -.138 .051 RealTimeInventory .986 .115 -.046 .004 SelfServingAccounts .861 .492 .118 -.021 DownloadProductInfo .782 -.078 -.020 -.516 PurchaseRecommendation .412 .715 .174 .444 ScheduledDelivery .278 .872 .327 -.051 FACTOR ANALYSI- QUESTION 1 Factor 1: Next Day Delivery & Real Time Inventory Factor 2: Cross Channel Product Info & Scheduled Delivery Factor 3: Cross Channel Activity Information Factor 4: Cross Channel Return Exchange ON TIME DELIVERY SCHEDULINGTRACKING AUTHENTIC INFORMATION RETURN/ EXCHANGE
TEAM SYNCHRO30-11-2016 9 PRIMARY RESEARCH METHODOLOGY Rank each of these on a scale: Very Important, Important, Would like if available (Not so important), Indifferent2 To what extent do you agree or disagree with the following statements regardingyour work-related purchases? I buy again from the same supplier if I find they have a Consistently have the lowest prices Excellent customer service The broadest selection of products or services The most credible source of product details and information An easy-to-use website The fastest delivery/shipment
TEAM SYNCHRO30-11-2016 10 RESULTS QUESTION 2 90% 10% 0% 0% Fast Delivery Strongly Agree Agree Slightly Agree Disagree 50% 40% 10% 0% User Friendly Website Strongly Agree Agree Slightly Agree Disagree 0% 70% 30% 0% ProductDetail Source Strongly Agree Agree Slightly Agree Disagree 10% 60% 30% 0% Product Selection Variety Strongly Agree Agree Slightly Agree Disagree 80% 20% 0% 0% CustomerService Strongly Agree Agree Slightly Agree Disagree 10% 10% 60% 20% Low Prices Strongly Agree Agree Slightly Agree Disagree
30-11-2016 TEAM SYNCHRO 11 FACTORS AFFECTING B2B BUYER LOYALTY FOR SIEMENS 6 factors that are widely speculatedto induce buyer loyaltyin B2B purchases Consistent Low prices Fastest delivery/ shipment Excellent customer service Easyto use website Broadest Selection of products and services Most credible source of product information SIGNIFICANT As per our analysis, suppliers fastest delivering capability among the competitors emerged as a very significant factor for its customers to stick to a particular manufacturer [Chi-square test is showing a significant association at 89.3% confidence level] Factor-1: Fastest Delivery/ Shipment Chi-Square Tests Value df Asymptotic Significance (2-sided) Exact Sig. (2- sided) Exact Sig. (1- sided) PearsonChi-Square 2.593a 1 .107 ContinuityCorrectionb .212 1 .645 LikelihoodRatio 2.683 1 .101 Fisher's Exact Test .300 .300 Linear-by-Linear Association 2.333 1 .127 N of ValidCases 10 a. 3 cells (75.0%) have expectedcount less than5. The minimumexpectedcount is .30. b. Computedonlyfor a 2x2 table
Factor-2: Credible Product Information Source 30-11-2016 TEAM SYNCHRO 12 FACTORS AFFECTING B2B BUYER LOYALTY FOR SIEMENS As per our analysis, suppliers credibility to provide product details emerged as a very significant factor for its customers to choose that manufacturer [Chi- square test is showing a significant association at 90.2% confidence level] Chi-Square Tests Value df Asymptotic Significance (2-sided) Exact Sig. (2- sided) Exact Sig. (1- sided) PearsonChi-Square 2.744a 1 .098 Continuity Correctionb .816 1 .366 LikelihoodRatio 2.657 1 .103 Fisher's Exact Test .183 .183 Linear-by-Linear Association 2.469 1 .116 N of ValidCases 10 a. 4 cells (100.0%) have expectedcount less than5. The minimumexpectedcount is .90. b. Computedonlyfor a 2x2 table Factor-3: Easy to use e- procurement website This factor turned out as the most significant factor among the six factors under test [Chi-square test is showing a significant association at 92.7% confidence level] Chi-Square Tests Value df Asymptotic Significance (2- sided) PearsonChi-Square 5.238a 2 .073 LikelihoodRatio 6.672 2 .036 Linear-by-LinearAssociation 4.714 1 .030 N of ValidCases 10 a. 6 cells (100.0%) have expectedcount less than5. The minimumexpectedcount is .30.
30-11-2016 TEAM SYNCHRO 13 FACTORS AFFECTING B2B BUYER LOYALTY FOR SIEMENS E-procurement portal enables a faster delivery channel E-procurement portal itself positively impacts the buyer loyalty E-procurement portal increases the access and credibility of product information supplied by the Siemens Insightsfrom Market Research on Buyer LoyaltyFactors
TEAM SYNCHRO30-11-2016 14 PRIMARY RESEARCH METHODOLOGY Select only 3 from the given options 3 Of the following, which three features/ functions would you most like your suppliers to offer? 0 10 20 30 40 50 60 70 80 90 100 Search Function on Website Product Recommendations on Website Product Ratings on Website Product Recommendation by Manufacturer Backend Integration with Manufacturer Selection Percentage Enhanced search functionality on their website Showing ratings and reviews of products/services Improved personalized product or service recommendations on their website Integration with our back-end finance, accounting, OMS, or ERP systems Merchandising/recommending relevant products and services
TEAM SYNCHRO30-11-2016 15 PRIMARY RESEARCH METHODOLOGY 4 Which of the following purchasing options have you used for work- related purchases? Use of credit or debit card Payments via accounts payable utilizing invoices/ purchase orders (POs) Use of online payment services Purchases through e-Procurement portal Choose only one from the options given below 0% 20% 10% 70% Percentage of Users Credit/Debit Card Account Payable Online Payment e-Procurement
TEAM SYNCHRO30-11-2016 16 STANDARD MOTOR CONSUMERS CHANNEL PREFERENCE Large Corporate Houses, OEMs and Contract Purchasers Will prefer one on one interaction duringthe buyingcycle Large volume purchases more bargaining,morediscounts Low probability of usinge-channel to placeorder Distributors Want to deal with the company sales department directly for purchase Would liketo have a e-channel to track order, get more details aboutproducts,etc. Would not mind if Siemens were to create an e-marketplace for them to sell online Individual Buyers and Small Distributors/Retailers E-Commerce friendly- OUR TARGET CUSTOMER Small Amount Purchases Low Volumes Need Best PriceAssurance Purchaseonlineif present in remote locations and no directcontact with distributor Independent Exchange Consortia Based Exchange Private Exchange Allow distributors tosell on independent platformsto increase volume sales Create aprivate platformfor distributorstomanage and track sales, monitor inventory. Eventually give buying options on this platform Do not gofor ConsortiaBased Exchange Focus on improving service to distributors by empowering them with smart e-tools for a better purchase experience Provide a marketplace to small retailers and individual consumers to buy at the best price from the distributors
Advantages Standardization of order prices and monitoring of distributors Electronic Invoicing Distributor Scorecards Sharing of Engineering Documents Logistics Planning Made Easier Online quoting of orders, price negotiation cycle time reduced significantly TEAM SYNCHRO30-11-2016 17 ADVANTAGES OF E-COMMERCE FOR SIEMENS
THANK YOU TEAM SYNCHRO30-11-2016 18

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Siemens Presentation

  • 1. EVALUATION OF MARKET POTENTIAL AND GO TO MARKET STRATEGY FOR E-COMMERCE FOR STANDARD MOTORS RAJAT GARG | NEHA AGGARWAL | DONGALA SSSK TEJA TEAM SYNCHRO30-11-2016 1
  • 3. TEAM SYNCHRO30-11-2016 3 CROMPTON GREAVES/ABB/BHARAT BIJLEE/SIEMENS/GE All are sellingmotors, pumps, drives, startersonlineonindustrybuying.com Snapdeal.com too has pumps, washing machines, motors from some of the brands.Very limitedSKUs These are sold by distributors/retailers and not directly by the companies on the popularmarketplaceslikeflipkartandsnapdeal Most of the questions asked and reviews given on the e-commerce marketplaces are byindividual buyers. No complaints were noted due to delivery problems or logistics issues which showsthat deliveryandlogisticsare not a problem There is a constant problem regarding suitability of product for the specific customer needs which gives rise to multiple questions and negative reviews in case of underperformancedue towrong purchases It is also noted that sellers of branded products online try to get the customer to purchase directly from retailer personnel or distributor website by sharing these details as an answerto customerqueries The entire range of products is not available online onthese thirdpartyplatforms. Difficult to find motor of right specifications since filters on these platforms do not give motorparameterfilteringoptions. Most of the questions asked on these platforms are about specifications as the user is not able to get all his doubts cleared from the specifications sharedonline. Authenticity of products is questionable as some of the questions asked by prospective buyersare aboutauthenticity F I N D I N G S 1 2 3 4 5 6 7 THE APP GElaunchedtheMotor and Generator Storefor customers to quickly access keytechnical information , obtain quotes & order products KEY FEATURES Pricing Availability Features Specifications Ordering Tracking Reviews Ratings ADDITIONAL OPTIONS Straight quotes ifthey are using or stocking machines Quoting on behalfoftheir customers (ifthey areOEMs or distributors) SUPPORTOPTIONS Library ofproduct literature, white papers andmaintenance manuals. Base ratings anddata packs, which contain specifications, performancedata, speed/torque curves, line drawings, wiring diagrams and engineering notes. GE MOTOR & GENERATOR STORE
  • 4. TEAM SYNCHRO30-11-2016 4 FEASIBILITY FRAMEWORK ServeMe Buyer Order Taker Sales Model May or may not require human intervention Customers questions are best addressed online PERFECT FOR DIGITALLY ENABLED SALES MODELS ShowMe Buyer Explainer Sales Model Budget oriented purchasers with a pre- defined sales path to follow Explainers help buyer navigate information, compare products and reach final decision NOT SUITED FOR DIGITAL SPACE Guide Me Buyer Navigator Sales Model Know what they want to buy, but may need help from a sales person in mapping, navigating and orchestrating multiple stakeholders and/or budget resources. CAN BE CUSTOMISED FOR DIGITALLY ENABLED SALES MODELS Enlighten Me Buyer Consultant Sales Model Never individuals but multiple stakeholders involved in a complex buying environment The buying team may be undecided or unaligned as to what they need, who best to buy it from, and how to finesse the entire process. CAN BE CUSTOMISED FOR DIGITALLY ENABLED SALES MODELS StandardMotor purchasers fall under the ServeMe Buyer category StandardMotor manufacturers & distributorsneedto focus on the Order Taker sales model SELLING STANDARD MOTORS ONLINE IS A FEASIBLE SALES MODEL
  • 5. TEAM SYNCHRO30-11-2016 5 PRIMARY RESEARCH METHODOLOGY Rank each of these on a scale: Very Important, Important, Would like if available (Not so important), Indifferent1 How important are the following when you are making work- related purchase online? Deliver the next day Make real-time inventory information available online Self-service my account and orders Download product information and sales sheets Schedule delivery by time of day View recommendations based on past purchases and my interests/ profile Look up product information (across any channel) View my activities across all channels Return or exchange across different channels Share unified account and order history across channels
  • 6. TEAM SYNCHRO30-11-2016 6 RESULTS- QUESTION 1 70% 10% 10% 10% Real Time Inventory Very Important Important Not So Important Indifferent 10% 20% 70% 0% Next Day Delivery Very Important Important Not So Important Indifferent 70% 30% Self Serving Accounts Very Important Important Not So Important Indifferent 0% 80% 10% 10% Scheduled Delivery Very Important Important Not So Important Indifferent 0% 40% 50% 10% Downoad Product Information Very Important Important Not So Important Indifferent 0% 30% 50% 20% Purchase Recommendation Very Important Important Not So Important Indifferent
  • 7. TEAM SYNCHRO30-11-2016 7 RESULTS- QUESTION 1 50% 40% 10% 0% CrossChannel ProductInformation Very Important Important Not So Important Indifferent 40% 50% 10% 0% CrossChannel Account Information Very Important Important Not So Important Indifferent 90% 10% 0% 0% CrossChannel Return/Exchange Very Important Important Not So Important Indifferent 10% 70% 20% 0% CrossChannel Account Information Very Important Important Not So Important Indifferent
  • 8. WHAT FACTORS AFFECT PURCHASE OF STANDARD MOTORS Total Variance Explained Component InitialEigenvalues Extraction Sums ofSquared Loadings RotationSums ofSquared Loadings Total % ofVariance Cumulative% Total % of Variance Cumulative% Total % ofVariance Cumulative% 1 4.512 45.118 45.118 4.512 45.118 45.118 3.570 35.699 35.699 2 2.168 21.676 66.794 2.168 21.676 66.794 2.362 23.618 59.317 3 1.448 14.477 81.271 1.448 14.477 81.271 1.914 19.145 78.462 4 1.045 10.449 91.720 1.045 10.449 91.720 1.326 13.258 91.720 5 .562 5.624 97.344 6 .232 2.317 99.661 7 .034 .339 100.000 8 3.602E-16 3.602E-15 100.000 9 -1.159E-16 -1.159E-15 100.000 10 -4.872E-16 -4.872E-15 100.000 Rotated Component Matrix Component 1 2 3 4 CrossChannelProductInfo -.034 .863 -.023 -.388 CrossChannelActivityInfo .176 .094 .926 .179 CrossChannelReturnExchange -.152 -.162 .086 .820 CrossChannelAccountInfo .075 -.161 -.936 .033 NextDayDelivery -.967 -.155 -.138 .051 RealTimeInventory .986 .115 -.046 .004 SelfServingAccounts .861 .492 .118 -.021 DownloadProductInfo .782 -.078 -.020 -.516 PurchaseRecommendation .412 .715 .174 .444 ScheduledDelivery .278 .872 .327 -.051 FACTOR ANALYSI- QUESTION 1 Factor 1: Next Day Delivery & Real Time Inventory Factor 2: Cross Channel Product Info & Scheduled Delivery Factor 3: Cross Channel Activity Information Factor 4: Cross Channel Return Exchange ON TIME DELIVERY SCHEDULINGTRACKING AUTHENTIC INFORMATION RETURN/ EXCHANGE
  • 9. TEAM SYNCHRO30-11-2016 9 PRIMARY RESEARCH METHODOLOGY Rank each of these on a scale: Very Important, Important, Would like if available (Not so important), Indifferent2 To what extent do you agree or disagree with the following statements regardingyour work-related purchases? I buy again from the same supplier if I find they have a Consistently have the lowest prices Excellent customer service The broadest selection of products or services The most credible source of product details and information An easy-to-use website The fastest delivery/shipment
  • 10. TEAM SYNCHRO30-11-2016 10 RESULTS QUESTION 2 90% 10% 0% 0% Fast Delivery Strongly Agree Agree Slightly Agree Disagree 50% 40% 10% 0% User Friendly Website Strongly Agree Agree Slightly Agree Disagree 0% 70% 30% 0% ProductDetail Source Strongly Agree Agree Slightly Agree Disagree 10% 60% 30% 0% Product Selection Variety Strongly Agree Agree Slightly Agree Disagree 80% 20% 0% 0% CustomerService Strongly Agree Agree Slightly Agree Disagree 10% 10% 60% 20% Low Prices Strongly Agree Agree Slightly Agree Disagree
  • 11. 30-11-2016 TEAM SYNCHRO 11 FACTORS AFFECTING B2B BUYER LOYALTY FOR SIEMENS 6 factors that are widely speculatedto induce buyer loyaltyin B2B purchases Consistent Low prices Fastest delivery/ shipment Excellent customer service Easyto use website Broadest Selection of products and services Most credible source of product information SIGNIFICANT As per our analysis, suppliers fastest delivering capability among the competitors emerged as a very significant factor for its customers to stick to a particular manufacturer [Chi-square test is showing a significant association at 89.3% confidence level] Factor-1: Fastest Delivery/ Shipment Chi-Square Tests Value df Asymptotic Significance (2-sided) Exact Sig. (2- sided) Exact Sig. (1- sided) PearsonChi-Square 2.593a 1 .107 ContinuityCorrectionb .212 1 .645 LikelihoodRatio 2.683 1 .101 Fisher's Exact Test .300 .300 Linear-by-Linear Association 2.333 1 .127 N of ValidCases 10 a. 3 cells (75.0%) have expectedcount less than5. The minimumexpectedcount is .30. b. Computedonlyfor a 2x2 table
  • 12. Factor-2: Credible Product Information Source 30-11-2016 TEAM SYNCHRO 12 FACTORS AFFECTING B2B BUYER LOYALTY FOR SIEMENS As per our analysis, suppliers credibility to provide product details emerged as a very significant factor for its customers to choose that manufacturer [Chi- square test is showing a significant association at 90.2% confidence level] Chi-Square Tests Value df Asymptotic Significance (2-sided) Exact Sig. (2- sided) Exact Sig. (1- sided) PearsonChi-Square 2.744a 1 .098 Continuity Correctionb .816 1 .366 LikelihoodRatio 2.657 1 .103 Fisher's Exact Test .183 .183 Linear-by-Linear Association 2.469 1 .116 N of ValidCases 10 a. 4 cells (100.0%) have expectedcount less than5. The minimumexpectedcount is .90. b. Computedonlyfor a 2x2 table Factor-3: Easy to use e- procurement website This factor turned out as the most significant factor among the six factors under test [Chi-square test is showing a significant association at 92.7% confidence level] Chi-Square Tests Value df Asymptotic Significance (2- sided) PearsonChi-Square 5.238a 2 .073 LikelihoodRatio 6.672 2 .036 Linear-by-LinearAssociation 4.714 1 .030 N of ValidCases 10 a. 6 cells (100.0%) have expectedcount less than5. The minimumexpectedcount is .30.
  • 13. 30-11-2016 TEAM SYNCHRO 13 FACTORS AFFECTING B2B BUYER LOYALTY FOR SIEMENS E-procurement portal enables a faster delivery channel E-procurement portal itself positively impacts the buyer loyalty E-procurement portal increases the access and credibility of product information supplied by the Siemens Insightsfrom Market Research on Buyer LoyaltyFactors
  • 14. TEAM SYNCHRO30-11-2016 14 PRIMARY RESEARCH METHODOLOGY Select only 3 from the given options 3 Of the following, which three features/ functions would you most like your suppliers to offer? 0 10 20 30 40 50 60 70 80 90 100 Search Function on Website Product Recommendations on Website Product Ratings on Website Product Recommendation by Manufacturer Backend Integration with Manufacturer Selection Percentage Enhanced search functionality on their website Showing ratings and reviews of products/services Improved personalized product or service recommendations on their website Integration with our back-end finance, accounting, OMS, or ERP systems Merchandising/recommending relevant products and services
  • 15. TEAM SYNCHRO30-11-2016 15 PRIMARY RESEARCH METHODOLOGY 4 Which of the following purchasing options have you used for work- related purchases? Use of credit or debit card Payments via accounts payable utilizing invoices/ purchase orders (POs) Use of online payment services Purchases through e-Procurement portal Choose only one from the options given below 0% 20% 10% 70% Percentage of Users Credit/Debit Card Account Payable Online Payment e-Procurement
  • 16. TEAM SYNCHRO30-11-2016 16 STANDARD MOTOR CONSUMERS CHANNEL PREFERENCE Large Corporate Houses, OEMs and Contract Purchasers Will prefer one on one interaction duringthe buyingcycle Large volume purchases more bargaining,morediscounts Low probability of usinge-channel to placeorder Distributors Want to deal with the company sales department directly for purchase Would liketo have a e-channel to track order, get more details aboutproducts,etc. Would not mind if Siemens were to create an e-marketplace for them to sell online Individual Buyers and Small Distributors/Retailers E-Commerce friendly- OUR TARGET CUSTOMER Small Amount Purchases Low Volumes Need Best PriceAssurance Purchaseonlineif present in remote locations and no directcontact with distributor Independent Exchange Consortia Based Exchange Private Exchange Allow distributors tosell on independent platformsto increase volume sales Create aprivate platformfor distributorstomanage and track sales, monitor inventory. Eventually give buying options on this platform Do not gofor ConsortiaBased Exchange Focus on improving service to distributors by empowering them with smart e-tools for a better purchase experience Provide a marketplace to small retailers and individual consumers to buy at the best price from the distributors
  • 17. Advantages Standardization of order prices and monitoring of distributors Electronic Invoicing Distributor Scorecards Sharing of Engineering Documents Logistics Planning Made Easier Online quoting of orders, price negotiation cycle time reduced significantly TEAM SYNCHRO30-11-2016 17 ADVANTAGES OF E-COMMERCE FOR SIEMENS