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Yesterday, we posted a blog that explained how measuring your benefits can help determine the effectiveness of your e-ordering and e-invoicing capabilities.  Today, we'll cover the fourth and final step.  You can go to the Supply Lines group to read the full article.

 

Step 4: Assess Potential Benefits

At the beginning of year two, you’ll be ready to add new e-commerce capabilities. But how do you decide where to focus your efforts? The Directional E-Commerce Value Calculator can help.

What will it give you?

  • Ability to pinpoint the e-commerce areas likely to deliver the biggest payoff
  • Accurate information about the ROI you can expect to gain in five benefit categories:
    1. Higher customer satisfaction
    2. Greater visibility
    3. Increased sales
    4. Lower costs
    5. Increased velocity
  • Input to help you determine the level of investment that makes sense in a specific e-commerce area (e.g., if your estimated benefit from e-commerce efficiency is 2.4M USD, a 1M USD  investment is not only justifiable, but may well be the smartest strategy for your business)

How do you do it?

Open the online calculator and enter high-level metrics about your company. Depending on the data you enter, the calculator then shows how your results compare to third-party industry KPIs of best-in-class e-commerce organizations in up to four areas:

 

  1. Working capital improvement
  2. Efficiency improvement
  3. Increased wallet share
  4. Increased customer retention

Next, click on the “Results Summary” page to see a tally of your overall e-commerce opportunities plus a callout of the specific area where your ROI is likely to be highest. You’ll also see a list of your estimated gains in each of the five benefit categories mentioned above.

 

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The Results Summary page offers a detailed breakdown of where and how much e-commerce will benefit your business.

 

Questions?

To learn more about how you can target your e-commerce efforts to maximize ROI and collaborate more effectively with customers, please contact me at mwhitehead@ariba.com.