Description
The PPT explaining about online business procurement at cathay pacific airlines. Launch of CXeBUY is covered in the PPT.
E- procurement at Cathay Pacific Airways
Agenda
? What to expect when you go online with a ? ? ? ? ? ? ?
process? About Cathay Pacific Cathay Pacific and IT Benefits gained by APD Why CXeBUY? Problem at hand Alternative Available Our Suggestion
What to expect when you go online with a process?
Tangible benefits ? Monetary Benefits ? Time Saving ? Efficiency Increasing
Intangible Benefits ? Increased Satisfaction of stakeholders ? Increased reliability of the process ? Increased Value Creation ? Greater Control
About Cathay Pacific
? Founded in 1946, in the HKSAR
? Announced the Best Airline in Asia ( Skytrax,
2001-2002) ? “Compete on product and service rather than on price”- The philosophy ? Vision – “make Cathay the most admired airline in the world”
Cathay Pacific and IT
? Internet related technologies investment -$256
million over 3 years
? E-Business initiative’s expectations
? Reduce total costs more than $30 million yearly ? “Improve efficiency rather than to cut staffing”
Relevant benefits gained by APD
? Manage and control expenditure
? Improve purchasing power
? Provide spend and supplier information ? Access to new suppliers ? Easy integration
? Back office ? External (Oracle Internet Procurement)
? Moving suppliers to the online space
Why CP is adopting CXeBUY?
? To accomplish its vision of being Asia’s leading e-
business airline
? Access to huge supplier information ? Increase revenue and achieve cost saving upto
$30 Million
? Reducing purchasing cost
? Reducing inventory and carrying cost
Problem at hand
? Is the timing appropriate for valuation of tangible
and intangible benefits of e-procurement?
? How to quantify the benefits of implementation if
we valuate?
? Which financial metrics to use for measuring the
payback and ROI deliverables?
Alternatives Available
? To evaluate now or not? ? Valuate at corporate level, department level or
process level.
e-Procurement Valuation now?
POINTS OF INTEREST
1. Would help the company fully benefit from CXeBuy
2. Would get figures to show the beneficial effect of CXeBuy on the Cathay’s operation.
POINTS OF CONFLICT
1. Too early to carry out such a valuation
2. Overall impact cannot be measured as modules not complete 3. Testing will be inappropriate at this stage 4. Require remodeling once completely implemented (for overall success of project)
Department level/Corporate level/ Process level
? Corporate level – difficult as the project is
expanding to different departments
? Department level – Will not give true picture of
Project’s success.
Implementation through Balanced Score card
• Reduction in cost of ordering • Lead time from “Req to Cheque”. • Better time management • Delivery of the right product ordered
Financial
Customer / Supplier
• Procurement process aligned with overall business objective: Use of Technology
Internal Business
Innovation and Learning
• Adaptability to change • Value creation • Potential for improvement
Why not to use balanced score card
? BSC assessment is at Organization level. But its
better evaluate CXeBUY at individual process level
? While BSC should be done for a stand alone
system, CXeBUY is a system in continuous use, growing and improving all the time.
? Deployment of resources required for BSC which
cannot be done at this intermediate stage.
Our Suggestion
? No valuation must be done at this stage as it
would not give us the true picture.
Thank You!!
doc_195724831.pptx
The PPT explaining about online business procurement at cathay pacific airlines. Launch of CXeBUY is covered in the PPT.
E- procurement at Cathay Pacific Airways
Agenda
? What to expect when you go online with a ? ? ? ? ? ? ?
process? About Cathay Pacific Cathay Pacific and IT Benefits gained by APD Why CXeBUY? Problem at hand Alternative Available Our Suggestion
What to expect when you go online with a process?
Tangible benefits ? Monetary Benefits ? Time Saving ? Efficiency Increasing
Intangible Benefits ? Increased Satisfaction of stakeholders ? Increased reliability of the process ? Increased Value Creation ? Greater Control
About Cathay Pacific
? Founded in 1946, in the HKSAR
? Announced the Best Airline in Asia ( Skytrax,
2001-2002) ? “Compete on product and service rather than on price”- The philosophy ? Vision – “make Cathay the most admired airline in the world”
Cathay Pacific and IT
? Internet related technologies investment -$256
million over 3 years
? E-Business initiative’s expectations
? Reduce total costs more than $30 million yearly ? “Improve efficiency rather than to cut staffing”
Relevant benefits gained by APD
? Manage and control expenditure
? Improve purchasing power
? Provide spend and supplier information ? Access to new suppliers ? Easy integration
? Back office ? External (Oracle Internet Procurement)
? Moving suppliers to the online space
Why CP is adopting CXeBUY?
? To accomplish its vision of being Asia’s leading e-
business airline
? Access to huge supplier information ? Increase revenue and achieve cost saving upto
$30 Million
? Reducing purchasing cost
? Reducing inventory and carrying cost
Problem at hand
? Is the timing appropriate for valuation of tangible
and intangible benefits of e-procurement?
? How to quantify the benefits of implementation if
we valuate?
? Which financial metrics to use for measuring the
payback and ROI deliverables?
Alternatives Available
? To evaluate now or not? ? Valuate at corporate level, department level or
process level.
e-Procurement Valuation now?
POINTS OF INTEREST
1. Would help the company fully benefit from CXeBuy
2. Would get figures to show the beneficial effect of CXeBuy on the Cathay’s operation.
POINTS OF CONFLICT
1. Too early to carry out such a valuation
2. Overall impact cannot be measured as modules not complete 3. Testing will be inappropriate at this stage 4. Require remodeling once completely implemented (for overall success of project)
Department level/Corporate level/ Process level
? Corporate level – difficult as the project is
expanding to different departments
? Department level – Will not give true picture of
Project’s success.
Implementation through Balanced Score card
• Reduction in cost of ordering • Lead time from “Req to Cheque”. • Better time management • Delivery of the right product ordered
Financial
Customer / Supplier
• Procurement process aligned with overall business objective: Use of Technology
Internal Business
Innovation and Learning
• Adaptability to change • Value creation • Potential for improvement
Why not to use balanced score card
? BSC assessment is at Organization level. But its
better evaluate CXeBUY at individual process level
? While BSC should be done for a stand alone
system, CXeBUY is a system in continuous use, growing and improving all the time.
? Deployment of resources required for BSC which
cannot be done at this intermediate stage.
Our Suggestion
? No valuation must be done at this stage as it
would not give us the true picture.
Thank You!!
doc_195724831.pptx