Most companies find it easy to recognize the need to move their
business online. Customers call for more timely information and
easier access to online ordering as well as training and
documentation. Internal operations and sales people want to leverage
the cost benefits and efficiencies of electronically connecting to
customers. But the real challenge is determining what to do and how
to go about achieving it. DuPont Performance Coatings (DPC), a
strategic business unit of DuPont, found itself in this position as
it began considering the efforts to move its business online.
DuPont Performance Coatings was formed in March of 1999 by the
combination of Herberts GmbH and DuPont Automotive Finishes, creating
the largest automotive coatings company in the world. The company is
divided into five business units: DuPont Herberts Automotive Systems,
the worldwide largest manufacturer of automotive OEM coatings which
sells directly to large manufacturers; DuPont Industrial Coatings,
the leading supplier in selected markets in mass-production,
industrial coatings; DuPont Ink Jet, the leading supplier of printing
inks to companies like Hewlett-Packard; DuPont Powder Coatings, the
second-largest powder coatings manufacturer worldwide; and DPC
Refinish Systems, the largest manufacturer worldwide of coatings for
car repair. DuPont Performance Coatings consists of numerous
world-renowned brands, including DuPont Finishes, Standox, Spies
Hecker, Nason, and DuPont Industrial Coatings. With more than 12,000
employees in over 35 countries in all continents, DuPont Performance
Coatings is a global company with products and services in almost
every market.
With no broad-reaching e-business plan, DuPont Performance Coatings
began its e-business initiative by going to its customers,
distributors, and partners to research what would take it beyond cost
cutting and improvement of internal efficiencies. Ultimately, DPC
wanted to use its Web-based e-business to create a competitive
advantage and provide new value to these constituents.
DPC's management focused the effort on the needs of their customers
but also remained vigilant in creating value for DPC's internal
users. They didn't want the effort to be just a competitive "catching
up" or simple problem-fixing, but a new method of coming to the
market, communicating with customers, and potentially creating new
business models.
Meeting Challenges
DPC decided to focus its first Web portal deployments on its
automotive refinishing customers. In the U.S., this market consists
of some 4,000 paint distributors and over 60,000 body shops. Each has
particular specialties, brand preferences, and expertise requiring
customized information and services. As DPC scoped out its
e-commerce initiative, it rapidly became clear that bringing its
ideal e-business solution to market would face considerable technical
challenges.
The first big challenge was DPC's desire to build a global foundation
to bring all the business units and brands together on a single
technology and a single platform. After DPC's early e-business
assessment, it was clear that bringing these disparate initiatives
together into a Web portal was the most efficient strategy.
DPC wanted a long life expectancy for the solution. The solution
needed to be able to support all of DPC's future global initiatives,
so it was critical that the solution not be obsolete the day it was
turned on.
DPC believed strongly that mass customization of these
portals (tuned to the needs of each customer, distributor,
and partner, and brand-targeted and customized for the
information needs of each) would provide competitive
differentiation. Closely related
to this need is that the solution needed to support multiple business
and marketing strategies. While the initial portal releases were
targeted at particular markets and business units, the long-term goal
of having a single platform required it to be flexible and adaptable
to a variety of concurrent and unique business models.
DPC's solution had to support global privacy and legal requirements,
as well as its own internal requirements for security and user
access. Security concerns frequently rank high in e-business
initiatives and DPC was no exception.
The final major challenge DPC faced was to find a solution that could
be managed from a business standpoint rather than from a programming
standpoint. DPC's goal was to have people in the sales
organization who were responsible for the different markets
and customers, and the
different functional area managers, to each have control of content,
input, and customer view decisions without having to rely on
developers or other programming resources.
Designing a Strategy
The other possible solutions that were evaluated quickly proved
impractical for the kind of unique portal views DPC wanted to offer
its distributors and body shops. An ever-growing and increasingly
complex code base would result
in application performance issues down the road. Additionally, as the
code base grew, more hardware would be required to deliver acceptable
levels of performance. Plus, DPC would be forced to employ an ongoing
team of highly skilled programmers to maintain the portal
infrastructure.
The DPC e-Business Initiative team, with the advice of Computer
Sciences Corporation's (CSC) NetBusiness Practice (e-commerce
solutions for F500 companies), charted a strategy based on XML Web
services and the Bowstreet Business Web Factory. DPC chose
Bowstreet's Business Web Factory platform because it enabled them to:
- Decrease costs by eliminating the need to custom code, or
hardwire, each new partner or customer to the portal
- Build customizable portals quickly and cost-effectively to respond
to competitors' e-business initiatives
- Scale to include all of DPC's distributors and body shops
worldwide, as well as all of the distributors and customers of its
partners and competitors
- Avoid the scalability issues present in other vendor's solutions
- Properly capture and market the branding characteristics of
each of the paint brands marketed by DPC
Construction of the portals got underway late in September 2001, led
by Bowstreet professional services personnel and consultants from
CSC. Initial operating capability of the portals went live the first
week of December 2001. Bowstreet's Business Web Factory runs
on Sun Microsystems' industry-leading enterprise servers and relies
on the iPlanet Directory Server for critical customer profile
information.
The portals, at
www.performancecoatingsdupont.com, were built to
provide auto-body shops with instant access to:
- Marketing tools and promotions
- Online training registration and schedules
- Product and safety information
- Technical manuals and regulatory compliance charts
- Business development tools, including industry
performance benchmarking;
- Classified ads and employment services, and
- Industry and customizable personal interest information, such
as industry links, news, sports, weather, and stock updates
The portals also provide paint distributors with online ordering and
marketing materials to help them solidify relationships with their
customers.
Benefits of a Well-Planned Portal
DPC, like many businesses in today's leaner economy, is sensitive to
the costs of a major infrastructure investment - especially in the
context of what financial managers can view as somewhat fuzzy
paybacks. However, the portal is already providing DPC with
significant time and cost savings. Online paint ordering is relieving
DPC customer service agents from keying phone, fax, and e-mail orders
into an enterprise resource planning (ERP) system. Online marketing
materials are reducing the cost of printing, managing, distributing,
and disposing of paper. Online training registration is saving
distributors from clerical work. Online Materials Safety Data Sheets
are providing customers with instant access to up-to-the-minute
information, while saving DPC from having to fax them to shops.
Intangible but even more critical benefits include stronger customer
relationships and increased loyalty.
DPC is beginning to leverage the portal globally in line with its
original plans. The Bowstreet technology now provides a very
customized view for DPC's various brands through a single point of
access within North America. DPC's businesses in Europe are using the
platform as a starting point for their localized initiatives. Those
businesses will use a slightly different view because of their
regional business requirements and marketing strategies, but over
time DPC expects the platform to fully converge.
DPC recognizes that doing business on the Web is mandatory. Over the
next several years it will focus on providing customized tools and
industry best practices information to specific customers over the
Internet. DuPont wants to understand where its customers' business is
strong and where it isn't, and then create value by providing
solutions that address those areas. Rather than using the Web as a
one-way dispersal of information to customers, DPC is using its
portal as a two-way tool for building long-term relationships with
its most valuable customers, while simultaneously attracting new
clients.
Author Bio:
Catherine Marchand is an e-Business strategy manager with Dupont. In her 22 years
with that firm, she has held positions in research and development, color and product
development, marketing, and business, all in support of the automotive collision
industry. She holds a BS in chemistry from the University of Michigan. CATHERINE.A.MARCHAND@USA.DUPONT.COM
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