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A Standardized Material and Service Classification System  What is a Classification traditionally used for? TheA Standardized Material and Service Classification System What is a Classification traditionally used for? The standardization gap in ERP applications Why do we need a standard across companies and nations? Help us make it happen! e. Cl@ss @ Internet!

e. Cl@ss e. V.  Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consulte. Cl@ss e. V. Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consult Ltd. email: info@eclass. de July 2001 What is a Classification traditionally used for? Search and Find Hierarchical search in catalogues. Parametric search in catalogues. Standardized specifications. Documentation of inventories and installations. Definition of purchasers’ responsibilities. Description of suppliers’ product lines. Statistics of purchasing activities. Definition of contract subjects. Map market segments

e. Cl@ss e. V.  Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consulte. Cl@ss e. V. Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consult Ltd. email: info@eclass. de July 2001 — numerical class-strucure, with segments, groups, subgroups and commodity classes, represeting markets by an 8 -digit classification number. — keywords and synonyms , used for a quick and precise search and finding of commodity classes and their attributes. — sets of attributes, which describe the various attributes of materials and services. A search in electronic catalogues without an unified structure of attributes is not useful. — values, defining attributes. Only the use of the same «language» or terms insures an effective communication between all levels of commerce-partners, e. g. global markets, suppliers, customers! Elements of a Classification

e. Cl@ss e. V.  Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consulte. Cl@ss e. V. Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consult Ltd. email: info@eclass. de July 2001 The Need for Standardization IT-support of individual business processes Integrated Standard Software for individual Companies IT-Integrated Supply Chain, e. g. e. Commerce IT-integration of different units in conglomerates Common data structures are needed to facilitate an easy data exchange between inter linked units. Level of IT integration Need for standardized data structures International Standards Conglomerate Standards Company Standards Process Standards 80’s early 90’s mid 90’s now. The more business entities are interlinked, the more the need for standardization increases.

e. Cl@ss e. V.  Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consulte. Cl@ss e. V. Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consult Ltd. email: info@eclass. de July 2001 What‘s meant by “Classification”? Segment Group Subgroup Commodity Class Attributes This explains the e. Cl@ss symbol Measurmnt. range Uncertainty Output signal Constr. Material Flange type etc A hierarchical system for grouping materials according to a logical schema, with a granularity appropriate to incorporate detailed product characteristics or attributes. Keywords Synonyms

e. Cl@ss e. V.  Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consulte. Cl@ss e. V. Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consult Ltd. email: info@eclass. de July 2001 Benefits from the Customers’ Viewpoint Electronic transfer of manufacturer’s product data. Benchmarking across distinct companies of multinational enterprises. e. Catalogues across different suppliers become feasible. Reduction of transaction costs. Products and supplier offers become comparable. Broadening of supplier base.

e. Cl@ss e. V.  Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consulte. Cl@ss e. V. Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consult Ltd. email: info@eclass. de July 2001 Benefits from the Suppliers’ Viewpoint Identical data structures for all their customers. Maintenance of e. Catalogues can be laid into the hands of catalogue content providers. Reduction of transaction costs. Broadening of customer base.

e. Cl@ss e. V.  Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consulte. Cl@ss e. V. Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consult Ltd. email: info@eclass. de July 2001 Matching of Requirements and Offers in e. Commerce needs a Common Language Demand. Customers Offer. Suppliers Data exchange e. g. Internet Speci- fication De- scription. Match

e. Cl@ss e. V.  Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consulte. Cl@ss e. V. Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consult Ltd. email: info@eclass. de July 2001 Benefits of a standard for those who prefer their inhouse classification Demand. Customers Offer. Suppliers ! ! !! ! = gate keeper Virtual market place Those companies need just a single gate keeper program to translate data to and from the external standard.

e. Cl@ss e. V.  Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consulte. Cl@ss e. V. Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consult Ltd. email: info@eclass. de July 2001 Internationalization is a reality today. . . Virtual teamwork in engineering projects. Benchmarking of production processes. Aggregation of procurement volumes. Enterprise reporting. Exchange of products and services. Intra-enterprise information flows

e. Cl@ss e. V.  Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consulte. Cl@ss e. V. Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consult Ltd. email: info@eclass. de July 2001 Customers Suppliers global market place. Internationalization is a reality today. . . Inter-enterprise information flows

e. Cl@ss e. V.  Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consulte. Cl@ss e. V. Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consult Ltd. email: info@eclass. de July 2001 The Standardization Gap in ERP Applications The current move from legacy systems to ERP applications is largely motivated as move towards standard software. This creates a standard regarding the software, but does not deliver a standard for data structures. As a consequence ERP users are developing class hierarchies by their own. A waste of effort: A fairly complete schema takes several 10 years of personnel effort. That means: They end up again with incompatible systems: A disaster for data exchange inter and intra enterprises. Keep in mind: The data structures we are implementing now are those we have to live with for decades to come!

e. Cl@ss e. V.  Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consulte. Cl@ss e. V. Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consult Ltd. email: info@eclass. de July 2001 The e. Cl@ss-Product. . . thus e. Cl@ss supports the entire process chain of material management, including e. Commerce. e. Cl@ss maps market structure e. Cl@ss maps technical functionality e. Commerce Marketplaces Catalogues R&D Production User Maintenance Sales Procurement Disposal Supplier Buyer

e. Cl@ss e. V.  Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consulte. Cl@ss e. V. Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consult Ltd. email: info@eclass. de July 2001 The e. Cl@ss-Product 22 366 2725 10190 Number of classes in v 4. 0 1 2 3 4 Attributes. . . supports application to • e. Catalogues • e. Commerce • plant maintenance • warehouse manag. • change management. . . makes the system suitable for the casual user (e. g. end user of the material!) attributes. Access to Keywords Synonyms Company Jargon ca. 18. 000 Alternative access by Access via hierarchy for expert users ~ 30. 000 matchcodes

e. Cl@ss e. V.  Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consulte. Cl@ss e. V. Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consult Ltd. email: info@eclass. de July 2001 What is meant by «Standardized Material and Service Classification»? 24 -06 -06 -02 Telephone [s]. . . 24 Communication technology, office — 24 -06 -06 -01 Radio telephone [s]24 -06 -06 Dial telephone 24 -06 -07 Radio transm. -receiv. 24 -06 Hardw. (communic. tech. ) 24 -07 Document Management System. . . Segment Commodity Class Attributes. Group Subgroup. . . Structural form Width Weight Manufacturer Color Climate Class etc. Synonyms Cell Phone Mobile Phone

e. Cl@ss e. V.  Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consulte. Cl@ss e. V. Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consult Ltd. email: info@eclass. de July 2001 You can choose among three ways of searching for information : e. Cl@ss @ Internet 3. Classification- Search 1. Keyword- Search 2. Hierarchical Search

e. Cl@ss e. V.  Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consulte. Cl@ss e. V. Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consult Ltd. email: info@eclass. de July 2001 Example for Keyword-Search: e. Cl@ss @ Internet

e. Cl@ss e. V.  Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consulte. Cl@ss e. V. Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consult Ltd. email: info@eclass. de July 2001 Example for Hierarchical Search: e. Cl@ss @ Internet

e. Cl@ss e. V.  Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consulte. Cl@ss e. V. Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consult Ltd. email: info@eclass. de July 2001 Example for a Standard Set of Attributes (SSA): e. Cl@ss @ Internet

e. Cl@ss e. V.  Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consulte. Cl@ss e. V. Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consult Ltd. email: info@eclass. de July 2001 Example for an Attribute: e. Cl@ss @ Internet

e. Cl@ss e. V.  Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consulte. Cl@ss e. V. Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consult Ltd. email: info@eclass. de July 2001 e. Cl@ss-Download

e. Cl@ss e. V.  Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consulte. Cl@ss e. V. Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consult Ltd. email: info@eclass. de July 2001 Download — Files e. Class 4_0_80 c_en. csv idcl identifier version number revision number class preferred name level MKsubclass MKsynonym MKBsa e. Class 4_0_sw_80 c_en. csv idcl class name level e. Class 4_0_mlmm_en. csv idcl class idatt e. Class 4_0_mm_en. csv idatt identifier version number revision number preferred name short name Definition synonym 1 synonym 2 Field data format formular symbol unit e. Class 4_0_mw_en. csv idatt idvl e. Class 4_0_we_en. csv idvl identifier version number revision number preferred name short name definition. Class Table Keyword Table Relation Table Attribute/Values

e. Cl@ss e. V.  Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consulte. Cl@ss e. V. Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consult Ltd. email: info@eclass. de July 2001 Internet-user e. Cl@ss online-database Administration of the different databases (e. Cl@ss-secretariat) Database-Structure internal database (for e. Cl@ss-association and technical advisory board) Database for the administration of the standard set of attributes (SSA) and values change-commitee for next release Database for the administration of the classification

e. Cl@ss e. V.  Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consulte. Cl@ss e. V. Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consult Ltd. email: info@eclass. de July 2001 Organisation e. Cl@ss -User e. Cl@ss — technical advisory board secretariat e. Cl@ss Cologne e. Cl@ss — association 12 international Companies e. Cl@ss change-committee e. Cl@ss expert-groups

e. Cl@ss e. V.  Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consulte. Cl@ss e. V. Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consult Ltd. email: info@eclass. de July 2001 e. Cl@ss change-commitee proposals (e. g. new commodity class) e. Cl@ss secretariat internal forum e. Cl@ss change commitee objective allocation objektive verification by expert groups e. Cl@ss adjusted proposal decision by e. Cl@ss change- commiteequestions/discussion to/with proposerarch ive declined proposal assumed proposal e. Cl@ss — developer edition new releaserevision

e. Cl@ss e. V.  Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consulte. Cl@ss e. V. Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consult Ltd. email: info@eclass. de July 2001 e. Cl@ss Versions 3. 0/4. 0 release 3. 0 ( english) release 4. 0 ( english) segments: 21 22 groups: 219 366 subgroups: 1. 978 2. 725 commodity classes: 2. 522 10. 190 keywords/ synonyms: 8. 044 15. 275 approx. 30. 000 terms (+attributes) are listed for a precise, active search in the e. Cl@ss-database-system!

e. Cl@ss e. V.  Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consulte. Cl@ss e. V. Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consult Ltd. email: info@eclass. de July 2001 e. Cl@ss is a sound foundation for an industrial standard, because. . . it covers the entire range of material (direct, indirect), products and services. . it reconciles the requirements of commerce and engineering. . . it includes attribute sets for many types of material — not yet complete, but the project group is pressing ahead . . . it supports the casual user by keyword search to find the appropiate material class (instead of navigating through a complex hierarchy). . it is applicable for e. Commerce as well as for material and facility management. Correct material selection is vital for the safety and reliability of all processes along the Supply Chain. e. Cl@ss is designed with ERP applications in mind. SAP is member of the e. Cl@ss project team.

e. Cl@ss e. V.  Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consulte. Cl@ss e. V. Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consult Ltd. email: info@eclass. de July 2001 Help us make it happen! Join the e. Cl@ss community Help to develop and maintain e. Cl@ss Participate in developing new segments Suggest additions / corrections to existing segments Use e. Cl@ss internally and in e. Catalogues / marketplaces Demand product information from suppliers in e. Cl@ss format Offer product information to customers in e. Cl@ss format

e. Cl@ss e. V.  Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consulte. Cl@ss e. V. Internet: http: //www. eclass-online. com/ Cologne Institute for Business Research Consult Ltd. email: info@eclass. de July 2001 The e. Cl@ss Membership Originally a project initiated by international industry, e. Cl@ss e. V. was incorporated in December