A Standardized Material and Service Classification System What

A 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? e. Cl@ss @ Internet! Help us make it happen!

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. Map market segments Statistics of purchasing activities. Definition of purchasers’ responsibilities. Description of suppliers’ product lines. Definition of contract subjects. e. Cl@ss e. V. Cologne Institute for Business Research Consult Ltd. Internet: http: //www. eclass-online. com/ email: info@eclass. de July 2001

Elements of a Classification - 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! e. Cl@ss e. V. Cologne Institute for Business Research Consult Ltd. Internet: http: //www. eclass-online. com/ email: info@eclass. de July 2001

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

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

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

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

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

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

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

Internationalization is a reality today. . . Inter-enterprise information flows Suppliers Customers global market place e. Cl@ss e. V. Cologne Institute for Business Research Consult Ltd. Internet: http: //www. eclass-online. com/ 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. That means: A waste of effort: A fairly complete schema takes several 10 years of personnel effort. 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. Cologne Institute for Business Research Consult Ltd. Internet: http: //www. eclass-online. com/ email: info@eclass. de July 2001

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

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

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

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

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

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

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

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

e. Cl@ss-Download e. Cl@ss e. V. Cologne Institute for Business Research Consult Ltd. Internet: http: //www. eclass-online. com/ 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 Class Table Keyword Table Attribute Table Relation Table Attribute/Values Relation Table 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. Cl@ss e. V. Cologne Institute for Business Research Consult Ltd. Values e. Class 4_0_mw_en. csv idatt idvl Internet: http: //www. eclass-online. com/ email: info@eclass. de e. Class 4_0_we_en. csv idvl identifier version number revision number preferred name short name definition July 2001

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

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

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

e. Cl@ss Versions 3. 0/4. 0 approx. 30. 000 terms (+attributes) are listed for a precise, active search in the e. Cl@ss-database-system! e. Cl@ss e. V. Cologne Institute for Business Research Consult Ltd. Internet: http: //www. eclass-online. com/ 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. Cologne Institute for Business Research Consult Ltd. Internet: http: //www. eclass-online. com/ email: info@eclass. de July 2001

Help us make it happen! n Join the e. Cl@ss community n Help to develop and maintain e. Cl@ss i Participate in developing new segments i Suggest additions / corrections to existing segments n Use e. Cl@ss internally and in e. Catalogues / marketplaces n Demand product information from suppliers in e. Cl@ss format n Offer product information to customers in e. Cl@ss format e. Cl@ss e. V. Cologne Institute for Business Research Consult Ltd. Internet: http: //www. eclass-online. com/ 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 2000 e. Cl@ss e. V. Cologne Institute for Business Research Consult Ltd. Internet: http: //www. eclass-online. com/ email: info@eclass. de July 2001