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E-business at Rolls-Royce aeroengines

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University of Bradford School of Management E-Business Assignment E-business at Rolls-Royce aeroengines Submitted by "I certify that the above coursework is all my own work and does not exceed the word count (1500 words)." Signature: Date: 1 September 2008 Bradford, United Kingdom September 2008 Content Executive Summary 3 1. Introduction 3 1.1. Rolls-Royce in Contemporary E-Business Environment 3 1.2. Objective of the Assignment 3 2. Analysis and Evaluation 4 2.1. E-business goals and performance indicators 4 E-business goals at Rolls-Royce 4 Key performance indicators (critical success factors) 4 2.2. E-business strategy for after-sale services 5 2.3. Aeromanager-online 5 3. Changes to RR's e-business 7 4. Conclusion 7 List of figures and tables Figure 1. E-Service cost-benefit factor framework (Lu, J. et al., 2008). 4 Figure 2. Aeromanager-online 5 Table 1: How to join Aeromanager - The joining process to bring your company on board 6 Executive Summary This assignment is aimed to critically evaluate a business model and e-business strategy at Rolls-Royce aeroengines, to ascertain a range of reasons for either success or failure of the e-strategy and to propose further improvements for the company's e-business. ...read more.


Create partner extranet and aim for paperless support. Key performance indicators (critical success factors) 1. Achieve combined after-sales services revenue of 50% total sales by year-end. 2. Subscribe more customers for online services resulting to 70% revenue contribution from these customers. 3. Reduce cost and time to market by average of 10% by year 3. 4. Reduce cost of services and sales in each of 5 main geographical markets by 25%. 2.2. E-business strategy for after-sale services Rolls-Royce e-business has grown in the three stage approach. First, there was a shock tactic on a number of pilot projects to be complete from design to implementation in 100 days. As a result a number of e-projects have brought a lot of E-awareness and experience. Second, main structured projects at a corporate level, but run by outsourcing partnership with EDS and SAIC, included the following: * customer services, * e-procurement, * design and collaboration, * general items about using our intranet and corporate systems better. Third, it is about creating e-business groups in each of the business sectors to deal with vendors and the company. ...read more.


4. Conclusion Improving operational efficiency is still very important - eliminating waste, streamlining processes and getting lean manufacturing in e-business is as important as in the engine production. Rolls-Royce has extended its IT systems to engineering/technical and latterly SAP, with the emphasis on getting better 'customer value' and more efficient manufacturing 'value streams'. Among cost and benefit factors of the e-business evaluation, certain cost factors are more important than others in achieving the benefits comparing with other cost items: 1. Increased investments in e-business facilities (such as Internet connection, hardware and software) and training staff to better work in e-service at Rolls-Royce have significantly helped in the establishment of customer profiles, improved the company's global presence and enhance a business' image via e-business strategy, resulting to 50% after-sale service revenue. 2. High security and legal issue related investments in e-service systems would bring high benefits to Rolls-Royce in both building trust customer relationships and cooperation with other companies. It can be recommended that if Rolls-Royce plans to further improve customer relationships through the development of e-services, an appropriate way is to increase investments in system security, legal issues and staff training rather than other items. The company image of reliably supplier can be improved by investments in maintaining e-service systems and updating related information technologies. ...read more.

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