ELECTRONIC COMMERCE AT AIR PRODUCTS
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EXECUTIVE SUMMARY
Business as is now:
US market saturated, need to go international.
Recent acquisition of Carburos Metalicos, Spain's leading industrial gas company.
Lower product cost (increased efficiency) for company production
"As we are making gains in productivity and volumes, we are seeing faster growth in profits than in sales". Profit > Sales
#2 in U.S. gases industry and #6 in the World
Business to be:
Increase sales by encouraging the change in customer buying behavior (shop more on line).
- It seems that the biggest challenge the company encountered, other than technological factors that they manage to deal with, is how to make the intellectual and cultural shifts in consumer's mind.
Increase marketing and advertising to existing and potential customers
Improved communication and unity of departments and company divisions across international boundaries
IT as is:
Newly hired Vice President of MIS Joe McMakin
Internet (purpose: lower costs and reduce cycle time)
- Successfully communicate corporate, technological and product information (ex. Online specialty gas catalog, enabling customers to get up to date info from the convenience of their desktops)
- Lower costs of printing catalogs, brochures and annual reports (meeting the goal of internet)
- "call me now" feature implementation (needs improvement)
EDI (electronic data interchange) - a secure intranet communication program that allows the company a safe medium to interact and the ability to link via extranet to their trading partners
VMI (vendor managed inventory)- allows Air Product to monitor customer use of equipment, note when new unit is needed, to improve customer service
IT to be:
transactional medium to purchase and access information for many of their products and services (make purchase on line, where now only info is available on line)
need for CEO involvement in IT strategy to support company expanding into international borders.
Improve internet accessibility for customers user friendly website
Standardize desktops and communication applications across international boundaries for Air Products' personnel
PROBLEM STATEMENT
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