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Enzyme Business sells enzymes on-line Novo Nordisk Enzyme Business has brought a whole new meaning to the abbreviation EB. Now it also stands for 'electronic business'. |
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HRT alliance in the US Teaming up with Pharmacia Corporation Novo Nordisk aims to ensure sufficient sales power for a full blown marketing of its HRT products. Read more on page 2. |
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Financial highlights Summary of the Group |
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Financial
statement For the first half of 2000 |
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A new US strategy Novo Nordisk has adopted a new strategy for the competitive US health care market. Partnerships will still be part of the strategy, but in diabetes the company will build on its own expertise. Read more on page 5. |
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New managements Establishing two new, independent companies also means appointing two new management teams. Read more on page 6. |
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Enzyme Business sells enzymes on-line
Novo Nordisk Enzyme Business has brought a whole new meaning to the abbreviation EB. Now it also stands for 'electronic business', selling detergent enzymes directly to customers who place their orders via the Internet.
Novo Nordisk Enzyme Business has taken the first step towards implementing a complete e-business solution which is predicted to become a growth driver for the business.
Under the name of eCommerce, the project was initiated in August 1999 with a pilot study of detergent customers in Scandinavia and North America. Initially these customers were given access to an extranet website with product information and technical know-how about detergent enzymes, but starting February 2000, they could also purchase enzymes via the special site. Thanks to the encouraging results of this trial, the same extranet and ordering service was made available in June to all detergent customers worldwide.
"I believe that we are the first industrial enzyme company to introduce an e-business system for our customers. We see this as a definite competitive advantage," says Steen Riisgaard, who heads up Enzyme Business.
"I see eCommerce as creating a closer relationship with our customers. It represents a new way of communicating, interacting and servicing them. It allows our company to become truly customer-led with customers able to order whenever they want and to gain access to the exact information they need. eCommerce will make it easier to do business with us."
E-business is booming
According to estimates the total amount of business-to-business e-business in Europe alone will grow from DKK 320 billion this year to around DKK 1,500 billion in 2002.
Although e-business has been around for a few years, the consumer-oriented initiatives have received the bulk of the attention. This is in direct contrast to the amount of business done, because the biggest users of e-business are not companies aiming at the consumer market, but companies selling to other companies - the business-to-business market. In fact, 80% of the orders placed via the Internet are estimated to originate from business-to-business customers. The traditional way of ordering enzymes is to call or fax in an order to a customer service representative. With eCommerce, the customer logs in on the special website and gains direct access to a list of products, prices and the stock control records of the finished goods department to check availability. Assuming that the goods are in stock and customers are satisfied with the delivery date, they can confirm the order directly on the website. If the goods are not in stock, it may take 24 hours before customers receive an answer on the expected delivery date.
Knowledge bank
Ordering on-line is only one aspect of the site. For many people working in research or engineering, the product and support centres are more interesting.
The site provides fast, easy access to Product and Application Sheets, Material Safety Data Sheets including access to Novo Nordisk's extensive knowledge of the safe handling of enzymes.
Advantages
The main advantage for customers is convenience. Orders can be placed around the clock with the new system. Also, customers have immediate access to information that is updated continuously. For Novo Nordisk the advantages come primarily from the fact that sales representatives can be relieved of some of their routine ordering activities, so they have more time for sales work. The system will also make a big difference in introducing new products. With direct access to all customers via e-mail, it is easy to send out information on new products.
Worldwide launch
It is not possible to sign up for the system without prior approval by the local Novo Nordisk sales organisation.
"It is company policy not to do business with people we don't know. We need to know about customers and their particular applications of our enzymes," says Steen Riisgaard. Novo Nordisk Enzyme Business has ambitious plans to introduce the same e-business concept to all its customers in different industries. In May 2000, work began to create a similar service for the starch and textile industries. Others will follow and the aim is to launch special extranet sites for a range of different industries by June 2001.
