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Canon was founded in the 1930s in Japan when a group of scientists decided to design and
produce high-quality cameras. Established in the 1960s, Canon Sweden is following in its
founders' footsteps producing and marketing exceptional cameras, along with a whole
host of other advanced technology products.
 Canon is constantly looking for ways to consolidate its relationship with
customers, including resellers. In order to fulfill their needs, Canon Sweden began
investigating how to improve services and cut costs. Dealers had been complaining of
receiving product information, including pricing, that was not completely up-to-date due
to literature being posted. The company knew that sending information electronically was
significantly faster and also more environmentally friendly.
Posting on the Web
The front-end for Acer's procurement extranet was developed with IBM WebSphere
Commerce Suite. IBM WebSphere Application Server, Advanced Edition facilitates the
exchange of XML-based forms over the Internet--providing Acer with a consistent means to
share information with its diverse supplier base. Lotus Domino serves as the
e-procurement workflow engine. IBM WebSphere Studio provides the Web application
development environment, and IBM WebSphere Performance Pack handles load balancing for
the IBM RS/6000 servers on which the extranet resides.
Indeed, before 1994 Canon Sweden had to mail out all product information to Canon
dealers; a process which cost the company approximately $70,000 annually. This was time
consuming, laborious and expensive. After discussing various options with technology
partner IBM, the company decided to invest in an early extranet solution based on Lotus
Notes.
 Peter Oberg, Canon's Internal IT Manager states: "IBM was the
only vendor we considered to solve our problem of sending information to resellers. The
way forward, we believed, was to invest in a system which could enable us to send
information quickly, efficiently and without the expense of sending mail. Now we are
working with IBM to improve this established system to expand the features we can offer
our resellers."
Using Lotus Notes, the company was able to send current prices and product information
electronically to over 2,000 dealers dispersed across Sweden and 90 resellers. Canon
realized it would not only need a method of sending information quickly, but also
securely. IBM implemented a system that could only be accessed if a dealer had the
correct password, thus eliminating any risk of unauthorized people accessing what could
be sensitive information.
As Web technologies became more advanced, Canon migrated its extranet onto the Internet
to give wider access to its network of partners. Using Lotus Domino running on an IBM
AS/400 server, the company now has three Web services located at http://www.canon.se, http://www.canoncenter.com, as well as the dealer and
reseller extranet.
The investment pays off
"The interactive nature of an extranet allows a two-way flow of communication; not
only can we send information to dealers, but they can also mail responses to us in
real-time. This method of communication benefits business partners, customers and Canon.
Business partners and resellers can access the most current information, 24 hours a day,
seven days a week. This allows more flexible business practice and more reliable
information reaching Canon customers across a wide geographical area," said Oberg.
"The development project has been a substantial investment but it has been paid for
already through the savings in postage costs," said Oberg. "However, the true
savings are impossible to calculate; not only do we save money from not having to produce
vast quantities of literature and purchase stamps, but efficiency and customer loyalty
have increased. It would be difficult to put a monetary figure on such important customer
relations; by keeping our resellers fully informed we are able to secure loyalty and also
win new customers. Our resellers are genuinely impressed with our improved service and
increased communication capabilities and inform others of our reputation."
Yet the extranet not only fulfills reseller and dealer demands, but is also used
internally by staff at Canon Sweden. "It was important for Canon to increase
communication internally as well as externally; IBM provided an all-round solution which
has streamlined the company's entire communications strategy," said Jonas Bonn,
IBM Customer Representative. "In fact the proof of how effective this extranet
solution is in its adoption by Canon headquarters all over Europe - what began in Sweden
five years ago is now a Canon standard."
"Within two to three years we are hoping to have established an Internet-wide
e-commerce solution whereby all customers can access product information from the
remotest parts of Sweden and the rest of Europe. At our headquarters we will be able to
check payment flows, invoice customers and conduct most business electronically. The
company hopes to move to EDI, but will always retain information in Lotus Notes format to
enable small business customers to access up-to-date information. We believe we have all
of our customers interests at heart," said Peter Öberg.
For further information please contact:
Annika Eklundh, IBM Sweden
Telephone: (46) 8-793-3528
e-mail: annika.eklundh@se.ibm.com
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