None Press Release
Intel Conducts $5 Billion In RosettaNet e-Business, Web Services

e-Business Technology Provides Productivity Gains and Faster Supply Chain Throughput

For Release December 10, 2002

Beijing, China --

Intel Corporation today announced that it has achieved a significant e-Business milestone and that the computing industry has progressed to the third phase of e-Business, business-to-business integration. The industry first focused on establishing individual companies’ web presences and selling products online. 

Intel has processed more than 10 percent of its revenues and supplier purchases this year using RosettaNet e-Business technology standards. Intel has transacted more than $3 billion in customer orders and $2 billion in supplier purchases on RosettaNet this year, increasing the amount of business processed by almost seven times in one year.
 
Business-to-business integration has helped Intel achieve greater operational efficiency through productivity gains, faster throughput, and improved customer and supplier satisfaction, enabling Intel and its customers to bring products to the marketplace faster through real-time access to information and more efficient supply chain collaboration.
 
Introduced in 1998, RosettaNet is a standard that enables electronics industry companies to conduct e-Business more efficiently and provide greater supply chain visibility. The extensible markup language-based (XML) standard enables suppliers and customers to easily automate supply chain tasks like collaborative demand forecasting, order management, shipping and receiving logistics, invoicing and payments.

“RosettaNet-enabled e-Business is a practical and robust example of web services at work across the enterprise,” said Intel Chief Information Officer Sandra Morris. “The underlying XML-based technology is invisible to the company or person using it, but it vastly improves a company’s business processes. For example, as a result of deploying RosettaNet with one of our direct materials suppliers, Intel will achieve savings this year by eliminating the auto-faxing of purchase orders and has decreased order transaction time from 24 hours to less than one hour. This translates into significant increases in operational efficiencies when multiplied across our supply chain.”

Morris was speaking at the launch of the Intel RosettaNet Interoperability Fest (IOF) in Beijing, where Intel will host a three-day testing session among 28 companies operating in China. The IOF event is designed to accelerate the adoption of RosettaNet standards between IT, semiconductor and electronic component B2B trading partners in China.

“RosettaNet has experienced one of the most rapid implementation rates of any e-Business technology standard, and companies in Asia have adopted RosettaNet more quickly than in other regions,” said Jennifer Hamilton, RosettaNet CEO. “Of the thousands of RosettaNet touch points worldwide, a large percentage involve connectivity with Asia-based business operations. In light of this fast-track adoption rate, we expect production implementations in China to grow quickly over the next three years. We applaud Intel, and the companies participating in today’s Interoperability Fest in Beijing, for helping to roll out critical e-Business standards in China, to benefit the larger global trading network.”

Intel conducts more than 30,000 RosettaNet-based transactions per month with more than 90 customers and suppliers who are based in 17 countries. More than half of Intel’s RosettaNet-enabled business was conducted with companies in Asia.

Intel’s RosettaNet efforts play an important role in Intel’s mission to be a worldwide, 100 percent e-Corporation. This five-year effort began with Intel selling products online, ramping to more than $1 billion in online sales per month within the first year. Since then, Intel has expanded this initiative, and using Web-based resources is the core way Intel operates and conducts business with its customers, suppliers and employees worldwide. The company has achieved significant operational improvements and cost savings, including improvements in sales processes, employee productivity and inventory management. Intel’s e-Business operations are run on Intel processor-based servers and workstations.

Intel, the world’s largest chip maker, is also a leading manufacturer of computer, networking and communications products. Additional information about Intel is available at www.intel.com/pressroom.