U.S. patent application number 11/472091 was filed with the patent office on 2006-10-26 for system and method for configuring products over a communications network.
This patent application is currently assigned to ChemDomain, Inc.. Invention is credited to Walter C. DeSouza, Eric W. Norris.
Application Number | 20060242023 11/472091 |
Document ID | / |
Family ID | 26881622 |
Filed Date | 2006-10-26 |
United States Patent
Application |
20060242023 |
Kind Code |
A1 |
Norris; Eric W. ; et
al. |
October 26, 2006 |
System and method for configuring products over a communications
network
Abstract
The invention relates to a method for the automated selection of
formulations and/or formulation components by specifying product
characteristics. In particular, the system and method serve
customers within market segments that use selected components as
raw materials for manufacture of specialty products and that
require an understanding of how the selected components effect
performance. For example, such products as electronic circuits,
coatings, adhesives, sealants, inks, polishes, cleaners, and
detergents fall within the profile of such products.
Inventors: |
Norris; Eric W.; (Wynnewood,
PA) ; DeSouza; Walter C.; (Bryn Mawr, PA) |
Correspondence
Address: |
WOODCOCK WASHBURN LLP
ONE LIBERTY PLACE, 46TH FLOOR
1650 MARKET STREET
PHILADELPHIA
PA
19103
US
|
Assignee: |
ChemDomain, Inc.
Plymouth Meeting
PA
|
Family ID: |
26881622 |
Appl. No.: |
11/472091 |
Filed: |
June 20, 2006 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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09643841 |
Aug 22, 2000 |
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11472091 |
Jun 20, 2006 |
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60185954 |
Feb 29, 2000 |
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Current U.S.
Class: |
705/14.4 |
Current CPC
Class: |
G06Q 30/0631 20130101;
G06Q 30/0621 20130101; G06Q 30/0277 20130101; G06Q 30/0241
20130101; G06Q 10/10 20130101; G06Q 30/02 20130101; G06Q 30/0633
20130101 |
Class at
Publication: |
705/014 |
International
Class: |
G06Q 30/00 20060101
G06Q030/00 |
Claims
1. The network-based method for a supplier to promote the sale of a
specialty component by providing promotional information concerning
the specialty component and technical support information to a
customer for the manufacture of at least a portion of products from
different formulations comprising the specialty component and other
various constituent components, said method comprising the acts of:
providing a computer database of promotional information concerning
the specialty component and technical support information for said
different formulations comprising the specialty component and other
various constituent components including said specialty component
for making at least of portion of said products; providing an
output to the customer over the network of said promotional
information; providing an output to the customer over the network
of an offer to sell the specialty component; accepting input from
the customer over the network indicative of a product and a set of
characteristics of at least one of said different formulations for
making at least a portion of one of said products; selecting at
least one of said different formulations for making at least a
portion of one of said products in the database matching said
input; providing an output to the customer over the network of
technical support information for making the at least one of said
different formulations selected including the identification of the
specialty component and the opportunity to use the other of said
various constituent components in different combinations; accepting
input from the customer selecting at least one of said different
combinations of the other of said various constituent components to
be used with the specialty component so as to create at least one
trial formulation; and providing to the customer over the network a
list of the other of said various constituent components and
performance characteristics for the at least one trial formulation,
said performance characteristics being substantially consistent
with and supplemental to said set of characteristics accepted from
the customer.
2. The method of claim 1 wherein the act of providing an output to
the customer of technical support information including the
identification of the specialty chemical component and the
opportunity to use the other of said various constituent components
includes providing information concerning at least one performance
characteristic substantially consistent with and supplemental to
said set of characteristics accepted from the customer.
3. The method of claim 2 wherein the act of providing a list of the
other of said various constituent components and performance
characteristics for the at least one trial formulation includes
providing physical property data for the at least one trial
formulation.
4. The method of claim 2 wherein the act of providing the list of
the other of said constituent components and performance
characteristics for the at least one trial formulation includes
providing steps for making the at least one formulation.
5. The method of claim 2 wherein the list of the other of said
constituent components includes the identification of a
manufacturer of at least one of said constituent components.
6. The method of claim 1 wherein said set of characteristics
accepted from the customer includes at least one market
characteristic.
7. The method of claim 6 wherein said set of characteristics
accepted from the customer includes of at least one performance
characteristic.
8. A network-based method for a supplier of specialty chemical
components to provide promotional information about the specialty
chemical components including technical support information to a
customer for making a formulation from a plurality of constituent
components wherein at least one of the components is a specialty
chemical component offered for sale to the customer by the supplier
comprising the acts of: providing a computer database of specialty
chemical component promotional information including formulations
wherein each of the formulations comprises constituent components
including at least one specialty chemical component being offered
for sale by the supplier; accepting input from the customer over
the network indicative of a set of characteristics that a
formulation should possess; selecting a plurality of said
formulations in the database matching said set of characteristics;
providing an output to the customer over the network identifying
each of said plurality of formulations and including performance
related information specific to each of said plurality of
formulations; accepting input from a customer over the network
selecting at least one of said plurality of formulations as a trail
formulation; providing an output to the customer over the network
of technical support information including a list of constituent
components and properties for each said trial formulation selected
wherein said properties are substantially consistent with and
supplemental to said set of characteristics accepted from the
customer; providing an output to the customer over the network of
additional promotional information concerning the specialty
chemical components being offered for sale; and providing an output
to the customer over the network offering the specialty chemical
components for sale to the customer.
9. The method of claim 8 wherein said properties include
performance characteristics of each said trial formulation.
10. The method of claim 9 wherein said properties include physical
properties of each said trial formulation.
11. The method of claim 10 wherein said technical support
information includes steps for making each said trial
formulation.
12. The method of claim 8 wherein said set of characteristics
accepted from the customer includes a least one performance
characteristic.
13. The method of claim 8 wherein said set of characteristics
accepted from the customer includes at least one market
characteristic.
14. The method of claim 8 wherein the said technical support
information includes the identification at least one supplier of a
constituent component in the trial formulation other than the
supplier of the at least specialty chemical component being
promoted.
15. The method of claim 8 wherein the output to the customer
identifying said plurality of formulations includes a separate and
distinct formulation number for each of said plurality of said
plurality of formulations.
16. The method of claim 15 wherein the output to the customer
identifying said plurality of formulations includes the
identification of the at least one specialty chemical component in
at least one of said plurality of formulations.
17. A network-based method for a supplier of specialty components
to provide promotional information about specialty components
offered for sale by the supplier including technical support
information to a potential customer for making formulations wherein
each of the formulations may be used to make at least a portion of
a product and each of the formulations includes at least one of the
specialty components offered for sale by the supplier in addition
to at least one other constituent component in each of the
formulations, said method comprising the following acts: providing
an output to a potential customer identifying a plurality a markets
in which different formulations may be used; accepting an input
from the potential customer selecting a particular market of
interest to the customer; providing an output to the potential
customer identifying a plurality of submarkets in the particular
market of interest to the potential customer for which different
formulations may be used; accepting an input from the potential
customer over the network selecting a particular submarket of
interest to the potential customer; providing an output to the
potential customer over the network identifying different
functional characteristics corresponding to various formulations
useable in the particular market and particular submarket of
interest to the potential customer; accepting an input from the
potential customer over the network selecting functional
characteristics corresponding to a set of formulations; providing
an output to the potential customer over the network identifying
said set of formulations of possible interest to the customer;
accepting an input from the customer over the network selecting at
least one of said set of formulations as a trial formulation; and
providing an output to the customer over the network of technical
support information including information relating to said at least
one trial formulation including at least one of one of the
specialty components and the other constituent components in said
at least one trial formulation in addition to a set of functional
characteristics substantially consistent with and supplemental to
said functional characteristics selected by the customer; providing
access by the customer over the network to promotional information
for the at least one specialty component in each said trial
formulation; and providing an output to the customer over the
network offering the at least one specialty chemical component in
each said trial formulation for sale to the customer.
18. The method of claim 17 wherein said functional characteristic
selected by the customer includes at least one numerically defined
parameter and the set of functional characteristics provided by the
supplier includes at least one numerically defined parameter.
19. The method of claim 18 wherein each said trial formulation
comprises an electronic circuit, the at least one specialty
component comprises an integrated circuit, and each said
numerically defined parameter comprises an operating parameter of
the electronic circuit.
20. The method of claim 18 wherein each said trial formulation
comprises a chemical formulation, the at least one specialty
component comprises a specialty chemical, and each said numerically
defined parameter comprises a performance parameter of the chemical
formulation.
21. The method of claim 17 further comprising the act of providing
an output to the customer over the network including the cost of
the at least one specialty component in each said trial
formulation.
22. The method of claim 17 further comprising the act of providing
an output to the customer over the network including the total cost
of at least one said trial formulation and the cost of each of said
other constituent components and the specialty component for each
said trial formulation.
23. The method of claim 22 further comprising the act of accepting
an order from the potential customer over the network for samples
of the at least one specialty component and said other constituent
components in the at least one trial formulation.
24. The method of claim 22 wherein each said trial formulation
comprises an electronic circuit, the at least one specialty
component comprises an integrated circuit and said other
constituent components include passive circuit elements.
25. The method of claim 22 wherein each said trial formulation
comprises a chemical formulation and the at least one specialty
component comprises a specialty chemical and said other constituent
components include commodity chemicals.
26. The method of claim 17 further comprising the act of: providing
an output to the potential customer listing alternate components as
suggested substitutes for each of said other constituents in each
said trial formulation.
27. The method of claim 26 further comprising the act of: accepting
an input from the potential customer substituting at least one of
said alternate components in at least one said trial
formulation.
28. The method of claim 17 further comprising the act of: accepting
an input from the potential customer requesting storage of said at
least one trial formulation for future reference by the potential
customer; and storing said at least one trial formulation for the
potential customer.
29. The method of claim 28 further comprising the acts of:
accepting an input from the potential customer over the network
requesting modification of said at least one trial formulation in
storage; and modifying said at least one trial formulation in
storage as requested by the potential customer.
30. The method of claim 29 further comprising the acts of:
accepting an input from the potential customer over the network
including notes about said at least one trial formulation in
storage; and storing said notes for said customer in association
with said at least one trial formulation.
31. The method of claim 17 wherein said technical support
information further comprises recommended testing procedures to be
used with said at least one trial formulation.
32. The method of claim 31 further comprising the acts of:
accepting a request from the potential customer over the network
for modeling said at least one trial formulation; and providing an
output to the potential customer over the network modeling said at
least one trial formulation.
33. The method of claim 17 wherein said technical support
information further comprises a description of the physical
properties of said at least one trail formulation.
34. The method of claim 17 further comprising the acts of:
accepting a request from the potential customer over the network
for modeling said at least one trial formulation; and providing an
output to the potential customer over the network modeling said at
least one trial formulation.
35. The method of claim 17 further comprising the act of: providing
an output comprising information relating to the at least one
specialty component in each of said formulations of possible
interest to the customer before selecting said at least one trial
formulation.
Description
CROSS-REFEERENCE TO RELATED APPLICATION
[0001] This application is a continuation of U.S. patent
application Ser. No. 09/643,841, filed Aug. 22, 2000, which claims
priority to Provisional Patent Application No. 60/185,954, filed
Feb. 29, 2000.
FIELD OF THE INVENTION
[0002] The invention relates generally to systems and methods for
identifying products for purchase over a computer network. More
particularly, the invention relates to the selection and purchase
of specialty products over a computer network background of the
invention.
BACKGROUND OF INVENTION
[0003] Many industries require sophisticated buyer knowledge or
extensive seller hand holding in order to properly match a product
with a buyer's needs, which is typically a time-consuming,
human-resource-intensive task. For example, in the specialty
chemical or electronics industry, when a component producer,
distributor, manufacturer, industry consultant or consortia,
virtual distributors or other value-added party (hereinafter all
referred to as "supplier" for convenience) introduces a new
component(s) (e.g., a new integrated circuit or new specialty
chemical), the supplier must not only inform customers of the
availability of the new component but also must inform customers
how to integrate the component into a assembled product or
formulation (both referred to herein by the term "formulation").
Indeed, some of the suppliers in the chain may provide a new
product based on the newly developed component and hence will have
to educate customers about the characteristics of the product.
Otherwise, potential customers may not fully comprehend the utility
of the new component or product and the advance offered by it,
resulting in lack of acceptance and/or lost sales.
[0004] Consider, for example, the many uses to which TEFLON has
been applied since its first introduction (e.g., coating of pots
and pans, as an oil additive, etc.). After its introduction, the
maker of component products such as TEFLON may continue to
introduce new product categories to which its advantages may be
brought to bear. If TEFLON, for example, was discovered to bring
useful properties to a paint product, then the supplier of TEFLON
may want to inform paint formulators about the new paint properties
offered by the TEFLON additive. In order to provide the
information, particularly to smaller specialty paint manufacturers,
the supplier may need to provide a specification sheet outlining
the basic ingredient list for formulating a paint product using
TEFLON along with performance characteristics of the sample paint
formulation to provide a basis for comparison to similarly
positioned product.
[0005] After paint developers understand the basic technique for
integrating TEFLON with paint products, they could further develop
and enhance their own--perhaps secret--formulations by
incorporating the new additive as suggested by the specification. A
similar example in a different context applies to the electronics
industry. An integrated circuit supplier may have developed a
reduced power clock integrated circuit; however, before integrating
the product into higher level circuits, electronics manufactures
need to understand both the performance characteristics (so as to
entice them to incorporate the new component) and a basic
operational circuit (to begin to understand how to incorporate the
component into their existing products).
[0006] Conventionally, such industries are typified as relying on
component specifications that not only describe the performance
characteristics of the component but also provide a starter product
or formulation that describes one or more basic uses of the
component. Customers can then purchase the component or components
necessary to build the example product and use the example as a
starting point for integration into their own products.
[0007] Typically, such markets are serviced by a myriad of
suppliers each offering a similar but somewhat different component,
making the task of matching a buyer with an appropriate component
even more complex. Other than the electronic and chemical
industries, other industry examples include industrial gases,
pharmaceuticals and food products.
[0008] The problem of matching customers with proper components may
be further magnified by a fragmented distribution system. For
example, the value chain for all industrial chemicals typically
contains three steps. First, chemical suppliers (hundreds within
the U.S.) manufacture technologies using minerals or petrochemicals
as raw materials. Second, manufacturers or `formulators` in various
industries buy directly or via distributor from specialty and
commodity suppliers to formulate these chemicals directly into
finished goods. Third, the finished goods are distributed for use
or sale in their final markets.
[0009] Given the broad range of market segments and chemicals, the
customer base for industrial chemicals has historically been quite
fragmented. Even with a wave of consolidation over the past 20
years, there remains a considerable degree of fragmentation in many
industrial customer bases. For example, the coatings market, one of
the larger markets for industrial chemicals with global revenues of
$60-70 billion (in 1999 dollars), has experienced a tremendous
level of consolidation in the 1990's. Yet, according to 1997
research from Kusumgar, Nerlfi & Growney (Chemical Research
Group), in the U.S., the top 10 coatings producers account for
about 50% of sales, the top 50 producers account for about 75% of
sales and the remaining 25% is fragmented among 700 different
firms. Hence, using the TEFLON example above, in order to capture
as many sales as possible for a new use for TEFLON in the coatings
market, the manufacture would have to reach and educate 700
different firms to capture the remaining 25% of the coatings
market.
[0010] The specialty component of industrial chemicals encompasses
chemicals that are the primary building blocks for delivering
value-added products in a wide range of industries. Specialties are
typically blended or `formulated` with industrial commodities to
provide the unique performance features that an industrial
manufacturer would require. Historically, many specialties have
been proprietary in nature and therefore had a limited number of
competitive alternatives. Key trends of the past few years have
been the maturation of technology, the globalization of specialty
chemical suppliers and the resultant advent of price competition.
In specialties, a growing number of suppliers can offer very
similar technology. In cases where there is little other know-how,
service or value that accompanies the sale of such a specialty,
price has become the lowest common denominator, and the product has
become more of a commodity.
[0011] However, for a great many specialty chemicals, there is a
need for substantial know-how and service (commonly referred to as
"tech service") in order to keep up with market, technology and
customer trends. In segments where this is the case, the manner of
formulation of the various specialty chemicals with commodity
components will determine eventual system performance and cost for
the customer, which typically cannot be compromised for a lower
price specialty alternative. In fact, in some cases, a higher
priced specialty component may produce the lower cost system
performance due to its efficacy in use. In such segments, specialty
suppliers spend a large percentage of sales to handhold their
customers and support the adoption of their products. Unlike
commodity chemicals that are fungible and price driven, tech
service for specialties can make all the difference in the selling
process to maintain premium pricing. Furthermore, use of tech
service has the added benefit of uncovering new customer needs
which existing technology cannot meet and, in turn, provides a
pipeline for new product development for specialty suppliers. In
essence, tech service from specialty suppliers is really a form of
outsourced R&D to their customers.
[0012] Typical specialty chemical purchasers desire to purchase
their chemicals based on performance criteria rather than on
specific ingredients. For example, a small manufacturer of paint
desiring to produce a new product line may know the performance
criteria required of the new product before actually designating
the ingredients that deliver the required performance. Hence, such
a manufacturer may desire an architectural paint that will be
sprayed on a metal substrate and have low odor properties without
knowing what particular chemical combination would meet those
functional needs. On the other hand, specialty chemical
manufacturers may have a chemical component or components that,
when mixed into paint formulations, work particularly on a metal
substrate while having low odor properties. To date, matching a
customer's functional requirements with the proper component or
formulation has required human tech service support.
[0013] Various Internet sales sites have focused on commodities
(e.g., CheMatch, Chemconnect) or laboratory supplies (Chemdex,
Sciquest) or supply chain management (Envera, Elemica). Such sites
generally provide customer choice, supplier neutrality and lowest
cost for fungible products that are sold on (in these examples, on
a chemical composition basis). Since a customer for specialty
components typically needs to make a decision on a formulated
performance basis using a detailed technical data analysis, current
internet models prove inadequate.
[0014] Hence, there is a need to provide a method for matching
customers with products that are based on a combination of multiple
components whose interaction is hard to predict.
SUMMARY OF THE INVENTION
[0015] The invention relates to a system and method for the
automated selection of formulations and/or formulation components
by specifying product characteristics. In particular, the system
and method serve customers within market segments that use selected
components as raw materials for manufacture of specialty products
and that require an understanding of how the selected components
effect performance. For example, such products as electronic
circuits, food, pharmacueticals, industrial gases, coatings,
adhesives, sealants, inks, polishes, cleaners, and detergents fall
within the profile of such products. According to another aspect of
the invention, a method and a software system is provided for
enabling suppliers in the distribution channel of formulations to
obtain, classify, and manage formulation information as end user
solutions for internal use or in cooperation with Web sites or
other network sites of respective business partners. The system and
method are implemented in part by software that runs on a Web site,
using an ASP model. Any entity engaged in formulation development
or support, referred to herein as "customers" or "users", can
enroll at the Web site to use the system to find, research, store,
compare and manage formulations. Users access the system directly
from a page on their own Web site or on their intranet.
[0016] In accordance with another aspect of the invention, business
partners, referred to herein as "affiliates", can act as content
providers, as they provide selected starting point formulations to
a controlled portion of their customers who are also registered
users, thus creating a new vehicle for dissemination of
formulations and enriching their customers library of searchable
formulations. Users request authorization from each affiliate they
wish to connect to, and are then granted access to formulations the
affiliates decide to make available to them.
[0017] In accordance with another aspect of the invention,
formulation data sheets, use guides and test results are collected
from users and affiliates, classified, interpreted and stored in
the system database. This process enables the formulation to be
used as a tool to ascertain direct fit with end user needs, rather
than merely providing a list of ingredients.
BRIEF DESCRIPTION OF THE DRAWINGS
[0018] The foregoing summary, as well as the following detailed
description of the preferred embodiments, is better understood when
read in conjunction with the appended drawings. For the purpose of
illustrating the invention, there is shown in the drawings
exemplary constructions of the invention; however, the invention
should not be limited to the specific methods and instrumentalities
disclosed. In the drawings:
[0019] FIG. 1 is schematic diagram representing a network computer
model in which aspects of the present invention may be
incorporated;
[0020] FIG. 2 is a schematic diagram of an example of aspects of
the architecture of the present invention;
[0021] FIG. 3 is a schematic diagram of an example hierarchical
layout of a database in accordance with the present invention;
[0022] FIG. 4 is an illustration of an alternative data structure
of the present invention using a data cube;
[0023] FIG. 5 is a block diagram representation of aspect of the
flow of information through the system of the present
invention;
[0024] FIGS. 6A and 6B illustrate block diagrams of a electronic
component formulation;
[0025] FIG. 7 is a flow diagram of the process for compiling
formulations for storage on the system of the present
invention;
[0026] FIG. 8 is a flow diagram of a general process for a user to
sort through a formulation database to select a set of matching
formulations;
[0027] FIG. 9 is a flow chart that illustrates the flow through the
system to arrive at a set of formulations in accordance with the
illustrative web pages of FIGS. 10-16;
[0028] FIG. 10 is an illustration of a user interface for selecting
a vertical market to which a set of formulations relate;
[0029] FIG. 11 is an illustration of a user interface for selecting
an end use within a vertical market;
[0030] FIG. 12 is an illustration of a user interface whereby a
customer defines characteristics of the formulation sought;
[0031] FIG. 13 is an illustration of a user interface wherein a
customer ranks characteristics of formulations sought;
[0032] FIG. 14 is an illustration of a user interface output of
formulation according to rank;
[0033] FIG. 15 is an illustration of a user interface output of
particular components of a selected formulation;
[0034] FIG. 16 is an illustration of a user interface for comparing
formulations in a side-by-side fashion; and
[0035] FIG. 17 is an illustration of an auction process in
accordance with an aspect of the present invention.
DETAILED DESCRIPTION OF THE INVENTION
[0036] The present invention is directed to an Internet-based
platform that aggregates formulations (i.e., product specifications
wherein the product is assembled from one or components and wherein
the specification impart the understanding to build at least a
prototype product) from one or more suppliers so that
manufacturers/suppliers/distributors (herein all referred to as
suppliers for clarity) may use the platform as a standard
repository of formulations so that they can provide customers with
access to the formulations. The platform further has the capability
to retrieve the formulations on the basis of specified performance
criteria.
[0037] Although the system is useful for individual suppliers to
maintain their own sets of formulations, the system may also be
employed across suppliers within an entire vertical market thereby
providing a standard repository of formulations within a vertical
market. As a consequence, customers may provide performance
criteria to locate formulations that most appropriately meet their
needs from a variety of suppliers.
[0038] The invention also presents a system for driving the
purchase of the components that comprise the various formulations
by purchasing the component or components in the context of the
utility derived from its interaction with the other components of a
given formulation.
[0039] In the following discussion, the phrase "target segments"
refers to those industry segments wherein know-how is essential to
supporting and making the sale. In the specialty chemical industry,
for example, target segments include coatings, adhesives, sealants,
inks, polishes, cleaners, detergents, pharmaceuticals,
agrochemical, plastics, textile, and so on and total in the
billions of dollars globally. Characteristics of the customer base
in the target segments are that raw materials (both the specialty
components and commodities) frequently are a high percentage of
sales, specialty chemical dollar value is about 25% of total raw
material cost, barriers to entry related to manufacturing
infrastructure are quite low and, consequently, fragmentation of
the customer base (particularly at the tail end of the market) is
quite significant.
[0040] 1. Formulation Know-How
[0041] Formulations are developed by combining multiple specialty
and commodity chemicals ("ingredients") supplied by specialty and
industrial chemical suppliers. As part of their tech service
initiatives, chemical suppliers develop recommended starting point
formulations which typically contain ingredients from multiple
producers. The interaction of ingredients (in specific quantities
and order of addition) is what creates performance characteristics
that address the needs of formulators. Unfortunately, starting
point formulations are typically classified by main ingredients
rather than by performance criteria, which more directly
corresponds to a formulator's needs. This issue is confounded by
the fact that formulators do not have an effective way of finding
and utilizing such starting point formulations due to their many
sources, formats, media, versions and credibility. The net result
is that formulators must follow a lengthy trial and error
experiment process before arriving at a solution that meets the
formulator's requirements.
[0042] Small customers often source their formulation components
from distributors and, consequently, rely on them for tech service.
It can be a cost prohibitive/low return effort for specialty
component suppliers to focus their own tech service capabilities on
smaller buying accounts versus their larger direct buying accounts.
Instead, when possible, suppliers resort to training distributor
reps on component formulation expertise. Such reps are typically
regionally focused, asked to sell a broad range of components and
lack a technical background. As a result, these reps are
ineffective at offering value-added tech service, and many smaller
customers are forced to make uninformed or expensive decisions in
choosing the right formulation or component for their need. Some
customers may have some in-house formulation or design competency,
but it is typically narrow, embodied in one individual and may not
be sufficiently exposed to new developments of components and
formulations in the market.
[0043] To address the needs outlined, according to an aspect of the
invention, the system employs a formulation configuration process.
This process begins with a series of inquiries to determine such
criteria as the vertical market or target segment in which the
customer operates and what the customer's needs are within that
market. The system then uses a formulation database to generate
formulation and supply options that contain components that match
the customer's specified needs. With each option there may be a
corresponding performance and cost profile, an order entry form to
request sample materials, and testing procedures for verifying test
results within the customer's own laboratory.
[0044] 2. Lowest Cost Formulations
[0045] Large customers have direct access to the technical
personnel of specialty and commodity suppliers who can help them
optimize formulations to achieve the lowest cost for a given
performance goal. Even still, suppliers often will not, for
competitive reasons, make their large customers aware of all
possible solutions. Smaller customers, on the other hand, must rely
on their local distributor, who not only lacks technical
sophistication (as mentioned above), but also typically only
support a narrow range of competing commodities. In cases, where
commodities can be substituted to achieve an improved cost profile,
a single distributor can offer very little. This is a source of
significant savings since commodities typically represent between
50-75% of the formulated cost. Consequently, the ability of the
small customer to optimize cost is quite limited given the limited
choice available.
[0046] During the formulation configuration process, the customer
can specify both the performance and the cost profile it is
seeking. The invention will provide matching solutions and may
include a list of possible substitutes for component commodities in
the formulation. The customer may then be asked to forecast its
annual formulation requirements so that the system can send out
electronic requests for quotations. The customer may review all
quotation on a `line by line` basis by individual components or on
a formulated basis to ascertain which components and which solution
they would like to pursue.
[0047] 3. A Network Environment
[0048] FIG. 1 illustrates an exemplary network environment in which
the invention may be employed. Of course, actual network and server
environments can be arranged in a variety of configurations;
however, the exemplary environment shown here provides a framework
for understanding the type of environment in which the present
invention operates.
[0049] The network may include client computers 20a, a server
computer 20b, and data 70 accessible via server computer 20b. The
client computers 20a are in electronic communication with the
server computer 20b via communications network 80, e.g., an
intranet. Client computers 20a are connected to the communications
network by way of communications interfaces 82. Communications
interfaces 82 can be any one of the well-known communications
interfaces such as Ethernet connections, modem connections, and so
on.
[0050] Server computer 20b provides management of data 70 by way of
server software such as database server system software, described
more fully below. As such, server 20b acts as a gatekeeper of data
from a variety of data sources and provides that data to a variety
of data consumers. Server computer 20b may maintain data in a
relational database such as SQL Server available from Microsoft
Corporation. Client computers 20a that desire to use access data
stored by server computer 20b can access the data 70 via
communications network 80. In the example wherein server 20b
comprises a database server, such as a SQL server, client computers
20a request the data by way of SQL queries (e.g., update, insert,
and delete) on the data stored in database 70.
[0051] Database 70 comprises a set of formulations along with other
relevant data. For example, the database may comprise a set of
specialty chemical formulations for paint, adhesives, ink, and so
on. Additionally, the database may comprise a product formulated
according to a number of subsystems or components, e.g., computer
systems.
[0052] Where server computer 20b and client computers 20a are
connected by way of an intranet or the Internet, communications may
be facilitated by HTML, XML, and so on. Client computers 20a may
employ a browser such as Internet Explorer or Netscape Navigator.
Client computers 20a may represent suppliers, distributors, and/or
buyers of formulations and/or components of the stored in database
70.
[0053] 4. Formulation Web Server and ASP Model
[0054] FIG. 2 illustrates an exemplary architecture for the system
in accordance with an aspect of the invention. Here, the
formulations web site comprises a web server 20b that receives and
delivers content to clients 20a by way of the Internet 80. The
content is preferably exchanged in the form of HTML, XML, or some
like form of data exchange format created and/or maintained in data
store 70a. Information in the form of formulation data received,
preferably electronically by way of the Internet, from suppliers
(e.g., web server 20a') is classified and stored in a database 70b.
Formulation web site 20b' also maintains a database of affiliates
70c so that various affiliate information can be maintained and
formulation database 70b can be maintained on a affiliate basis.
Additionally users can set up accounts and maintain information in
database 70d, and set preferences that are stored in preferences
database 70e. Hence, the affiliates can use the system in an ASP
model wherein all of their data would be conceptually maintained
separate from other affiliates. All requests to the affiliate can
be redirected to the Formulation web site 20b' to service the
request. To a customer, the system would appear as though the
affiliate were providing the formulations.
[0055] According to an aspect of the invention, users 20a can
access formulation data stored in formulation database 70b by
directly accessing formulation web server 20b. Therein, user 20a
may have access to formulation data in its entirety or to selected
formulation data based on a specific supplier. Additionally, user
20a may access formulation data by way of web server 20a', wherein
web server 20a' redirects requests over to web server 20b in
accordance with know redirection techniques. Once connected to web
server 20b, redirected user 20a may have access to formulation data
70b in accordance with a previously arranged subset of formulation
data that was negotiated between web server 20b and web server
20a'. This may include for example, all public formulation
information maintained in formulation database 70b or a set of
privately maintained formulation data maintained by the formulation
web site on behalf of web server 20a'.
[0056] By allowing suppliers to store their formulations on the
formulation web site, a common formulation format can be achieved
across an industry and a common methodology of extracting
formulations based on characteristics can be achieved. As a result,
suppliers can combine/group or otherwise share formulation data
that is uniformly accessible. Additionally, suppliers can provide
the formulation data to distributors or other entities that way
desire to have a structured formulation database that can be
accessed by way of performance characteristics.
[0057] 5. Formulation Database Structure
[0058] FIG. 3 illustrates a hierarchical view of one embodiment of
the organization of the formulations stored in database 70. The
structure of FIG. 3 may be conceptually similar to the organization
of data in other web site search engines wherein the same
formulation may appear at different nodes in the tree and may be
categorized under more than one search path. Conceptually, the
database is organized by vertical market 72. Here, example vertical
markets 72 include Adhesives, Paint, Sealant, and Ink; however, the
invention contemplates the application of the present model to
other products comprised wherein those products are configured from
a selection of multiple components. Each of the vertical markets is
further defined by market segments 73 that help a customer further
identify a particular application (e.g., Architectural, OEM,
Special Purpose). Within each of those segments, the formulations
are further categorized by application 74 (e.g., siding, trim,
wall, etc.). Further categories apply to further classify and
categorize the formulations. Here, for example, each of the
applications is categorized as interior or exterior 75 and
water-based or solvent based 76 and so on until the lowest nodes in
the categorization tree provides the categorized formulation. Note,
however, that a given formulation may appear as a leaf node under
multiple paths through the tree. That is a particular formulation
may be suitable in multiple categories (e.g., Architectural and
OEM).
[0059] Although the example hierarchy of FIG. 3 shows all of the
formulations A, B, and C fitting nicely into the leaf nodes (e.g.,
Solvent Based), the formulations will also be categorized within
each node along the path (as indicated in the Figure with an "x" in
the appropriate node). Hence, for example, Formulation A may be
searched for and located under any one of or combination of the
nodes "Paint", "Architecture", "Wall", "Interior", and "Solvent
Based".
[0060] FIG. 4 provides another example of how the formulations may
be organized and located. Here, an n dimensional cube 77 provides a
pointer to a list of formulations that meet the criteria of the
intersection of all of the attributes. For example, pointer n
points to a set 78a of formulations that are useful as Special
Purpose, Water-Based, Metal applications; whereas, pointer m points
to a set 78b of formulations that are useful in producing Special
Purpose, Solvent-Based, Metal applications.
[0061] 6. Formulation System
[0062] FIG. 5 presents a schematic of a system for carrying out the
process of the present invention. Essentially, customers 20a enter
the system by way of an Internet connection into a web site. There,
customers 20a find a formulation based on particular application
requirements. Suppliers 20a' and/or distributors 20a'' provide
formulations for categorization and storage in database 70.
Typically, the formulation information is provided by supplier
driven research and development. New products and formulations are
introduced by way of advertising, samples and etc. provided to
customers 20a. Suppliers 20a' and/or distributors 20a'' provide
pricing information and accept delivery. The formulations provided
by suppliers 20a' and distributors 20a'' are entered into database
70 for selection by customers 20a.
[0063] When new products are introduced, suppliers 20a' and
distributors 20a'' can provide product advertising, literature,
instructional information and so on, in order to educate potential
customers about the virtue of a new formulation. Moreover, the
instructional information may be precisely targeted based on
selections made by customers 20a in arriving at formulation
selections.
[0064] As alluded to above, customers 20a are generally buying
products that require some assembly on the part of customers 20a.
Hence, for example, a customer 20a seeking to buy paint is likely
to supply end products incorporating the paint to others. For
example, they may be a small paint supplier that does not have a
sophisticated internal research and development team to discover or
invent a new paint additive that produces a desirable property. On
the other hand, customers 20a may have the sophistication to
assemble the components supplied by suppliers 20a' and/or
distributor 20a''. So after the customer has selected a
formulation, the components will be delivered to the customer for
assembly.
[0065] For example, a paint formulation may comprise a formulation
such as the paint formulation illustrated in Table 1, below.
TABLE-US-00001 Disperse Supplier Wt. Vol % Alkyd Resin McWhorter
5811 206.8 23.91 Titanium Dioxide Kronos 2090 310.2 9.10 n-Butyl
Acetate Union Carbide 52.7 7.16 Then Add Alkyd Resin McWhorter 5811
206.7 23.90 n-Butyl Acetate Union Carbide 164.4 22.33 Acrylated
Melamine Solutia Santolink AM 547 100.7 11.32 Resin Flow Modifier
Byk 300 2.1 0.27 Drier Blend 18% Cobalt Manosec 18% 1.3 0.14 18%
Ziconium Manosec 18% 4.1 0.45 10% Calcium Manosec 10% 7.7 0.96
Drier Accelerator Activ-8 (R. T. Vanderbilt) 2.1 0.26 Anti-Skinning
Agent Exkin #2 (Huls AG) 1.5 0.20
[0066] The supplier may designate the properties for this
formulation as Application: Exterior, Metal; No Odor; Set-to-Touch,
20 min; Tack Free 90 min; etc. So that the formulation can be
classified accordingly, for example, in the tree of FIG. 3.
[0067] Such a formulation may be delivered to the Formulation Web
Server by way of an uploaded XML file. For example, the formulation
may follow a format as follows: TABLE-US-00002
<FormulationRecord> <Category>Paint</Category>
<Market>Architectural</Market> . . .
<FormulationName>Interior Latex - Gold
line</FormulationName> <FormulationAuthor>Golden
Coatings S.A.</FormulationAuthor>
<FormulationValidationStatus>Y</
FormulationValidationStatus> <Performance Criterion> No
Odor</Performance Criterion> . . . </
FormulationRecord>
[0068] Upon receiving an XML file bearing a formulation, the system
of the present invention will attempt to properly categorize the
information. Here, for example, the formulation will be categorized
under Paint, Architectural, etc. Its performance characteristics
will be set to No Odor, etc. In this way, supplier can continually
add new formulations to the system by upload an XML file.
[0069] An example of electronic integrated circuit (IC)
formulations are illustrated in FIGS. 6A and 6B. Here, an
integrated circuit manufacturer has developed an IC that has a
number of useful applications. For example, as shown in FIG. 6A,
the circuit can be used to AC couple an external CMOS clock powered
from a single positive supply voltage. Whereas, in FIG. 6B, the
same IC is configured to filter AC signals from high DC voltages.
Characteristics for the IC might be 5 volt power, input frequency
range 0-20K, clock to cut-off frequency ratio of 100, filter gain
at input frequency of 16 kHz of -52, etc. Using such characteristic
the integrated circuit can be characterized accordingly in a tree
structure similar in concept to the tree structure for the
specialty chemicals illustrated in FIG. 3.
[0070] FIG. 7 provides an example flow diagram of the process of
acquiring formulations in accordance with the present invention.
The first step (step 702) is a standards gathering process wherein
testing protocols available from industry associations and
government agencies (such as ASTM) are collected. The output of the
gathering process is a classification of the testing standards
(step 703). After developing a standard classification system for a
given product, Formulation Data sheets, Use guide, Test results and
Test methods (various media) are collected from suppliers (step
704) and that formulation data is formatted for storage in a
database (step 705). The gathered formulation data is then
classified according to the previous designed classification system
(steps 706, 707). Where necessary, the standards gathered in prior
steps are used to perform manual classification of each
formulation, including product data and test results (steps 708,
709). The data is then loaded onto the server and made available
for searching (steps 710, 711).
[0071] FIG. 8 provides an example flow diagram of the process of a
customer stepping through the Formulation Web Site to derive a set
of formulations. In a first step (step 802, 803) in the process,
the customer enters information that defines the formulation
application, e.g., coatings, glue, clock circuits, etc. Thereafter
the customer enters limits and prioritizes features in selecting
the formulation (step 804). From this, a set of requirements are
defined (step 805). These requirements are used to generate a query
(step 806) and the matching results are output (step 807). After
the results are output, the consumer can view the results and
request comparison data (steps 808, 809). The formulation details
can be requested and viewed (steps 810, 811). Thereafter, the
consumer can select desired ones of the formulations to save for
later, purchase components, and etc. (steps 812, 813).
[0072] FIG. 9 provides an exemplary flow chart of a customer
navigation through the system of FIG. 5 to arrive at a set of
formulations. This flow chart roughly corresponds to the
information and user interface described in connection with FIGS.
10-16. Initially, at step 40, customer 20a selects a vertical
market. As shown, in FIG. 10, for example, web site 60 presents a
web page 62a wherein a customer 20a may select from one of Paint
& Coatings, Adhesives & Sealants, Personal Care, Soap &
Detergent, Inks & Graphic Arts, and Textiles. In a different
context, for example a computer context, customer 20a would select
from a different set of vertical markets. Selection of a vertical
market from web page 62 causes system 20b to present web page 62b.
Here, in accordance with step 42 of FIG. 5, customer 20a selects a
product end use 620. For example, as shown in FIG. 11, under the
Paint & Coatings vertical market, the user selects the
appropriate end use 73 to further define customer 20a's needs. Each
of the end uses 73 has an associated drop down menu of selections.
For example, selecting drop down box 73a for Architectural end use
73 presents the selections shown in box 74a from which a customer
20a may further define the end use. For example, customer 20a may
select Wall, Semi-Gloss, Gloss, and High-Gloss. Similarly, drop
down boxes 73b and 73c, corresponding to OEM and Special Purpose
end uses, respectively, have associated selections 74b and 74c,
respectively. After making a selection from the appropriate drop
down box 73, customer 20a next further defines the selected product
characteristics as indicated by step 44 of FIG. 9.
[0073] FIG. 12 is an example web page that illustrates one
embodiment whereby a customer 20a further defines performance
characteristics of the formulation sought. Here, for example,
customer 20a is presented with six questions in the form of slide
bars and radio buttons. All of these questions are dynamically
based on the previously selected end use selected from the previous
web page (e.g., web page 62b of FIG. 11). For example, customer 20a
may further indicate that the formulation sought is Water Based,
for Interior use, to be applied to Metal substrate, with a Spray on
applicator with a VOC level of about 250 g/L, and should possess
low odor qualities. As customer 20a further differentiates the
formulation sought, some of the characteristics may not be as
significant to customer 20a's needs. Hence, some of the
characteristics may be defined according to a more fuzzy logic.
[0074] FIG. 13 presents a web page 62d that illustrates a mechanism
whereby the user may rank certain of the characteristics of the
formulation sought (in accordance with step 48 of FIG. 5). In this
example, customer 20a may select certain characteristics and
indicate the relative importance of that characteristic to other
ones of the characteristics of the formulation sought. For example,
customer 20a can set the priority of Set To Touch as Required and
set the priority of other characteristic the same or different such
as Desirable or Not Important. Thereafter and as illustrated by
step 50 of FIG. 9, a query is generated to query database 70 (see
FIG. 1) to select the set of formulations matching the customer
20a's selections. The results are output according to a ranking as
illustrated by web page 62e of FIG. 14. In that output,
formulations and unit costs are presented to customer 20a along
with the number of set characteristics matched. For example,
Formulation 1 had 3 of 3 characteristics that were set to
Desirable, as indicated by 642. By selecting one of the
formulations presented, an additional detailed web page is
presented (e.g., web page 62f of FIG. 15). In the detailed web
page, the formulation is broken down by components along with
suppliers that supply various ones of the components.
[0075] Customer 20a may choose to compare the various formulations
that were resulted from the selected inputs. FIG. 16 presents an
example web page output 62g that illustrates one such side-by-side
comparison. Here, Formulations 1, 2, and 3 are compared to one
another along with various characteristics. A unit price may be
presented for each that provides an additional basis for
comparison.
[0076] According to an embodiment of the invention, after a
customer or user of the system has used the system to locate
formula of interest, the customer can then follow the formulation
to build or fabricate the formulation from the components. Using
the formulation of FIG. 15 as an example, the customer would
disperse the alkyd resin, titanium dioxide, and n-butyl acetate,
then add the additional alkyd resin, n-butyl acetate, acrylated
melamine resin, and flow modifier, then drier blend the cobalt,
zirconium, calcium, drier accelerator, and anti-skinning agent.
This starting point formulation could be used for testing purposes,
experimentation, manufacture and so on.
[0077] According to an aspect of the invention, the starting point
formulations can also be used to perform modeling. Stand alone
modeling software has been available to run in a WINDOWS Operating
System environment such as the Laboratory Module available from
BatchMaster Software group of eWorkplace Solutions of Laguna Hills,
Calif. Here, the modelling software would be tied to the formulator
output. For example, during the product development process,
formulators need to achieve certain performance characteristics. As
they achieve a certain level of performance, formulators perform
lab bench experiments to test how a formulation's performance
properties react to changes in ingredients. This trial and error
process allows them to fine tune a formulation and establish the
best set of properties they can find. Such experiments are
performed in a controlled environment, i.e., only one ingredient is
changed at a time, and resulting performance properties are
recorded. For example, a flat paint formulation may contain
ingredients such as: water, solvent, thickener, inert pigment,
anti-freeze, latex, Titanium Dioxide, and the formulator may have
properties goals such as Ph=8.5 to 9.0, KU=95 to 100. One set of
experiments may include testing 4 types of thickeners and record
the resulting values of Ph and KU.
[0078] Most of a chemist's time is spent running those experiments
(which includes setting it up, testing, measuring results and
documenting them). The model will use statistical regression to
predict the performance properties (Ph and KU in our example)
associated with additional thickener types by using the original
thickeners data points along with the corresponding performance
properties. If the regression successfully explains enough of the
correlation between those two types of variables (thickener and
Ph/KU), the formulator would be able to skip a number of
experiments thus saving significant time.
[0079] According to an alternative embodiment, the system may
generate a list of formulation options or solutions that includes a
list of substitute commodity raw materials which are
interchangeable within the formulation and "typical" pricing on
these commodities.
[0080] According to an aspect of the invention, after a set of
formulations are selected that met customer 20a qualifications,
components of the formulation are available for purchase by the
customer. This can be done according to a straight forward purchase
at the quoted price, either directly or by way of a distributor, or
alternatively according to an auction methodology. It should be
appreciated that a customer can also go directly to the set of
formulations or a particular formulation by, for example,
performing a search on the web site.
[0081] According to one auction embodiment, component suppliers
provide a price to supply components based on the total amount
required. Thus if a component is fifty percent of one formulation
and 60% of another, a better price may be offered on the 60%
formulation. Because the unit cost of the formulation is a function
of the combination of all of the components, the comparison price
of the various formulations will depend on the assembled cost of
all of the separately priced components.
[0082] According to another auction embodiment, specialty
ingredients within the formulation are specified as "no equal", but
all other ingredients are specific as "as equal". An electronic
reverse auction commences in which participants (i.e., suppliers
20a' and/or distributors 20a'') bid on individual components within
the formulation over a fixed timeframe. Customer 20a is able to
observe the bid and see how the formulated cost declines with each
lower input price offered. Customer 20a chooses set of
distributor(s) 20a'' and supplier(s) 20a' for a quarterly contract
based upon lowest price and other intangibles (quality of
distributor service, etc.). Each distributor 20a'' or supplier 20a'
will be linked to an electronic order entry interface that each
customer 20a will use for future order fulfillment and technical
service on an ongoing basis.
[0083] The invention will track pricing, purchasing patterns and
commodity trends on behalf of its customers 20a in order to alert
them when cost improvement opportunities become evident or it has
become appropriate to re-bid based on changed market
conditions.
[0084] FIG. 17 further illustrates the auction feature in
accordance with an aspect of the invention. In this example, a
customer 20a is presented with three competing formulations. Each
formulation may have slightly different characteristics but each
was selected by the system as meeting the customers stated
performance specifications. All of the formulations contain similar
ingredients. For example, they all contain ingredients Y and Z,
albeit in slightly differing amounts. Formulations A and B each
contain ingredient X but in slightly different percentage
compositions; whereas formulations B and C each contain ingredients
W in the same percentage composition. Each of the different
ingredients may be supplied by different suppliers 20a'. For
example, Supplier 1 supplies U, Supplier 2 supplies X, and Supplier
3 supplies Y. The total price of a given formulation is controlled
by the combined price of all of the ingredients. So that the effect
of a particular ingredient on the overall price of a particular
formulation is a function of its percentage of the composition as
well as its price. Hence, if Formulations A or C are accepted by
the customer, Supplier 3 will have sold a larger percentage of the
formulation than if Formulation B is accepted (10% versus 7%). The
same is true for Supplier 1 with respect to Formulations A and C
(if Formulation B is sold Supplier 1 makes no contribution to the
sale) and Supplier 2 with respect to Formulations A and B.
[0085] The dynamics of multiple suppliers 20a' having disparate
interests in the overall transaction may operate to change the
price of the bids for each of the formulations offered to customer
20a.
[0086] While the invention is susceptible to various modifications
and alternative constructions, certain illustrated embodiments have
been shown in the drawings and accompanying detailed description.
It should be understood, however, that there is no intention to
limit the invention to the specific constructions disclosed herein.
On the contrary, the invention is intended to cover all
modifications, alternative constructions, and equivalents falling
within the scope and spirit of the invention.
* * * * *