E-commerce Part B - B2B E-Commerce

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18 Νοε 2013 (πριν από 3 χρόνια και 9 μήνες)

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B2B commerce has evolved over a 35
-
year period


1970s: Automated order entry systems used telephone modems
to send digital orders (e.g., Baxter Healthcare)


Seller
-
side solution (owned by suppliers, seller
-
biased, show
goods only from single seller)


Late 1970s: Electronic data interchange (EDI): communications
standard for sharing business documents and settlement
information among a small number of firms


Buyer
-
side solution (owned by buyers, buyer
-
biased, aim to
reduce procurement costs for buyer)


Often referred to as hub
-
and
-
spoke system


Generally serves a vertical market



Copyright © 2007 Pearson Education,
Inc.

Slide 12
-
1

E
-
commerce Part B
-

B2B E
-
Commerce


The Evolution of B2B Commerce

The Evolution of B2B Commerce (cont’d)


1990s: B2B electronic storefronts (online catalogs of products
made available to the public marketplace by a single supplier)


Late 1990s: Net marketplaces (bring hundreds to thousands of
suppliers and purchasers into a single Internet
-
based
environment to conduct trade)


Late 1990s: Private industrial networks (Internet
-
based
communication environments that extend beyond
procurement to encompass collaborative commerce)

Copyright © 2007 Pearson Education,
Inc.

Slide 12
-
2

Potential Benefits of B2B E
-
commerce


Lower administrative costs


Lower search costs for buyers


Reduced inventory costs by increasing competition among suppliers and
reducing inventory carried


Lower transaction costs by eliminating paperwork, automation


Increased production flexibility by ensuring just
-
in
-
time parts delivery


Improved quality of products by increasing cooperation among buyers
and sellers


Decreased product cycle time by sharing of designs and production
schedules


Increased opportunities for collaborating with suppliers and distributors


Greater price transparency

Copyright © 2007 Pearson Education,
Inc.

Slide 12
-
3



Explain the differences between extranets and
intranets and show how
organizations utilize these
environments.



Extranet


Enables firms to do business together (B2B)


One of best ways for organizations to gain return
on technology
-
based investments


Boeing


1,000 authorized business partners


Nearly all Fortune 1,000 companies deploy some
type of B2B applications


5
-
4

The Evolution of EDI as a B2B Medium

Figure 12.6, Page 694

Copyright © 2007 Pearson Education,
Inc.

Slide 12
-
5


Electronic Data Interchange (EDI)


Used prior to the introduction of the Internet


EDI used for B2B systems

5
-
6


Digital or electronic transmission of business documents
between organizations


Value
-
added networks (VAN)


Dedicated circuit between companies


Advantages

Streamlining business processes

Reduction of error rates

Disadvantages

Costly

Mid
-
size and small companies disadvantaged



Electronic Data Interchange (EDI)


EDI: broadly defined communications protocol for exchanging
documents among computers


Has evolved significantly


1970s
-
1980s: Originally focused on document automation
(Stage 1)


Early 1990s: Began to focus on document elimination (Stage 2)


Mid 1990s: Movement toward a continuous
replenishment/access model


Today: should be viewed as a general enabling technology that
provides for the exchange of critical business information
between computer applications supporting a wide variety of
business processes

Copyright © 2007 Pearson Education,
Inc.

Slide 12
-
7

Extranets


New, more affordable alternative to EDI


Advantages


Improved timelines and accuracy of information


Central management of documents


Cross
-
platform nature


Low cost of adoption


No specific user training required

5
-
8

Extranet System Architecture


Internet
-
based
application


Virtual private
network (VPN) used
to secure information
transmission


Used to manage
supply chains


5
-
9

Intranets


Business
-
to
-
employee (B2E) electronic
commerce


Internet based private network using Web
technologies


Boeing


More than 1 million pages


200,000 employees

5
-
10

Intranet System Architecture


Internet
-
based
application


Firewalls used
for security


Software placed
between LAN and
the Internet


VPN used to
access intranet
from remote
locations


5
-
11

Intranet: Training


Boeing Company


200,000 employees get trained


Quality eTraining program


Catalogue of courses


Online course content


Standardized courses


Business improvements


Cost reduction


Eliminated travel cost

5
-
12

Intranet: Online Entry of Information


Use of Web browsers to enter information online


Example: Microsoft MSExpense


Prior to MSExpense


136 different report templates


Outdated versions


With MSExpense


Online submission of expense records


Easy and centralized updates to templates


Savings of $4.3 million a year


Shortened period for reimbursement from 3 weeks to 3
days

5
-
13

Intranet: Real
-
Time Access to Information


Manage, update, distribute, and access
corporate information


Boeing


News releases uploaded to the Intranet


Previously sent to all corporate offices as videotapes


Reduced distribution costs


Efficient information sharing


Information shared between employees across the world


Company
-
wide access


Reduced product development cycles


Ability to stay current on projects and with the changing market
conditions


5
-
14




Use of Internet Technologies:

Describe the stages of business
-
to
-
consumer electronic
commerce and understand the keys to successful electronic
commerce applications.



Characteristics of the Internet, intranet and
extranet







B2B, B2E rely on extranet and intranet


Internet provides an opportunity for B2C
commerce


5
-
15

Stages of B2C E
-
Commerce


Web sites range from passive to active

5
-
16

Search Engine Advertising


Sponsored search


Pay to ensure a spot on
top of search results page


Company in control of ad
positioning


Pay
-
per
-
click


Can get costly

5
-
17

Search Engine Optimization


Position within search
results based on
complex formula


Site owner has no
control over the
position of the ad


Optimization based
on:


Web site updates


Use of key terms


Unethical “tricks”

5
-
18

Credit and Debit Cards


Customer Verification Value (CVV)


Three
-
digit code on the back of a card


Added to combat fraud in online purchases


Not included in the


magnetic strip


information


Code used for


authorization by bank



5
-
19

Payment Services


Online transactions without sharing private
information with actual seller


PayPal (owned by eBay)


Can send and receive money if you have an e
-
mail account


Google Checkout


Linked with Google search


Users can see if merchants offer this option


E
-
Gold


Service backed by real gold


Financial institutions now offer:


Online banking


Management of credit card, checking, and savings accounts


Electronic bill pay


Bill payment online


Online investing


Growing in popularity


5
-
20

Main Types of Internet
-
Based B2B Commerce


Net marketplaces: Bring together potentially thousands of
sellers and buyers in a single digital marketplace operated
over the Internet


Transaction
-
based


Supports many
-
to
-
many as well as one
-
to
-
many
relationships


Private industrial networks: Bring together a small number
of strategic business partner firms that collaborate to
develop highly efficient supply chains


Relationship
-
based


Support many
-
to
-
one and many
-
to
-
few relationships


Largest form of B2B e
-
commerce

Copyright © 2007 Pearson Education,
Inc.

Slide 12
-
21

Two Main Types of Internet
-
Based B2B
Commerce

Figure 12.9, Page 701

Copyright © 2007 Pearson Education,
Inc.

Slide 12
-
22

Net Marketplaces


2000

over 1500 Net marketplaces; 2005

an estimated
200


Many different ways to classify Net marketplaces such as
based on:


Pricing mechanism


Nature of market served


Ownership


Another method: Classify Net marketplaces based on their
business functionality


What businesses by (direct vs. indirect goods)


How business by (spot purchasing vs. long
-
term
sourcing)



Copyright © 2007 Pearson Education,
Inc.

Slide 12
-
23

Pure Types of Net Marketplaces

Figure 12.11, Page 703

Copyright © 2007 Pearson Education,
Inc.

Slide 12
-
24

E
-
distributors


Most common type of Net marketplace


Provide electronic catalogs that represent the products of
thousands of direct manufacturers


Typically independently owned intermediaries that offer
industrial customers a single source from which to order
indirect goods on a spot basis


Typically operate in horizontal markets because they serve
many different industries with products from many
different suppliers


Example: W.W. Grainger

Copyright © 2007 Pearson Education,
Inc.

Slide 12
-
25

E
-
distributors

Copyright © 2007 Pearson Education,
Inc.

Slide 12
-
26

E
-
procurement


Independently owned intermediaries connecting hundreds of
online suppliers offering millions of indirect goods to business
firms who pay fees to join the market


Typically used for long
-
term contractual purchasing of indirect
goods


Expand on business model of e
-
distributors


Typically offer value chain management (VCM) services, such as
automation of a firm’s entire procurement process on buyer
side, automation of selling business processes on seller side


Sometimes referred to as a many
-
to
-
many market


Example: Ariba


Copyright © 2007 Pearson Education,
Inc.

Slide 12
-
27

E
-
Procurement Net Marketplaces

Figure 12.13, Page 706

Copyright © 2007 Pearson Education,
Inc.

Slide 12
-
28

Exchanges


Independently owned online marketplaces that connect
hundreds to potentially thousands of suppliers and buyers in
a dynamic, real
-
time environment


Typically vertical markets focusing on spot purchasing
requirements of large firms in a single industry


Make money by charging a commission on transaction


Variety of pricing models used


Tend to be buyer
-
biased


Many have failed due to low liquidity (typically measured by
number of buyers and sellers in a market, the volume of
transactions and size of transactions)

Copyright © 2007 Pearson Education,
Inc.

Slide 12
-
29

Exchanges

Figure 12.14, Page 714

Copyright © 2007 Pearson Education,
Inc.

Slide 12
-
30

Industry Consortia


Industry
-
owned vertical markets that enable buyers to
purchase direct inputs from a limited set of invited
participants


Emphasize long
-
term contractual purchasing and
development of stable relationships


Ultimate objective: Unification of supply chains within
entire industries through a common network and
computing platform


More than 60 industry consortia now exist, with many
industries having more than one


Make money from transaction and subscription fees


Offer many different pricing mechanisms

Copyright © 2007 Pearson Education,
Inc.

Slide 12
-
31

Industry Consortia

Figure 12.15, Page 717

Copyright © 2007 Pearson Education,
Inc.

Slide 12
-
32

Private Industrial Network


Web
-
enabled networks for the coordination of trans
-
organizational business
processes (collaborative commerce)


Range in scope from a single firm to an entire industry


Example: Proctor & Gamble




Copyright © 2007 Pearson Education,
Inc.

Slide 12
-
33

Characteristics of Private Industrial Networks


Objectives of private industrial networks include:


Developing efficient purchasing and selling business
processes industry
-
wide


Developing industry
-
wide resource planning to
supplement enterprise
-
wide resource planning


Creating increasing supply chain visibility


Achieving closer buyer
-
supplier relationships


Operating on a global scale


Reducing industry risk by preventing imbalances of supply
and demand


Typically focus on a single sponsoring company that “owns”
the network

Copyright © 2007 Pearson Education,
Inc.

Slide 12
-
34

Private Industrial Networks and Collaborative
Commerce


Collaboration among businesses can take following forms:


Collaborative resource planning, forecasting, and
replenishment (CPFR): Involves working with network
members to forecast demand, develop production plans,
and coordinate shipping, warehousing and stocking
activities to ensure that retail and wholesale shelf space is
replenished with just the right amount of goods


Demand chain visibility


Marketing coordination and product design

closed loop
marketing

Copyright © 2007 Pearson Education,
Inc.

Slide 12
-
35







Describe emerging trends in consumer
-
to
-
consumer e
-
commerce and the key drivers for the emergence of mobile
commerce.


Types of C2C E
-
Commerce



C2C commerce has
always been present


17% of American
adults have sold
online


C2C relationships
characterized by


Number of buyers


Number of sellers

5
-
36

Opportunities and Threats of C2C

E
-
Commerce

5
-
37

E
-
Auctions


Forward auction


Sellers post goods or services for sale


Buyers bid on these items


Highest bid wins


Reverse auction


Buyers post a request for quote (RFQ)


Seller proposes a bid


Lowest seller bid wins


Used frequently in B2B e
-
commerce

5
-
38

E
-
Auction Fraud


E
-
auctions marred with more fraud than any
other Internet activity


45% of all Internet fraud
-
related complaints


Average loss: $724


Types of e
-
Auction fraud


Bid luring


Reproductions


Bid shielding


Shipping fraud


Payment failure


Nonshipment


5
-
39

M
-
Commerce


Electronic transactions using wireless mobile
devices


Mobile networks


Wireless


Switched public network


Smart phones


High
-
speed data transfer


“Always
-
on” connectivity


5
-
40

M
-
Commerce Applications

5
-
41

Location
-
Based M
-
Commerce


Highly personalized mobile services


Based on location


GPS functionality


Bluetooth


Pull
-
based

consumers seeking information


Push
-
based

companies sending (unrequested)
information to the consumer

5
-
42

Enhanced 911 and Phone Locator


e911


Federal mandate


Correct routing of emergency
calls


GPS specifies location within
50 meters


Phone locator


Location of family members’
cell phones


Alerting system when child
leaves a certain area

5
-
43

Location
-
Based Services


Next thing: cell phone social networking

5
-
44

Key Drivers of M
-
Commerce


General interest in adoption of the Internet
and e
-
commerce


Real
-
time transfer of data over 3G and 4G
cellular networks


“Always
-
on” connectivity


Growth in mobile telephony


2007 M
-
commerce market: $250 billion

5
-
45




Explain different forms of e
-
government as well as
regulatory threats to e
-
commerce.


E
-
Government


Providing
information about
public services


To citizens


To organizations


To other governmental
agencies


1998

Government
Paperwork
Elimination Act

5
-
46

Government
-
to
-
Citizens


Interactions
between the
government and its
constituents


IRS

e
-
filing


Grants.gov


e
-
voting initiatives

5
-
47

Government
-
to
-
Business


Relationships
between businesses
and the government


E
-
procurement


Forward auctions


Businesses buy
surplus government
equipment


AuctionRP.com


Online application for
export licenses

5
-
48

Government
-
to
-
Government


Interactions
between countries


Regulations.gov


Export.gov


Interactions
between different
levels of
government


5
-
49