E????? ?ets?

1
E????? ?ets?ß?? ????te??e???etapt???a?? ?µ?µat??
?? ??(?????? - 2003) ???t?a ???st???µe???
???a? EDI ?a? ?fa?µ???? ??e?t??????? ?µp?????

• B2B ?a? Electronic Marketplaces
• (??e?t??????? ??????)

2
OUTLINE

• Introduction to Market Places
• Historical Evolution
• Objectives, Benefits, Critical Factors, etc.
• Examples Greek Marketplaces
• Infrastructure for Market Places
• Basic Infrastructure (networks)
• Support Technology
• Web Servers
• Electronic Commerce Servers

3
??e?t?????? ????? - Electronic Marketplace

• Marketplace 3 main objectives
• Match buyers and sellers
• Facilitate exchange of information, goods,
  services, payments (transactions)
• Provide institutional infrastructure enabling
  efficient functioning of the market
• EC in the marketplace
• Increased efficiencies
• Decreased cost of executing business functions

4
? e?????? t?? µ??t???? ??e?t??????? ep??e??e??

• E-Marketplaces
• Collaborative Networks instead of Supply Chain
• Focus on B2B
• Dynamic market management

• E-Business
• Cross Enterprise CRM and Supply Chain
• Totally Integrated Systems

• E-Commerce
• E-Procurement
• Transaction Systems
• eStorefronts
• Personalized interaction
• Legacy System Integration

• Web-site
• Basic customer self-service
• Push content services
• Online branding

????s? t?? ep?d?as?? st?? ?f?d?ast??? ???s?da
5
E-Markets Relations
6
New business models
7
?a ?a?a?t???st??? t?? e???????? markeplaces

• ?e?t??????? 7 marketplaces.
• ?????? e??as??? ????
• White ?a? blue collar MROs, retail, ?e??d??e?a???
  e??p??sµ??, logistics-µetaf????.
• ?? µe?a??te?? µ???? t?? ?????? e??as???
  p?????eta? ap? t??? µet?????
• ????a????? ta buyer-centric s??µata
• ?d??aµ?a st? d?µ??????a ?a? d?at???s? business
  communities

8
?a??de??µa B2B ????????s? (ap? pa???s??se?? t??
Microsoft)
9
?a??de??µa B2B ????????s? (ap? pa???s??se?? t??
Microsoft)
10
?a??de??µa B2B ????????s? (ap? pa???s??se?? t??
Microsoft)
S???e?t??t??? Stat?st???

• 5,5 d?? a????? µ?s? Auctions
• 15 ???µ??e?t?? - 7,500 ??????ta
• 56,25 µe??s? d?a?e???st???? ??????
  (??????µeta??e?µ?t?? ?a??t????) se s???e???µ??a
  p?????ta ?a? 20 ?at? ??s? ???.
• 27 ?? µe??s? se s??s? µe t?µ? e?????s??
• 33 ?? µe??s? se s??s? µe t?µ? te?e?ta?a? a?????

11
?a??de??µa B2B ????????s? (ap? pa???s??se?? t??
Microsoft)
?? e?d?af???? t??? ??a s?µµet??? ????? ?d?
e?f??se? ?? eta???e? Shell-Select, ??
?as???p?????, ???f?, ?et??, Agrino, Bingo,
Chipita, Colgate-Palmolive, Georgia Pacific,
Johnson Johnson, Kraft, Rilken, Schwarzkopf,
Tasty, Wella, ????a??? ????p???a,, ??a??, T????,
?????ßa, ?p?s??ta ?apad?p?????, ?p??t????, ???a?,
?.?.

• ?a???t?µ??? µ??t??? ??e?t??????? a?????
• ??e???t?t?? e?d??µes?? µeta?? t?? Supermarket ?a?
  t?? p??µ??e?t?? t???
• ?p????????a µe????? a??s?d?? ?s? ?a? t?? µ?????
  s?µe??? p???s?? µe t??? p??µ??e?t?? t???
• St?? p??t? efa?µ??? s?µµet????? - ?µ????
  s??pe?µ???et ?e??p????? ?a? ?? eta???e?
  p??µ??e?t?? ??G???, ProcterGamble ?a? Unilever.

12
?a??de??µa B2B ????????s? (ap? pa???s??se?? t??
Microsoft)
?? ?p??es?e? p?? pa?????ta? µ?s? t?? ??e?t???????
a????? O???-??? pe???aµß?????

• ??a?e???s? ?a? a?t?µat?p???µ??? e??µ???s?
  ?ata????? p?????t??
• ??a?e???s? ?a? pa?a???????s? µe??µ?t??
• ?a?a???????s? p???se?? (POS) se ?a??µe???? ß?s?
  ?a? ap???µat?? (stock) st? ?at?st?µa
• ???te???µe?? pa?a??e??a ap? t?? p??µ??e?t?
• ?a?a??e??a ap? t? ?at?st?µa
• ?a?a???????s? ?at?stas?? pa?a??e??a?
• ???µ???s? ??a e??e??e?? st? ??f? t?? ta??????t??
  p?????t??
• ??a?e???s? ?a? a???????s? p?????t???? e?e??e???
• Stat?st??? st???e?a a?a??se??

13
?a??de??µa B2B ????????s? (ap? pa???s??se?? t??
Microsoft)

• ?f???
• ????te?e? e??e??e?? st? ??f?
• ?????te?a ap???µata
• ?p?te?esµat???te?? ?a? ??????µ???te?? d?ad??as?a
  pa?a??e???d?s?a?
• ?e??s? ?e?t???????? ??st???
• ?µes? ?a? ???a??? p????f???s? ??a p??sf????,
  ????? ??d????? ?a? p?????t???? e????e?e?
• ??t?µat? e??µ???s? ?ata????? p?????t??
• ?p??es?e? µ???et???? a????s?? ?a? d?a?e???s??
  ?at???????
• ?e?t??s? t?? d?ad??as?a? ep????????a? ?a?
  e??µ???s?? t?? e?d???? s??e??at??
• ?a??te?? p????f???s? ??a p???se?? ?a? d?a??µ?

14
?a??de??µa B2B ????????s? (ap? pa???s??se?? t??
Microsoft)
????ast?? pe??ss?te?a ap? 550 ?e??d??e?a ?a? 25
??s???µe?a ?a? caterings. (µe a???ast??? d??aµ?
??? t?? 80 d??. d??.) ?p?? Grecotel, Famous
Gastronomy, Holiday Inn, Mamidakis Hotel Chain,
Amalia Hotels, Louis Hotels, G-Hotels, Robinson
Club Hotels, ?as?. ???µ??e?t?? ???? ap? 350
eta??e?e? t?? ????? µe pe??ss?te?a ap? 10,000
p?????ta (Pepsico, SC Johnson, Vileda, Creta
Farm, ?a?a??d??, Lavazza, Misko-Barilla, Hepp,
?fa?t??).

• B2B ??e?t??????? a???? st? ???? t?? a?????
  p??µ??e??? t?? ?e??d??e???, caterings,
  ??s???µe??? ?a? ?a?t???a??? eta??e???.
• ???a - 400 eta??e?e? p??µ??e?t?? µe s???????
  e?e????? 1250 ???ste? ?a? 600 eta??e?e? pe?at??
  (?e??d??e???) µe s??????? e?e????? 2600 ???ste?
  (µe s????? p?????t?? t?? p??µ??e?t?? 50.000)
• St? µ????? - ???? ap? 1000 eta??e?e? p??µ??e?t??,
  2.500 eta??e?e? pe?at?? (?e??d??e???) µe s???????
  e?e????? 8.000 ???ste? (µe s????? p?????t?? t??
  p??µ??e?t?? gt 600.000)

15
?a??de??µa B2B ????????s? (ap? pa???s??se?? t??
Microsoft)
16
?a??de??µa B2B ????????s? (ap? pa???s??se?? t??
Microsoft)
S???e?t??t??? Stat?st???

• ???? ap? 1400 µ??? (650 a???ast??, 800
  p??µ??e?t??)
• 200.000 p?????ta
• 11.000 ep?s???e?? t? µ??a, 352 ep?s???e??
  ?µe??s???, d????e?a ep?s?e??? 20 ?ept?
• To Yassas.com ???p??????e p??? sto i_at_Marketplace
  p?? µe t? se??? t?? ßas??eta? se
  state-of-the-art, ?a??e??µ??e? ?a? d???µasµ??e?
  te???????e? ??e?t??????? eµp????? (XML, LDAP,
  COM, ??p) ?a? a??????e? t?? t?p?p???µ??? p????
  3-tier Microsoft Windows DNA a???te?t?????

• Value-added services
• ?p??es?a stat?st???? p????f???s?? (data
  warehousing, BI) ??a t?? a?t??te?? a???p???s?,
  µe??t? ?a? e?µet???e?s? t?? ded?µ???? t???.
• ????????s? µe ERP p??µ??e?t??
• s?ed?asµ?? ?a? ???p???s? ????????µ???? e?e??e???
  marketing p??µ??e?t??

17
???????? Marketplaces

• Be24
• ? Business Exchanges S.A ??e? a?a??ße? t?
  d?µ??????a t?? te?????????? ?a? ?p?st????t????
  ?p?d?µ??, ?a??? ?a? t?? p??s????s? a???ast?? ?a?
  p???t?? ??a t? d?µ??????a µ?a? ??????t?a? ?a???
  ?a? e?e?d??e?µ???? ???et?? ??e?t??????? ??????
  µ?sa st?? ep??e???µat??? t?? ??µß?, www.be24.gr
  .
• ? Business Exchanges ?.?. e??a? t? ap?t??esµa
  t?? s??e??as?a? t???? ????fa??? e????????
  eta??e???, t?? EFG Eurobank Ergasias, t??
  Panafon-Vodafone ?a? t?? Hellas On Line p??
  ???sa? t?? d???µe??

18
? ?e?t?????a t?? ?a???sµ??? ?µp?????? ???t???
(ap? MICROSOFT)H ????? GTW (Global Trading Web)
19
H ????? GTW (Global Trading Web) S?µµet????te?

• British Telecom , p?? ??e? d?µ??????se? ?a?
  ?e?t????e? t? BT Marketsite st?? ?????a
• Singapore Telecom, p?? ??e? d?µ??????se? ?a?
  ?e?t????e? t? SESAMi.net st? ??t??a?at????? ?s?a
• Nippon Telephone and Telegraph, p?? ??e?
  d?µ??????se? ?a? ?e?t????e? t? NT? Marketsite
  st?? ?ap???a
• Cable and Wireless Optus, p?? ??e? d?µ??????se?
  ?a? ?e?t????e? t? Optus Marketsite st?? pe?????
  t?? ??st?a??a? - ??a? ???a?d?a?
• Banacci, p?? ??e? d?µ??????se? ?a? ?e?t????e? t?
  Banacci Marketsite st?? ?at????? ?a? ??t?a
  ?µe????
• T?ronto Dominion Bank, p?? ??e? d?µ??????se? ?a?
  ?e?t????e? t? TD Marketsite sto? ?a?ad?
• EMediate Consortium, p?? ??e? d?µ??????se? ?a?
  ?e?t????e? MarketSite st? ??t?a ?f????
• CosmoONE, Onianet, Yassas,

20
Company-CentricMarket Places
21
Concepts and Characteristicsof B2B Market Places

• Entities of B2B EC
• Selling companymarketing management perspective
• Buying companyprocurement management perspective
• Electronic intermediariesoptional third party
  directory service provider (scope of service may
  be extended to order fulfillment)
• Trading platformspricing and negotiation
  protocol (auctions, reverse auctions)

22
Concepts and Characteristicsof B2B Market Places
(cont.)

• Entities of B2B EC (cont.)
• Payment servicesmechanism for transferring money
  to sellers
• Logistics providerslogistics to complete
  transaction (packaging, storage, delivery)
• Network platformsInternet, VAN, intranet,
  extranet
• Protocols of communicationEDI or XML
• Back-end integrationconnecting to ERP systems,
  databases, functional applications

23
Concepts and Characteristicsof B2B Market Places
(cont.)
Information processed in B2B

• Product
• Customer
• Supplier
• Product process
• Transportation

• Inventory
• Supply chain
• Competitor
• Sales and marketing
• Supply chain process and performance

24
Concepts and Characteristicsof B2B Market Places
(cont.)

• Electronic intermediaries in B2B
• Consumers and business may share intermediaries
• Businesses may use different intermediaries with
  different suppliers
• Benefits of B2B models
• Eliminate paper-based systems
• Expedite cycle time
• Reduce errors
• Increase employee productivity
• Reduce costs
• Increase customer service and partnership
  management

25
Models

• Company-centric models
• Sell-side marketplace (one-to-many)
• Buy-side marketplace (many-to-one)
• Many-to-many marketplacesthe exchange
• Buyers and sellers meet to trade
• Trading communities
• Trading exchanges
• Exchanges

26
Models (cont.)

• Other B2B models and services
• For the purpose of selling
• For the purpose of buying
• Value chain integrators
• Value chain service providers
• Information brokers
• Vertical vs. horizontal marketplaces
• Verticalone industry or industry section
• Horizontalservice or product used in several
  types of industries

27
Sell-Side Marketplace Architecture
28
Sell-Side MarketplacesOne-to-Many

• Virtual sellersBigboxx.com.hk of Hong Kong
• B2B office supply retailer services
• Large corporate clients
• Medium corporate clients
• Small offices
• Goalsell products in various SE Asian countries
• Offers more than 10,000 items
• Uses more than 300 suppliers

29
Sell-Side MarketplacesOne-to-Many (cont.)

• Virtual sellersBigboxx.com.hk of Hong Kong
  (cont.)
• Company portal attractive, easy to use
• Browse online catalogs
• Use search engines
• Payments
• Cash or check upon delivery
• Automatic payments
• Credit card
• Purchasing card

30
Sell-Side MarketplacesOne-to-Many (cont.)

• Virtual sellersBigboxx.com.hk of Hong Kong
  (cont.)
• Delivery
• Owns trucks and warehouses
• Delivery scheduled online
• Same day (within an hour)
• Specifically scheduled time
• Ordering system integrated with SAP-based
  back-office system

31
Sell-Side MarketplacesOne-to-Many (cont.)

• Virtual sellersBigboxx.com.hk of Hong Kong
  (cont.)
• Value-added services
• Track status of order
• Check stock availability
• Promotions
• Customized prices
• Group accounts and central approvalfor
  businesses with multiple branches
• Standing orders automatically activated
• Large number of reports and data available

32
Sell-Side MarketplacesOne-to-Many (cont.)

• Customer service
• General Electric
• 20 million calls/year about appliances
• Reduced cost of each call from 5 to 0.20
• Milacron, Inc.
• Site contains 55,000 products
• Easy to use
• Securely handles selection, purchase, application
• Technical serviceexpanded to provide a higher
  level of service than previously available at the
  site

33
Sell-Side MarketplacesOne-to-Many (cont.)

• Direct sales from catalogs
• Configuration and customization
• Efficient customization for direct sales
• Business customers
• Customize products
• Receive price quote
• Submit order
• Successful cases

• Dell
• Intel

• IBM
• Cisco

34
Sell-Side MarketplacesOne-to-Many (cont.)

• Direct sales from catalogs
• Benefits
• Reduces costs (to buyers and sellers) and errors
  during the process
• Speeds up order cycle
• Ability to customize products
• Offer different prices to different customers

35
Sell-Side MarketplacesOne-to-Many (cont.)

• Direct sales from catalogs (cont.)
• Limitations
• Channel conflicts with distribution systems
• High cost when traditional EDI used
• Large number of business partners is needed to
  justify system

36
Selling Side Auctions and Other Models

• Forward auctionsquick disposal of items
• Revenue generation
• Increased page views
• Member acquisition and retentionbidding
  transactions result in additional registered
  members
• Selling from own site when
• Large companies that conduct auctions frequently
  dont benefit from using intermediaries
• E-marketplace already in use, cost of adding
  auction not too high

37
Selling SideAuctions and Other Models (cont.)

• Using intermediaries when
• No resources required
• Own and control auction information
• Fast time to market
• Searching and reporting
• Search and report all auction activities
• Standard reports available
• Additional analysis of complex information

38
Selling SideAuctions and Other Models (cont.)

• Billing and collection
• Automatic calculation of shipping weights and
  charges
• Paymentencrypted credit card data
• Billing informationeasily downloaded into
  existing systems
• Successful if
• Sufficient number of loyal customers
• Products well known
• Price not major purchasing criteria

39
Sell-Side CaseCISCO Connection Online (CCO)

• Benefitssaves the company 363 million per year
  in
• Technical support
• Human resources
• Software distribution
• Marketing material

40
Cisco Connection Online (CCO) (cont.)

• Customer serviceCisco Connection online
• Online orderingInternet Product Center builds
  virtually all products to order
• Order statuscustomer tools for finding answers
  to order status inquiries

41
Cisco Connection Online (CCO) (cont.)

• Benefits to Cisco
• Reduced operating costs for order taking
• Enhanced technical support and customer service
• Reduced technical support staff cost
• Reduced software distribution costs
• Lead times reduced from 4-10 days to 2-3 days

42
Cisco Connection Online (CCO) (cont.)

• Benefits to customers
• Quick order configuration
• Immediate cost determination
• Collaboration with Cisco staff

43
Sell-Side Intermediaries

• Marshall Industries(a subsidiary of
  AvnetMarshall) multinational distributor of
  electronic components known for its innovative
  uses of IT and the Web
• Products and services
• MarshallNet
• Marshall on the Internet (portal)
• Strategic European Internet
• Electronic Design Center
• PartnerNet
• NetSeminar
• Education and News Portal

44
Sell-Side Intermediaries (cont.)

• Marshall Industriesa subsidiary or AvnetMarshall
  (cont.)
• Survival strategy
• Continuous improvement programs and innovations
• Team-based organization, flat hierarchy,
  decentralized decision making
• Profit sharing compensation for salespeople

45
Sell-Side Intermediaries (cont.)

• Marshall Industriesa subsidiary of AvnetMarshall
  (cont.)
• Survival strategy
• CRM highly promoted
• Web-based services create value between suppliers
  and customers
• EC initiatives supported by
• Changing internal organization
• Changing internal procedures

46
Sell-Side Intermediaries (cont.)

• Boeings PART
• Acts as an intermediary between the airlines and
  parts suppliers
• Provides a single point of online access through
  which airlines and parts providers can access
  the data needed
• Goal provide its customers with one-stop
  shopping for online parts and maintenance
  information and ordering capability

47
Sell-Side Intermediaries (cont.)

• Boeings PART
• Spare parts business using traditional EDI
• Mechanic tells purchasing department parts are
  needed, purchase is approved, purchase is made
• Large airlines connect to Boeing's VAN
• Boeing finds part and delivers
• Debut of PART on the Internet
• Encourages customers to order parts
  electronicallycheap, easy, fast
• 50 of customers using Internet within first year

48
Sell-Side Intermediaries (cont.)

• Boeings PART
• Benefits of PART online
• Improved customer service
• Significant operating savings
• New sales opportunities
• Customer service online reduced
• Phone calls (purchasing, order status etc.)
• Data entry

49
Sell-Side Intermediaries (cont.)

• Boeings PART
• Portable access to technical drawings/support
• Boeing On Line Data (BOLD) provides availability
  to
• Engineering drawings
• Manuals
• Catalogs
• Other technical information
• Portable Maintenance Aid (PMA)solves maintenance
  problems

50
Sell-Side Intermediaries (cont.)

• Boeings PART
• Benefits to Boeings customers
• Increased productivityless time searching for
  information
• Reduced costsdelays at gate reduced because all
  information is available
• Increased revenuesfaster service provides time
  savings

51
Buy Side One-from-Many,E-Procurement

• Purchasing agents (buyers)
• Direct purchasing
• Use of material is scheduled
• Not a shelf item
• Indirect purchasing
• MROs
• Nonproduction materials
• Inefficiencies in procurement management of
  indirect materials

52
A Traditional Purchasing Process Flow
53
Buy Side One-from-Many,E-Procurement (cont.)

• Innovative procurement management
• Innovative purchasing as strategic approach to
  increase profit margins
• Web facilitation includes
• Electronic tendering
• Volume purchasing
• Aggregating supplier catalogs at buyers site
• Group purchasing
• Others

54
Buy Side One-from-Many,E-Procurement (cont.)

• Goals of procurement reengineering
• Increase purchasing agent productivity
• Lower purchasing prices of items
• Improve information flow and management
• Minimize maverick (unplanned) buying
• Improve payment process
• Streamline purchasing process to make it
• Simple
• Fast

55
Buy Side One-from-Many,E-Procurement (cont.)

• Goals of procurement reengineering (cont.)
• Reduce administrative processing cost per order
• Find new suppliers and vendors to provide
  faster/cheaper goods and services
• Integrate procurement process with budgetary
  control in an efficient and effective way
• Minimize human errors in buying or shipping
  process

56
Buy-Side B2BMarketplace Architecture
57
Buy Side One-from-Many,E-Procurement (cont.)

• Direct vs. indirect sourcing
• Tools to automate purchasing goods
• Direct or mission critical
• 80 of manufacturers expenditure
• Long-term relationship with vendor of known
  quality goods
• Tight integration with suppliers along supply
  chain
• Indirectuse of public exchanges for indirect
  sourcing

58
Buy Side Reverse Auctions

• Pre-Internet Reverse auction process
• Prepare description of product to be produced
• Announce project via ads, mail, telephone
• Send detailed information to interested vendors
• Vendors prepare proposals
• Bidders submit document proposals
• Proposals evaluated
• Problems
• Laws
• Expensive
• Errors

59
Buy Side Reverse Auctions (cont.)

• Web-based reverse auction process
• Buyers prepare bidding project information
• Buyers post project on portal
• Identify potential suppliers
• Invite suppliers to bid
• Suppliers download project information
• Suppliers submit electronic bid
• Reverse auction in real-time, or it can take a
  few days
• Buyers evaluate and award contract

60
Buy Side Reverse Auctions (cont.)

• Web-based reverse auction process
• Benefits
• Electronic process is faster
• Administratively much less expensive
• Enables location of cheapest possible products

61
Procurement Revolution at GE

• TPN at GE Lighting Division
• Purchasing was inefficienttoo many
  administrative transactions
• Process for each requisition took 7 days
• Complex and time-consuming
• Could only send out bids for 2 or 3 suppliers
• Trading Process Network (TPN)electronic bids
• Entire process takes 7 days (for suppliers to
  bid)
• 2 hours to send information to suppliers
• Evaluate and award bids same day

62
Procurement Revolution at GE (cont.)

• Benefits to GE
• Involvement in procurement process
• Labor declined 30
• Material costs declined 5-20--wider base of
  suppliers online
• Redeployment
• 60 of the staff
• Sourcing department concentrates on strategic
  activities instead of paperwork, etc.

63
Procurement Revolution at GE (cont.)

• Benefits to GE
• Time to identify suppliers, prepare a request for
  bid, negotiate a price, and award the contract
• Was 18-23 days
• Now 9-11 days
• Invoices automatically reconciled reflecting
  modifications
• GE procurement departments share information
  about their best suppliers across the world

64
Procurement Revolution at GE (cont.)

• Benefits to buyers
• Worldwide supplier partnerships
• Current business partners
• Strengthen relationships
• Streamline sourcing process
• Rapid distribution of information
• Transmit electronic drawings to multiple
  suppliers
• Decrease sourcing cycle time
• Quick receipt and comparison of pricing bids

65
Procurement Revolution at GE (cont.)

• Benefits to suppliers
• Increased sales volume
• Expanded market reach, finding new buyers
• Lowered administration costs for sales and
  marketing activities
• Shortened requisition cycle time
• Improved sales staff productivity
• Streamlined bidding process

66
Procurement Revolution at GE (cont.)

• Deployment strategies
• Start EC in one division and slowly go to all
  divisions
• Use the site as public bidding marketplace to
  generate commission income to GE

67
Aggregating Catalogs

• Aggregating suppliers catalogs an internal
  marketplace
• Maverick buying to save time leads to high prices
• Aggregating all approved suppliers catalogs in
  one place
• Reduced number of suppliers
• Buyers at multiple corporate locations
• Fewer and remote suppliers
• Larger quantity/lower costs

68
Group Purchasing

• Group purchasingorders from several buyers are
  aggregated
• Internal aggregation
• Economy of scale
• Reduced transaction processing cost
• External aggregation
• Aggregating demand online
• Putting together orders from multiple buyers to
  make large volumes/lower costs

69
Electronic Bartering

• Electronic bartering
• Exchange of goods or services without the use of
  money
• Exchange a surplus for other need
• Bartering exchange
• Submit surplus to exchange for points
• Points used to buy what company needs
• Benefits
• Faster than manually
• Easier to match

70
B2B Infrastructure

• Server to host database and applications
• Software for executing sell-side (catalogs)
• Software for conducting auctions and reverse
  auctions
• Software for e-procurement (buy-side)

71
B2B Infrastructure (cont.)

• Software for CRM
• Security hardware and software
• Software for building a storefront
• Telecommunications networks and protocols

72
Integration

• ERP software
• Customer, supplier, and other databases
• Legacy systems
• Catalog (product) information
• Inventory systems
• Sales statistics
• Decision support systems (DSS) and SCM
  applications

73
Integration (cont.)

• Integration with existing information systems
• Issues in integrating with back-end information
  systems
• Intranet-based work flow
• Database management systems (DMBS)
• Application packages
• ERP
• Back-end sell-side integration works for sellers
  but not buyers and vice versa

74
Integration (cont.)

• Integration with business partners
• Easy integration with one company-centric side
• Not easy to integrate for many buyers or sellers
• Need buyer owned shopping cart that can interface
  with back-end information systems

75
Extranet
76
Intelligent Agent-Based Commerce
B2B Agents
77
Managerial Issues

• Integrationtrading in e-marketplaces is
  interrelated with logistics
• Particularly true in many-to-many exchanges
• Company-centric marketplaces must integrate
• Logistics
• Other support services

78
Managerial Issues (cont.)

• Business ethics
• Accessing unauthorized areas in the tracing
  system should not be allowed
• Privacy of partners should be protected
  technically and legally
• Auctionsboth forward and reverse
• Benefits are substantial
• Implementation is relatively simple
• Considerable flexibility in implementation

79
Managerial Issues (cont.)

• E-procurementcritical success factors
• Need to cut down number of routine tasks
• Reduce overall procurement cycle using
  appropriate information technologies
• Workflow
• Groupware
• ERP software
• B2B models

80
Basic Infrastructure NETWORKS

• The Internet
• Intranetsintra-business delivery systems
• Extranets

81
An Extranet
82
B2B Support Services
83
Electronic Commerce Services and Analysis
Insert Fig 8.1 here
84
EC ServicesOverview Services (cont.)

• Why outsource B2B services?
• Desire to concentrate on core business
• Need to have services up and running quickly
• Lack of expertise for support services
• Economy of scale for project not possible from
  inside
• In-house options do not keep up with rapidly
  changing demands
• Too many services for one company to handle

85
EC ServicesOverview Services (cont.)

• Steps in the process of developing and managing
  EC applications
• EC strategy formulation
• Application design
• Building (or buying) application
• Hosting, operating, and maintaining EC

86
EC Application Development Process
87
?he Evolution of E-Marketplaces
88
WEB SERVERS

• Apache
• IIS (Microsoft)
• NES Netscape

89
Electronic Commerce Servers

• ICAT on-line catalog shopping, order placement
  (Icat)
• Websphere Commerce Suite merchant server
  supporting Secure Electronic Transactions
  protocol (IBM)
• MerchantXpert search tools, order management,
  tax, payment, logistics modules (Netscape)
• Microsoft - Commerce Server 2000 and Biztalk
  Server

90
Electronic Commerce Services

• OPEN MARKET TRANSACT customer authentication,
  order payment processing, tax, multi-language
  customer service (Open Market)
• Spectra E-commerce Toolkit with back-end
  integration (Allaire)
• INTERNET COMMERCE SERVER integrates orders,
  inventory, customer service, payments (Oracle)

91
ELECTRONIC COMMERCE SUPPORT SYSTEMS

• WEB CONTENT MANAGEMENT TOOLS Software
  facilitating the collection, assembly and
  management of content on a web site, intranet or
  extranet. (Website, which also does monitoring)
• ELECTRONIC PAYMENT SYSTEMS using Web for
  electronic funds transfers, credit , smart
  debit cards

92
Web Hosting and Other Services

• WEB HOSTING SERVICES provides large servers for
  Web sites of fee-paying customer (IBM Global
  Services, Exodus Communications, etc.)
• Business hostinghosting is popular for SMEs
  large businesses need more advanced services
• Dedicated serverassigned for specific purpose or
  customer
• Co-location (physical location for the server)
• Free Web hosting attractive option for small
  start-ups
• Provider company inserts a banner ad on their
  site
• Starting point for small companyminimize
  start-up costs

93
Web Hosting and Other Services (cont.)

• Sources of information about Web hosting
• Web Host Review (hostreview.com) how to select
  free Web hosting based on various criteria
• Host Search (hostsearch.com) search engine
  recommends best host based on
• Monthly cost
• Disk space requirements
• Monthly transfer volume
• Other
• WebHosting Magazine (whmag.com)comprehensive
  information for members of Web hosting industry
  and those looking for outsources

94
Web Hosting and Other Services (cont.)

• Management service provider (MSP)
• Deliver IT infrastructure management services
• Multiple customers over networks on a
  subscription basis
• Specialize in e-business and enterprise solutions
• See imspassociation.org and crosscommerce.com

95
Web Hosting and Other Services (cont.)

• End-to-end solutions
• Builds Web sites and EC applications from
  conceptual design to deployment
• Also supply
• Payment systems
• Delivery management
• Site monitoring
• Other services
• See bccentral.com and WebVision.com

96
Application-Building Services and Required
Standards (cont.)

• Industry standards
• XMLimprove compatibility between disparate
  system by defining meaning of data in business
  documents
• XSL and XML require international agreements and
  cooperation
• Support organizations
• UN body for facilitation of EC
• W3CXML and other EC standards
• RosettaNetsupply chain topics

97
Order Fulfillment, Logistics,and Supply Chain
Services
UPS Logistics Group

• Transportation services
• Manages complex
• Transportation networks
• Dedicated fleets
• Carriers
• Multimodel shipments

• Supply chain management
• Reengineering managing complex supply chains
• Supplier
• Manufacturer
• Distributor
• Customer

98
Order Fulfillment, Logistics,and Supply Chain
Services (cont.)

• Parts distribution
• Comprehensive return-and-repair
• Parts distributions operations
• Logistics technologies
• Integration of logistics information systems
• Services to provide supply chain visibility

• EC solutions
• Logistics services
• Web-based businesses worldwide
• Global services
• Logistics facilities
• Staffing
• Expertise about global commerce

99
Order Fulfillment, Logistics,and Supply Chain
Services (cont.)

• Solutions for EC initiatives
• Tracking systems
• Product return systems
• Shipping solutions
• E-document exchange
• Customization
• EC software/providers
• E-services/partners

• Call center services
• Customer care
• Communications (call center services to EC
  capabilities)
• Financial servicesfull range of financial
  services that complement
• Logistics
• Transporting
• Additional business needs

100
Online Data Mining Services

• Clickstream datadata collected by monitoring
  what people do online
• Analyzed and mined to produce useful knowledge
  used to improve
• Services
• Marketing efforts
• Firms use these services to extend their ability
  to execute EC a successful strategy
• NetTracker
• WebTrends

101
Other Marketing Services

• Three examples of other services
• Digitalcement.com provides corporate marketing
  portals builds stronger relationships with
  customers
• Vantagenet.com free tools that help ease traffic
  to a companys Web site
• Businesstown.com has an online directory that
  enables small businesses to identify and evaluate
  service companies

102
Directory Services Search Engines

• Directory services
• B2Business.net
• B2BToday.com
• Communityb2b.com
• A2zofb2b.com
• I-stores.co.uk
• Websteronline.com
• Thomasregister.com
• Bocal.com
• B2b.yahoo.com

• Search engines and news aggregators
• Moreover.com
• Google.com
• Ientry.com
• Newsletters

103
E-Communities

• E-communities
• Chat rooms
• Bulletin boards
• Personalized Web pages
• B2B are basically communities of transactions
• Classified ads
• Job vacancies
• Announcements
• Industry news

• E-communities connect
• Personnel
• Partners
• Customers
• Any combination of these three
• Service providers
• Design of exchange portals
• E-community service

104
Partner RelationshipManagement (PRM)

• In B2B environment the partners include
• Suppliers
• Partners in joint ventures
• Service providers

• PRMrelies on
• Trust
• Commitment
• Quality of services
• Continuity

• Strategy for e-service
• How much to invest in services
• What services to provide

105
Other B2B Services

• E-business rating sites
• Promotion programs
• Encryption sites
• Web research services
• Coupon-generating sites

• Trust services
• Trust Trademark and domain names
• Digital photos
• Global business communities
• Client matching

106
Integration

• Integration in e-marketplaces and exchanges
• B2X hubs connect
• All Internet business services
• Merchant services
• Exchange infrastructure
• Buying and selling
• Member enterprises
• Other B2X exchanges

107
Hypermediation

• Hypermediators are
• Content providers
• Affiliate sites
• Search engines
• Portals
• ISPs
• Software makers
• Other entities

Google
108
Collaborative Commerce (C-Commerce)

• Web-based systems used between and among
  suppliers for
• Communication
• Design
• Planning
• Information sharing
• Information discovery

109
Collaborative Commerce(C-Commerce) (cont.)

• Webcore construction goes online with its partners

110
Suppliers Extranet Hudson Dayton Case
111
Collaborative Commerce(C-Commerce) (cont.)

• Reduce design cycle time by connecting suppliers
  Adaptec, Inc.
• Microchip manufacturer supplying electronic
  equipment makers
• Outsources manufacturing tasks
• Delivery times exceeded their competitors
• Solution to the problem
• Extranet and enterprise-level supply chain
  integrated software
• Significantly reduced order-to-product delivery
  time

112
Collaborative Commerce(C-Commerce) (cont.)

• Reduce product development time by connecting
  suppliers Caterpillar, Inc.
• Heavy machinery manufacturer uses extranet
• Request for customized component directly to
  designers and suppliers ship to buyers
• Connect engineering and manufacturing division
  with worldwide

• Suppliers
• Distributors
• Overseas

• Factories
• Customers

113
Collaborative Commerce(C-Commerce) (cont.)

• Other examples of c-commerce
• Tricon Restaurant Internationalglobal brand
  marketing management
• RE/MAXreal estate franchiser improved
  communication and collaboration between
  independent owners
• Marriott Internationallinks corporations,
  franchising partners, suppliers, customers
• Nygard of Canadainterorganizational collaboration