How BusinesstoBusiness Internet Transactions and Relationships Change Business.

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How Business-to-Business Internet Transactions
and Relationships Change Business.
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Created By Brandon D. SmithManagement
Information SystemsProfessor Sistrunk MWF 1100
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Table of Contents

• 1st Fact
• slide 3
• Benefits of B2B Internet Transactions
• slide 5
• 2nd Fact
• slide 6
• Examples of B2B Transactions via Internet
• Slide 7

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Table of Contents cont.

• Interview with Stephen D. Smith
• Slide 26
• 3rd Fact
• Slide 30
• The future of Internet in dealings with
  businesses.
• Slide 31

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U.S. Internet Revenue Totaled 301 Billion in 1998
(Source Univ. of Texas Study/Washington Post
6/10/99)
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Business to Business Internet related
transactions are focused on selling within a
business contract  or business partner
relationship, which entails delivering agreed
upon products and prices to each buyer within
specified buying companies. Because users and
their requirements are already known, the
emphasis is on getting the businesses to manage
contracts, users, orders and more and to allow
the system to tailor customer interactions based
on contractual or other business relationship
terms.
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Benefits of B2B Internet Transactions

• Cost reduction
• Increased transaction volume
• Increased transaction revenue
• Opportunities for new products and services
• Opportunities for increasing revenues through
  cross selling
• Commercial customer retention

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• Electronic Commerce brings many benefits and in a
  recent study of U.S. companies offering product
  purchases over the Internet - 63 of those
  interviewed reported cost savings, 31 saw
  revenue increases, and 47 noted a cycle time
  reduction in delivery of goods or services. It is
  clear that Business to Business electronic
  commerce represents by far the most compelling
  business case for virtual trading and will
  dominate the business opportunity for banks.

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Examples of Business to Business Internet
Transactions

• Contracting
• Buying and selling of goods/services
• Electronic Mail (E-Mail)
• Advertisement of Goods/Services
• Making and Receiving Payments
• Creating Awareness of your company

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Business to Business Internet Contracting
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Example

• One example of this would be a company who owns
  the building they operate out of. The companies
  upper management decides that the entire building
  needs to be re-painted. As a result of this the
  company hosts an online bid for various painters
  to offer their prices for the job. After finding
  a painter with a desired price, the company draws
  up a contract and e-mails it to him. He in
  returns places an electronic signature on the
  contract and forwards it back to the company.

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Benefits Internet Contracting

• Saved the time and money of hosting the job
  bidding in person and vice versa.
• Saved time and manual labor of by emailing the
  contracts, instead of mailing it through the post
  office.

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Business to Business Buying and Selling of
Goods/Services via Internet.
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Example

• An example of this would be Office Max. Office
  Max Online sells office supplies to many
  businesses across the globe. But they also buy
  their products from wholesalers electronically
  through the web in order to sell on their web
  site for a maximized profit.

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Benefits of Buying and Selling Goods/Services via
Internet.

• Reduced the manual labor and stress of placing
  these multitudes of orders manually.
• Saved the time of the person who would be in
  charge of submitting these orders manually.
• Created organization (No need for excessive paper
  work.

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Business to Business E-Mail
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Example

• An example of B2B Emailing would be an employee
  sending a letter via internet to an employee at
  another company, discussing price rate changes.

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Benefits of E-Mail

• Saves time, by not having to go through the
  manual preparation and the number of days it
  actually takes for it to go through the postal
  system.
• Saves money by not using excess paper or ink, and
  by not using postage.

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Business to Business Advertising of
Products/Services via Internet
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Example

• The shoe company Nike uses their websites to
  display as well as promote their shoes and
  apparel to retailers (such as Foot Locker). In
  return the retailers may purchase the advertised
  products in mass online.

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Benefits of Advertising of Products/Services via
Internet

• Able to reach a more broad range of people
• Saves money
• Reduces manual labor

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Making and Receiving Payments via Internet
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Example

• When a business orders supplies online, more
  than likely they will also make an online
  payment. This process usually involves the buyer
  inputting their credit card information.

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Benefits of Making and Receiving Payments via
Internet

• Fast and Accurate
• Accessible from home or office
• Easily tracked or traced

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Creating Awareness of Your Business
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• When a company does business through the
  internet, it gives other businesses and customers
  the idea that the company is cutting edge and on
  top of the game. This perception in returns
  creates interest, which in returns attracts
  business.

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My Interview with a Professional in the Field
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Stephen D. Smith

• Of
• Davis Smith Co. CPA Firm

Reference in Bibliography
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Interview

• QAs
• Q What percent of your business transactions
  done through the web?
• A Estimated 60
• Q What transactions do you actually make through
  the web?
• A I bill clients, send and receive bank
  statements, communicate with clients, I also use
  email to send updates to my staff.
• Q How has the web process benefited you and your
  business?
• A It saves me time, money, and reduces stress
  levels within the company.
• Q What new and upcoming technologies are you
  looking forward to working with?
• A I am looking forward to work with web
  conferencing. My clients and I will be able to
  have conferences from different cities and states
  face to face.

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Interview Cont.

• Q How do you think web technology will play a
  factor in business to
  business relationships in 5 years?
• A I believe that in 5 years any business who is
  not up on the new technology and information will
  be obsolete.

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In the USA, 78 of the small to medium size
firms are online, and more than a quarter of
those attribute an increase in revenue to the
application of Internet technologies. By 2003,
business to business revenue is expected to top
1.3 trillion. For the business-to-business
marketplace that's a 3400 increase from the 43
Billion in purchases today.(http//ideas.repec.org
/p/nbr/nberwo/8017.html )
Fact
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The future of Internet in dealings with
businesses.

• Internet usage in businesses will become a
  necessity not an option
• Technology will keep improving and innovating.
• Businesses who do not keep up with the new
  technologies will become obsolete (Stephen Smith
  interviewee)

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Conclusion

• As times move forward so will technology.
  Businesses will be forced to keep up with the
  technology. When one company advances their
  technology, their position in the playing field
  advances separating themselves from the
  competition. If competing companies do not also
  keep up they will be left behind. Business to
  Business endeavors are greatly affected by this
  technology movement. Companies have saved
  billions of dollars from the reduction of time
  and labor. The web allows businesses to move
  more smoothly with less convenience. The future
  of business is within cyber space.

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Bibliography

• www.sba.com/GC/e-com2.ppt
• http//www.csulb.edu/web/journals/jerc/issues/pape
  r2.html
• www.nber.org/papers/w8017.html
• http//www.uchicago.edu/fac/steven.kaplan/research
  /gk.pdf

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Bibliography cont.

• Interview
• Stephen Smith of Davis Smith Co.
• [phone]
• Dallas, Tx