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Measuring Economic Impacts of B2B e-Business Basi
c Modelling Considerations
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Overview
What is e-Business
Theoretical assumptions on impacts
Our approach of measurement
Results
How to modify the initial model?
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What is B2B e-Business? 1
E-Business is the machine-readable (and
processible) exchange of information which is
linked to business processes.
Typical business processes of every enterprise
are Purchasing, production/ range of products
planning and logistics, sales and development.
Machine-readable informations are informations
which contain descriptive data on content in
addition to the processible content of data,
informing about the content and the necessary
processing steps.

• Typical content of descriptive data implies
  information on
• Product
• Supplier/ customer
• Transaction
• Further processing
• These informations have to be standardised

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What is B2B e-Business? 2
E-Business therefore is the standardised exchange
of information related to business processes
which needs standards on several
levels Product/ supplier/ customer
standard Catalogue format standard Transmission
standard and Integration standard
The aim is not only the automation of processes
but the integration of information into all
relevant process chains within the enterprise
and with all partners in the value chain in
order to increase transparency and throughput
speed and to save transaction, capital and
handling cost.
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What is the B2B application potential? 1

• Critical points for the application potential of
  B2B are the
• Complexity/ richness and the reach of
  information
• Possibility of decomposition of value chain
  processes
• Coverage of strategic or tactical human action
  (complementary
• information exchange) vs. automated
  information exchange

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What is the B2B application potential? 2
Complementary information exchange for
strategic and tactical human action
B2B information exchange
Information with potentially wide reach
Very rich information
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Types of Business Information
complementary communication
feasible measurable as B2B
very rich information
simple information
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Batch EDI interchange structure
Name Tag Status Service String Advice UNA
Conditional Interchange Header UNB
Mandatory Group Header UNG Conditional Messa
ge Header UNH Mandatory Message
Body Message Trailer UNT Mandatory Group
Trailer UNE Conditional Interchange Trailer
UNZ Mandatory
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Interactive EDI interchange structure
Name Tag Status Service String Advice
UNA Conditional Interactive Interchange
Header UIB Mandatory Interactive Message
Header UIH Mandatory Message
Body Interactive Message Trailer UIT
Mandatory Interactive Interchange Trailer UIZ
Mandatory
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Example message segment table
--------------------------------------------------
--------------------------- POS TAG Name S R
Notes 0010 Uxx Message header M 1 0020 AAA
Segment AAA name M 1 0030 BBB Segment BBB
name C 9 0040 CCC Segment CCC name C 9 0050
---------- Segment group 1 ------------------ C
999 ------- 1 0060 DDD Segment DDD name M
1 0070 EEE Segment EEE name
C 9 0080 FFF Segment FFF name
C 9 0090 GGG Segment GGG name
C 1 ------- 0100 ---------- Segment group
2 ------------------ C 9 ------- 1 0110
HHH Segment HHH name M 1
0120 ---------- Segment group 3
------------------ C 9 ------ 0130 III
Segment III name M 1 0140 JJJ
Segment JJJ name C 9
0150 ---------- Segment group 4
------------------ C 9 ----- 0160 KKK
Segment KKK name M 1 0170 LLL
Segment LLL name C 9 ----- . . .nnnn Uxx
Message trailer M 1 DEPENDENCY NOTES 1.
D3(0050, 0100) One or more -----------------------
--------------------------------------------------
----
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An example for information storage from Japan
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Impacts expected by theory 1

• Reduction of transaction cost by
• Person to machine and machine to machine
  transactions
• Wider and faster availability of information
• Use of new instruments e.g. auctions, demand
  aggregation
• Collaboration effects by
• Co-operative stock- and logistics management
  reduction of Forrester effects
• Reduction of throughput time
• Knowledge management
• Dis-intermediation and Re-intermediation due to
• new compromises between richness and reach of
  information (e.g. elimination
• of old intermediaries and the creation of new
  intermediaries)
• Employment effects by
• e.g. elimination of administrative functions,
  changed knowledge demand
• Self organisation of co-operative networks
  because of
• Shift of the horizontal and vertical
  limits of enterprises

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Impacts expected by theory 2

• Typical diffusion phases
• (Strassman, Skinner, Millard...)
• characterised by
• Implementation of new technology
• Internal diffusion of applications
• Definition of standards interfaces
• New process organisation
• Organisational adaptation

• Diffusion of General Purpose Technologies
• (Helpman/ Trajtenberg)
• characterised by
• Pervasiveness
• continuous technol. advances
• Necessity of complementary innovation
• Impacts dependent on completion of complementary
  innovation
• downstream productivity gains

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Our approach 1
Aims
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Our approach 2
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Our approach 3
Tier N Suppliers
Business Customers
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Results 1
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Ergebnisse der Diffusion 1a
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Ergebnisse der Diffusion 2
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Ergebnisse der Diffusion 3
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Ergebnisse der Diffusion 4
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Ergebnisse der Diffusion 5
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Ergebnisse der Diffusion 6
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Ergebnisse der Diffusion 7
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Ergebnisse der Diffusion 8
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Nutzung neuer Techniken 1
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Nutzung neuer Techniken 2
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Nutzung neuer Techniken 3
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Wirkungen 1
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Wirkungen 2
Impacts
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Wirkungen 3
32
Wirkungen 4
Zum Vergleich Handelskooperationen 34
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Wirkungen 5
Automobilindustrie 65 Zum Vergleich
Handelskooperationen 25
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How to modify the initial model?
Important, not included framework conditions
Existence of enterprises with formative power
Fragmentation of the value chain
Concentration of management, product- and process
knowledge
Possibility to standardise processes
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Our modified approach
Aims
Complementary information exchange