INFRASTRUCTURE E-BUSINESS COLLABORATION COMMERCE JOKO DEWANTO

COLLABORATIVE COMMERCE Definition Collaborative Commerce Processes, technologies and the supporting standards that allow continuous and automated exchange of information between trading partners Collaborative Commerce menurut Turban : The use of digital technologies that enable companies to collaboratively plan, design, develop, manage, and research products, services, and innovative EC applications.

Model-Model Collaborative Commerce Dikembangkan oleh – A. T. Kearney and Kurt Salmon Associates for the Grocery Manufacturer’s Association and the Food Marketing Institute. A. T. KearneyKurt Salmon Associates – Consists of two major sections. Two technologies and standards embody the first 3 steps – Electronic Product Code (EPC) Electronic Product Code – Global Data Synchronization (GDS). Global Data Synchronization Steps 4 through 7 correspond to the collaboration activities in CPFR ®. CPFR ®

TEKNOLOGI COLLABORATIVE COMMERCE

Collaborative Commerce (Linear)

Collaborative Commerce (collaborative network) (Inter-networked)

Concepts, Characteristics, and Models of B2 EC Basic B2B Concepts – Business-to-business e-commerce (B2B EC)— transactions between businesses conducted electronically over the Internet, extranets, intranets, or private networks; also known as eB2B (electronic B2B) or just B2B Market Size and Content – Expected to grow from $1.1 trillion in 2003 to $10 trillion by 2005, the percentage of Internet-based B2B from 2.1% in 2000 to 10% in 2005

Concepts, Characteristics, and Models of B2 EC (cont.) The Basic B2B Transaction Types – Sell side—one seller to many buyers – Buy side—one buyer from many sellers – Exchanges—many sellers to many buyers – Collaborative commerce—communication and sharing of information, design, and planning among business partners

Exhibit 5.1 Types of B2B E-Commerce

Concepts, Characteristics, and Models of B2 EC (cont.) Benefits of B2B – Eliminates paper and reduces administrative costs – Expedites cycle time – Lowers search costs and time for buyers – Increases productivity of employees dealing with buying and/or selling – Reduces errors and/or improves quality of services – Reduces inventory levels and costs – Increases production flexibility, permitting just-in-time delivery – Facilitates mass customization – Increases opportunities for collaboration

Sell-Side Marketplaces: One-to- Many Sell-side e-marketplace—a Web-based marketplace in which one company sells to many business buyers, frequently over an extranet 3 major methods for direct sale in the one-to- many model: – Selling from electronic catalogs – Selling via forward auctions – One-to-one selling under a negotiated, long-term contract

Sell-Side B2B Marketplace Architecture

Direct B2B Sales from Catalogs Companies may: – Offer one catalog for all customers – Customized catalog for each customer – Facilitate the B2B direct sale by providing the buyer with a buyer customized shopping cart Configuration and customization – Efficient customization for direct sales – Business customers customize products, receive price quote, submit order

Direct B2B Sales from Catalogs Benefits – Lower order-processing costs – Faster ordering cycle – Fewer errors in ordering and product configuration – Lower search costs for buyers – Lower search costs for sellers – Lower logistics costs

Selling Via Auctions Using auctions on the sell-side – Revenue generation – Increased page views Stickiness—characteristic of customer loyalty to a Web site, demonstrated by the number and length of visits to a site – Member acquisition and retention — bidding transactions result in additional registered members

Selling Via Auctions (cont.) Selling from own site when: – Large companies that conduct auctions frequently don’t benefit from using intermediaries – E-marketplace already in use, cost of adding auction not too high Intermediary-oriented e-marketplace—an e-marketplace in which third parties operate

Selling Via Auctions (cont.) Use intermediaries because: – 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

Selling Via Auctions (cont.) Billing and collection – Automatic calculation of shipping weights and charges – Payment— encrypted credit card data – Billing information— easily downloaded into existing systems – Successful if: Sufficient number of loyal customers Products well known Price not major purchasing criteria

Buy Side Marketplaces: One-from-Many Procurement management—the coordination of all the activities relating to purchasing goods and services needed to accomplish the mission of an organization Inefficiencies in procurement management – Purchasing personnel spend time and effort on procurement activities – Qualifying suppliers – Negotiating prices and terms – Building rapport with strategic suppliers – Carrying out supplier evaluation and certification

Buy Side Marketplaces: One-from-Many (cont.) Goals of e-procurement – 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 and fast –

Collaborative Commerce (C- Commerce) Collaborative commerce (c-commerce)— commerce consisting of activities between business partners in jointly planning, designing, developing, managing,and researching products and services Web-based systems used between and among suppliers for: – Communication Design – Planning Information sharing – Information discovery

Collaborative Commerce (cont.) Varieties of c-commerce: – Joint design efforts – Forecasting – Between and within organizations Aids communication and collaboration between headquarters and subsidiaries, franchisers and franchisees C-commerce platform provides , message boards, chat rooms, online corporate data access around the globe, no matter what the time zone

Barriers to C-Commerce C-commerce is moving ahead fairly slowly because: – Technical reasons involving integration, standards, and networks – Security and privacy concerns over who has access control of information stored in a partner’s database – Internal resistance to new models and approaches – Lack of internal skills to conduct c-commerce

Infrastructure for B2B Telecommunications networks and protocols Security hardware and software Servers to host database and applications Software for building a storefronts Software for building exchanges Software for executing sell-side (catalogs) Software for conducting auctions and reverse auctions Software to support e-procurement (buy-side) Software for CRM