Overview Ch. 4  Describe the factors that influence consumer behaviour online  Describe how companies are building one-to- one relationship with customers.

Slides:



Advertisements
Similar presentations
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Advertisements

Chapter 5 B2B E-Commerce.
Business-to-Business E-Commerce
E-Marketplaces: Structures and Mechanisms
1 Pertemuan 9 Understanding Public B2B Exchanges and Portals Matakuliah: J0324/Sistem e-Bisnis Tahun: 2005 Versi: 02/02.
1 Pertemuan 7 Understanding B2B (Business to Business) Matakuliah: J0324/Sistem e-Bisnis Tahun: 2005 Versi: 02/02.
1 Pertemuan 8 Understanding B2B (Business to Business) Matakuliah: J0324/Sistem e-Bisnis Tahun: 2005 Versi: 02/02.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Company-Centric B2B.
1 Chapter 9 Electronic Commerce and Electronic Business.
Electronic Commerce Systems
Pertemuan 14 Materi : Buku Wajib & Sumber Materi :
Company-Centric B2B and E-Procurement
BUSINESS TO BUSINESS.
1 Senn, Information Technology, 3 rd Edition © 2004 Pearson Prentice Hall James A. Senn’s Information Technology, 3 rd Edition Chapter 9 Electronic Commerce.
B2B E-Commerce: Selling and Buying in Private E-Markets
Key questions answered in this chapter:  What are the four stages to the evolution of B2B capabilities?  What are the three categories of B2B?  Describe.
Chapter 2 E-Marketplaces: Structures, Mechanisms, Economics, and Impacts.
Electronic Commerce and Electronic Business Lecture – 12
Chapter 6 B2B E-Commerce.
Chapter 2 E-Marketplaces: Structures, Mechanisms, Economics, and Impacts.
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
B2B E-Commerce. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1.Describe the B2B field. 2.Describe the major types of B2B models.
Learning Objectives Describe the major types of B2B models.
Dr. S. Loizidou - ACSC3451 THE DIGITAL FIRM: ELECTRONIC COMMERCE & ELECTRONIC COMMERCE & ELECTRONIC BUSINESS Dr. Stephania Loizidou Himona ACSC 345.
Introduction THE DIGITAL FIRM: ELECTRONIC COMMERCE &ELECTRONIC BUSINESS ELECTRONIC COMMERCE &ELECTRONIC BUSINESS By : Eyad Almassri.
Learning Objectives Describe the major types of B2B models.
Learning Objectives Describe the B2B field.
Company-Centric B2B and E-Procurement.  Basic B2B concepts Business-to-business e-commerce (B2B EC): Transactions between businesses conducted electronically.
B2B E-Commerce Characteristics
Learning Objectives Describe the B2B field.
Chapter 5 B2B E-Commerce: Selling and Buying in Private E-Markets.
B2B E-Commerce. Learning Objectives 1. Describe the B2B field. 2. Describe the major types of B2B models. 3. Discuss the models and characteristics of.
Learning Objectives Describe the B2B field.
E-Marketplaces: Mechanisms, Tools, and Impacts of E-commerce.
Chapter 5 B2B E-Commerce. 1.Describe the B2B field. 2.Describe the major types of B2B models. 3.Discuss the characteristics and models of the sell-side.
1.Describe the B2B field. 2.Describe the major types of B2B models. 3.Discuss the characteristics and models of the sell- side marketplace, including auctions.
© 2008 Pearson Prentice Hall, Electronic Commerce 2008, Efraim Turban, et al. Chapter 5 B2B E-Commerce: Selling and Buying in Private E- Markets.
Chapter 5 B2B E-Commerce. Chapter 5 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall1 Learning Objectives 1.Describe the B2B field.
E-Marketplaces: Mechanisms, Tools, and Impacts of E-commerce.
Chapter 2 E-Marketplaces: Structures, Mechanisms, Economics, and Impacts.
Lesson 04 Business-to-Business E-Commerce ISM 41113, Electronic Commerce By: M. Fathima Rashida Lecturer in MIT Department of MIT Faculty of Management.
B2B ECOMMERCE.
© 2008 Pearson Prentice Hall, Electronic Commerce 2008, Efraim Turban, et al. Chapter 5 B2B E-Commerce: Selling and Buying in Private E- Markets.
B2B E-Commerce: Selling and Buying in Private E-Markets
B2B E-Commerce. Learning Objectives 1. Describe the B2B field. 2. Describe the major types of B2B models. 3. Discuss the models and characteristics of.
INFRASTRUCTURE E-BUSINESS COLLABORATION COMMERCE JOKO DEWANTO.
© 2008 Pearson Prentice Hall, Electronic Commerce 2008, Efraim Turban, et al. Chapter 5 B2B E-Commerce: Selling and Buying in Private E- Markets.
Chapter 5 B2B E-Commerce: Selling and Buying in Private E- Markets.
Chapter 2 E-Marketplaces: Structures and Mechanisms.
Chapter 5 B2B E-Commerce: Selling and Buying in Private E-Markets.
Chapter 5 B2B E-Commerce. 5-2 Learning Objectives 1.Describe the B2B field. 2.Describe the major types of B2B models. 3.Discuss the characteristics of.
4 THE DIGITAL FIRM: ELECTRONIC COMMERCE & ELECTRONIC BUSINESS.
B2B E-Commerce: Selling and Buying in Private E-Markets
B2B E-COMMERCE Concepts, characteristics, and models of B2B e-commerce
B2B E-Commerce CIS 579 – Technology of E-Business
B2B E-Commerce Chapter 2.
Instructor: Safaa S.Y. Dalloul
Overview Ch. 4 Describe the factors that influence consumer behaviour online Describe how companies are building one-to-one relationship with customers.
Chapter 5 B2B E-Commerce.
B2B E-Commerce: Selling and Buying in Private E-Markets
Business-to-Business E-Commerce
B2B E-Commerce: Selling and Buying in Private E-Markets
Chapter 4 B2B E-Commerce.
B2B E-Commerce: Selling and Buying in Private E-Markets
B2B E-Commerce: Selling and Buying in Private E-Markets
B2B E-Commerce: Selling and Buying in Private E-Markets
Chapter 4 B2B E-Commerce.
Presentation transcript:

Overview Ch. 4  Describe the factors that influence consumer behaviour online  Describe how companies are building one-to- one relationship with customers  Discuss the issues of e-loyalty and e-trust in EC  Describe consumer market research in EC  Describe the objectives of web advertising on the web  Describe various online promotions

Company-Centric B2B and Collaborative Commerce

Learning Objectives  Describe the major types of B2B models  Describe the characteristics of the sell-side marketplace  Describe the sell-side intermediaries models  Describe the characteristics of the buy-side marketplace and e-procurement  Explain how forward and backward auctions work in B2B  Describe B2B aggregation and group purchasing models  Describe collaborative e-commerce  Describe infrastructure for B2B

Concepts, Characteristics and Models of B2B EC  B2B EC or eB2B (electronic B2B) defined  Transaction conducted electronically between business over the networks Internet Extranets Intranets Private networks (e.g., EDI)  Automated trading improves the process  Market size and content  Expected to grow from $1.1 trillion in 2003 to $10 trillion by 2005  Percentage of Internet-based B2B from 2.1% in 2000 to 10% in 2005

Concepts, Characteristics and Models of B2B EC [2]  How is B2B conducted?  Directly between buyer and seller  Via an online intermediary: an online third-party that brokers a transaction between a buyer and a seller; can be virtual or click-and-mortar  With or without intermediaries  Types of transactions  Spot buying Purchasing of goods and services as they are needed, usually at prevailing market prices, which are determined dynamically by supply and demand  Strategic sourcing Purchases made in long term contracts that are usually based on private negotiation between sellers and buyers

Concepts, Characteristics and Models of B2B EC [3]  Types of Materials  Direct materials materials used in the production of a product (e.g., steel in a car or paper in a book)  Indirect materials materials used to support production (e.g., office supplies or light bulbs)  MROs (Maintenance, Repairs, and Operations) indirect materials used in activities that support production

Concepts, Characteristics and Models of B2B EC [4]  Direction of Trade  Vertical marketplaces Markets that deal with one industry or industry section Examples: electronics, cars, steel or chemicals  Horizontal Markets that concentrate on a service or a product used in all types of industries Examples: office supplies, PCs or travel services

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

One-to-Many and Many-to-One: Company Centric Transactions  Company-centric EC  e-commerce that focuses on a single company’s buying needs (many-to-one, or buy-side) or selling needs (one-to-many, or sell-side)  Private e-marketplaces  markets in which the individual sell-side or buy-side company has complete control over participation in the selling or buying transaction

Many-to-Many: Exchanges  Exchanges  many-to-many e-marketplaces, usually owned and run by a third party or a consortium, in which many buyers and many sellers meet electronically to trade with each other  also called trading communities or trading exchanges  Public e-marketplaces  third-party markets that are open to all interested parties (sellers and buyers)

Virtual service industries in B2B  Travel and tourism services  Real estate  Electronic payments  Online stock trading  Online financing  Other online services

Benefits of B2B  Eliminate paper-based systems and reduces administrative costs  Expedite cycle time  Lower search costs and time for buyers  Increase employee productivity dealing with buying and/or selling  Reduce errors and/or improve quality of services  Reduce inventory levels and costs  Increase production flexibility, permitting just-in-time delivery  Facilitate mass customization  Increase opportunities for collaboration

Sell-Side B2B Marketplace Architecture

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

Direct 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 Sales from Catalogs [2]  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  Limitations  Channel conflicts with distribution systems  High cost when traditional EDI used  Large number of business partners is needed to justify system

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

Buy Side Marketplaces: One-from-Many  Procurement methods  Buy from manufacturers, wholesalers, or retailers at their storefronts, from catalogs,and by negotiation  Buy from the catalog of an intermediary  Buy from an internal-buyer’s catalog  Conduct a bidding or tendering system  Buy at private or public auction sites  Join a group-purchasing system

Buy Side Marketplaces: One-from-Many [2]  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  Potential inefficiencies:  Delays or Paying too much for rush orders  Maverick buying—unplanned purchases of items needed quickly, often from non-approved vendors or at higher prices

Buy Side Marketplaces: One-from-Many [3]  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

Buy Side Marketplaces: One-from-Many [4]  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

Buy Side E-Marketplaces: Reverse Auctions  Buy-side e-marketplace  Web-based marketplace in which a buyer opens an electronic market on its own server and invites potential suppliers to bid on the items the buyer needs; also called the reverse auction, tendering, or bidding model  Request for quote (RFQ)  The “invitation” to a buy-side marketplace (reverse auction)

Conducting Reverse Auctions  Reverse auctions administered from a company’s Web site  Bidding process lasts a day or more  Bidders may bid only once or view the lowest bid and rebid several times  Increasing number of reverse auction sites makes it impossible for suppliers to monitor all of them  Online directories list open RFQs  Use software search-and-match agents to reduce the human burden in the bidding process

Conducting Reverse Auctions [2]  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

Benefits Reverse Auctions  Electronic process is faster  Administratively much less expensive  Enables location of cheapest possible products

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

Group Purchasing  Group purchasing—orders from several buyers are aggregated  Economy of scale  Reduced transaction processing cost  Putting together orders from multiple buyers to make large volumes/lower costs

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

Collaborative Commerce (C-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 (C-commerce) [2]  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

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)  Software for CRM  Security hardware and software  Software for building a storefront  Software for building exchanges  Telecommunications networks and protocols

Integration  Integration with existing information systems issues  Intranet-based work flow  Database management systems (DMBS)  Application packages  ERP  Integration with business partners  Easy integration with one company-centric side  Not easy to integrate for many buyers or sellers

The Role of XML in B2B Integration  Companies interact easily and effectively by connecting to their servers, applications, databases  Standard protocols and data- representation schemes are needed  Web is based on the standard communication protocols useful only for displaying static visual Web pages:  TCP/IP  HTTP  HTML

The Role of XML in B2B Integration [2]  XML (eXtensible Markup Language)  Standard (and its variants) used to improve compatibility between the disparate systems of business partners by defining the meaning of data in business documents  Used to increase: Interactivity Accessibility

Summary  The B2B is very diversified and it can be divided into the following segments:  sell-side marketplaces  buy-side marketplaces  trading exchanges  c-commerce  Auctions play a major role in B2B  Increasing the exposure and/or the bargaining power of companies can be done by aggregating either the sellers or the buyers

Exercise  Why would a company want to decrease maverick purchases?  A firm wants to barter excess goods online for banner ads, but they cannot find a party willing to trade. What other options do they have?