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© 1999 webMethods, Inc. All rights reserved. Page 1 Market Opportunity Source: Forrester Research Business-to-business e- commerce will grow three times faster than business-to-consumer e- commerce. Internet-based business- to-business e-commerce is a $43 billion industry, expected to expand to $1.3 trillion by 2003--12 times that of the business-to-consumer market B2B Market in $Billions
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© 1999 webMethods, Inc. All rights reserved. Page 2 The Problem To remain competitive, companies must: Reduce cycle times Eliminate supply-chain inefficiencies Reduce time to market Improve customer acquisition, retention, satisfaction Traditional methods not well-suited Not real time Inflexible Costly and timely to maintain and implement
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© 1999 webMethods, Inc. All rights reserved. Page 3 The Evolution of B2B E-Commerce B2B Integration is emerging as a cost effective way for companies to automate supply chain management, procurement, logistics and sell- side/buy-side e-commerce B2B Marketplaces are evolving as a way to connect buyers and suppliers through centralized portals Business community integration offers a way to connect customers, suppliers and marketplaces into extended trading communities It will become progressively harder for firms that cannot or do not want to trade online to survive --The Economist magazine, 6/26/99
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© 1999 webMethods, Inc. All rights reserved. Page 4 Benefits of Business Community Integration Decreased inventory Reduced cycle time Improved customer satisfaction and support Lower administrative, inventory, logistics and other costs Improved manufacturer/distributor coordination. More efficient use of working capital Improved inventory management and order management Better outsourcing coordination Tighter links with logistics providers Better delivery of information required for planning and forecasting
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© 1999 webMethods, Inc. All rights reserved. Page 5 Applications of Business Community Integration Business Portals--partner integration Vendor Managed Inventory (VMI) Logistics Outsourcing/sub-contracting Collaborative planning and forecasting Inventory visibility & order management Automated procurement Work In Progress (WIP) status Advanced business models such as direct ship, merge in transit, assemble to order
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© 1999 webMethods, Inc. All rights reserved. Page 6 What is XML? XML is a subset of SGML (Standard Generalized Markup Language). Unlike HTML, not just for presentation First defined as a Web document format Now used to transfer information between application systems
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© 1999 webMethods, Inc. All rights reserved. Page 7 HTML Example Unlike HTML, which uses Markup Language to describe the structure of a document and implies layout, XML markup describes a document's content. Consider the following product description in HTML: Printer KomputerSource's Wizbang 3000 dot matrix printer Features: 40 pages per minute 60 dpi printing $200.00 10 lbs.
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© 1999 webMethods, Inc. All rights reserved. Page 8 XML Example The same product description in XML might look like this: KomputerSource Printer dot matrix Wizbang3000 40 60 200 110 10
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© 1999 webMethods, Inc. All rights reserved. Page 9 XML: Foundation for e-commerce Power and ubiquity of the Web with system-to- system capabilities Being adopted very quickly Trading partners define XML vocabularies (DTDs) to meet needs; standards already emerging Flexible, Easy to understand, deploy and customize Foundation for e-commerce and integration over the Web
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© 1999 webMethods, Inc. All rights reserved. Page 10 XML Purchase Order Example Mary Dridi webMethods, Inc.... WM-001-5995 1 Left-handed Wrench $14.99
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