1. 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 the four major steps of the B2B sell-side evolution.  Describe the major challenges to implementing systems for indirect e-procurement.  Describe the major challenges to implementing systems for Net marketplaces or Net exchanges. September 2001Chapter 10: B2B Grows Up

2.  Lower administrative costs  Lower search costs for buyers  Reduce inventory costs by increasing competition among suppliers  Lower transaction costs by eliminating paperwork and automating parts of the procurement process  Increased production flexibility by ensuring delivery of parts “just in time”  Improve quality of products by increasing cooperation among buyers and sellers and reducing quality issues  Decrease product cycle time by sharing designs and production schedules with suppliers  Increase opportunities for collaborating with suppliers and distributors.  Create greater price transparency – the ability to see the actual buy and sell prices in a market September 2001Chapter 10: B2B Grows Up

3. 1. Broadcast - A business creates a Web page to provide fundamental information to the customer (how to contact the company, company financial information, and product and services offered by the company) 2. Interact - The company enables information to flow in both directions (from the organization to the customer and back), Examples: Having the technology to allow a customer to email the company, establishing a web- based customer service system September 2001Chapter 10: B2B Grows Up

4. 3. Transact - Take, manage, and support commerce transactions with customers using the Internet 4. Collaborate - The Web-based gathering of information to generate forecasts to be utilized by the company and its trading partners September 2001Chapter 10: B2B Grows Up

5. 1. B2B Sell-side Solution - Selling products to other businesses via the Internet 2. Indirect E-Procurement - The Web-based purchase of non-strategic products and services 3. Net Marketplaces and Net Exchanges - Created to provide Web-based capabilities that facilitate the interaction and exchange of commerce transactions between buyers, sellers, and other trading partners September 2001Chapter 10: B2B Grows Up

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9.  Content Management - Allows the organization to create, aggregate, store, maintain, and present the content contained and presented on its website (text, pictures, graphics, and sound)  Catalog Management - Enables an organization to load and manage a Web-based catalog  Order Processing and Fulfillment - Allows users to place online orders and the capability for the company to accurately provide the product/service  Customer Relationship Management - Support online customers September 2001Chapter 10: B2B Grows Up

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11.  Content Ownership - Identifying the source of different content and creating a single point of contact and responsibility for the site content  Customer Data Access and Visibility - Utilizing internal applications to present accurate information to support the Web-based interface  Channel Integration - Organizations must integrate the sales channel with other channels in order to provide adequate customer service  Systems Integration - Integrate the Web-based system with the back-office systems in real time September 2001Chapter 10: B2B Grows Up

12.  Requisitioning - Allows a buyer to create a purchase request for products/services  Control and Approval - After the purchase, the system allows the organization to define and configure spending limits for individual buyers or companies and approve purchases based on those pre-determined monetary parameters  Transaction Processing - Creates purchase orders to be sent to the suppliers September 2001Chapter 10: B2B Grows Up

13.  Receiving and Exception Processing - Allows the buying organization to record receipt of goods/services  Financial and Payment Processing- Applications that facilitate the payment process, allow the buyer to purchase merchandise using a credit card or corporate purchasing card September 2001Chapter 10: B2B Grows Up

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15.  Strategic Sourcing - Determining where e- procurement is most needed within an organization, in order to maximize the initial benefits of the implementation (prioritize)  Adoption and Compliance - Ensuring that purchasing agents and employees are utilizing the new technology  Catalog Content Management - The process of making sure that the catalog is properly maintained in a timely manner September 2001Chapter 10: B2B Grows Up

16.  Supplier Integration - The buying organization and supplier must determine the business process for business document exchange (purchase orders, advanced shipping notices, and invoices)  Back-Office Integration - The E-procurement system needs to integrate with purchasing, inventory and warehousing, invoicing, and the planning requirements departments September 2001Chapter 10: B2B Grows Up

17.  Organizations realized point-to-point interaction with trading partners was not cost effective in all relationships, such as non-strategic partnering  E-procurement vendors created an online marketplace where existing buyers and suppliers could exchange catalog information and transact commerce without the time, effort, and money required in point-to-point interaction  Net marketplaces and Net exchanges enabled a many- to-many (buyers-to-suppliers) model September 2001Chapter 10: B2B Grows Up

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19. 1. Commerce Capabilities - Provide the ability for products and services to be purchased and sold in the Net marketplace Catalog Management - Allows the operator to define, populate, and maintain a marketplace catalog with all the products and services available Price Discovery - Determine the buying or selling price of a product/service. There are two categories ofprice discovery: September 2001Chapter 10: B2B Grows Up

20.  Fixed: Allows the supplier to assign a set price for a particular item  Dynamic: The buyer and supplier negotiate a price where a fixed price may not exist, Examples: negotiated exchanges, auction/reverse auction, bid/ask exchange 2. Content Management Capabilities - The storage, management, and presentation of non-catalog content for users of the Net marketplace  Types of content include: documents, text, pictures, sound, and video September 2001Chapter 10: B2B Grows Up

21. 3. Community Capabilities - Provides discussion forums, online chat, and instant messaging, which can be utilized to enhance customer support and/or to develop third-party services for various critical processes, such as converting currency transactions in real time September 2001Chapter 10: B2B Grows Up

22.  Catalog Content Management - Acquiring and maintaining all aspects of catalog content  Internationalization - The capability for a user to facilitate commerce across geographical boundaries from anywhere in the world  Business Model - Develop a business model that provides enough value to the trading partners to justify the effort and costs associated with participation  Adoption and Liquidity - Attracting and retaining buyers and sellers September 2001Chapter 10: B2B Grows Up