1. Chapter 7 Business-to-Business E-Commerce

2. Copyright © 2003, Addison-Wesley B2B E-Commerce Inter-corporate communication Exchange business information between trading partners Supply chain focus Improve efficiency of transactions Between different business entities

3. Copyright © 2003, Addison-Wesley Figure 7.1 The supply chain. A simplified model

4. Copyright © 2003, Addison-Wesley Figure 7.2 A real-world supply chain is very complex.

5. Copyright © 2003, Addison-Wesley Visualizing the Supply Chain A river analogy Source – raw materials Upstream Flow direction – downstream Tributaries – suppliers Destination – customers Downstream Series of linked processes Value chain – within organization Supply chain – links value chains

6. Copyright © 2003, Addison-Wesley Figure 7.3 This chapter discusses B2B e- commerce. Evolutionary Sustainable Most successful form of e-commerce Becoming the way business does business

7. Copyright © 2003, Addison-Wesley Interorganizational Systems (IOS) Information system shared by two or more enterprises Requires Compatible information technology Compatible infrastructures Difficult to achieve Initially limited to large firms

8. Copyright © 2003, Addison-Wesley Figure 7.4 Early IOSs required custom software. Custom software is very expensive

9. Copyright © 2003, Addison-Wesley Figure 7.5 Some potential benefits of an inter-organizational system. Faster transactions Lower cost transactions Fewer transaction errors Reduced cycle time Reduced inventory Increased information flow Increased customer satisfaction Improved cash flows Early examples EFT EDI Still, limited to large organizations

10. Copyright © 2003, Addison-Wesley Interconnectivity Private leased network Expensive Not easily scalable Highly secure and reliable Value-added network (VAN) Semiprivate intermediary service Less expensive but still costly Scalable Less secure and less reliable

11. Copyright © 2003, Addison-Wesley Figure 7.6 A value added network (VAN).

12. Copyright © 2003, Addison-Wesley Figure 7.7 Connecting through the Internet. Public bandwidth Advantages Inexpensive Highly scalable Drawbacks Inconsistent Weak security

13. Copyright © 2003, Addison-Wesley Figure 7.8 A VPN utilizes a secure tunnel to cross the Internet. VPN Public network Tunneling Encryption Advantages Low cost Good security Scalable

14. Copyright © 2003, Addison-Wesley Figure 7.9 On a VPN, each packet is encapsulated to form a new packet.

15. Copyright © 2003, Addison-Wesley Figure 7.10 Selecting a connectivity option.

16. Copyright © 2003, Addison-Wesley Early Supply Chain Integration American Airlines Sabre Online, real-time reservation services Ticket agents Travel agents Still in use Baxter Healthcare Direct ordering of hospital supplies Wal-Mart inventory management Driven by point-of-sale data collection

17. Copyright © 2003, Addison-Wesley Figure 7.11 EDI Standard syntax ANSI X.12 EDIFACT Two conversions Internal  EDI EDI  internal Highly scalable Templates Web-based EDI still in use

18. Copyright © 2003, Addison-Wesley Figure 7.12 An extranet. WAN Links intranets Standards Client/server TCP/IP Web server Browser Security issues Extranet

19. Copyright © 2003, Addison-Wesley Figure 7.13 Some extensions to HTML. AcronymNameFunction CSSCascading style sheetsAn HTML specification for attaching style sheets that define page layout details. DHTMLDynamic HTMLA set of HTML extensions that allow a web page to respond to user input without involving the server. VRMLVirtual Reality Modeling Language A language for creating three dimensional, interactive graphical images. XMLExtensible Markup Language A proposed replacement for HTML that supports customized tags. XHTMLExtensible Hypertext Markup Language A cross between HTML and XML. An XHTML page can be readily displayed on such web access devices as handheld computers and digital phones. XSLExtensible Stylesheet Language A language for creating style sheets. A style sheet is a template for laying out a page.

20. Copyright © 2003, Addison-Wesley XML Extension to HTML Special tags to mark data fields Data structure, syntax, data type XML-enabled middleware can Extract data values from document Create dynamic Web pages XML is extensible Add and register new XML schema

21. Copyright © 2003, Addison-Wesley Figure 7.14 The XML code for a set of customer order data.

22. Copyright © 2003, Addison-Wesley Figure 7.15 Another XML example.

23. Copyright © 2003, Addison-Wesley B2B Software and Services E-procurement Buy-side Sell-side Electronic invoice presentment and payment (EIPP) Exchange of invoices and payments EFT Resembles IBPP Significant cost reduction potential

24. Copyright © 2003, Addison-Wesley More Software and Services Logistics integrators Right stuff, right place, right time Customer relationship management (CRM) Data on customer interactions Data warehouse Data mining

25. Copyright © 2003, Addison-Wesley Figure 7.16 Supply chain management intermediaries. CategorySupplierProduct Planning and ForecastingI2 Technologies Manugistics SAP TradeMatrix NetWorks APO PurchasingAriba Commerce One Oracle RightWorks Ariba Sourcing MarketSet Supply Chain Exchange eProcurement Factory schedulingBaan Oracle QAD SAP Baan SCS Discrete Manufacturing Supply Chain Optimizer APO Order trackingEXE Technologies Manhattan Associates Optum eFulfillment MA Fulfill TradeStream Market research and Product design Agile Software MatrixOne PTC SAP Agile Anywhere eMatrix Windchill MySAP PLM Source: Thompson Financial and E-Business 2.0, May 2001, page 85.

26. Copyright © 2003, Addison-Wesley B2B E-Marketplaces Similar to enterprise portal Categories Commodity e-marketplace Business services e-marketplace Financial services and process support Integration services e-marketplace Facilitates process-to-process integration Vertical and horizontal e-marketplaces

27. Copyright © 2003, Addison-Wesley Figure 7.17 The Open Directory Project. Objective Catalog of the Web dmoz.org