1. _______________________________________________________________________________________________________________ E-Commerce: Fundamentals and Applications1  Wiley and the book authors, 2001 E-Commerce: Fundamentals and Applications Chapter 12 : Business-Oriented E-Commerce

2. _______________________________________________________________________________________________________________ E-Commerce: Fundamentals and Applications2  Wiley and the book authors, 2001  Features of B2B E-commerce  Business Models  Integration Outline

3. _______________________________________________________________________________________________________________ E-Commerce: Fundamentals and Applications3  Wiley and the book authors, 2001 Billons of dollars 199920012002200320042000 1998 45 145 403 953 2188 3949 7297 Projection Growth of B2B E-Commerce

4. _______________________________________________________________________________________________________________ E-Commerce: Fundamentals and Applications4  Wiley and the book authors, 2001  high volumes of goods traded  high net value of goods traded  multiple forms of electronic payment  other payment methods permitted  prior agreements or contracts between the partners  higher level of information exchange between the different trading partners Main features of B2B EC

5. _______________________________________________________________________________________________________________ E-Commerce: Fundamentals and Applications5  Wiley and the book authors, 2001 Three basic types of models: 1.A buyer-oriented e-commerce system; 2.A seller-oriented e-commerce system; 3.A virtual market place (VMP) with multiple buyers and multiple sellers. B2B Business Models

6. _______________________________________________________________________________________________________________ E-Commerce: Fundamentals and Applications6  Wiley and the book authors, 2001  Buyer-oriented e-commerce business models:  suitable for large corporations  they include:  Intra-company activities  Inter-company activities  Next slide shows the schematic diagram of a Buy-side EC system E-Procurement and Buy side EC Systems

7. _______________________________________________________________________________________________________________ E-Commerce: Fundamentals and Applications7  Wiley and the book authors, 2001 Schematic of Buy Side E-Commerce System Catalog of Bid Information Catalog of RFPs and RFQs Goods receiving, electronic payment Purchase order generation approval workflow & submission Browsing & selection facility Buyer Buyer’s firewall Supplier n Supplier 2 Supplier 1 …. Legend: RFPs : Requests for proposals RFQs: Requests for quotations

8. _______________________________________________________________________________________________________________ E-Commerce: Fundamentals and Applications8  Wiley and the book authors, 2001 Purchasing Using a Buy Side E-Commerce System No Purchase requisition Ascertain if acceptable Submit purchase order Process order Submit for approval Ship & Invoice Receive order Payment Yes Corporation Supplier Approved

9. _______________________________________________________________________________________________________________ E-Commerce: Fundamentals and Applications9  Wiley and the book authors, 2001  Buy Side E-commerce system:  corporation does not have to physically go out there searching for suppliers  they come to the corporation once it has signaled its potential needs.  all transactions are electronically handled. E-Procurement and Buy side EC Systems

10. _______________________________________________________________________________________________________________ E-Commerce: Fundamentals and Applications10  Wiley and the book authors, 2001  Sell Side E-commerce systems:  producing or marketing products to a large number of small and large corporations.  one (supplier) to many (buyers) system.  example: Dell and Cisco -- permit customization by the configuration which the buyer wishes to purchase. Sell side EC Systems

11. _______________________________________________________________________________________________________________ E-Commerce: Fundamentals and Applications11  Wiley and the book authors, 2001  The Sell Side E-commerce system should provide:  product catalog  product configuration (if applicable)  business roles to allow automation of approval and ordering  customer service  fulfillment and shipping  accounts receivable/invoicing and electronic payment  monitoring of order status and account history Sell side EC Systems

12. _______________________________________________________________________________________________________________ E-Commerce: Fundamentals and Applications12  Wiley and the book authors, 2001 Sell-Side E-commerce System Seller’s firewall Browsing, Selection & Configuration Order Requisition & Submission Electronic payment Fulfillment, Shipping & Invoicing Order Status & Account listing monitoring E-commerce Application Supplier Catalog Buyer 1 Buyer 2 Buyer 3 Internet XML Buyer’s firewall

13. _______________________________________________________________________________________________________________ E-Commerce: Fundamentals and Applications13  Wiley and the book authors, 2001 Connections in Sell-Side E-Commerce Systems Business Connector Internet Catalog DB E-commerce Application Server Web Server Customer portal Customer Information System Web Server

14. _______________________________________________________________________________________________________________ E-Commerce: Fundamentals and Applications14  Wiley and the book authors, 2001  Provides a meeting place for many vendors and many buyers  Digital Marketplaces, Infomediaries, Vertical Portals, Intermediary Oriented Marketplaces and Digital Exchanges  The most successful virtual markets are highly focused and address a specific sector of industry.  Examples of these include:  Boeing’s PART System  Chemdex.com (gone)  IPowerB2B.com (made-in-china.com)  Enron (gone) Virtual Markets

15. _______________________________________________________________________________________________________________ E-Commerce: Fundamentals and Applications15  Wiley and the book authors, 2001 Architecture of a Typical Virtual Market System Customer Buyer Vendor Database Virtual Market Application Server Web Server Database Server Virtual Market System Receiving Order & Catalog Maintenance Place Orders

16. _______________________________________________________________________________________________________________ E-Commerce: Fundamentals and Applications16  Wiley and the book authors, 2001  Information is exchanged is between two partners to allow a purchase to take place.  For corporations  it is important to not only optimize a single purchase segment between two parties  interaction between parties upstream of the purchase. Collaborative Supply Chain Management (SCM)