1. PPT Slides by Dr. Craig Tyran & Kraig Pencil E-Commerce: Supporting External and Internal Linkages Part 2 MIS 320 Kraig Pencil Summer 2013

2. PPT Slides by Dr. Craig Tyran & Kraig Pencil Game Plan Introduction Supporting Internal Linkages –Intranets Supporting External Linkages –B2C: Business to Consumer –C2C: Consumer to Consumer –B2B: Business to Business

3. PPT Slides by Dr. Craig Tyran & Kraig Pencil G. Business-to-Business Applications (B2B) 1. Objective –Support external linkages –Foster trading between businesses –Reduce costs and time e.g., purchasing supplies, just-in-time inventory 2. Early growth (see figure) Shipping Information Supplier Corporate Buyer

4. PPT Slides by Dr. Craig Tyran & Kraig Pencil 2005 2002 2005 $8.5 Trillion 2004 $6 Trillion 2003 $3.6 Trillion 2002 $1.9 Trillion Comparison of B2C vs. B2B: Growth Source: Garnter, Inc (http://findarticles.com/p/articles/mi_m0EKF/is_12_47/ai_72068777 ) B2C B2B $184B $92B B2B is about 50 times larger than B2C

5. PPT Slides by Dr. Craig Tyran & Kraig Pencil G. Business-to-Business Applications (B2B) 3. Example applications –Scan-based Trading – e.g. Electronic data interchange (EDI) EDI involves –Repetitive business transactions (e.g., orders, bills) –Computer-to-computer exchange –Standard format for data exchanged “EDI translator” converts data to a format that TPS software will understand Benefits –Significant cost savings $50 per paper transaction vs. $1-2 per EDI transaction –Time savings -- from initiation to completion –Reduction of errors Costs –High initial investment ($) and startup period –EDI systems can be inflexible –Multiple EDI standards exist (e.g., different customers may use different EDI standards)

6. PPT Slides by Dr. Craig Tyran & Kraig Pencil Order Delivery: Without EDI and With EDI Lots of paperwork and manual processing  Costly, Slow, Error-prone Electronic data interchange and processing  Cheaper, Faster, More accurate Source: Rainer, Turban, Potter, Introduction to IS, Fig 8.4

7. PPT Slides by Dr. Craig Tyran & Kraig Pencil G. Business-to-Business Applications (B2B) 3. Example applications (cont.) –Extranet Extend portions of an intranet to selected business partners E.g., Share current inventory, production schedules –Inventory replenishment “Electronic bread man” Supplier scans inventory database and is responsible for restocking –Marketplace exchanges Request for quotes, automated procurement e.g., ChemConnect, Automotive Network Exchange (ANX)ChemConnect

8. PPT Slides by Dr. Craig Tyran & Kraig Pencil Marketplace Exchange: ChemConnect