1. ELC 200 Day 15
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2. Agenda Assignment 5 Corrected 10 A’s, 3 B’s, 1 C’s, 1 D’s and 2 F’s
Some students misinterpreted the instructions
Web Exercise 1 was about color, Web Exercise 2 was about usability
Assignment 6 posted
2 more 2 go
Due Nov 12 (one week)
Quiz 3 will be on Nov 16
Chap 7, 8, 9, 10 & 11
Extra credit
Why were internet cookies named cookies?
Hint: name originated before Internet became popular
What is the name (and history) of this lizard??
ECommerce Initiative Frameworks
Guidelines
Due DEC 10 AM
Discussion on B2B eCommerce
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3. End of days? (subject to change)
Today
Chap 11 B2B
Nov 8
Chap 12 ECore Values
Nov 12
Chap 16 Going on line
Assignment 6 due
Nov 16
Quiz 3
Chaps 7, 8, 9, 10 & 11
Nov 19
No class (may change)
Assignment 7 due
Nov 26 & 29
Chap 13 eSecurity and the USA Patriot Act
Dec 3 & 6
Chap 14 Encryption
Assignment 8 Due
Dec 10
Chap 15 getting the money
Dec 13
Quiz 4
Dec 18
10 AM eCommerce frameworks due
Student presentations
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4. Assignment 5 Web Exercise 1 Color www.statefarm.com www.wachovia.com
Web Exercise 2 Effectiveness & suitability
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5. Assignment 6 Due November 12, 2007 at 11:05 AM
Enabling Effective Distribution
One of the problems with B2C eCommerce is getting supplies and shipping products to your customers. Investigate the types of support available to your company from the following three companies, The United States Postal Service ( United Parcel Service ( and FedEx ( Write a two page analysis comparing the business solutions available from the three organizations. Select the one organization you believe would best support the business activities of your company and explain the reasons for your choice.
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6. Business-To-Business E-commerce
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7. The focus of this chapter is on several learning objectives
The meaning, benefits, and opportunities in B2B
B2B building blocks and their relationship to supply chain management
Key B2B models and their main functions
EDI as a B2B tool
Role of leadership in B2B as an ongoing concern
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8. What Is B2B? Business has always been about exchange
Money as economic value eliminates barter
Today money is exchanged by the invisible transfer of funds between businesses via computer business relationships
The Unique contribution of B2B e-commerce is in the way these relationships are established and maintained. B2B is a network of independent organizations involved in a business area or an industry
B2B focuses on the concept of exchange
Efficiency is a factor
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9. Distribution Channel Metrics
B2B e-commerce was estimated at $624 billion in 2004.
US B2B eCommerce in 2005 > $1.3 trillion
~ 25% of all B2B transactions
94% of all ecommerce transactions
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10. Factors Driving B2B
Today’s customer has become more cost conscious and value conscious and demands quality products in a timely manner
Maturation of information technology and networks makes it possible to design a supply chain to meet customer demand
The global dimension, involving distance, costs, time, variety, and uncertainty, makes it almost mandatory that the long supply chains be managed efficiently around the clock
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11. What Is E-commerce?
Alternative ways of executing transactions between buyers and sellers that are business organizations; a network of independent organizations and long-term trading partners
What is involved in B2B?
Complex procurement, manufacturing, and planning collaboration
Complex payment terms
Round-the-clock performance
E-business is not information technology, and information technology is distinctly separate from e-business
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12. Examples of B2B
Messaging products for facilitating secure, reliable data movement between trading partners
Work flow and process flow products for implementing conversational logic
Trading partner management products for helping identify where the data need to go and how they should get there
Directories for assisting businesses in locating other businesses that provide a particular service or product
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13. Elements of B2B Buying company Selling company
Intermediating service provider
JIT deliverer
Web-based platform
B2B tools like electronic data interchange (EDI)
Back-end technical support
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14. Key B2B Entities
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15. Comparing B2B and B2C The connection mechanism Type of relationship
Nature of control
Nature of needs-based segmentation
Sales complexity
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16. B2B VS. B2C B2C B2B How connection is set up Consumer-to-system
Business-to-business
Types of relationship
Placing orders
Executing payments
Fulfilling orders
Browsing of merchant’s catalog
Sending feedback
Online procurement
Tracking order status
Managing promotions, returns, and catalog info
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17. B2B VS. B2C (Cont’d) B2C B2B Nature of control Unidirectional
Unidirectional to peer-to-peer
Level of needs-based segmentation
Moderate to low
Sharper than B2C
Sales complexity
Moderate
Complex
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18. Advantages and Disadvantages of B2B
Replacing a purchasing bureaucracy with online links means savings
Improved efficiency in ordering material
Fewer errors
Just-in-time environment that minimizes inventory sitting in the warehouse
Disadvantages
Possible antitrust violations
Barriers to entry for competitors
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19. Supply-Chain Management and B2B
The supply chain represents all the events associated with the flow and transformation of goods from the raw material stage to the end-user customer
(SCM) refers to overseeing materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer
Ultimate goal is to reduce inventory costs
Lower cost lead to greater value
Main types of SCM systems
Planning applications
Execution applications
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20. SCM Life-Cycle Process
Plan
Source
Make
Deliver
Return
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21. Supply Chain Management – an example
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22. B2B Building Blocks The application server The B2B integration server
The personalization software
The content management facility
The e-commerce package
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23. Supply Chain Event Management
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24. Trust in SCM
The core of collaborative relationships over time is trust
Trust elements
Competence - the ability of the parties in the chain to meet commitments
Cognitive and affect-based trust that assures you the vendor means well and stands by his or her reputation
Vulnerability - choosing a course of action even if such action has a probability of failure greater than 50 percent
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25. Disaster Planning What if the chain snaps?
Disaster planning - taking specific steps to ensure the flow of products and services during a disaster
Growing awareness of the need for disaster planning so that the chain can keep operating
Work with the highest-risk customers and collaborate on a contingency plan to suit their needs in the event of a disaster
Empower employees on supply-chain disruptions and how to communicate effectively to minimize unnecessary delays
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26. B2B Models
Buyer-Oriented B2B, a buyer purchases thousands of products and uses the Internet to open a marketplace and a Web site for suppliers to do the bidding
Supplier-Oriented B2B, a supplier invites individual consumers and business customers to order products via its electronic market store
Electronic Auctions, auctions carried out on electronic Web sites such as eBay
Forward Auction is an auction where a seller entertains bids from buyers; an auction used to liquidate merchandise
Reverse Auction is an auction used to solicit bids from sellers and service providers; the lowest bidder wins
Internet Exchange Auctions, an electronic auction involving many buyers and sellers who trade bids and offers until an agreement is reached to exchange product for payment. A third party often operates the exchange
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27. Forward Auction Model
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28. Reverse Auction Model
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29. Internet Exchange Model
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30. B2B Models (Cont’d) Livestock auctions
Intermediary-Oriented B2B, an intermediary company establishes an exchange market where buyers and sellers can make deals
Livestock auctions
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31. Intermediary Model
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32. Electronic Data Exchange
A computer-to-computer transfer of business information among businesses that use a specific standard format
EDI components:
Interbusiness
Computer-to-Computer
Standard transactions
Standard format
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33. Cycle of AP Transaction
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34. Information Flow Between Buyer and Seller with EDI
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35. EDI Advantages and Drawbacks
Benefits
Cost reduction and time savings
Improved B2B problem resolution
Accuracy with integrity
Drawbacks
EDI has yet to catch on as the perfect solution to information flow or for doing business.
EDI is point to point.
EDI requires expensive VAN networking to operate at peak efficiency.
EDI is not easy to use, learn, or implement.
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36. Justifying EDI Conditions justifying EDI implementation Volume of data
Frequency of document transmission and reception
Content sensitivity
Time sensitivity
An alternative is Web-based EDI
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37. Management Implications
The goal of B2B is to line up partners, work with the partners, and allow the partners to compete for lowest price
The changes in B2B are so intense that technology has become a mere enabler, not a solution
Compensation is a major issue and always will be a high priority
IT employees should be involved in the decision process, especially in projects that affect their jobs
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38. Chapter Summary
B2B involves complex procurement, manufacturing, planning collaboration, payment terms, and round-the-clock performance agreements
B2B and B2C have distinctive characteristics
Among the advantages of B2B are suppliers using the purchaser’s Web site to respond online to bids and sell excess inventory
B2B is part of the supply-chain process
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39. Chapter Summary (Cont’d)
Among the models in B2B e-commerce are:
Buyer-oriented B2B
Supplier-oriented B2B
Electronic Auction
Intermediary-oriented B2B
B2B integration is about coordinating information among partners and their information system infrastructure
Most B2B traffic is handled by EDI, which is computer-to- computer transfer of business information between two businesses that use a specific standard format
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