ELC 200 Day 15 © 2007 Prentice-Hall, Inc.

Agenda Assignment 4 graded
1 A, 4 B’s, 2 C’s and one file that I can’t read Assignment 5 is Due Assignment 6 posted Due March 31 NEW Course Schedule Finish Discussion on Web Portals and Web Services Begin Discussion on B2B ecommerce © 2007 Prentice-Hall, Inc

New schedule Mar 24 Web portals & B2b ecommerce Assignment 5 due
eCore values Assignment 6 due April 3 Quiz 3 Apr 7 Going on line Assignment 7 due Apr 10 eSecurity Apr 14 Encryption Apr 17 Apr 21 Getting the money Assignment 8 due Apr 24 Quiz 4 Apr 28 Presentations May 1 Framework Paper due © 2007 Prentice-Hall, Inc

Web Services and Portals
Web services are essentially business services, composed of standards that allow different platforms, operating systems, and languages to exchange information or carry out a business process together Improve the ways a company conducts electronic transactions with trading partners A simple “packaging” technology accessible over the Internet that does not require any technology tied to a vendor’s platform Web services are mobile and interactive More about successful business strategy than technology © 2007 Prentice-Hall, Inc

Major Aspects of Web Services
A service provider that provides an interface for software that can perform specified tasks A client that invokes a software service to provide business solution or service A repository that manages the service © 2007 Prentice-Hall, Inc

Web Services

Figure 11-13: Ordinary Webservice versus Web Service
HTTP Request SOAP- Capable Browser HTTP Response Web Service -- Interface Properties Methods Webserver Client PC SOAP Message Using XML Syntax Web services are objects (programs) Clients send them commands and data Web services send back results © 2007 Prentice-Hall, Inc

HTTP Request SOAP- Capable Browser HTTP Response Web Service -- Interface Properties Methods Webserver Client PC SOAP Message Using XML Syntax Web service requests are sent via FTP They are sent as SOAP messages written in XML © 2007 Prentice-Hall, Inc

HTTP Request SOAP- Capable Browser HTTP Response Web Service -- Interface Properties Methods Webserver Client PC SOAP Message Using XML Syntax Web services have interfaces that will accept commands Commands contain methods and properties (parameters) © 2007 Prentice-Hall, Inc

Figure 11-14: Simple SOAP Request and Response
Simple Object Access Protocol (SOAP) Carried in HTTP request or response message Formatted using XML Syntax Similar to HTML syntax but the sender and receiver can create new tags that they can then use in transactions, such as <price>$33</price> HTTP Header SOAP Body © 2007 Prentice-Hall, Inc

Situation There is a pricing object that returns the price if another object sends the part number, quantity, and shipping type (rush, etc.) on an interface Objects can be on different computers Request (PartNum, Quantity, ShippingType) Sending Object Pricing Object Response (Price) © 2007 Prentice-Hall, Inc

SOAP Request Message HTTP Request Header pointing to program <?xml version=“1.0”> <BODY> <QuotePrice xmlns=“QuoteInterface”> <PartNum>QA78d</PartNum> <Quantity>47</Quantity> <ShippingType>Rush</ShippingType> </QuotePrice> </BODY> Note: xmlns specifies an XML namespace for the object © 2007 Prentice-Hall, Inc

Web Services: A More Complex Example
1 (Object) Service Via HTTP: SOAP + XML Service Via HTTP: SOAP + XML Server Client PC With Browser Service Via HTTP: SOAP + XML Web service 3 (Object) Web service 2 (Object) Mainframe Minicomputer © 2007 Prentice-Hall, Inc

Web Service Interaction
Figure 11-15: Universal Description, Discovery, and Integration (UDDI) Server for Web Services UDDI Functions: White Pages By name Yellow Pages By type Green Pages Details of how to use, payment, etc. Client PC 2. Web Service Interaction Server with Web Service 1. UDDI Request for Information, Response Interaction Between UDDI Servers to Fulfill a Request UDDI Server UDDI Server © 2007 Prentice-Hall, Inc

Web Service Description Language (WSDL)
Protocol for asking a corporate webserver about the company’s SOAP-compliant services WSDL Request-Response Cycle Client PC Corporate Webserver © 2007 Prentice-Hall, Inc

Perspective on Web Services
Benefits of Web Services Offers a way to standardize interactions between objects over the Internet Can make distributed computing far simpler once Web services standards are fully developed Concerns High overhead (very chatty) Standards immaturity Security is embryonic © 2007 Prentice-Hall, Inc

Issues in Providing IT for Knowledge Sharing
Responsiveness to user needs Content structure Content quality requirements Integration with existing systems Scalability Hardware-software compatibility Synchronization of technology with the capabilities of the user © 2007 Prentice-Hall, Inc

Planning and Developing an Enterprise Portal
Identify the sore points in the business that a portal can help address. Identify the portal users and their role in the firm. Select, install, and incorporate portal technology and associated hardware. © 2007 Prentice-Hall, Inc

Chapter Summary A portal is a secure, Web-based interface that provides a single point of integration for and access to information, applications, and services for all people Portals have made their way into enterprises, bringing together not only information from the Internet, but in-house data as well The term data sources encompasses structured data and unstructured data, but also includes the data resulting from specific processes and enterprise applications © 2007 Prentice-Hall, Inc

Chapter Summary (Cont’d)
Content management requires directory and indexing capabilities to manage automatically the ever-growing store of structured and unstructured data residing in data warehouses, Web sites, ERP systems, legacy applications Collaborative functionality can range from tracking to developing workplace communities © 2007 Prentice-Hall, Inc

Business-To-Business E-commerce

Assignment 6 One of the major problems to be solved in B2C eCommerce is getting supplies to you and shipping products to your customers. Another issue involving distribution is ensuring that all non-electronic communication arrives on time at the right place. 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. Two of the key factors in deciding which organization(s) would best serve your company is cost and availability Due March 2:05 PM © 2007 Prentice-Hall, Inc

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 © 2007 Prentice-Hall, Inc

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 © 2007 Prentice-Hall, Inc

Distribution Channel Metrics
B2B e-commerce was estimated at $624 billion in 2004. Expected to reach $7 trillion in 2009 US B2B eCommerce in 2006 > $2.7 trillion ~ 25% of all B2B transactions 94% of all ecommerce transactions © 2007 Prentice-Hall, Inc

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 © 2007 Prentice-Hall, Inc

What Is B2B 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 © 2007 Prentice-Hall, Inc

Examples of B2B Messaging products for facilitating secure, reliable data movement between trading partners Work flow and process flow products for implementing conversational logic between partners 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 © 2007 Prentice-Hall, Inc

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 to keep it all running © 2007 Prentice-Hall, Inc

Comparing B2B and B2C The connection mechanism Type of relationship
Nature of control Nature of needs-based segmentation Sales complexity © 2007 Prentice-Hall, Inc

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 © 2007 Prentice-Hall, Inc

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 © 2007 Prentice-Hall, Inc

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 (non-competitive behavior) Barriers to entry for competitors © 2007 Prentice-Hall, Inc

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 © 2007 Prentice-Hall, Inc

SCM Life-Cycle Process
Plan Source Make Deliver Return © 2007 Prentice-Hall, Inc

B2B Building Blocks The application server The B2B integration server
The personalization software The content management facility The e-commerce package © 2007 Prentice-Hall, Inc

Supply Chain Event Management

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 © 2007 Prentice-Hall, Inc

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 © 2007 Prentice-Hall, Inc

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 © 2007 Prentice-Hall, Inc

Internet Exchange Model

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 MRO Auctions © 2007 Prentice-Hall, Inc

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 © 2007 Prentice-Hall, Inc

Cycle of AP Transaction

Information Flow Between Buyer and Seller with EDI

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. © 2007 Prentice-Hall, Inc

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 © 2007 Prentice-Hall, Inc

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 © 2007 Prentice-Hall, Inc

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 © 2007 Prentice-Hall, Inc

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 © 2007 Prentice-Hall, Inc

ELC 200 Day 15 © 2007 Prentice-Hall, Inc.

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