Virtual Marketplace on the Internet by Zaharije Radivojevic, Zaharije Radivojevic, Prof. Dr. Veljko Milutinovic, Zaharije Radivojevic, Zaharije Radivojevic, Prof. Dr. Veljko Milutinovic,

2/30 Definition: It is an Internet based trading community that makes it easier for several participants to: Buy and sell products or services Negotiate terms of agreements Find relevant product information Design product or service Assemble product or service It is an Internet based trading community that makes it easier for several participants to: Buy and sell products or services Negotiate terms of agreements Find relevant product information Design product or service Assemble product or service

3/30 Bring buyers and sellers together using:  Electronic shopping malls  Shopping agents  Electronic auctions  Barter exchanges Bring buyers and sellers together using:  Electronic shopping malls  Shopping agents  Electronic auctions  Barter exchanges

4/30 Marketplace: Evolution

5/30 Marketplace: Evolution

6/30 Marketplace: Evolution

7/30 Marketplace: Evolution

Part One: Major Issues

9/30 Structure of Virtual Marketplace marketplace Buyers Web Browser & Buy Side App. Sellers Web Browser & Buy Side App. Transaction -Administration -Catalogs/RFE -Dynamic Trade Content mgmt. -Loading -Cleansing -Updating VAS -Logistic -Financial Service -Suppliers Certification SCC -Design Collaboration -Collaborative Planning

10/30  Transaction  Content management  VAS-Value Added Services  SCC-Supply Chain Collaboration  Transaction  Content management  VAS-Value Added Services  SCC-Supply Chain Collaboration Structure of Virtual Marketplace Virtual MarketplaceBuyers Sellers

11/30 Dynamics of a Virtual Marketplace

12/30 Unpredictable Behavior of a Value Chain

13/30 Virtual Marketplace Models  Industry-Sponsored (Consortium) Marketplaces  Independent Trading Exchange  Private exchange  Industry-Sponsored (Consortium) Marketplaces  Independent Trading Exchange  Private exchange

14/30 Problems of Virtual Markets  Trust, Confidence, Security  Change in Market Power  Voluntary Participation  User Understanding  Design of Systems  Trust, Confidence, Security  Change in Market Power  Voluntary Participation  User Understanding  Design of Systems

15/30 Promises  Quick and Reliable  Integrating suppliers and customers  Improved distribution visibility  Increase interaction on requirements/solutions  Lower cost channel to broad market  Up-to-the-minute  Fast, efficient matching  Quick and Reliable  Integrating suppliers and customers  Improved distribution visibility  Increase interaction on requirements/solutions  Lower cost channel to broad market  Up-to-the-minute  Fast, efficient matching

Part two: Internet-based Tools and Techniques

17/30 Technology Is Just the Visible Part Technolog y Organizational Structures Culture Processes Design Security and Privacy User Skills

18/30 Electronic Currency: The Roots of Current Innovations  Consumer Transactions  Business Transactions  Smart Cards  Payments over the Internet  Consumer Transactions  Business Transactions  Smart Cards  Payments over the Internet

19/30 Digital Signatures and Electronic Currency on the Internet  Public-Key Cryptography  Protecting the Security of Financial Transactions  Protecting the Authenticity of Financial Transactions  Public-Key Cryptography  Protecting the Security of Financial Transactions  Protecting the Authenticity of Financial Transactions

20/30 Digital Signatures

Part Three: Examples

22/30  Telcobuy.com, a specialized B2B electronic trading hub for networking solutions.  GM, Ford & Daimler/Chrysler collaborate to develop Covisint, estimated $ 300 Billion annual spend.  e-Steel established E-Marketplace for steel industry.  The SAP Service Marketplace is an online hub for professional solutions and services.  Telcobuy.com, a specialized B2B electronic trading hub for networking solutions.  GM, Ford & Daimler/Chrysler collaborate to develop Covisint, estimated $ 300 Billion annual spend.  e-Steel established E-Marketplace for steel industry.  The SAP Service Marketplace is an online hub for professional solutions and services. Examples

23/30 Telcobuy.com  Private B2B e-Marketplace  Telecommunications Infrastructure  Robust, e-Business Infrastructure  Electronic Procurement & Logistics  Private B2B e-Marketplace  Telecommunications Infrastructure  Robust, e-Business Infrastructure  Electronic Procurement & Logistics

24/30 Telcobuy.com  Over 400 employees  $610 Million in 2000  Over $1 Billion in 2001  ISO9002 certified  TL9000 certified  Over 400 employees  $610 Million in 2000  Over $1 Billion in 2001  ISO9002 certified  TL9000 certified

Part Four: Case Study

Oracle Exchange

27/30 Oracle Exchange  Oracle Exchange Marketplace  Oracle Product Development Exchange  Oracle Supply Chain Exchange  Oracle Transportation  Oracle Exchange Marketplace  Oracle Product Development Exchange  Oracle Supply Chain Exchange  Oracle Transportation

28/30 Oracle Exchange Marketplace  Product Development  Order Fulfillment  Manufacturing  Procurement  Planning  Product Development  Order Fulfillment  Manufacturing  Procurement  Planning

29/30 Oracle Exchange Marketplace

By Zaharije Radivojevic, Prof. Dr. Veljko Milutinovic,