1 Pertemuan 9 Understanding Public B2B Exchanges and Portals Matakuliah: J0324/Sistem e-Bisnis Tahun: 2005 Versi: 02/02

2 Learning Outcomes Pada akhir pertemuan ini, diharapkan mahasiswa akan mampu : menguraikan konsep dan aplikasi portal pertukaran informasi B2B

3 Outline Materi B2B Electronic Exchanges – An Overview B2B Portals Third Party (Trading) Exchanges Consortium Trading Exchanges

4 ChemConnect: The World Chemical Exchange The Problem –Before the Internet, the B2B trading process was slow, fragmented, ineffective, and costly –Buyers paid too much, sellers had high expenses, and intermediaries were needed to smooth the trading process

5 ChemConnect: The World Chemical Exchange (cont.) The Solution –Traders meet electronically in a large Internet marketplace –Save on transaction costs, reduce cycle time, and find new markets and trading partners around the globe

6 ChemConnect: The World Chemical Exchange (cont.) –ChemConnect provides a trading marketplace and an information portal to over 7,500 members in 135 countries –Members are: Producers Consumers Distributors Traders Intermediaries involved in the chemical industry

7 ChemConnect: The World Chemical Exchange (cont.) –Trading Center consists of 3 trading areas 1.Marketplace for buyers 2.Marketplace for sellers 3.Commodity market platform

8 ChemConnect: The World Chemical Exchange (cont.) –ChemConnect members use the Trading Center to streamline sales and sourcing processes by automating requests for quotes, proposals, and finding new suppliers –The center enables a member to negotiate more efficiently with existing business partners as well as with new companies the member may invite to the table in complete privacy

9 ChemConnect: The World Chemical Exchange (cont.) –The revenue model includes: members’ annual transaction fees monthly or annual subscription fees (for trading and for auctions) fulfillment service fees –Three trading locations provide up-to-the- minute market information –Business partners provide several support services (payments, delivery, etc.)

10 ChemConnect: The World Chemical Exchange (cont.) The Results –Benefits of ChemConnect to its members are: more efficient business processes lower overall transaction costs time saved during negotiations and biddings sellers reach more buyers and liquidate surpluses rapidly

11 ChemConnect: The World Chemical Exchange (cont.) What we can learn… –Electronic exchange is owned and operated by a third-party intermediary –Buyers and sellers, as well as other business partners, congregate electronically to conduct business

12 B2B Electronic Exchanges Public e-marketplaces (public exchanges): Trading venues open to all interested parties (sellers and buyers) and usually run by third parties Exchange: A many-to-many e-marketplace. Also known as e-marketplaces, e-markets, and trading exchanges

13 B2B Electronic Exchanges (cont.) Market maker: The third-party that operates an exchange (and in many cases, also owns the exchange) Systematic sourcing: Purchasing done in long-term supplier–buyer relationships Spot sourcing: Unplanned purchases made as the need arises

14 B2B Electronic Exchanges (cont.)

15 B2B Electronic Exchanges (cont.)

16 B2B Electronic Exchanges (cont.) Vertical exchange: An exchange whose members are in one industry or industry segment Horizontal exchanges: Exchanges that handle materials used by companies in different industries

17 B2B Electronic Exchanges (cont.) Dynamic pricing: A rapid movement of prices over time, and possibly across customers, as a result of supply and demand

18 B2B Electronic Exchanges (cont.) Process that results in dynamic pricing in most exchanges includes 1.A company posts a bid to buy a product or an offer to sell one 2.Anonymity is often a key ingredient of dynamic pricing 3.Buyers and sellers interact with bids and offers in real time 4.A deal is struck when there is an exact match between a buyer and a seller on price, volume, and other variables such as location or quality 5.The deal is consummated, and payment and delivery are arranged

19 B2B Electronic Exchanges (cont.) Functions of exchanges –Matching buyers and sellers –Facilitating transactions –Maintaining exchange policies and infrastructure

20 B2B Electronic Exchanges (cont.)

21 B2B Electronic Exchanges (cont.) Ownership of exchanges –An industry giant –A neutral entrepreneur –The consortia (or “third-party” co-op)

22 B2B Electronic Exchanges (cont.) Revenue models –Transaction fees –Fee for service –Membership fees –Advertising fees –Other revenue sources

23 B2B Electronic Exchanges (cont.) Governance and organization –Membership the community in the exchange –Site access and security information should be carefully protected –Services provided by exchanges provide many services to buyers and sellers

24 B2B Electronic Exchanges (cont.)

25 B2B Electronic Exchanges (cont.)

26 Source : Turban, Efraim, David King, Jae Lee and Dennis Viehland. Electronic Commerce. A Managerial Perspective (2004). Prentice Hall. PPT for Chapter : 7