By: Mr Hashem Alaidaros 326 Lecture 7 Title: B2B: EDI and ERP

EDI Electronic data interchange (EDI) is Computer-to-computer exchange, between two organizations, of standard transactions such as invoices, purchase orders, and shipment schedule (e-document). Transactions are automatically transmitted from one information system to another trough a _________, eliminating the printing and handing of paper. 80% of B2B e-commerce is based on EDI Major industries have EDI standards that define structure and information fields of electronic documents for that industry

Cont. Suppliers have online access to selected parts of the purchasing firm’s production and delivery schedule and automatically ship materials and goods to meet prespecified targets (Fig 10.5)

Cont. Companies use EDI to automate transactions for B2B e-commerce and continuous inventory replenishment. Suppliers can automatically send data about shipments to purchasing firms. The purchasing firms can use EDI to provide production and inventory requirements and payment data to suppliers.

Cont. More companies increasingly moving away from private networks to Internet for linking to other firms. Why? Or how the Internet and Web technologies have changed B2B e-commerce The Internet and Web technology enable businesses to create new electronic storefronts for selling to other businesses with multimedia graphic displays and interactive features similar to those for B2C commerce. Businesses can now use Internet to locate most low-cost supplier, search online catalogs of supplier products, negotiate with suppliers, place orders, etc.

Cont. Alternatively, businesses can use Internet technology to create extranets or electronic marketplaces for linking to other businesses for purchase and sale transactions.

Enterprise systems Planning (ERP) Function of ERP: Collects data from different firm functions and stores data in single central data repository Resolves problem of fragmented, redundant data sets and systems Enable: Coordination of daily activities Efficient response to customer orders (production, inventory) Provide valuable information for improving management decision making

Enterprise Systems Figure 2-8 Enterprise systems integrate the key business processes of an entire firm into a single software system that enables information to flow seamlessly throughout the organization. These systems focus primarily on internal processes but may include transactions with customers and vendors.

Internet, intranet, & extranet The relationship between access to intranets, extranets and the Internet

Summary and examples of transaction alternatives between businesses, consumers and governmental organisations

Mixed-mode buying The role of mixed-mode buying in Internet marketing