1. 2. Business-to-Business Strategies
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2. 2. Business-to-Business Strategies
For 2003, in USA:
B2B…………………………….$ 1.3 Trillion.
Retail e-commerce ………….…$108 Billion.
B2B includes:
Electronifying the supply chain to work more efficiently with business partners.
Establishing virtual markets that connect buyers and sellers.
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3. 2. Business-to-Business Strategies (contd.)
Implementing B2B auctions.
Setting up extranets that open internal business processes to select partners.
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4. 2. Business-to-Business Strategies (contd.)
Electronifying the supply chain.
Electronic supply chain can achieve:
Decrease cycle times.
Improve forecasting.
Reduce inventory expenses.
Virtual supply chains require openness between business partners.
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5. 2. Business-to-Business Strategies (contd.)
Web based EDI Interface
S/W for virtual supply chain management.
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6. 2. Business-to-Business Strategies (contd.)
Most Difficult Issues of Implementing Electronic Supply Chains
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7. 2. Business-to-Business Strategies (contd.)
Virtual Markets
(connecting buyers with suppliers)
Virtual markets function as Intermediaries. They provide a forum where buyers can connect with a variety of suppliers.
Singapore-based Asia Manufacturing Online (AMO), allows US companies to reach small suppliers in Asia.
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8. 2. Business-to-Business Strategies (contd.)
Suppliers pay a small fixed monthly fee to participate.
Web based EDI allows small partners with no investment in EDI to work with larger companies that use EDI on a large scale.
The number of AMO suppliers has increased from 9 to 200 then to 1,500 in 2 years time.
Asian Sources Online hosts more than 15,000 supplier with 70,000 products and receives inquiries from 20,000 buyers weekly.
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9. 2. Business-to-Business Strategies (contd.)
Asian sources provided H/W, S/W and training to help many of the manufactures qualify for participation.
Asian sources added complete financial transactions online.
Asian sources revenues are based on listing fees and advertising.
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10. 2. Business-to-Business Strategies (contd.)
Other site features include:
Schedules for upcoming trade shows.
Clearance section, where over stocks are available at bargain prices.
Links to online magazines and provides forums from users to discuss topics relevant to Asian trade.
Alert function allows users to receive automatically when products of interest are added to the site.
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11. 2. Business-to-Business Strategies (contd.)
Chem Connect …. A virtual market serving large commodity chemicals market: $10 billion business in 1998.
Metal Site ….. A virtual market for excess steel.
Retail virtual markets.
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12. 2. Business-to-Business Strategies (contd.)
Business-to-Business Auctions
Growth in Business-to-Business Actions,
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13. 2. Business-to-Business Strategies (contd.)
Some famous actions:
Price line: Travel.
eBay
Band-X: Telecom Bandwidth.
On sale: Computer equipment.
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14. 2. Business-to-Business Strategies (contd.)
Who Is Buying at Business-to-Business Actions?
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15. 2. Business-to-Business Strategies (contd.)
Merchandise Purchased at Business-to Business Actions
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16. 2. Business-to-Business Strategies (contd.)
Online Transaction Models for B2B E-commerce,
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17. 2. Business-to-Business Strategies (contd.)
Extranet
(opening the Enterprise to Business partners).
Web Site
Company Intranet
Companies often use a common infrastructure for all three.
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18. 2. Business-to-Business Strategies (contd.)
Extranets are hosted on different servers and required increased attention to security.
Private data
Shared data
Data partitioning to ensure that qualified business partners can access only their own data.
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19. 2. Business-to-Business Strategies (contd.)
Extranets versus EDI:
With EDI, business partners pass transactions in a standard coded format.
EDI automates repetitive transactions.
Extranets may displace EDI.
EDI provides cost savings on repetitive transactions, but cannot process more flexible business interactions.
Extranets can Interface with EDI.
Extranets can provide access to a wide variety of information from order status to guidelines for responding to RFPs, ….
Sections of an extranet can be established for joint work on a given project, and they can be removed after the project is complete.
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20. 2. Business-to-Business Strategies (contd.)
Designing Extranet Applications.
Few applications designed for internal use can be presented to those outside the enterprise without modification.
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