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Elias M. Awad Third Edition ELECTRONIC COMMERCE From Vision to Fulfillment 6-1© 2007 Prentice-Hall, Inc ELC 200 Day 16.

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Presentation on theme: "Elias M. Awad Third Edition ELECTRONIC COMMERCE From Vision to Fulfillment 6-1© 2007 Prentice-Hall, Inc ELC 200 Day 16."— Presentation transcript:

1 Elias M. Awad Third Edition ELECTRONIC COMMERCE From Vision to Fulfillment 6-1© 2007 Prentice-Hall, Inc ELC 200 Day 16

2 6-2 © 2007 Prentice-Hall, Inc Agenda Assignment 5 not corrected, it will be corrected this weekend Assignment 6 posted –Due March 31 (next Tuesday) Assignment 7 will be posted this weekend –Due April 7 Quiz 3 will be April 3 (one week from now) –Chapters 7-12 –20 M/C and 4 Short essays NEW Course Schedule Finish Discussion on B2B ecommerce

3 New schedule Mar 27 –B2B ecommerce Mar 31 –eCore values –Assignment 6 due April 3 –Quiz 3 Chapters 7-12 Apr 7 –Going on line –Assignment 7 due Apr 10 –eSecurity Apr 14 –eSecurity –Encryption Apr 17 –Encryption Apr 21 –Getting the money –Assignment 8 due Apr 24 –Quiz 4 Apr 28 –Presentations May 1 –Framework Paper due 6-3 © 2007 Prentice-Hall, Inc

4 6-4 © 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

5 6-5 © 2007 Prentice-Hall, Inc Supply Chain Event Management

6 6-6 © 2007 Prentice-Hall, Inc 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

7 6-7 © 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

8 6-8 © 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

9 6-9 © 2007 Prentice-Hall, Inc Forward Auction Model

10 6-10 © 2007 Prentice-Hall, Inc Reverse Auction Model

11 6-11 © 2007 Prentice-Hall, Inc Internet Exchange Model

12 6-12 © 2007 Prentice-Hall, Inc B2B Models (Cont’d) Intermediary-Oriented B2B, an intermediary company establishes an exchange market where buyers and sellers can make deals –Livestock auctions http://www.dvauction.com/ –MRO Auctions http://www.sourceapp.com/demo.asp

13 6-13 © 2007 Prentice-Hall, Inc Intermediary Model

14 6-14 © 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

15 6-15 © 2007 Prentice-Hall, Inc Cycle of AP Transaction

16 6-16 © 2007 Prentice-Hall, Inc Information Flow Between Buyer and Seller with EDI

17 6-17 © 2007 Prentice-Hall, Inc 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.

18 6-18 © 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

19 6-19 © 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

20 6-20 © 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

21 6-21 © 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


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