Eθνικό Μετσόβιο Πολυτεχνείο Μεταπτυχιακό Τμήματος ΗΜ & ΜΥ (Άνοιξη - 2002) Δίκτυα Προστιθέμενης Αξίας EDI και Εφαρμογές Ηλεκτρονικού Εμπορίου B 2 B και Electronic Marketplaces (Ηλεκτρονικές Αγορές)
BUSINESS MODELS -- Current State • Most EC Business today are – An online version of traditional models – An extension of physical businesses that are able to reduce cost and improve customer satisfaction – follow a vertical and rigid supply chain Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 2
BUSINESS MODELS -- Emerging • Virtual Companies and markets – a consortium of companies build on each others’ businesses to exploit opportunities • Open buyer centric markets – comparison shopping • Coalition and outsourcing – e. g. in REAL ESTATE: brokers, banks, escrow (εγγυητές) , lawyers (for title inspection) • Supply chain ---- SUPPLY WEB Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 3
Supply-Chain Management Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 4
INTERNET BUSINESS MODELS • VIRTUAL STOREFRONT: sells goods, services on-line (Amazon, Virtual Vineyards, etc. ) • MARKETPLACE CONCENTRATOR: concentrates information from several providers Insure. Market, Dealer. Net, etc. ) • INFORMATION BROKER: provides product, pricing, availability information Auto-by-Tel, Part. Net, etc) Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 5
INTERNET BUSINESS MODELS • TRANSACTION BROKER: buyers view rates, terms from various sources (E*Trade, Ameritrade) • ELECTRONIC CLEARINGHOUSE: auction-like setting, products, prices, change in response to demand (Bid. com, On. Sale, etc. ) • REVERSE AUCTION: buyer sets price, submits to multiple sellers (Priceline. com) Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 6
INTERNET BUSINESS MODELS • DIGITAL PRODUCT DELIVERY: sell, download software, other digital products (Sonic. Net, Build-a-Card, etc. ) • CONTENT PROVIDER: creates revenue through providing client for a fee, and advertising Tripod, Wall Street Journal, etc. ) • ON-LINE SERVICE PROVIDER: provides service, support for hardware, software products Cyber. Media, Tune Up, etc. ) Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 7
Company-Centric B 2 B Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 8
Typical Classification • • Business-to-Business (B 2 B) Business-to-Public Body (e. g. , Government) Business-to-Individual / Consumer (B 2 C) Individual-to-Public Body Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 9
Concepts and Characteristics of B 2 B EC • B 2 B EC defined – Transaction conducted electronically between business over the networks • • Internet Extranets Intranets Private networks (e. g. , EDI) – Automated trading improves the process Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 10
ΣΥΓΚΡΙΤΙΚΑ ΣΤΟΙΧΕΙΑ: Β-to-B vs. B-to-C Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 11
Concepts and Characteristics of B 2 B EC (cont. ) – Market size and content • Expected to grow from $1. 1 trillion in 2003 to $10 trillion by 2005 • Percentage of Internet-based B 2 B from 2. 1% in 2000 to 10% in 2005 – Private and public e-marketplace • Private—one-to-many mode • Public—many-to-many mode Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 12
Concepts and Characteristics of B 2 B EC (cont. ) – How is B 2 B conducted? • • Directly between buyer and seller Via an online intermediary Along the supply chain With or without intermediaries – Types of transactions • Spot buying—determined by dynamic supply and demand • Strategic sourcing—long term contracts Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 13
B 2 B Supply Chain Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 14
Concepts and Characteristics of B 2 B EC (cont. ) • Supply chain relationships – Interrelated subprocesses and roles • • Acquisition of materials Processing products and services Moving to distributors Purchase by consumer – Traditional process managed through paper transactions – B 2 B applications offer competitive advantages for supply chain management (SCM) Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 15
Concepts and Characteristics of B 2 B EC (cont. ) • Entities of B 2 B EC – Selling company—marketing management perspective – Buying company—procurement management perspective – Electronic intermediaries—optional third party directory service provider (scope of service may be extended to order fulfillment) – Trading platforms—pricing and negotiation protocol (auctions, reverse auctions) Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 16
Concepts and Characteristics of B 2 B EC (cont. ) • Entities of B 2 B EC (cont. ) – Payment services—mechanism for transferring money to sellers – Logistics providers—logistics to complete transaction (packaging, storage, delivery) – Network platforms—Internet, VAN, intranet, extranet – Protocols of communication—EDI or XML – Back-end integration—connecting to ERP systems, databases, functional applications Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 17
Concepts and Characteristics of B 2 B EC (cont. ) Information processed in B 2 B • • • Product Customer Supplier Product process Transportation Ε. Μ. Π. • • • Inventory Supply chain Competitor Sales and marketing Supply chain process and performance Ι. Βασιλείου --- Electronic Commerce Αγορές --- 18
Concepts and Characteristics of B 2 B EC (cont. ) • Electronic intermediaries in B 2 B – Consumers and business may share intermediaries – Businesses may use different intermediaries with different suppliers • Benefits of B 2 B models – – – Eliminate paper-based systems Expedite cycle time Reduce errors Increase employee productivity Reduce costs Increase customer service and partnership management Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 19
B 2 B Models • Company-centric models – Sell-side marketplace (one-to-many) – Buy-side marketplace (many-to-one) • Many-to-many marketplaces—the exchange – Buyers and sellers meet to trade • Trading communities • Trading exchanges • Exchanges Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 20
B 2 B Models (cont. ) • Other B 2 B models and services – For the purpose of selling – For the purpose of buying – Value chain integrators – Value chain service providers – Information brokers • Vertical vs. horizontal marketplaces – Vertical—one industry or industry section – Horizontal—service or product used in several types of industries Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 21
B 2 B Models (cont. ) • Virtual service industries in B 2 B – Travel and tourism services – Real estate – Electronic payments – Online stock trading – Online financing – Other online services Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 22
Sell-Side Marketplace Architecture Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 23
Sell-Side Marketplaces: One-to-Many • Virtual sellers—Bigboxx. com. hk of Hong Kong – B 2 B office supply retailer services • Large corporate clients • Medium corporate clients • Small offices – Goal—sell products in various SE Asian countries • Offers more than 10, 000 items • Uses more than 300 suppliers Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 24
Sell-Side Marketplaces: One-to-Many (cont. ) • Virtual sellers—Bigboxx. com. hk of Hong Kong (cont. ) – Company portal attractive, easy to use • Browse online catalogs • Use search engines • Payments – – Ε. Μ. Π. Cash or check upon delivery Automatic payments Credit card Purchasing card Ι. Βασιλείου --- Electronic Commerce Αγορές --- 25
Sell-Side Marketplaces: One-to-Many (cont. ) • Virtual sellers—Bigboxx. com. hk of Hong Kong (cont. ) – Delivery • Owns trucks and warehouses • Delivery scheduled online – Same day (within an hour) – Specifically scheduled time • Ordering system integrated with SAP-based back-office system Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 26
Sell-Side Marketplaces: One-to-Many (cont. ) • Virtual sellers—Bigboxx. com. hk of Hong Kong (cont. ) – Value-added services • • • Track status of order Check stock availability Promotions Customized prices Group accounts and central approval—for businesses with multiple branches • Standing orders automatically activated • Large number of reports and data available Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 27
Sell-Side Marketplaces: One-to-Many (cont. ) • Customer service – General Electric • 20 million calls/year about appliances • Reduced cost of each call from $5 to $0. 20 – Milacron, Inc. • Site contains 55, 000 products – Easy to use – Securely handles selection, purchase, application • Technical service—expanded to provide a higher level of service than previously available at the site Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 28
Sell-Side Marketplaces: One-to-Many (cont. ) Direct sales from catalogs Configuration and customization Efficient customization for direct sales Business customers Customize products Receive price quote Submit order Successful cases • Dell • Intel Ε. Μ. Π. • IBM • Cisco Ι. Βασιλείου --- Electronic Commerce Αγορές --- 29
Sell-Side Marketplaces: One-to-Many (cont. ) • Direct sales from catalogs – Benefits • Reduces costs (to buyers and sellers) and errors during the process • Speeds up order cycle • Ability to customize products • Offer different prices to different customers Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 30
Sell-Side Marketplaces: One-to-Many (cont. ) • Direct sales from catalogs (cont. ) – Limitations • Channel conflicts with distribution systems • High cost when traditional EDI used • Large number of business partners is needed to justify system Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 31
Selling Side: Auctions and Other Models • Forward auctions—quick disposal of items – Revenue generation – Increased page views – Member acquisition and retention—bidding transactions result in additional registered members • Selling from own site when: – Large companies that conduct auctions frequently don’t benefit from using intermediaries – E-marketplace already in use, cost of adding auction not too high Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 32
Selling Side: Auctions and Other Models (cont. ) • Using intermediaries when: – No resources required – Own and control auction information – Fast time to market • Searching and reporting – Search and report all auction activities – Standard reports available – Additional analysis of complex information Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 33
Selling Side: Auctions and Other Models (cont. ) • Billing and collection – Automatic calculation of shipping weights and charges – Payment—encrypted credit card data – Billing information—easily downloaded into existing systems – Successful if: • Sufficient number of loyal customers • Products well known • Price not major purchasing criteria Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 34
Sell-Side Case: CISCO Connection Online (CCO) • Benefits—saves the company $363 million per year in: – Technical support – Human resources – Software distribution – Marketing material Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 35
Cisco Connection Online (CCO) (cont. ) • Customer service—Cisco Connection online • Online ordering—Internet Product Center builds virtually all products to order • Order status—customer tools for finding answers to order status inquiries Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 36
Cisco Connection Online (CCO) (cont. ) • Benefits to Cisco – Reduced operating costs for order taking – Enhanced technical support and customer service – Reduced technical support staff cost – Reduced software distribution costs – Lead times reduced from 4 -10 days to 2 -3 days Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 37
Cisco Connection Online (CCO) (cont. ) • Benefits to customers – Quick order configuration – Immediate cost determination – Collaboration with Cisco staff Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 38
Sell-Side Intermediaries • Marshall Industries—(a subsidiary of Avnet. Marshall) multinational distributor of electronic components known for its innovative uses of IT and the Web – Products and services • • Ε. Μ. Π. Marshall. Net Marshall on the Internet (portal) Strategic European Internet Electronic Design Center Partner. Net. Seminar Education and News Portal Ι. Βασιλείου --- Electronic Commerce Αγορές --- 39
Sell-Side Intermediaries (cont. ) • Marshall Industries—a subsidiary or Avnet. Marshall (cont. ) – Survival strategy • Continuous improvement programs and innovations • Team-based organization, flat hierarchy, decentralized decision making • Profit sharing compensation for salespeople Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 40
Sell-Side Intermediaries (cont. ) • Marshall Industries—a subsidiary of Avnet. Marshall (cont. ) – Survival strategy • CRM highly promoted • Web-based services create value between suppliers and customers • EC initiatives supported by: – Changing internal organization – Changing internal procedures Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 41
Sell-Side Intermediaries (cont. ) • Boeing’s PART – Acts as an intermediary between the airlines and parts’ suppliers – Provides a single point of online access through which airlines and parts’ providers can access the data needed – Goal: provide its customers with one-stop shopping for online parts and maintenance information and ordering capability Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 42
Sell-Side Intermediaries (cont. ) • Boeing’s PART – Spare parts business using traditional EDI • Mechanic tells purchasing department parts are needed, purchase is approved, purchase is made • Large airlines connect to Boeing's VAN • Boeing finds part and delivers – Debut of PART on the Internet • Encourages customers to order parts electronically—cheap, easy, fast • 50% of customers using Internet within first year Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 43
Sell-Side Intermediaries (cont. ) • Boeing’s PART – Benefits of PART online • • Improved customer service Significant operating savings New sales opportunities Customer service online reduced – Phone calls (purchasing, order status etc. ) – Data entry Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 44
Sell-Side Intermediaries (cont. ) • Boeing’s PART – Portable access to technical drawings/support • Boeing On Line Data (BOLD) provides availability to: – Engineering drawings – Manuals – Catalogs – Other technical information • Portable Maintenance Aid (PMA)—solves maintenance problems Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 45
Sell-Side Intermediaries (cont. ) • Boeing’s PART – Benefits to Boeing’s customers • Increased productivity—less time searching for information • Reduced costs—delays at gate reduced because all information is available • Increased revenues—faster service provides time savings Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 46
Buy Side: One-from-Many, E-Procurement • Purchasing agents (buyers) – Direct purchasing • Use of material is scheduled • Not a shelf item – Indirect purchasing • MROs • Nonproduction materials • Inefficiencies in procurement management of indirect materials Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 47
A Traditional Purchasing Process Flow Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 48
Buy Side: One-from-Many, E-Procurement (cont. ) • Innovative procurement management – Innovative purchasing as strategic approach to increase profit margins – Web facilitation includes: • • • Ε. Μ. Π. Electronic tendering Volume purchasing Aggregating supplier catalogs at buyer’s site Group purchasing Others Ι. Βασιλείου --- Electronic Commerce Αγορές --- 49
Buy Side: One-from-Many, E-Procurement (cont. ) • Goals of procurement reengineering – Increase purchasing agent productivity – Lower purchasing prices of items – Improve information flow and management – Minimize maverick (unplanned) buying – Improve payment process – Streamline purchasing process to make it: • Simple • Fast Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 50
Buy Side: One-from-Many, E-Procurement (cont. ) • Goals of procurement reengineering (cont. ) – Reduce administrative processing cost per order – Find new suppliers and vendors to provide faster/cheaper goods and services – Integrate procurement process with budgetary control in an efficient and effective way – Minimize human errors in buying or shipping process Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 51
Buy-Side B 2 BMarketplace Architecture Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 52
Buy Side: One-from-Many, E-Procurement (cont. ) • Direct vs. indirect sourcing – Tools to automate purchasing goods • Direct or mission critical – 80% of manufacturer’s expenditure – Long-term relationship with vendor of known quality goods – Tight integration with suppliers along supply chain • Indirect—use of public exchanges for indirect sourcing Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 53
Buy Side: Reverse Auctions • Pre-Internet Reverse auction process – Prepare description of product to be produced – Announce project via ads, mail, telephone – Send detailed information to interested vendors – Vendors prepare proposals – Bidders submit document proposals – Proposals evaluated – Problems: • Laws • Expensive • Errors Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 54
Buy Side: Reverse Auctions (cont. ) • Web-based reverse auction process – Buyers prepare bidding project information – Buyers post project on portal – Identify potential suppliers – Invite suppliers to bid – Suppliers download project information – Suppliers submit electronic bid – Reverse auction in real-time, or it can take a few days – Buyers evaluate and award contract Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 55
Buy Side: Reverse Auctions (cont. ) • Web-based reverse auction process – Benefits: • Electronic process is faster • Administratively much less expensive • Enables location of cheapest possible products Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 56
Procurement Revolution at GE • TPN at GE Lighting Division – Purchasing was inefficient—too many administrative transactions • Process for each requisition took 7 days • Complex and time-consuming • Could only send out bids for 2 or 3 suppliers – Trading Process Network (TPN)—electronic bids • Entire process takes 7 days (for suppliers to bid) • 2 hours to send information to suppliers • Evaluate and award bids same day Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 57
Procurement Revolution at GE (cont. ) • Benefits to GE – Involvement in procurement process • Labor declined 30% • Material costs declined 5%-20%--wider base of suppliers online – Redeployment • 60% of the staff • Sourcing department concentrates on strategic activities instead of paperwork, etc. Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 58
Procurement Revolution at GE (cont. ) • Benefits to GE – Time to identify suppliers, prepare a request for bid, negotiate a price, and award the contract • Was 18 -23 days • Now 9 -11 days – Invoices automatically reconciled reflecting modifications – GE procurement departments share information about their best suppliers across the world Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 59
Procurement Revolution at GE (cont. ) • Benefits to buyers – Worldwide supplier partnerships – Current business partners • Strengthen relationships • Streamline sourcing process – Rapid distribution of information – Transmit electronic drawings to multiple suppliers – Decrease sourcing cycle time – Quick receipt and comparison of pricing bids Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 60
Procurement Revolution at GE (cont. ) • Benefits to suppliers – Increased sales volume – Expanded market reach, finding new buyers – Lowered administration costs for sales and marketing activities – Shortened requisition cycle time – Improved sales staff productivity – Streamlined bidding process Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 61
Procurement Revolution at GE (cont. ) • Deployment strategies – Start EC in one division and slowly go to all divisions – Use the site as public bidding marketplace to generate commission income to GE Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 62
Aggregating Catalogs • Aggregating suppliers’ catalogs: an internal marketplace – Maverick buying to save time leads to high prices – Aggregating all approved suppliers’ catalogs in one place • Reduced number of suppliers – Buyers at multiple corporate locations • Fewer and remote suppliers • Larger quantity/lower costs Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 63
Group Purchasing • Group purchasing—orders from several buyers are aggregated – Internal aggregation • Economy of scale • Reduced transaction processing cost – External aggregation • Aggregating demand online • Putting together orders from multiple buyers to make large volumes/lower costs Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 64
Electronic Bartering • Electronic bartering – Exchange of goods or services without the use of money – Exchange a surplus for other need – Bartering exchange • Submit surplus to exchange for points • Points used to buy what company needs – Benefits: • Faster than manually • Easier to match Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 65
Collaborative Commerce (C-Commerce) • Web-based systems used between and among suppliers for: – Communication – Design – Planning – Information sharing – Information discovery Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 66
Collaborative Commerce (C-Commerce) (cont. ) • Webcore construction goes online with its partners Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 67
Suppliers Extranet: Hudson Dayton Case Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 68
Collaborative Commerce (C-Commerce) (cont. ) • Reduce design cycle time by connecting suppliers: Adaptec, Inc. – Microchip manufacturer supplying electronic equipment makers • Outsources manufacturing tasks • Delivery times exceeded their competitors – Solution to the problem • Extranet and enterprise-level supply chain integrated software • Significantly reduced order-to-product delivery time Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 69
Collaborative Commerce (C-Commerce) (cont. ) Reduce product development time by connecting suppliers: Caterpillar, Inc. Heavy machinery manufacturer uses extranet Request for customized component directly to designers and suppliers ship to buyers Connect engineering and manufacturing division with worldwide • Suppliers • Distributors • Overseas Ε. Μ. Π. • Factories • Customers Ι. Βασιλείου --- Electronic Commerce Αγορές --- 70
Collaborative Commerce (C-Commerce) (cont. ) • Other examples of c-commerce – Tricon Restaurant International—global brand marketing management – RE/MAX—real estate franchiser improved communication and collaboration between independent owners – Marriott International—links corporations, franchising partners, suppliers, customers – Nygard of Canada—interorganizational collaboration Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 71
B 2 B Infrastructure • Server to host database and applications • Software for executing sell-side (catalogs) • Software for conducting auctions and reverse auctions • Software for e-procurement (buy-side) Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 72
B 2 B Infrastructure (cont. ) • • Ε. Μ. Π. Software for CRM Security hardware and software Software for building a storefront Telecommunications networks and protocols Ι. Βασιλείου --- Electronic Commerce Αγορές --- 73
Extranet and EDI • Secure interorganizational networks • Traditional EDI limits accessibility of small companies • Internet-based EDI offers wide accessibility to companies around the world Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 74
Extranet Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 75
Integration • • ERP software Customer, supplier, and other databases Legacy systems Catalog (product) information Inventory systems Sales statistics Decision support systems (DSS) and SCM applications Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 76
Integration (cont. ) • Integration with existing information systems – Issues in integrating with back-end information systems: • • • Ε. Μ. Π. Intranet-based work flow Database management systems (DMBS) Application packages ERP Back-end sell-side integration works for sellers but not buyers and vice versa Ι. Βασιλείου --- Electronic Commerce Αγορές --- 77
Integration (cont. ) • Integration with business partners – Easy integration with one company-centric side – Not easy to integrate for many buyers or sellers – Need buyer owned shopping cart that can interface with back-end information systems Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 78
Intelligent Agent-Based Commerce B 2 B Agents Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 79
Implementation Issues • Justification and prioritization – Must conduct cost benefit analysis of proposed projects – Include organizational impacts • Possible channel conflicts • Dealing with resistance to change due to processes reengineering – Cost-benefit analysis related to: • Finding B 2 B opportunities • Prioritizing potential initiatives Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 80
Implementation Issues (cont. ) • Vendor selection – Primary vendor uses its software and procedures, adds partners as needed – Integrator mixes and matches existing products and vendors to create “best of the breed” • Affiliate programs – Referral program – Useful for B 2 B intermediaries Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 81
Implementation Issues (cont. ) • Implementing e-procurement – Fit e-procurement into EC strategy – Review and change procurement process itself – If ERP or SCM is in place—integrate e-procurement, If not in place—BPR before implementation – Coordinate buyer’s information system with seller’s Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 82
Managerial Issues • B 2 B marketing—sell-side marketplaces require advertisement and incentives • Which models to use and when—need for implementation strategies and prioritization • Purchase process reengineering (BPR) – Establish buy-side marketplace on its server if volume is big enough to attract major vendors – Join third-party intermediary-oriented marketplace if volume is small Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 83
Managerial Issues (cont. ) • Integration—trading in e-marketplaces is interrelated with logistics – Particularly true in many-to-many exchanges – Company-centric marketplaces must integrate: • Logistics • Other support services Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 84
Managerial Issues (cont. ) • Business ethics – Accessing unauthorized areas in the tracing system should not be allowed – Privacy of partners should be protected technically and legally • Auctions—both forward and reverse – Benefits are substantial – Implementation is relatively simple – Considerable flexibility in implementation Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 85
Managerial Issues (cont. ) • E-procurement—critical success factors – Need to cut down number of routine tasks – Reduce overall procurement cycle using appropriate information technologies • • Ε. Μ. Π. Workflow Groupware ERP software B 2 B models Ι. Βασιλείου --- Electronic Commerce Αγορές --- 86
E-Marketplaces and B 2 B Exchanges Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 87
Opening Case: Chem. Connect & Covisint • Chem. Connect uses a B 2 C business model where customers look for: – Lowest price – Fast shipment – Good return policy – Helpful customer service Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 88
Chem. Connect & Covisint (cont. ) • Chem. Connect—world chemical exchange – Provides free membership in trading marketplaces and information portals • Public exchange floor for anonymous bids • Commodities floor for buying and exchanging • Corporate trading rooms—private online auctions – Up-to-the-minute market information – Large electronic catalog – Independent intermediary Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 89
Chem. Connect & Covisint (cont. ) • Covisint—e-market of automotive industry – B 2 B integrated buy-side marketplace • General Motors • Ford • Daimler. Chrysler – Entire industry gains • Lower costs • Easier business practices • Increased efficiency Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 90
Chem. Connect & Covisint (cont. ) • Covisint (cont. ) – “Co” stands for • Connectivity • Collaboration • Communication – “Vis” stands for visibility provided by the Internet – “Int” stands for integrated solutions Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 91
Chem. Connect & Covisint (cont. ) • Covisint (cont. ) – Collaborative commerce • Facilitate product design • Enable procurement process • Provide broad marketplace of buyers and suppliers – Vertical consortia trading exchange • Few large buyers • Many sellers (suppliers to the industry) Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 92
Trading Communities Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 93
B 2 B E-Marketplaces and Exchanges (cont. ) • • • Dynamic pricing Ownership of exchanges Gains and risks of B 2 B exchange participation Governance Organization of exchanges Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 94
Ελληνικά Marketplaces • Yassas – Περισσότεροι από 350 προμηθευτές του χώρου έχουν ήδη συμφωνήσει με το Yassas. com. Ήδη έχουν καταχωρηθεί στη βάση δεδομένων του συστήματος περισσότερα από 10, 000 προϊόντα ενώ μεταξύ των προμηθευτών που έχουν ήδη υπογράψει συμβόλαιο με το Yassas. com περιλαμβάνονται οι εταιρείες όπως Pepsico, SC Johnson, Vileda, Creta Farm, Λαζαρίδης, Lavazza, Misko-Barilla, Hepp, Υφαντής. – To Yassas. com υλοποιήθηκε πάνω στo i@Marketplace που με τη σειρά του βασίζεται σε state-of-the-art, καθιερωμένες και δοκιμασμένες τεχνολογίες ηλεκτρονικού εμπορίου (XML, LDAP, COM, κλπ) και ακολουθεί την τυποποιημένη πλέον 3 -tier Microsoft Windows DNA αρχιτεκτονική Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 95
Ελληνικά Marketplaces – 2 - • Be 24 – Η Business Exchanges S. A έχει αναλάβει τη δημιουργία της τεχνολογικής και υποστηρικτικής υποδομής, καθώς και την προσέγγιση αγοραστών και πωλητών για τη δημιουργία μιας Οριζόντιας καθώς και εξειδικευμένων Κάθετων Ηλεκτρονικών Αγορών μέσα στον επιχειρηματικό της κόμβο, www. be 24. gr. – Η Business Exchanges Α. Ε. είναι το αποτέλεσμα της συνεργασίας τριών κορυφαίων ελληνικών εταιρειών, της EFG Eurobank Ergasias, της Panafon-Vodafone και της Hellas On Line που ένωσαν τις δυνάμεις Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 96
Ελληνικά Marketplaces – 3 - • Cosmo-one – Η cosmo. ONE Hellas Market. Site A. E είναι η πρώτη εταιρία στην Ελλάδα που προωθεί εφαρμογές και υπηρεσίες ηλεκτρονικού εμπορίου, έχοντας ήδη δημιουργήσει μία Ηλεκτρονική Αγορά (Marketplace) αποκλειστικά για συναλλαγές μεταξύ επιχειρήσεων (Business to Business). – Στο μετοχικό κεφάλαιο της cosmo. ONE συμμετέχουν η COSMOTE (www. cosmote. gr), ο Οργανισμός Τηλεπικοινωνιών της Ελλάδος (www. ote. gr), η ΔΙΗΝΕΚΗΣ Πληροφορική (www. dienekis. gr) - που αντιπροσωπεύει το λογισμικό της Αμερικανικής εταιρείας Commerce One (www. commerceone. com) στην Ελλάδα, πάνω στο οποίο έχει αναπτυχθεί η Ηλεκτρονική Αγορά της cosmo. ONE - η Alpha Bank (www. alpha. gr) και η Εθνική Τράπεζα της Ελλάδος (www. nbg. gr). Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 97
Ελληνικά Marketplaces – 4 - • Onianet – Βελτίωση της αλυσίδας τροφοδοσίας λιανεμπορίου με χρήση προηγμένων τεχνολογιών πληροφορικής, αποθήκευσης και διανομής – Από τον Νοέμβριο 2001 θα συνδεθούν σταδιακά άλλες αλυσίδες, όπως επίσης και άλλοι προμηθευτές, δεδομένου ότι το ενδιαφέρον τους για συμμετοχή στην Ηλεκτρονική Αγορά της ΩΝΙΑ-ΝΕΤ έχουν ήδη εκφράσει οι εταιρίες: ΑΒ Βασιλόπουλος, Ένα, Τροφό, Ξυνός, Όμιλος αγορών ΕΛΕΤΑ, Agrino, BDF, Bingo, Chipita, Colgate-Palmolive, Georgia Pacific, Sara Lee, SC Johnson & Son, Schwarzkopf & Rilken, Wella, Αττική-Πίττας, Ελαϊς και Νίκας. Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 98
Η λειτουργία του Παγκόσμιου Εμπορικού Δικτύου (από MICROSOFT) H Αγορά GTW (Global Trading Web) Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 99
H Αγορά GTW (Global Trading Web) Συμμετέχοντες: • British Telecom , που έχει δημιουργήσει και λειτουργεί το BT Marketsite στην Αγγλία • Singapore Telecom, που έχει δημιουργήσει και λειτουργεί το SESAMi. net στη Νοτιοανατολική Ασία • Nippon Telephone and Telegraph, που έχει δημιουργήσει και λειτουργεί το NTΤ Marketsite στην Ιαπωνία • Cable and Wireless Optus, που έχει δημιουργήσει και λειτουργεί το Optus Marketsite στην περιοχή της Αυστραλίας - Νέας Ζηλανδίας • Banacci, που έχει δημιουργήσει και λειτουργεί το Banacci Marketsite στην Λατινική και Νότια Αμερική • Tοronto Dominion Bank, που έχει δημιουργήσει και λειτουργεί το TD Marketsite στoν Καναδά • EMediate Consortium, που έχει δημιουργήσει και λειτουργεί Market. Site στη Νότια Αφρική • Cosmo. ONE, Σύντομα… Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 100
Information Portals • Thomas register • Alibaba. com – The database – The portal’s features – Reverse auctions – Services – Languages – Revenue model • More on information portals Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 101
B 2 B Classified Ads Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 102
Supplier Aggregation Model Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 103
Buyer Aggregation Model Requests Responses - - - Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 104
Third-Party (Trading) Exchanges • Suitability of third-party exchanges – Fragmented markets – Buyer-concentrated markets – Seller-concentrated markets Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 105
Consortium Trading Exchanges (CTE) • CTE is a subset of third-party exchanges, the 4 types are: – Vertical, purchasing-oriented – Horizontal, purchasing-oriented – Vertical, selling-oriented – Horizontal, selling-oriented Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 106
Consortium Trading Exchanges (cont. ) • E-Procurement Consortia can be: – Vertical purchasing-oriented – Horizontal purchasing-oriented – Vertical selling-oriented • Selling-oriented consortia • Legal challenges for B 2 B consortia • Signals that may prompt legal scrutiny Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 107
Consortium Trading Exchanges (cont. ) • Critical success factors of consortia – Size of industry – Ability to drive user adoption – Elasticity—measure of incremental spending by buyers as a result of savings generated – Standardization of commodity-like products – Management of intensive information flow – Smoothing inefficiencies in supply chain Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 108
Dynamic Trading: Auctions and Matching • Matching • Auctions – Private trading rooms —members conduct auctions at the exchange – Auction services may be one of the activities – Exchange may be fully dedicated to auctions Ε. Μ. Π. – Market makers conduct matching supply and demand (e. g. , stocks) – More complex than auctions because they match: • • Ι. Βασιλείου --- Electronic Commerce Prices Quantities Times Locations Αγορές --- 109
Building and Integrating Marketplaces and Exchanges • • • Ε. Μ. Π. Step 1—Think ahead Step 2—Planning Step 3—System analysis and design Step 4—Building the exchange Step 5—Testing, installation, and operation Step 6—System evaluation and improvement Ι. Βασιλείου --- Electronic Commerce Αγορές --- 110
Building and Integrating Marketplaces and Exchanges (cont. ) • Integration – Between 3 rd-party exchange and back-office systems of participants – Across multiple, incompatible exchanges • External communications – Web/client access – Data exchange – Direct application integration – Share process Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 111
Building and Integrating Marketplaces and Exchanges (cont. ) • Process and information coordination—how to coordinate external communications with internal information systems External process Data transformation Internal process Exception handling • System and information management— involves management of: Software Information components Ε. Μ. Π. Hardware Ι. Βασιλείου --- Electronic Commerce Αγορές --- 112
Building and Integrating Marketplaces and Exchanges (cont. ) • Shopping carts—allow customers to shop at any participating vendor – Buyer maintains order information on its own site in order to integrate it with its internal e-procurement system – Sell-side cannot support this capability – B-cart approach: cart resides on buyer’s PC instead of seller’s site – Interoperable interface between heterogeneous emarketplaces and e-procurement system Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 113
The B-Cart Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 114
Managing Exchanges • Revenue models – Transaction fees – Fee for service – Membership fees – Advertisement fees • Networks of exchanges • Centralized management • Finding a CEO and independent management team Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 115
Critical Success Factors • Early liquidity – Liquidity refers to volume of business conducted – Business’s chance of survival is best when liquidity is achieved early • Right owners – Partner with companies that can bring liquidity to the exchange – Best owner may be intermediary that can push both buyers and sellers Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 116
Critical Success Factors (cont. ) • Right governance – Good management and fair /effective operations and rules are critical – Governance provides: • The rules for the exchange • Minimized conflicts • Decision making support – Good management induces necessary liquidity Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 117
Critical Success Factors (cont. ) • Openness – Exchanges must be open to all from: • Organizational point of view • Technical point of view – Open standards require: • Commitment by all involved • Universal agreement on the standards – Using the wrong standards can hurt the exchange Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 118
Critical Success Factors (cont. ) • Full range of services – Participants are attracted by an exchange that helps cut costs – Exchanges team up with banks, logistic services and IT companies to help • Importance of domain expertise – Market makers need an in-depth understanding of: • • Ε. Μ. Π. The industry Business processes inherent in the industry Knowledge of industry structure Government and policy stipulations Ι. Βασιλείου --- Electronic Commerce Αγορές --- 119
Critical Success Factors (cont. ) • Targeting inefficient industry processes – Contribute to increased costs and time delays – Vertical exchanges can add value • Targeting right industries – – – Ε. Μ. Π. Large base of transactions Many fragmented buyers and sellers Difficulties bringing together buyers and sellers High vendor and product search/comparison costs Strong pressure to cut expenses Ι. Βασιλείου --- Electronic Commerce Αγορές --- 120
Critical Success Factors (cont. ) • Brand building is critical – Increase switching costs by adding features and functionality – Invest in: • Gaining brand awareness • Attracting businesses to exchange • Customer retention Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 121
Critical Success Factors (cont. ) • Exploiting economics of scope – Value-added services make exchange compelling • Industry news • Expert advice • Detailed product specification sheets – Adjacent services • Banks and financial information providers • Identification supported by sophisticated digital certificate architecture Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 122
Critical Success Factors (cont. ) Choice of business/revenue models • Garner diverse and multiple revenue streams – Software licensing – Advertising – Sponsorship Ε. Μ. Π. • Critical mass of users will garner more valueadded services – – Auction services Financial services Business reporting Data mining services Ι. Βασιλείου --- Electronic Commerce Αγορές --- 123
Critical Success Factors (cont. ) • Blending content, community, and commerce – Content and community perspective—stimulate traffic – EC transaction perspective—creates higher level of customer “stickiness” • Managing channel conflict – Hostile phase as buyers interact directly with sellers (disintermediation of supply chain) – Short-term revenues impacted by backlash from existing fulfillment channels result in price erosion affecting medium-term profitability Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 124
B 2 B Networks and Extranet • The Internet • Intranets—intra-business delivery systems • Extranets Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 125
An Extranet Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 126
Implementation Issues • Problems with exchanges – Problems with public exchanges • • • Ε. Μ. Π. Transaction fees Cost savings Recruiting suppliers Too many exchanges Supply chain improvements Ι. Βασιλείου --- Electronic Commerce Αγορές --- 127
Implementation Issues (cont. ) • Problems with private exchanges – Lack of trust – Liquidity is questionable • Software agents in B 2 B exchanges • Disintermediation • Evaluating exchanges Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 128
Managerial Issues • Plan most secure and economical choice for implementation • Review current network and find out if it can be replaced by intranets or extranets • Participate in which exchange? • Determine in which exchange to participate Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 129
Managerial Issues (cont. ) • Joining exchange may require a BPR of internal supply chain • Channel conflicts may arise when a company joins an exchange • Risks of joining an exchange must be carefully considered Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 130
B 2 B Support Services Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 131
Hewlett Packard Closes the Payment Gap in B 2 B E-Commerce • HP payment solution—seamless electronic B 2 B payment – Two components are preintegrated and provide end-toend automation • Embedded options that establish rules to facilitate direct debit payment options – Buyer accounts – Purchasing limits – Corporate discounting • The system connects all these accounts with their online financial institutions Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 132
Hewlett Packard Closes the Payment Gap in B 2 B E-Commerce (cont. ) • HP payment solution – The integrated system reduces cost of: • Order processing • Contract administration • Customer service – Captures and analyzes information that allows company to offer unique purchasing experience • Customers—best value online experience • Partners—handle complex transactions quickly and securely • Employees—reduce cost and time for processing Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 133
Electronic Commerce Services and Analysis Insert Fig 8. 1 here Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 134
EC Services: Overview & Services (cont. ) – Why outsource B 2 B services? • • • Desire to concentrate on core business Need to have services up and running quickly Lack of expertise for support services Economy of scale for project not possible from inside In-house options do not keep up with rapidly changing demands • Too many services for one company to handle Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 135
EC Services: Overview & Services (cont. ) – Steps in the process of developing and managing EC applications • EC strategy formulation • Application design • Building (or buying) application • Hosting, operating, and maintaining EC Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 136
EC Application Development Process Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 137
Τhe Evolution of E-Marketplaces Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 138
Consulting Services • Technology • E-strategy – Consultants help determine which specific EC applications to implement – First step in infrastructure development Ε. Μ. Π. – Consultants advise companies on technology issues • EC architecture • Security Ι. Βασιλείου --- Electronic Commerce Αγορές --- 139
Consulting Services (cont. ) • Four types of consulting firms – Provide expertise in area of EC – Traditional firms that maintain divisions focused on EC – A large firm that consists of many small firms that specialize in EC – Hardware and software vendors that provide consulting services Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 140
Application-Building Services and Required Standards • Services that support B 2 B applications – Utilized by in-house design teams putting together system that incorporates best-of-breed EC components (building blocks) – Vendors and system integrators may do the job – EC components can be: • Special-purpose niche tools (tax-calculation) • Broad packages that facilitate all aspects of successful transactions online Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 141
Application-Building Services and Required Standards (cont. ) • Industry standards—XML, XSL, and support organizations – Efficient interaction between B 2 B companies necessitates connection of: • Servers • Applications • Databases – Standard protocols and data representation schemes are needed Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 142
Application-Building Services and Required Standards (cont. ) • Industry standards – XML—improve compatibility between disparate system by defining meaning of data in business documents – XSL– and XML require international agreements and cooperation – Support organizations • UN body for facilitation of EC • W 3 C—XML and other EC standards • Rosetta. Net—supply chain topics Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 143
ELECTRONIC COMMERCE SUPPORT SYSTEMS • WEB HOSTING SERVICES: provides large servers for Web sites of fee-paying customer • ELECTRONIC PAYMENT SYSTEMS: using Web for electronic funds transfers, credit , smart & debit cards Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 144
Electronic Commerce Servers • ICAT: on-line catalog shopping, order placement (Icat) • NET. COMMERCE: merchant server supporting Secure Electronic Transactions protocol (IBM) • Merchant. Xpert: : search tools, order management, tax, payment, logistics modules (Netscape) • Microsoft - Commerce Server 2000 Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 145
Electronic Commerce Services • OPEN MARKET TRANSACT: customer authentication, order & payment processing, tax, multi-language customer service (Open Market) • INTERNET COMMERCE SERVER: integrates orders, inventory, customer service, payments (Oracle) Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 146
Web Hosting and Other Services • Business hosting—hosting is popular for SMEs; large businesses need more advanced services – Dedicated server—assigned for specific purpose or customer – Co-location (physical location for the server) – Free Web hosting attractive option for small start-ups • Provider company inserts a banner ad on their site • Starting point for small company—minimize start-up costs Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 147
Web Hosting and Other Services (cont. ) • Sources of information about Web hosting – Web Host Review (hostreview. com): how to select free Web hosting based on various criteria – Host Search (hostsearch. com): search engine recommends best host based on: • Monthly cost • Disk space requirements • Monthly transfer volume • Other – Web. Hosting Magazine (whmag. com): comprehensive information for members of Web hosting industry and those looking for outsources Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 148
Web Hosting and Other Services (cont. ) • Management service provider (MSP) – Deliver IT infrastructure management services – Multiple customers over networks on a subscription basis – Specialize in e-business and enterprise solutions – See imspassociation. org and crosscommerce. com Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 149
Web Hosting and Other Services (cont. ) • End-to-end solutions – Builds Web sites and EC applications from conceptual design to deployment – Also supply: • • • Ε. Μ. Π. Payment systems Delivery management Site monitoring Other services See bccentral. com and Web. Vision. com Ι. Βασιλείου --- Electronic Commerce Αγορές --- 150
Participants and Process of Using a Purchasing Card Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 151
Financial B 2 B Services (cont. ) • Payments (cont. ) – Electronic letters of credit • Benefits to seller – Credit risk reduced – Payment highly assured – Political/country risk reduced • Benefits to the buyer – Allows negotiation of lower purchase price – Expansion of supply sources – Payment received after document inspected by issuing bank Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 152
Financial B 2 B Services (cont. ) • Payments (cont. ) – Payments in B 2 B global trading – Venture capital to fund e-commerce initiatives – Internet incubators – Tax calculation services • • DPC Hot. Samba Sales tax clearinghouse Taxware international – Implementing tax collection in the U. S. Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 153
Financial B 2 B Services (cont. ) • Payments (cont. ) – Other financial services • • • Ε. Μ. Π. Credit reporting firms New credit intermediaries broker credit risks Assurance firms guarantee quality Exchanges strike insurance deals E-credit services Ι. Βασιλείου --- Electronic Commerce Αγορές --- 154
Transaction-Based Financing Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 155
Order Fulfillment, Logistics, and Supply Chain Services UPS Logistics Group – Manages complex • Supply chain management – Reengineering & managing complex supply chains • • Ε. Μ. Π. • Transportation services • • Transportation networks Dedicated fleets Carriers Multimodel shipments Supplier Manufacturer Distributor Customer Ι. Βασιλείου --- Electronic Commerce Αγορές --- 156
Order Fulfillment, Logistics, and Supply Chain Services (cont. ) • Parts distribution – Comprehensive return-and-repair – Parts distributions operations • Logistics technologies – Integration of logistics information systems – Services to provide supply chain visibility Ε. Μ. Π. • EC solutions – Logistics services – Web-based businesses worldwide • Global services – Logistics facilities – Staffing – Expertise about global commerce Ι. Βασιλείου --- Electronic Commerce Αγορές --- 157
Order Fulfillment, Logistics, and Supply Chain Services (cont. ) • Call center services – Customer care – Communications (call center services to EC capabilities) • Financial services—full range of financial services that complement: • Solutions for EC initiatives – – – Logistics – Transporting – Additional business needs Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Tracking systems Product return systems Shipping solutions E-document exchange Customization • EC software/providers • E-services/partners Αγορές --- 158
Marketing and Advertisement • Advertising methods used by offline marketers – Vertical trade show – Ads in industry magazines – Salespeople call on: • Existing customers • Potential buyers • Digital advertisers – Ad server network provider – Electronic wholesalers Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 159
The Architecture of Ad Server Networks Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 160
Affiliate Programs • Affiliate programs (B 2 C services) – Affiliates invited to put a banner of a vendor on their sites – Consumer clicks on the banner and brings up that company’s EC site – Commission paid to affiliate if customer makes a purchase Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 161
Infomediaries • Infomediary services – Collect data about consumer behavior – Analyze it – Repackage it – Sell the results • As marketing and profiling information • Purpose to increase customer loyalty – Identify likely buyers • Increased sales • Reduced marketing costs Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 162
Online Data Mining Services • Clickstream data—data collected by monitoring what people do online • Analyzed and mined to produce useful knowledge used to improve: – Services – Marketing efforts • Firms use these services to extend their ability to execute EC a successful strategy – Net. Tracker – Web. Trends Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 163
Other Marketing Services • Three examples of other services: – Digitalcement. com provides corporate marketing portals; builds stronger relationships with customers – Vantagenet. com free tools that help ease traffic to a company’s Web site – Businesstown. com has an online directory that enables small businesses to identify and evaluate service companies Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 164
Digital Delivery Content Life Cycle Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 165
Content Generation, Syndication, Delivery, and Management (cont. ) • • Syndication Content-delivery networks (CDNs) Catalog content Content management options – Do it yourself – Let the suppliers do it – Buy the content from an aggregator – Subscribe to a vertical exchange – Outsource to full-service Internet exchange Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 166
Content Generation, Syndication, Delivery, and Management (cont. ) • Content maximization and streaming services— companies provide media rich content to reach target audience – Video clips – Music – Flash media • Use content delivery solutions that do not cause “traffic jams” with slow download times (e. g. , Akamai Corporation) Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 167
Directory Services & Search Engines • Directory services – – – – – Ε. Μ. Π. B 2 Business. net B 2 BToday. com Communityb 2 b. com A 2 zofb 2 b. com I-stores. co. uk Websteronline. com Thomasregister. com Bocal. com B 2 b. yahoo. com • Search engines and news aggregators – Moreover. com – Google. com – Ientry. com • Newsletters Ι. Βασιλείου --- Electronic Commerce Αγορές --- 168
E-Communities • E-communities – Chat rooms – Bulletin boards – Personalized Web pages • B 2 B are basically communities of transactions – – Classified ads Job vacancies Announcements Industry news Ε. Μ. Π. • E-communities connect: – – Personnel Partners Customers Any combination of these three • Service providers – Design of exchange portals – E-community service Ι. Βασιλείου --- Electronic Commerce Αγορές --- 169
Partner Relationship Management (PRM) • In B 2 B environment the partners include: – Suppliers – Partners in joint ventures – Service providers • PRM—relies on: – – Trust Commitment Quality of services Continuity Strategy for e-service How much to invest in services What services to provide Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 170
Other B 2 B Services • Trust services • Trust Trademark and domain names • Digital photos • Global business communities • Client matching Ε. Μ. Π. • • • E-business rating sites Promotion programs Encryption sites Web research services Coupon-generating sites Ι. Βασιλείου --- Electronic Commerce Αγορές --- 171
Integration • Integration in e-marketplaces and exchanges – B 2 X hubs connect: • • • Ε. Μ. Π. All Internet business services Merchant services Exchange infrastructure Buying and selling Member enterprises Other B 2 X exchanges Ι. Βασιλείου --- Electronic Commerce Αγορές --- 172
Hypermediation • Hypermediators are: – Content providers – Affiliate sites – Search engines – Portals – ISPs – Software makers – Other entities Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 173
Managerial Issues • Which services and to what level? • Complex decision situation for managers; use: – Check out the competition – Vendors can provide useful direction – Read white papers etc. – Hire a reputable EC consultant Ε. Μ. Π. • Selecting service providers— – Public ratings and rankings of service providers – Talk to others in the industry – Examine growth rate of provider’s business – Try vendor with small projects first Ι. Βασιλείου --- Electronic Commerce Αγορές --- 174
Managerial Issues (cont. ) • E-infrastructure—large part of outsourcing funds go to e-infrastructure • Join ventures—look for potential partnerships with service providers • End-to-end outsourcing vs. best-of-breed – Complete end-to-end service – Different vendors for best-of-breed approach Ε. Μ. Π. Ι. Βασιλείου --- Electronic Commerce Αγορές --- 175
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