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E-Commerce: Fundamentals and Applications Chapter 12 : Business-Oriented E-Commerce ________________________________________________________ E-Commerce: Fundamentals and Applications E-Commerce: Fundamentals and Applications Chapter 12 : Business-Oriented E-Commerce ________________________________________________________ E-Commerce: Fundamentals and Applications 1 Wiley and the book authors, 2001

Outline § Features of B 2 B E-commerce § Business Models § Integration ________________________________________________________ Outline § Features of B 2 B E-commerce § Business Models § Integration ________________________________________________________ E-Commerce: Fundamentals and Applications 2 Wiley and the book authors, 2001

Projection Growth of B 2 B E-Commerce 7297 Billons of dollars 3949 2188 953 Projection Growth of B 2 B E-Commerce 7297 Billons of dollars 3949 2188 953 403 145 45 1998 1999 2000 2001 2002 2003 2004 ________________________________________________________ E-Commerce: Fundamentals and Applications 3 Wiley and the book authors, 2001

Main features of B 2 B EC § § § high volumes of goods Main features of B 2 B EC § § § high volumes of goods traded high net value of goods traded multiple forms of electronic payment other payment methods permitted prior agreements or contracts between the partners higher level of information exchange between the different trading partners ________________________________________________________ E-Commerce: Fundamentals and Applications 4 Wiley and the book authors, 2001

B 2 B Business Models Three basic types of models: 1. A buyer-oriented e-commerce B 2 B Business Models Three basic types of models: 1. A buyer-oriented e-commerce system; 2. A seller-oriented e-commerce system; 3. A virtual market place (VMP) with multiple buyers and multiple sellers. ________________________________________________________ E-Commerce: Fundamentals and Applications 5 Wiley and the book authors, 2001

E-Procurement and Buy side EC Systems § Buyer-oriented e-commerce business models: §suitable for large E-Procurement and Buy side EC Systems § Buyer-oriented e-commerce business models: §suitable for large corporations §they include: §Intra-company activities §Inter-company activities ________________________________________________________ E-Commerce: Fundamentals and Applications 6 Wiley and the book authors, 2001

E-Procurement and Buy side EC Systems § Buy Side E-commerce system: §corporation does not E-Procurement and Buy side EC Systems § Buy Side E-commerce system: §corporation does not have to physically go out there searching for suppliers §they come to the corporation once it has signaled its potential needs. §all transactions are electronically handled. ________________________________________________________ E-Commerce: Fundamentals and Applications 7 Wiley and the book authors, 2001

Sell side EC Systems § Sell Side E-commerce systems: §producing or marketing products to Sell side EC Systems § Sell Side E-commerce systems: §producing or marketing products to a large number of small and large corporations. §one (supplier) to many (buyers) system. §example: Dell and Cisco -- permit customization by the configuration which the buyer wishes to purchase. ________________________________________________________ E-Commerce: Fundamentals and Applications 8 Wiley and the book authors, 2001

Sell side EC Systems § The Sell Side E-commerce system should provide: § product Sell side EC Systems § The Sell Side E-commerce system should provide: § product catalog § product configuration (if applicable) § business roles to allow automation of approval and ordering § customer service § fulfillment and shipping § accounts receivable/invoicing and electronic payment § monitoring of order status and account history ________________________________________________________ E-Commerce: Fundamentals and Applications 9 Wiley and the book authors, 2001

Virtual Markets § Provides a meeting place for many vendors and many buyers § Virtual Markets § Provides a meeting place for many vendors and many buyers § Digital Marketplaces, Infomediaries, Vertical Portals, Intermediary Oriented Marketplaces and Digital Exchanges § The most successful virtual markets are highly focused and address a specific sector of industry. § Examples of these include: § Boeing’s PART System § Chemdex. com (gone) § IPower. B 2 B. com (made-in-china. com) § Enron (gone) ________________________________________________________ E-Commerce: Fundamentals and Applications 10 Wiley and the book authors, 2001

Collaborative Supply Chain Management (SCM) § Information is exchanged is between two partners to Collaborative Supply Chain Management (SCM) § Information is exchanged is between two partners to allow a purchase to take place. § For corporations § it is important to not only optimize a single purchase segment between two parties § interaction between parties upstream of the purchase. ________________________________________________________ E-Commerce: Fundamentals and Applications 11 Wiley and the book authors, 2001