Chapter 12 : Business-Oriented E-Commerce Week 7
Outline <ul><li>Features of B2B E-commerce </li></ul><ul><li>Business Models </li></ul><ul><li>Integration </li></ul>
Projection Growth of B2B  E-Commerce Billons of dollars 1999 2001 2002 2003 2004 2000 1998 45 145 403 953 2188 3949 7297
Main features of B2B EC <ul><li>High volumes of goods traded </li></ul><ul><li>High net value of goods traded </li></ul><u...
B2B Business Models Three basic types of models: 1. A buyer-oriented e-commerce system; 2. A seller-oriented e-commerce sy...
E-Procurement and Buy side EC Systems <ul><li>Buyer-oriented e-commerce business models: </li></ul><ul><ul><li>suitable fo...
Schematic of Buy Side E-Commerce System Catalog of Bid Information Catalog of RFPs and RFQs Goods receiving, electronic pa...
Purchasing Using a Buy Side  E-Commerce System No Purchase requisition Ascertain if acceptable Submit purchase order Proce...
E-Procurement and Buy side EC Systems <ul><li>Buy Side E-commerce system: </li></ul><ul><ul><li>corporation does not have ...
Internal Activities in Procurement Process No Purchase requisition Ascertain if acceptable Submit purchase order Submit fo...
Sell side EC Systems <ul><li>Sell Side E-commerce systems: </li></ul><ul><ul><li>producing or marketing products to a larg...
Sell side EC Systems <ul><li>The Sell Side E-commerce system should provide: </li></ul><ul><ul><li>product catalog </li></...
Sell-Side E-commerce System Seller’s firewall Browsing, Selection & Configuration Order Requisition & Submission Electroni...
Connections in Sell-Side  E-Commerce Systems Business Connector Internet Catalog DB E-commerce Application Server Web Serv...
Virtual Markets <ul><li>Provides a meeting place for many vendors and many buyers </li></ul><ul><li>Digital Marketplaces, ...
Architecture of a Typical Virtual Market System Customer Buyer Vendor Vendor Database Virtual Market Application Server We...
Collaborative Supply Chain Management (SCM) <ul><li>Information is exchanged is between two partners to allow a purchase t...
Collaborative Supply Chain Management in Manufacturing Processes . . . . . . Raw material suppliers 1 Small component manu...
B2B EC communication using XML technology <ul><li>Supply chain management system (SCM) integration between different compa...
B2B EC communication using XML technology <ul><li>In order to provide B2B trading utilizing automatic data transfer, one c...
B2B EC Components in SCM System
B2B EC Solution Based on XML Technology
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Chapter 12 : Business-Oriented E-Commerce

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Chapter 12 : Business-Oriented E-Commerce

  1. 1. Chapter 12 : Business-Oriented E-Commerce Week 7
  2. 2. Outline <ul><li>Features of B2B E-commerce </li></ul><ul><li>Business Models </li></ul><ul><li>Integration </li></ul>
  3. 3. Projection Growth of B2B E-Commerce Billons of dollars 1999 2001 2002 2003 2004 2000 1998 45 145 403 953 2188 3949 7297
  4. 4. Main features of B2B EC <ul><li>High volumes of goods traded </li></ul><ul><li>High net value of goods traded </li></ul><ul><li>Multiple forms of electronic payment </li></ul><ul><li>Other payment methods permitted </li></ul><ul><li>Prior agreements or contracts between the partners </li></ul><ul><li>Higher level of information exchange between the different trading partners </li></ul>
  5. 5. B2B 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.
  6. 6. E-Procurement and Buy side EC Systems <ul><li>Buyer-oriented e-commerce business models: </li></ul><ul><ul><li>suitable for large corporations </li></ul></ul><ul><ul><li>they include: </li></ul></ul><ul><ul><ul><li>Intra-company activities </li></ul></ul></ul><ul><ul><ul><li>Inter-company activities </li></ul></ul></ul><ul><ul><ul><li>Next slide shows the schematic diagram of a Buy-side EC system </li></ul></ul></ul>
  7. 7. Schematic of Buy Side E-Commerce System Catalog of Bid Information Catalog of RFPs and RFQs Goods receiving, electronic payment Purchase order generation approval workflow & submission Browsing & selection facility Buyer Buyer’s firewall Supplier n Supplier 2 Supplier 1 … . Legend: RFPs : Requests for proposals RFQs: Requests for quotations
  8. 8. Purchasing Using a Buy Side E-Commerce System No Purchase requisition Ascertain if acceptable Submit purchase order Process order Submit for approval Ship & Invoice Receive order Payment Yes Corporation Supplier Approved
  9. 9. E-Procurement and Buy side EC Systems <ul><li>Buy Side E-commerce system: </li></ul><ul><ul><li>corporation does not have to physically go out there searching for suppliers </li></ul></ul><ul><ul><li>they come to the corporation once it has signaled its potential needs. </li></ul></ul><ul><ul><li>all transactions are electronically handled. </li></ul></ul>
  10. 10. Internal Activities in Procurement Process No Purchase requisition Ascertain if acceptable Submit purchase order Submit for approval Receive order Payment Yes Approved
  11. 11. Sell side EC Systems <ul><li>Sell Side E-commerce systems: </li></ul><ul><ul><li>producing or marketing products to a large number of small and large corporations. </li></ul></ul><ul><ul><li>one (supplier) to many (buyers) system. </li></ul></ul><ul><ul><li>example: Dell and Cisco -- permit customization by the configuration which the buyer wishes to purchase. </li></ul></ul>
  12. 12. Sell side EC Systems <ul><li>The Sell Side E-commerce system should provide: </li></ul><ul><ul><li>product catalog </li></ul></ul><ul><ul><li>product configuration (if applicable) </li></ul></ul><ul><ul><li>business roles to allow automation of approval and ordering </li></ul></ul><ul><ul><li>customer service </li></ul></ul><ul><ul><li>fulfilment and shipping </li></ul></ul><ul><ul><li>accounts receivable/invoicing and electronic payment </li></ul></ul><ul><ul><li>monitoring of order status and account history </li></ul></ul>
  13. 13. Sell-Side E-commerce System Seller’s firewall Browsing, Selection & Configuration Order Requisition & Submission Electronic payment Fulfillment, Shipping & Invoicing Order Status & Account listing monitoring E-commerce Application Supplier Catalog Buyer 1 Buyer 2 Buyer 3 Internet XML XML XML Buyer’s firewall
  14. 14. Connections in Sell-Side E-Commerce Systems Business Connector Internet Catalog DB E-commerce Application Server Web Server Customer Customer portal Customer Information System Web Server
  15. 15. Virtual Markets <ul><li>Provides a meeting place for many vendors and many buyers </li></ul><ul><li>Digital Marketplaces, Infomediaries, Vertical Portals, Intermediary Oriented Marketplaces and Digital Exchanges </li></ul><ul><li>The most successful virtual markets are highly focused and address a specific sector of industry. </li></ul><ul><li>Examples of these include: </li></ul><ul><ul><li>Boeing’s PART System </li></ul></ul><ul><ul><li>Chemdex.com </li></ul></ul><ul><ul><li>IPowerB2B.com </li></ul></ul>
  16. 16. Architecture of a Typical Virtual Market System Customer Buyer Vendor Vendor Database Virtual Market Application Server Web Server Database Server Virtual Market System Receiving Order & Catalog Maintenance Place Orders
  17. 17. Collaborative Supply Chain Management (SCM) <ul><li>Information is exchanged is between two partners to allow a purchase to take place. </li></ul><ul><li>For corporations </li></ul><ul><ul><li>it is important to not only optimize a single purchase segment between two parties </li></ul></ul><ul><ul><li>interaction between parties upstream of the purchase. </li></ul></ul>
  18. 18. Collaborative Supply Chain Management in Manufacturing Processes . . . . . . Raw material suppliers 1 Small component manufacturer 1 Module manufacturer 1 Module manufacturer k Small component manufacturer m Configuration or assembly of whole product by the manufacturer Raw material suppliers 2 Raw material suppliers n Raw material suppliers n-1 . . .
  19. 19. B2B EC communication using XML technology <ul><li>Supply chain management system (SCM) integration between different companies is important </li></ul><ul><li>Suppose a merchandiser in a department store (Company A) decides to place a purchase order (PO) to one of his/her suppliers (Company B) automatically via the Internet using XML format. </li></ul><ul><li>However, the databases involved for the applications being used in both companies &quot;Purchasing System &quot; for Company A and &quot;Sale System&quot; for Company B) might not be the same, in terms of database structure and type of database systems. </li></ul>
  20. 20. B2B EC communication using XML technology <ul><li>In order to provide B2B trading utilizing automatic data transfer, one can use XML technology </li></ul><ul><li>The main problem: </li></ul><ul><ul><li>making different systems in each company capable of interoperation with each other </li></ul></ul><ul><ul><li>one needs to address how automation of the updating of databases can be achieved in both companies </li></ul></ul>
  21. 21. B2B EC Components in SCM System
  22. 22. B2B EC Solution Based on XML Technology
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