This document discusses managing e-business and business-to-business e-commerce. It covers how e-business influences company strategy, including strategies of low cost leadership, differentiation, and niche markets. It also discusses the benefits of e-business for each strategy, technological infrastructure and integration needs, and moving from EDI to XML standards for business-to-business data exchange.
35. Putting Them Together middleware legacy wrapper accounting system application system 1 application system 2 Enterprise Application Integration
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40. Business Process Flow and Integration See “Workflow and EAI” Bottom line: when crafting your EAI strategy, you won’t just be integrating technology, you’ll be integrating processes (people, material, etc.) legacy wrapper decision support system worker accounting system
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44. EDI Information Flows Transportation Carrier Buyer Supplier Supplier’s Bank Buyer’s Bank 1 Purchase Order 7 Invoice 3 EFT, Payment Remittance Notice 2 Payment Authorization 4 Remittance advice 5 Bill of Leading 6 Shipping notice
45. EDI Standards Sample Payment Transaction Set CONTENTS: Company A is paying Company B’s bank account (# 98765432) the sum of US $59,400 for three invoices in the amounts of $10K, $20K, and $30K; each invoice amount is discounted by 1 percent. ANSI X12 820, version 003.020 ST*820*0101 BPR*C*59400*C*SWT********02*BANKXX*DA*98765432 TRN*1*0101 DTM*007*0920515 ENT**0101 N1*PR*COMPANY A N1 *PE*COMPANY B RMR*IV*101*PO*9900*10000*100 RMR*IV*102*PO*19800*20000 RMR*IV*103*PO*29700*30000*300 SE*11*0101
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55. Business to Business E-business: Supply Chain Management, Buy/Sell Applications and e-Markets
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62. The Supply Chain Raw Materials Refine / Prepare Produce Transport Distribute Retail Customer Dr. James R. Holt, PE (WSU)
63. Individual Member of Chain Independent Business Component Process Supplier Client Transactions Transactions Purchase Receive Check Pay Internal Processing Sell Deliver Invoice Collect Profit=Sales-Purchase-Inventory Cost-Overhead Dr. James R. Holt, PE (WSU)
64. Supply Chain Diagram Direct Materials Lumbar Company Wood Mills Finished Wood Wholesaler #1 Furniture Maker Furniture wholesaler Furniture store End Customers Finished Wood Wholesaler #3 Finished Wood Wholesaler #2
66. Supply Chain Lumbar Company Wood Mills Finished Wood Wholesaler #1 Furniture Maker Furniture wholesaler Furniture store End Customers Finished Wood Wholesaler #3 Finished Wood Wholesaler #2
67. Supply Chain: Focus on One Firm Lumbar Company Wood Mills Finished Wood Wholesaler #1 Furniture Maker Furniture wholesaler Furniture store End Customers Finished Wood Wholesaler #3 Finished Wood Wholesaler #2
68. B2B Applications – The Value Chain Lumbar Company Wood Mills Finished Wood Wholesaler #1 Furniture Maker Furniture wholesaler Furniture store End Customers Finished Wood Wholesaler #3 Finished Wood Wholesaler #2 Administrative Coordination & Support Services Human Resource Management Technology Development Procurement of Resources Inbound Logistics Operations Outbound Logistics Marketing and Sales Customer Service
69. Flows in the Supply Chain Information Money $$$ Materials and goods Manufacturer Assembler Distributor Raw materials supplier Seller End Customer Execution Planning
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71. Short & Long Duration Chains Dairy Cows Creamery Deliver Retail Customer Farmer Cannery Wholesale Retail Customer Dr. James R. Holt, PE (WSU)
72. Complex Combinations Brakes Tires Bumpers Upholstery Engine Transmission Manuf. Car Car Lot Car Lot Car Lot Dr. James R. Holt, PE (WSU)
73. Dedicated Supply Chain Mine Smelter Rolling Mill Product Steel Sales Independent Business Unit Independent Business Unit Independent Business Unit Single Firm - Totally Owned Industry - Sole Source Transfer Prices Fixed by Policy Dr. James R. Holt, PE (WSU) Single company
74. Competitive Link Opportunity Oil Well Refinery Chemical Plant Cloth Mill Dress Factory Customer Oil Well Refinery Chemical Plant Cloth Mill Dress Factory Customer Oil Well Refinery Chemical Plant Cloth Mill Dress Factory Customer Transfer Prices at Market Prices Dr. James R. Holt, PE (WSU)
75. Managing the SC MRP System Design Specifications (click here) Managing the SC is a full time job for a big chunk of a company’s staff.
112. E-Market Example: WWRE Founded in 2000 by a group of retailers including J.C. Penney, and Gap (now >60 members) Standardized processes for tendering and bidding Helps retailers find more efficient suppliers and better prices Auctions that factor in transportation costs, different currencies
119. Types of E-Markets 1 – Aggregation: consolidating buyers (or sellers) to reduce transaction costs 2 – Matching: linking a buyer with a seller (NASDAQ). Sellers are only sellers, buyers are only buyers 1 & 2 1 & 2 1 1