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Business-to-Business Electronic Commerce
B2B Electronic Commerce Business Business “ Buyer” “ Supplier” ,[object Object],[object Object],B2B Market C ontent  C ommunity  C ommerce Transaction Process
The Basic Supply Chain B2C B2B R aw  M aterials M anufacturing W holesalers R etails C onsumer Transportation  & Logistics Transportation  & Logistics Transportation  & Logistics ,[object Object]
B2B  vs .  B2C E-Commerce R aw  M aterials M anufacturing W holesalers R etails C onsumer Market Chains Government Transportation Communications Banks Intermediaries B2C  E-commerce B2B E-commerce Business Business B2B Business Consumer B2C Suppliers Buyers
B2B EC Benefits ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Overall :  Increased market efficiency Greater market intelligence
E- Procurement ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
E- Procurement Benefits ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Why this topic is important ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Type of Electronic Markets ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Industry Focus
Type of Electronic Markets Industry Focus Database Magt. MRO Shipping Steel Food Auto Mining Mega-Exchange Vertical Market Horizontal Market
Global B2B ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
B2B in Australia ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
3 Market Functions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Key Entities of B2B EC ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Basic Models of B2B EC (1) ,[object Object],(Onwership Structure) Supplier 1 Supplier 3 Supplier 2 Buyer 1 Buyer 3 Buyer 2 Supplier-oriented Marketplace Supplier 1 Supplier 3 Supplier 2 Buyer 1 Buyer 3 Buyer 2 Intermediary-oriented Marketplace Buyer Third Party Supplier
Supplier-oriented Marketplace  ,[object Object],[object Object],[object Object],Buyer 1 Buyer 3 Buyer 2 Supplier-oriented Marketplace Supplier ,[object Object],[object Object],[object Object],Supplier’s products catalog Customer’s order information
Buyer-oriented Marketplace ,[object Object],[object Object],[object Object],Supplier 1 Supplier 3 Supplier 2 Buyer Buyer-oriented Marketplace ,[object Object],[object Object],Buyer’s product catalog (RFQ) Suppliers’ bids information
Intermediary-oriented Marketplace   ,[object Object],[object Object],[object Object],Supplier 1 Supplier 3 Supplier 2 Buyer 1 Buyer 3 Buyer 2 Intermediary-oriented Marketplace Third Party ,[object Object],[object Object],[object Object],[object Object],[object Object],shared products catalogs Customer’s order information Supplier’s products information
Models of B2B EC (2) (Other Business Models) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Kaplan & Sawhney’s B2B Matrix What businesses buy Operating Supplies Manufacturing Inputs Systematic Sourcing Spot Sourcing How businesses buy? B2B e-hub can be classified into four categories   Type of Product Type of Transaction Exchanges E-steel PaperExchange ChemConnect Yield Managers Employease.com iMark.com NTE Catalogue Hubs Chemdex.com SciQuest.com ElectricalWeb.com MRO Hubs Ariba MRO.com NetBuy.com
B2B EC: Market Mechanism ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
B2B EC : Online Catalog ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],B2B EC : Online Exchange ,[object Object]
B2B EC : Online Auctions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],B2B EC : Online Bartering ,[object Object],[object Object]
[object Object],[object Object],[object Object],B2B EC : Software Agents
[object Object],Type of Communication Network Distribution Channel Communication Stakeholder Relationship B2B Electronic Commerce Topology Relationship Extent Focus Organizational Extranet Internet Global Internal External Intranet Employee Information & Communication Business Partnership (1) Intranet  (2) Extranet (3) Internet
Communication Networks: ,[object Object],[object Object],[object Object],Intranets
Communication Networks: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Extranets
Communication Network: ,[object Object],[object Object],[object Object],[object Object],[object Object],Internet-based Electronic Markets ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Many Choices
Strategic design factors for B2B There are several issues a firm must consider before implementing an e-marketplace How is price determined for items being bought and sold? Price Mechanism How does the marketplace owner capture value form the marketplace?  And from whom? Revenue Source How much is the initial investment? What are the recurring costs? Cost/Investment Who has strategic and tactical control over the rules and regulations of the marketplace? Control What marketplace access restrictions are in place? Access What form should the B2B market take? Market Mechanisms  What does the marketplace offer those players Offering Who are the players in the marketplace? Audience
What it takes to win Relevant, value-added information. Content Superior GUI, searchability, configuration and transaction services. Ease of use Time, speed, security, etc. Other factors Open platform for easy participation and integration of all parties. Architecture Mission-critical solutions. Management  Greater marketing, distribution & logistics. Partnership  Achieve critical mass of buyers, suppliers, partners & distributors. First Mover Advantage Apply B2B model  to specific industries and markets. Domain Expertise
Optimal Decisions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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Business to Business Electronic Commerce

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  • 4. B2B vs . B2C E-Commerce R aw M aterials M anufacturing W holesalers R etails C onsumer Market Chains Government Transportation Communications Banks Intermediaries B2C E-commerce B2B E-commerce Business Business B2B Business Consumer B2C Suppliers Buyers
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  • 10. Type of Electronic Markets Industry Focus Database Magt. MRO Shipping Steel Food Auto Mining Mega-Exchange Vertical Market Horizontal Market
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  • 20. Kaplan & Sawhney’s B2B Matrix What businesses buy Operating Supplies Manufacturing Inputs Systematic Sourcing Spot Sourcing How businesses buy? B2B e-hub can be classified into four categories Type of Product Type of Transaction Exchanges E-steel PaperExchange ChemConnect Yield Managers Employease.com iMark.com NTE Catalogue Hubs Chemdex.com SciQuest.com ElectricalWeb.com MRO Hubs Ariba MRO.com NetBuy.com
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  • 32. Strategic design factors for B2B There are several issues a firm must consider before implementing an e-marketplace How is price determined for items being bought and sold? Price Mechanism How does the marketplace owner capture value form the marketplace? And from whom? Revenue Source How much is the initial investment? What are the recurring costs? Cost/Investment Who has strategic and tactical control over the rules and regulations of the marketplace? Control What marketplace access restrictions are in place? Access What form should the B2B market take? Market Mechanisms What does the marketplace offer those players Offering Who are the players in the marketplace? Audience
  • 33. What it takes to win Relevant, value-added information. Content Superior GUI, searchability, configuration and transaction services. Ease of use Time, speed, security, etc. Other factors Open platform for easy participation and integration of all parties. Architecture Mission-critical solutions. Management Greater marketing, distribution & logistics. Partnership Achieve critical mass of buyers, suppliers, partners & distributors. First Mover Advantage Apply B2B model to specific industries and markets. Domain Expertise
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