The document discusses various business-to-business (B2B) support services commonly provided by specialized e-service providers, including e-strategy consulting, application development, web hosting, financial services, logistics, marketing, content delivery, directories, e-communities, and integration services. It describes why companies outsource these services and provides examples of major service providers for different functions like payment processing, logistics, and web hosting.

1. Chapter 8 B2B Support Services

2. Learning Objectives Identify the major B2B services usually provided by specialized e-service providers Understand why EC services are frequently outsourced Describe the role and types of e-strategy consultants Understand the e-infrastructure process and the role of Web hosting and integration Describe various financial services in B2B

3. Explain the various B2B logistics services and order fulfillment services Differentiate B2C from B2B with respect to marketing, advertisement, and sales, and describe some B2B initiatives Describe content creation, syndication, delivery, and management Describe the role of directory services in B2B Describe how CRM is done in B2B and its relationships with e-communities Learning Objectives (cont.)

4. Hewlett Packard Closes the Payment Gap in B2B E-Commerce HP payment solution—seamless electronic B2B payment Two components are preintegrated and provide end-to-end 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

5. Hewlett Packard Closes the Payment Gap in B2B 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

6. Figure 8-1 Electronic Commerce Services and Analysis Insert Fig 8.1 here Source : Choi et al., The Economics of Electronic Commerce (Indianapolis: Macmillan Technical Publications, (1997), p. 18.

7. EC Services: Overview & Services (cont.) Why outsource B2B 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

8. Steps in the process of developing and managing EC applications EC strategy formulation Application design Building (or buying) application Hosting, operating, and maintaining EC EC Services: Overview & Services (cont.)

9. Figure 8-2 EC Application Development Process

10. Figure 8-3 The Evolution of E-Marketplaces

11. Consulting Services E-strategy Consultants help determine which specific EC applications to implement First step in infrastructure development Technology Consultants advise companies on technology issues EC architecture Security

12. 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

13. Application-Building Services and Required Standards Services that support B2B 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

14. Application-Building Services and Required Standards (cont.) Industry standards—XML, XSL, and support organizations Efficient interaction between B2B companies necessitates connection of: Servers Applications Databases Standard protocols and data representation schemes are needed

15. 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 W3C—XML and other EC standards RosettaNet—supply chain topics

16. 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

17. 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 WebHosting Magazine (whmag.com):comprehensive information for members of Web hosting industry and those looking for outsources

18. 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

19. Web Hosting and Other Services (cont .) End-to-end solutions Builds Web sites and EC applications from conceptual design to deployment Also supply: Payment systems Delivery management Site monitoring Other services See bccentral.com and WebVision.com

20. Figure 8-4 Participants and Process of Using a Purchasing Card Source : napcp.org/napcp.nsf/Cardparticipants!OpenPage. Used with permission of NAPCP.

21. Financial B2B 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

22. Financial B2B Services (cont.) Payments (cont.) Payments in B2B global trading Venture capital to fund e-commerce initiatives Internet incubators Tax calculation services DPC HotSamba Sales tax clearinghouse Taxware international Implementing tax collection in the U.S.

23. Financial B2B Services (cont.) Payments (cont.) Other financial services Credit reporting firms New credit intermediaries broker credit risks Assurance firms guarantee quality Exchanges strike insurance deals E-credit services

24. Figure 8-5 Transaction-Based Financing Source : Aberdeen Group, Inc. November 2000

25. Order Fulfillment, Logistics, and Supply Chain Services Supply chain management Reengineering & managing complex supply chains Supplier Manufacturer Distributor Customer Transportation services Manages complex Transportation networks Dedicated fleets Carriers Multimodel shipments UPS Logistics Group

26. 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 EC solutions Logistics services Web-based businesses worldwide Global services Logistics facilities Staffing Expertise about global commerce

27. 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: Logistics Transporting Additional business needs Solutions for EC initiatives Tracking systems Product return systems Shipping solutions E-document exchange Customization EC software/providers E-services/partners

28. 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

29. Figure 8-6 The Architecture of Ad Server Networks Source : Warkentin, Merrill, Vijayan Sugumaran, and Ravi Bapna. “eKnowledge Networks for Inter-Organizational Collaborative eBusiness,” Logistics Information Management, Vol. 14, No. 1/2, March 2001, pp. 149 – 162. Used with permission of MCB University Press.

30. Affiliate Programs Affiliate programs (B2C 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 © Prentice Hall, 2002

31. 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

32. 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 NetTracker WebTrends

33. 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

34. Figure 8-7 Digital Delivery Content Life Cycle

35. 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

36. 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)

37. Directory Services & Search Engines Directory services B2Business.net B2BToday.com Communityb2b.com A2zofb2b.com I-stores.co.uk Websteronline.com Thomasregister.com Bocal.com B2b.yahoo.com Search engines and news aggregators Moreover.com Google.com Ientry.com Newsletters

38. E-Communities E-communities Chat rooms Bulletin boards Personalized Web pages B2B are basically communities of transactions Classified ads Job vacancies Announcements Industry news E-communities connect: Personnel Partners Customers Any combination of these three Service providers Design of exchange portals E-community service

39. Partner Relationship Management (PRM) In B2B 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

40. Other B2B Services Trust services Trust Trademark and domain names Digital photos Global business communities Client matching E-business rating sites Promotion programs Encryption sites Web research services Coupon-generating sites

41. Integration Integration in e-marketplaces and exchanges B2X hubs connect: All Internet business services Merchant services Exchange infrastructure Buying and selling Member enterprises Other B2X exchanges

42. Hypermediation Hypermediators are: Content providers Affiliate sites Search engines Portals ISPs Software makers Other entities Google

43. 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 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

44. 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