Electronic Commerce BusinesstoBusiness Copyright 2003 Paradigm Publishing Inc

Topics Business-to-Business Electronic Commerce B 2 B in the U. S. Economy The Supply Chain Other B 2 B E-Commerce Applications Internet Structures that Facilitate the B 2 B Supply Chains Establishing a B 2 B Web Site Major Types of B 2 B Software B 2 B E-Commerce Issues Types of B 2 B Players On the Horizon Topics Copyright 2002, Paradigm Publishing Inc. 9 -2

Business-to-Business Electronic Commerce B 2 B business sellers buyers to business intrabusiness Topics Copyright

Growth By 2005, computer and telecommunications industry will become the largest market Growing pains – – expensive time-consuming compatibility security Topics Copyright 2002, Paradigm Publishing Inc. 9 -4

Factors Driving the Growth Basic Business Goals efficiency service quality productivity profitability New Global Economy free market -local -national -international Information Channel information that is current, accurate comprehensive Information Exchanges -product -customer -supplier -production -shipping -inventory -competitor -sales and marketing -manufacturing Topics Copyright 2002, Paradigm Publishing Inc. 9 -5

The Supply Chain Supply chain: series of activities a company performs to achieve its goals at various stages in the production process – efficiency at each stage affects the final product Interdependence: a business’s decisions and actions may be dependent upon others Production stages – input: centered on procurement • searching, finding, purchasing materials – just-in-time: correlates the date and time of manufacture and delivery Topics Copyright 2002, Paradigm Publishing Inc. 9 -6

Using the Internet to Automate the Supply Chain Creating a map of business operations – understand each link and how they fit together – coordinate and test system – software available to automate production processes Meeting the challenges of automating the supply chain – expensive – time-consuming – evaluate outsiders’ processes and update to work on internal system – testing – training Topics Copyright 2002, Paradigm Publishing Inc. 9 -7

Internet Structures that Facilitate B 2 B Supply Chains Several ways to communicate and exchange information Type of structure chosen depends on the needs of the firm Topics Copyright 2002, Paradigm Publishing Inc. 9 -8

Web Sites Topics Copyright 2002, Paradigm Publishing Inc. 9 -9

Intranets and Extranets Intranet efficient transfer and retrieval of information by authorized employees within an organization Extranet people inside and outside the business can communicate and access stored information Topics Copyright 2002, Paradigm Publishing Inc. 9 - 10

Virtual Private Networks uses encryption and other security technologies to ensure that only authorized users can access the network and data cannot be intercepted tunneling enables one network to send its data via another network’s connections Topics Copyright 2002, Paradigm Publishing Inc. 9 - 11

Major Types of B 2 B Software Designed for – – manufacturing service organizations

Electronic Data Interchange Advantages: lower costs reduced time decreased paper flow reduced data entry errors more reliability primarily used to transfer repetitive business transactions Topics Copyright 2002, Paradigm Publishing Inc. 9 - 13

Payment and Transfer Systems Financial electronic data interchange – electronic transmission of payments among a payer, a payee, and their respective banks Automated clearinghouse – transferring funds electronically from one account to another account Electronic signatures – digital code attached to an electronically transmitted message to uniquely identify sender Topics Copyright 2002, Paradigm Publishing Inc. 9 - 14

Security Technologies Encryption and Authentication Trusted Operating Systems Topics Copyright 2002, Paradigm Publishing Inc.

Customer Relations Management All aspects of a company’s interaction with its customers and suppliers Packaged and customized software assists with customer relations – – – offer product selections outline payment methods keep track of customers develop detailed consumer profiles provide technical support Topics Copyright 2002, Paradigm Publishing Inc. 9 - 16

Site Analysis Tools Visually inspecting and timing Online questionnaire Site analysis software – number of hits – visitor addresses – identification data Topics Copyright 2002, Paradigm Publishing Inc. 9 - 17

Types of B 2 B Players Vendors sell products Infomediaries Services set up electronic hub and provide special services provide services Brokers search for products and vendors for businesses Topics Copyright 2002, Paradigm Publishing Inc. 9 - 18

B 2 B in the U. S. Economy Retail – manage inventories and service customers Financial – up-to-the-minute stock and market trend information – process loans and checks Manufacturing – automate aspects of the supply chain functions Transportation – plan trips – purchase tickets Internal – facilitate employee collaboration – send out announcements takes place in all sectors of the economy Topics Copyright 2002, Paradigm Publishing Inc. 9 - 19

Other B 2 B E-Commerce Applications Advertising and Marketing new ways to advertise products over the Web Data Warehousing collection of related databases data mining is the technique used to collate and extract meaningful information Topics Copyright 2002, Paradigm Publishing Inc. 9 - 20

Establishing a B 2 B Web Site Obtain access to the Web Build a Web site – use own resources to develop and maintain a Web host – outsource: contract with a specialized outside company – build and manage part of the system while outsourcing other parts Design – more functional; less flashy – consider • who are the users • what are their goals • what is their context (where and when online) • what steps must users take to accomplish goals Incorporate business goals in site design – maximum speed and ease Topics Copyright 2002, Paradigm Publishing Inc. 9 - 21