Virtual Marketplace on the Internet by Zaharije Radivojevic

Virtual Marketplace on the Internet by Zaharije Radivojevic, zaki@galeb. etf. bg. ac. yu Prof. Dr. Veljko Milutinovic, vm@etf. bg. ac. yu

Definition: It is an Internet based trading community that makes it easier for several participants to: Buy and sell products or services Negotiate terms of agreements Find relevant product information Design product or service Assemble product or service 2

Bring buyers and sellers together using: § Electronic shopping malls § Shopping agents § Electronic auctions § Barter exchanges 3

Marketplace: Evolution 4

Marketplace: Evolution 5

Marketplace: Evolution 6

Marketplace: Evolution 7

Part One: Major Issues

Structure of Virtual Marketplace Transaction -Administration Buyers -Catalogs/RFE -Dynamic Trade Web Browser & Buy Side App. Content mgmt. -Loading -Cleansing -Updating marketplace VAS -Logistic SCC -Financial -Design Service Collaboration -Suppliers -Collaborative Certification Planning Sellers Web Browser & Buy Side App. 9

Structure of Virtual Marketplace § Transaction § Content management § VAS-Value Added Services § SCC-Supply Chain Collaboration Buyers Virtual Marketplace Sellers 10

Dynamics of a Virtual Marketplace 11

Unpredictable Behavior of a Value Chain 12

Virtual Marketplace Models § Industry-Sponsored (Consortium) Marketplaces § Independent Trading Exchange § Private exchange 13

Problems of Virtual Markets § Trust, Confidence, Security § Change in Market Power § Voluntary Participation § User Understanding § Design of Systems 14

Promises § § § § Quick and Reliable Integrating suppliers and customers Improved distribution visibility Increase interaction on requirements/solutions Lower cost channel to broad market Up-to-the-minute Fast, efficient matching 15

Part two: Internet-based Tools and Techniques

Technology Is Just the Visible Part Technology User Skills Culture Security and Privacy • Processes Design Organizational Structures 17

Electronic Currency: The Roots of Current Innovations § Consumer Transactions § Business Transactions § Smart Cards § Payments over the Internet 18

Digital Signatures and Electronic Currency on the Internet § Public-Key Cryptography § Protecting the Security of Financial Transactions § Protecting the Authenticity of Financial Transactions 19

Digital Signatures 20

Part Three: Examples

Examples § Telcobuy. com, a specialized B 2 B electronic trading hub for networking solutions. § GM, Ford & Daimler/Chrysler collaborate to develop Covisint, estimated $ 300 Billion annual spend. § e-Steel established E-Marketplace for steel industry. § The SAP Service Marketplace is an online hub for professional solutions and services. 22

Telcobuy. com § Private B 2 B e-Marketplace § Telecommunications Infrastructure § Robust, e-Business Infrastructure § Electronic Procurement & Logistics 23

Telcobuy. com § Over 400 employees § $610 Million in 2000 § Over $1 Billion in 2001 § ISO 9002 certified § TL 9000 certified 24

Part Four: Case Study

Oracle Exchange

Oracle Exchange § Oracle Exchange Marketplace § Oracle Product Development Exchange § Oracle Supply Chain Exchange § Oracle Transportation 27

Oracle Exchange Marketplace § Product Development § Order Fulfillment § Manufacturing § Procurement § Planning 28

Oracle Exchange Marketplace 29

By Zaharije Radivojevic, zaki@galeb. etf. bg. ac. yu Prof. Dr. Veljko Milutinovic, vm@etf. bg. ac. yu