Business-to-Business Electronic Commerce ( B2B-EC )

Transcription

1 Business-to-Business to-business Electronic Commerce ( B2B-EC ) Sistem e-businesse (MG-652) Jurusan Manajemen

2 Agenda Characteristics of B2B EC Models of B2B EC From Traditional to Internet-based EDI Integration with Back-End Information Systems Managerial Issues Summary 05 September 2002 Chandra Wibowo W. 2

3 Supplier-Oriented Marketplace Buyer-Oriented Marketplace Intermediary-Oriented Marketplace Virtual Corporation Networking between Headquarters and Subsidiaries Online Services to Business Supplier-Oriented Marketplace : Cisco Connection Online Buyer-Oriented Marketplace : GE's TPN Intermediary-Oriented Marketplace : Boeing's PART Just-In-Time Delivery : FedEx InterNetShop Direct Marketing Relationship Marketing Audience Strategy and Mailing Lists Electronic / Interactive Media Case Studies Models of B2B EC Electronic Marketing in B2B Business-to-Business Electronic Commerce Charecteristics of B2B EC Procurement Management Electronic Data Interchange Supply Chain Entities of B2B EC Electronic Marketing Procurement Management Electronic Intermediaries Just-In-Time Delivery Electronic Data Interchange Intranet Extranet Integration with Back-End Information Systems Online Service to Business Buyer's Internal Marketplace Issues in Procurement Management Inefficiency in Procurement Management Goals of Procurement Reengineering Traditional EDI Internet-Based EDI EDI and standards Applications of EDI Limitation of traditional EDI Reasons to create intenet-based EDI Types of internet-based EDI Prospect of internet-based EDI 05 September 2002 Chandra Wibowo W. 3

4 Characteristics of B2B EC B2B EC implies that both the sellers and buyers are business corporations, while B2B EC implies that the buyers are individual consumers. B2B EC covers a broad spectrum of applications that enable an enterprise or business to form electronic relationships with their distributors, resellers, suppliers, and other partners. B2B applications will offer enterprises access to the following sorts of information: product, customer, supplier, product process, transportation, inventory, supply chain alliance, competitor, sales & marketing, supply chain process & performance. 05 September 2002 Chandra Wibowo W. 4

5 Supply Chain The supply chain encompasses all the activities associated with the flow and transformation of goods from the raw materials stage all the way to the end user. Taken together these processes and roles are called a supply chain. Historically, many of the process in the supply chain, have been managed with paper transactions. this is where B2B EC applications come into play. 05 September 2002 Chandra Wibowo W. 5

6 Entities of B2B EC The Internet can provide the most economical B2B EC platform for linking companies without additional network implementation. B2B EC can contribute to lower purchase costs, reduced inventory, enhanced efficiency of logistics, as well as to increased sales and lowered sales costs and marketing costs. The key entities in B2B EC are the following: Selling company with marketing management perspective. Buying company with procurement management perspective. Electronic intermediary a third party intermediating service provider (the scope of service may be extended to include the order fulfillment). Deliverer who should fulfill the JIT delivery. Network platform such as the Internet, intranet, and extranet. Protocols and communication such as EDI and comparison shopping, possibly using software agents. Back-end information system possibly implemented using the intranet and Enterprise Resource Planning (ERP). 05 September 2002 Chandra Wibowo W. 6

7 Models of B2B EC The business models of B2B, the first three models are classified depending upon who controls the marketplace: the supplier, customer, or intermediary. Other important business models are: virtual corporation, networking between headquarter and subsidiaries, and online services to business. 05 September 2002 Chandra Wibowo W. 7

8 Supplier-Oriented Marketplace The most common B2B model is the Supplieroriented marketplace. Most of the manufacturerdriven electronic stores belong this category. In this model, both individual consumers and business buyers use the same supplier-provided marketplace (see figure 6.2). The architecture for this B2B model is basically the same as that for B2C EC, and the purchasing process is similar. 05 September 2002 Chandra Wibowo W. 8

9 Supplier-Oriented B2B Marketplace Architecture Consumer Business Customer Supplier's Electronic Store Consumer Business Customer Supplier's Products Catalog Customer's Order Information B2B EC B2B EC 05 September 2002 Chandra Wibowo W. 9

10 Buyer-Oriented Marketplace Under the platform of supplier-oriented marketplace, the buyer s acquisition department has to manually enter the order information into its own corporate information system. Searching e-stores and e-malls to find and compare suppliers and products. can be very costly for companies who purchase thousands of items on the Internet. Under this model, a buyer opens an electronic market on its own server and invites potential suppliers to bid. (see figure 6.3). 05 September 2002 Chandra Wibowo W. 10

11 Buyer-Oriented B2B Marketplace Architecture Business supplier Buyer's Electronic Store Business Supplier Buyer's Requesting Products Catalog Supplier's Bid Information 05 September 2002 Chandra Wibowo W. 11

12 Intermediary- Oriented Marketplace The third business model is establishing an electronic intermediary company, which runs a marketplace where business buyers and sellers can meet. (see figure 6.4). This concept is similar to intermediarybased e-malls or e-stores developed for B2B EC. 05 September 2002 Chandra Wibowo W. 12

13 Intermediary-Oriented B2B Marketplace Model Business Supplier Business Customer Intermediary's Electronic Store Business Supplier Business Customer Customer's Order Inform ation Shared Products Catalog Supplier's Product Information 05 September 2002 Chandra Wibowo W. 13

14 Virtual Corporation: Networking between Business Partners A VC is an organization composed of several business partners sharing costs and resources for the purpose of producing a product or service. Permanent VC are designed to create or assemble productive resources rapidly, frequently, concurrently, or to create or assemble a broad range of productive resources. This creation, operation, and management of a VC are heavily dependent on the B2B EC platform (Internet and extranet). 05 September 2002 Chandra Wibowo W. 14

15 Networking between Headquarter and Subsidiaries The B2B EC platform can help the communication and collaboration between headquarters and subsidiaries or franchiser and franchisee by providing e- mail, message boards and chat rooms, and online corporate date access around the globe no matter what time zone is. 05 September 2002 Chandra Wibowo W. 15

16 From Traditional to Internet-based EDI The majority of B2B transactions are conducted by EDI and/or extranets (see figure 6.5). Traditional EDI: EDI and Standards It is a system that standardizes the process of trading and tracking routine business documents, such as purchase orders, invoices, payments, shipping manifests, and delivery schedules. EDI translates these documents into a globally understood business language and transmits them between trading partners using secure telecommunications links. (see figure 6.6). Also see the limitations of traditional EDI. Internet-based EDI The appears to be the most feasible alternative for putting online B2B trading within the reach of virtually any organization, large or small. Internet can be used as the EDI message transport in place of VAN. The Internet Engineering Task Force (IETF) is considering standards for encapsulating the messaging within Secure Internet Mail Extension (S/MIME). 05 September 2002 Chandra Wibowo W. 16

17 Typical Flow of EDI Messages Buyer Supplier RFQ Response to RFQ Purchase Order PO Acknowledgement Purchase Order Change PO Change Acknowledgement Functional Acknowledgement (for each transaction) 05 September 2002 Chandra Wibowo W. 17

18 Traditional EDI Translate Store and Forward Translate Business Application EDI Formatted Message Value-Added Network EDI Formatted Message Business Application 05 September 2002 Chandra Wibowo W. 18

19 Web-based EDI Orders Internet EDI Server Inventory Web Browser Web Server Legacy Applications 05 September 2002 Chandra Wibowo W. 19

20 Integration with Back- End Information Systems The typical back-end information systems tend to be developed on the intranet (with , workflow, and groupware capabilities), DBMS, legacy systems, and ERP. Integration of EC with the intranet is relatively simple as far as the firewall can control the unauthorized access to the internal network. Enterprise Resource Planning (ERP) is an enterprise-wide application software that can provide a centralized repository of information for the massive amount of transactional detail generated daily. (See figure 6.7). 05 September 2002 Chandra Wibowo W. 20

21 Managerial Issues Focus of EC Management Sales promotion Purchase process reengineering JIT delivery New electronic intermediary business Provision of solutions Business ethics 05 September 2002 Chandra Wibowo W. 21

22 Summary 1. Applications of B2B EC 2. Key technologies for B2B EC 3. Architectural Models for B2B EC 4. Characteristics of supplier-oriented marketplace 5. Characteristics of buyer-oriented marketplace 6. Characteristics of intermediary-oriented marketplace 7. Benefits of B2B EC to procurement reengineering 8. Importance of JIT delivery in B2B EC 9. Characteristics of Internet-based EDI 10. Method of integrating EC with back-end information systems 05 September 2002 Chandra Wibowo W. 22