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B2B Business-to-Business E-Commerce BA 572 - J. Galván 1 B2B E-COMMERCE Inter-corporate communication Exchange business information between trading partners Supply chain focus Improve efficiency of transactions Between different business entities BA 572 - J. Galván 2 A REAL-WORLD SUPPLY CHAIN IS VERY COMPLEX. Supplier A Customer A Supplier B Frito Lay Customer B Wal-Mart Procter & Gamble Customer C Customer D Supplier E Customer E BA 572 - J. Galván 3 VISUALIZING THE SUPPLY CHAIN A river analogy Source – raw materials Flow direction – downstream Tributaries – suppliers Destination – customers Upstream Downstream Series of linked processes Value chain – within organization Supply chain – links value chains BA 572 - J. Galván 4 INTERORGANIZATIONAL SYSTEMS (IOS) Information system shared by two or more enterprises Requires Compatible information technology Compatible infrastructures Difficult to achieve Initially limited to large firms BA 572 - J. Galván 5 EARLY IOSs REQUIRED CUSTOM SOFTWARE. Company A B to A Middleware C to A Middleware Custom software is very expensive Company B A to B Middleware C to B Middleware BA 572 - J. Galván Company C B to C Middleware A to C Middleware 6 SOME POTENTIAL BENEFITS OF AN INTER-ORGANIZATIONAL SYSTEM. Faster transactions Lower cost transactions Fewer transaction errors Reduced cycle time Reduced inventory Increased information flow Increased customer satisfaction Improved cash flows Early examples EFT EDI Still, limited to large organizations BA 572 - J. Galván 7 INTERCONNECTIVITY Private leased network Expensive Not easily scalable Highly secure and reliable Value-added network (VAN) Semiprivate intermediary service Less expensive but still costly Scalable Less secure and less reliable BA 572 - J. Galván 8 CONNECTING THROUGH THE INTERNET. Public bandwidth Advantages Inexpensive Highly scalable Company A Company F Company B The Internet Drawbacks Inconsistent Weak security Company E Company C Company D BA 572 - J. Galván 9 A VPN UTILIZES A SECURE TUNNEL TO CROSS THE INTERNET. Company A Company B The Internet Encrypt and encapsulate VPN Encrypt and encapsulate The tunnel Advantages Public network Tunneling Encryption BA 572 - J. Galván Low cost Good security Scalable 10 SELECTING A CONNECTIVITY OPTION. Option Cost Security Exchange Company Scalability need volume size Trading partners Secure private network Value added network Virtual private network Public network **** *** ** * **** *** ** * * ** *** **** * ** *** **** **** *** ** * **** *** ** * Legend Meaning **** High/large/many * Low/small/few BA 572 - J. Galván 11 EARLY SUPPLY CHAIN INTEGRATION American Airlines Sabre Online, real-time reservation services Still in use Baxter Healthcare Ticket agents Travel agents Direct ordering of hospital supplies Wal-Mart inventory management Driven by point-of-sale data collection BA 572 - J. Galván 12 EDI Electronica Data Interchange Standard syntax EDI to Internal Middleware Internal to EDI Middleware ANSI X.12 EDIFACT Company B Two conversions Company A Internal to EDI Middleware InternalEDI EDIinternal Highly scalable Templates Web-based EDI still in use EDI EDI to Internal Middleware Company C EDI to Internal Middleware BA 572 - J. Galván Internal to EDI Middleware 13 AN EXTRANET The physical view Supplier intranet Telecommuter (Personal firewall) WAN Links intranets Standards Client/server TCP/IP Web server Browser Extranet Company A intranet Business partner intranet Security issues BA 572 - J. Galván 14 THE EXTRANET The logical view •What different users see from all the information stored by Company A Business partner Telecommuter Information within company A Company A employees Company A suppliers BA 572 - J. Galván 15 XML Extension to HTML Special tags to mark data fields Data structure, syntax, data type XML-enabled middleware can Extract data values from document Create dynamic Web pages XML is extensible Add and register new XML schema BA 572 - J. Galván 16 THE XML CODE FOR A SET OF CUSTOMER ORDER DATA. XML Tags Equivalent Data Structure <?xml version="2.0"?> <order> <salesperson>John Doe</salesperson> <item>Acme rocket engine</item> <quantity>4</quantity> <date> <month>12</month> <day>13</day> <year>2002</year> </date> <customer>Harry Potter</customer> </order> BA 572 - J. Galván Order Salesperson Item Quantity Date Month Day Year Customer 17 B2B SOFTWARE AND SERVICES E-procurement Buy-side Sell-side Electronic invoice presentment and payment (EIPP) Exchange of invoices and payments EFT Resembles IBPP Significant cost reduction potential BA 572 - J. Galván 18 MORE SOFTWARE AND SERVICES Logistics integrators Right stuff, right place, right time Customer relationship management (CRM) Data on customer interactions Data warehouse Data mining BA 572 - J. Galván 19 SUPPLY CHAIN MANAGEMENT INTERMEDIARIES Category Supplier Product Planning and Forecasting I2 Technologies Manugistics SAP TradeMatrix NetWorks APO Purchasing Ariba Commerce One Oracle RightWorks Ariba Sourcing MarketSet Supply Chain Exchange eProcurement Factory scheduling Baan Oracle QAD SAP Baan SCS Discrete Manufacturing Supply Chain Optimizer APO Order tracking EXE Technologies Manhattan Associates Optum eFulfillment MA Fulfill TradeStream Market research and Product design Agile Software MatrixOne PTC SAP Agile Anywhere eMatrix Windchill MySAP PLM BA 572 - J. Galván 20 B2B E-MARKETPLACES Similar to enterprise portal Categories Commodity e-marketplace Business services e-marketplace Integration services e-marketplace Financial services and process support Facilitates process-to-process integration Vertical and horizontal e-marketplaces BA 572 - J. Galván 21 But consumers need raises!! I asked for a sign of heaven BA 572 - J. Galván 22 ¿Will we get a raise in 2004? BA 572 - J. Galván 23 And heaven answered me…. BA 572 - J. Galván 24 BA 572 - J. Galván 25 “Thanks heaven” It is very clear for me !!! BA 572 - J. Galván 26