B2B και Electronic Marketplaces ( Ηλεκτρονικές Αγορές)

Eθνικό Μετσόβιο ΠολυτεχνείοΜεταπτυχιακό Τμήματος ΗΜ & ΜΥ(Άνοιξη - 2002)Δίκτυα Προστιθέμενης Αξίας EDI και Εφαρμογές Ηλεκτρονικού Εμπορίου B2B και ElectronicMarketplaces (Ηλεκτρονικές Αγορές) Ι. Βασιλείου --- Electronic Commerce Αγορές --- 1

Most EC Business today are An online version of traditional models An extension of physical businesses that are able to reduce cost and improve customer satisfaction follow a vertical and rigid supply chain BUSINESS MODELS -- Current State Ι. Βασιλείου --- Electronic Commerce Αγορές --- 2

BUSINESS MODELS -- Emerging • Virtual Companies and markets • a consortium of companies build on each others’ businesses to exploit opportunities • Open buyer centric markets • comparison shopping • Coalition and outsourcing • e.g. in REAL ESTATE: brokers, banks, escrow (εγγυητές) , lawyers (for title inspection) • Supply chain ---- SUPPLY WEB Ι. Βασιλείου --- Electronic Commerce Αγορές --- 3

Supply-Chain Management Ι. Βασιλείου --- Electronic Commerce Αγορές --- 4

VIRTUAL STOREFRONT:sells goods, services on-line (Amazon, Virtual Vineyards, etc.) MARKETPLACE CONCENTRATOR:concentrates information from several providers InsureMarket, DealerNet, etc.) INFORMATION BROKER:provides product, pricing, availability information Auto-by-Tel, PartNet, etc) INTERNET BUSINESS MODELS Ι. Βασιλείου --- Electronic Commerce Αγορές --- 5

TRANSACTION BROKER: buyers view rates, terms from various sources (E*Trade, Ameritrade) ELECTRONIC CLEARINGHOUSE:auction-like setting, products, prices, change in response to demand (Bid.com, OnSale, etc.) REVERSE AUCTION: buyer sets price, submits to multiple sellers (Priceline.com) INTERNET BUSINESS MODELS Ι. Βασιλείου --- Electronic Commerce Αγορές --- 6

DIGITAL PRODUCT DELIVERY:sell, download software, other digital products (SonicNet, Build-a-Card, etc.) CONTENT PROVIDER:creates revenue through providing client for a fee, and advertising Tripod, Wall Street Journal, etc.) ON-LINE SERVICE PROVIDER:provides service, support for hardware, software products CyberMedia, Tune Up, etc.) INTERNET BUSINESS MODELS Ι. Βασιλείου --- Electronic Commerce Αγορές --- 7

Company-CentricB2B Ι. Βασιλείου --- Electronic Commerce Αγορές --- 8

Business-to-Business (B2B) Business-to-Public Body (e.g., Government) Business-to-Individual / Consumer (B2C) Individual-to-Public Body Typical Classification Ι. Βασιλείου --- Electronic Commerce Αγορές --- 9

B2B EC defined Transaction conducted electronically between business over the networks Internet Extranets Intranets Private networks (e.g., EDI) Automated trading improves the process Concepts and Characteristics of B2B EC Ι. Βασιλείου --- Electronic Commerce Αγορές --- 10

ΣΥΓΚΡΙΤΙΚΑ ΣΤΟΙΧΕΙΑ: Β-to-B vs. B-to-C Ι. Βασιλείου --- Electronic Commerce Αγορές --- 11

Market size and content Expected to grow from $1.1 trillion in 2003 to $10 trillion by 2005 Percentage of Internet-based B2B from 2.1% in 2000 to 10% in 2005 Private and public e-marketplace Private—one-to-many mode Public—many-to-many mode Concepts and Characteristicsof B2B EC (cont.) Ι. Βασιλείου --- Electronic Commerce Αγορές --- 12

How is B2B conducted? Directly between buyer and seller Via an online intermediary Along the supply chain With or without intermediaries Types of transactions Spot buying—determined by dynamic supply and demand Strategic sourcing—long term contracts Concepts and Characteristicsof B2B EC (cont.) Ι. Βασιλείου --- Electronic Commerce Αγορές --- 13

B2B Supply Chain Ι. Βασιλείου --- Electronic Commerce Αγορές --- 14

Supply chain relationships Interrelated subprocesses and roles Acquisition of materials Processing products and services Moving to distributors Purchase by consumer Traditional process managed through paper transactions B2B applications offer competitive advantages for supply chain management (SCM) Concepts and Characteristicsof B2B EC (cont.) Ι. Βασιλείου --- Electronic Commerce Αγορές --- 15

Entities of B2B EC Selling company—marketing management perspective Buying company—procurement management perspective Electronic intermediaries—optional third party directory service provider (scope of service may be extended to order fulfillment) Trading platforms—pricing and negotiation protocol (auctions, reverse auctions) Concepts and Characteristicsof B2B EC (cont.) Ι. Βασιλείου --- Electronic Commerce Αγορές --- 16

Entities of B2B EC (cont.) Payment services—mechanism for transferring money to sellers Logistics providers—logistics to complete transaction (packaging, storage, delivery) Network platforms—Internet, VAN, intranet, extranet Protocols of communication—EDI or XML Back-end integration—connecting to ERP systems, databases, functional applications Concepts and Characteristicsof B2B EC (cont.) Ι. Βασιλείου --- Electronic Commerce Αγορές --- 17

Product Customer Supplier Product process Transportation Inventory Supply chain Competitor Sales and marketing Supply chain process and performance Concepts and Characteristicsof B2B EC (cont.) Information processed in B2B Ι. Βασιλείου --- Electronic Commerce Αγορές --- 18

Electronic intermediaries in B2B Consumers and business may share intermediaries Businesses may use different intermediaries with different suppliers Benefits of B2B models Eliminate paper-based systems Expedite cycle time Reduce errors Increase employee productivity Reduce costs Increase customer service and partnership management Concepts and Characteristicsof B2B EC (cont.) Ι. Βασιλείου --- Electronic Commerce Αγορές --- 19

Company-centric models Sell-side marketplace (one-to-many) Buy-side marketplace (many-to-one) Many-to-many marketplaces—the exchange Buyers and sellers meet to trade Trading communities Trading exchanges Exchanges B2B Models Ι. Βασιλείου --- Electronic Commerce Αγορές --- 20

Other B2B models and services For the purpose of selling For the purpose of buying Value chain integrators Value chain service providers Information brokers Vertical vs. horizontal marketplaces Vertical—one industry or industry section Horizontal—service or product used in several types of industries B2B Models (cont.) Ι. Βασιλείου --- Electronic Commerce Αγορές --- 21

Virtual service industries in B2B Travel and tourism services Real estate Electronic payments Online stock trading Online financing Other online services B2B Models (cont.) Ι. Βασιλείου --- Electronic Commerce Αγορές --- 22

Sell-Side Marketplace Architecture Ι. Βασιλείου --- Electronic Commerce Αγορές --- 23

Virtual sellers—Bigboxx.com.hk of Hong Kong B2B office supply retailer services Large corporate clients Medium corporate clients Small offices Goal—sell products in various SE Asian countries Offers more than 10,000 items Uses more than 300 suppliers Sell-Side Marketplaces:One-to-Many Ι. Βασιλείου --- Electronic Commerce Αγορές --- 24

Virtual sellers—Bigboxx.com.hk of Hong Kong (cont.) Company portal attractive, easy to use Browse online catalogs Use search engines Payments Cash or check upon delivery Automatic payments Credit card Purchasing card Sell-Side Marketplaces:One-to-Many (cont.) Ι. Βασιλείου --- Electronic Commerce Αγορές --- 25

Virtual sellers—Bigboxx.com.hk of Hong Kong (cont.) Delivery Owns trucks and warehouses Delivery scheduled online Same day (within an hour) Specifically scheduled time Ordering system integrated with SAP-based back-office system Sell-Side Marketplaces:One-to-Many (cont.) Ι. Βασιλείου --- Electronic Commerce Αγορές --- 26

Virtual sellers—Bigboxx.com.hk of Hong Kong (cont.) Value-added services Track status of order Check stock availability Promotions Customized prices Group accounts and central approval—for businesses with multiple branches Standing orders automatically activated Large number of reports and data available Sell-Side Marketplaces:One-to-Many (cont.) Ι. Βασιλείου --- Electronic Commerce Αγορές --- 27

Customer service General Electric 20 million calls/year about appliances Reduced cost of each call from $5 to $0.20 Milacron, Inc. Site contains 55,000 products Easy to use Securely handles selection, purchase, application Technical service—expanded to provide a higher level of service than previously available at the site Sell-Side Marketplaces:One-to-Many (cont.) Ι. Βασιλείου --- Electronic Commerce Αγορές --- 28

Dell Intel IBM Cisco Sell-Side Marketplaces:One-to-Many (cont.) • Direct sales from catalogs • Configuration and customization • Efficient customization for direct sales • Business customers • Customize products • Receive price quote • Submit order • Successful cases Ι. Βασιλείου --- Electronic Commerce Αγορές --- 29

Direct sales from catalogs Benefits Reduces costs (to buyers and sellers) and errors during the process Speeds up order cycle Ability to customize products Offer different prices to different customers Sell-Side Marketplaces:One-to-Many (cont.) Ι. Βασιλείου --- Electronic Commerce Αγορές --- 30

Direct sales from catalogs (cont.) Limitations Channel conflicts with distribution systems High cost when traditional EDI used Large number of business partners is needed to justify system Sell-Side Marketplaces:One-to-Many (cont.) Ι. Βασιλείου --- Electronic Commerce Αγορές --- 31

Forward auctions—quick disposal of items Revenue generation Increased page views Member acquisition and retention—bidding transactions result in additional registered members Selling from own site when: Large companies that conduct auctions frequently don’t benefit from using intermediaries E-marketplace already in use, cost of adding auction not too high Selling Side: Auctions and Other Models Ι. Βασιλείου --- Electronic Commerce Αγορές --- 32

Using intermediaries when: No resources required Own and control auction information Fast time to market Searching and reporting Search and report all auction activities Standard reports available Additional analysis of complex information Selling Side:Auctions and Other Models (cont.) Ι. Βασιλείου --- Electronic Commerce Αγορές --- 33

Billing and collection Automatic calculation of shipping weights and charges Payment—encrypted credit card data Billing information—easily downloaded into existing systems Successful if: Sufficient number of loyal customers Products well known Price not major purchasing criteria Selling Side:Auctions and Other Models (cont.) Ι. Βασιλείου --- Electronic Commerce Αγορές --- 34

Benefits—saves the company $363 million per year in: Technical support Human resources Software distribution Marketing material Sell-Side Case:CISCO Connection Online (CCO) Ι. Βασιλείου --- Electronic Commerce Αγορές --- 35

Customer service—Cisco Connection online Online ordering—Internet Product Center builds virtually all products to order Order status—customer tools for finding answers to order status inquiries Cisco Connection Online (CCO) (cont.) Ι. Βασιλείου --- Electronic Commerce Αγορές --- 36

Benefits to Cisco Reduced operating costs for order taking Enhanced technical support and customer service Reduced technical support staff cost Reduced software distribution costs Lead times reduced from 4-10 days to 2-3 days Cisco Connection Online (CCO) (cont.) Ι. Βασιλείου --- Electronic Commerce Αγορές --- 37

Benefits to customers Quick order configuration Immediate cost determination Collaboration with Cisco staff Cisco Connection Online (CCO) (cont.) Ι. Βασιλείου --- Electronic Commerce Αγορές --- 38

Marshall Industries—(a subsidiary of AvnetMarshall)multinational distributor of electronic components known for its innovative uses of IT and the Web Products and services MarshallNet Marshall on the Internet (portal) Strategic European Internet Electronic Design Center PartnerNet NetSeminar Education and News Portal Sell-Side Intermediaries Ι. Βασιλείου --- Electronic Commerce Αγορές --- 39

Marshall Industries—a subsidiary or AvnetMarshall (cont.) Survival strategy Continuous improvement programs and innovations Team-based organization, flat hierarchy, decentralized decision making Profit sharing compensation for salespeople Sell-Side Intermediaries (cont.) Ι. Βασιλείου --- Electronic Commerce Αγορές --- 40

Marshall Industries—a subsidiary of AvnetMarshall(cont.) Survival strategy CRM highly promoted Web-based services create value between suppliers and customers EC initiatives supported by: Changing internal organization Changing internal procedures Sell-Side Intermediaries (cont.) Ι. Βασιλείου --- Electronic Commerce Αγορές --- 41

Boeing’s PART Acts as an intermediary between the airlines and parts’ suppliers Provides a single point of online access through which airlines and parts’ providers can access the data needed Goal: provide its customers with one-stop shopping for online parts and maintenance information and ordering capability Sell-Side Intermediaries (cont.) Ι. Βασιλείου --- Electronic Commerce Αγορές --- 42

Boeing’s PART Spare parts business using traditional EDI Mechanic tells purchasing department parts are needed, purchase is approved, purchase is made Large airlinesconnect to Boeing's VAN Boeing finds part and delivers Debut of PART on the Internet Encourages customers to order parts electronically—cheap, easy, fast 50% of customers using Internet within first year Sell-Side Intermediaries (cont.) Ι. Βασιλείου --- Electronic Commerce Αγορές --- 43

Boeing’s PART Benefits of PART online Improved customer service Significant operating savings New sales opportunities Customer service online reduced Phone calls (purchasing, order status etc.) Data entry Sell-Side Intermediaries (cont.) Ι. Βασιλείου --- Electronic Commerce Αγορές --- 44

Boeing’s PART Portable access to technical drawings/support Boeing On Line Data (BOLD) provides availability to: Engineering drawings Manuals Catalogs Other technical information Portable Maintenance Aid (PMA)—solves maintenance problems Sell-Side Intermediaries (cont.) Ι. Βασιλείου --- Electronic Commerce Αγορές --- 45

Boeing’s PART Benefits to Boeing’s customers Increased productivity—less time searching for information Reduced costs—delays at gate reduced because all information is available Increased revenues—faster service provides time savings Sell-Side Intermediaries (cont.) Ι. Βασιλείου --- Electronic Commerce Αγορές --- 46

Purchasing agents (buyers) Direct purchasing Use of material is scheduled Not a shelf item Indirect purchasing MROs Nonproduction materials Inefficiencies in procurement management of indirect materials Buy Side: One-from-Many,E-Procurement Ι. Βασιλείου --- Electronic Commerce Αγορές --- 47

A Traditional Purchasing Process Flow Ι. Βασιλείου --- Electronic Commerce Αγορές --- 48

Innovative procurement management Innovative purchasing as strategic approach to increase profit margins Web facilitation includes: Electronic tendering Volume purchasing Aggregating supplier catalogs at buyer’s site Group purchasing Others Buy Side: One-from-Many,E-Procurement (cont.) Ι. Βασιλείου --- Electronic Commerce Αγορές --- 49

Goals of procurement reengineering Increase purchasing agent productivity Lower purchasing prices of items Improve information flow and management Minimize maverick (unplanned) buying Improve payment process Streamline purchasing process to make it: Simple Fast Buy Side: One-from-Many,E-Procurement (cont.) Ι. Βασιλείου --- Electronic Commerce Αγορές --- 50

B2B και Electronic Marketplaces ( Ηλεκτρονικές Αγορές)