Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Eθνικό Μετσόβιο Πολυτεχνείο Μεταπτυχιακό Τμήματος ΗΜ & ΜΥ (Άνοιξη ) Δίκτυα Προστιθέμενης Αξίας EDI και Εφαρμογές Ηλεκτρονικού Εμπορίου B2B και Electronic Marketplaces (Ηλεκτρονικές Αγορές)

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές OUTLINE Introduction to Market Places –Historical Evolution –Objectives, Benefits, Critical Factors, etc. Examples – Greek Marketplaces Infrastructure for Market Places –Basic Infrastructure (networks) Support Technology –Web Servers –Electronic Commerce Servers

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Ηλεκτρονική Αγορά - Electronic Marketplace Marketplace: 3 main objectives –Match buyers and sellers –Facilitate exchange of information, goods, services, payments (transactions) –Provide institutional infrastructure enabling efficient functioning of the market EC in the marketplace –Increased efficiencies –Decreased cost of executing business functions

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Αύξηση της επίδρασης στην Εφοδιαστική Αλυσίδα Web-site Basic customer self-service Push content services Online branding E-Commerce E-Procurement Transaction Systems eStorefronts Personalized interaction Legacy System Integration E-Business Cross Enterprise CRM and Supply Chain Totally Integrated Systems E-Marketplaces Collaborative Networks instead of Supply Chain Focus on B2B Dynamic market management Η εξέλιξη των μοντέλων ηλεκτρονικού επιχειρείν

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Direct Search and Bilateral E-markets Sales markets E-ProcurementMarketsMany-to-ManyMarkets OneMany One ManyBuyersSellers E-Markets: Relations

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές New business models E-Commerce SellersBuyers E-Procurement Sellers Buyers SellersBuyers Un-enabled model Μεγάλη πολυπλοκότητα στα κυκλώματα προμηθειών των επιχειρήσεων SellersBuyers Marketplace E-Marketplace Τα Marketplaces αποτελούν πολύ πιό αποτελεσματικά και cost-efficient μοντέλα

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Τα χαρακτηριστικά των ελληνικών markeplaces Λειτουργούν 7 marketplaces. Κύκλοι εργασιών: ???? White και blue collar MROs, retail, ξενοδοχειακός εξοπλισμός, logistics-μεταφορές. Το μεγαλύτερο μέρος του κύκλου εργασιών προέρχεται από τους μετόχους Κυριαρχούν τα buyer-centric σχήματα Αδυναμία στη δημιουργία και διατήρηση business communities

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Παράδειγμα: B2B Ολοκλήρωση (από παρουσιάσεις της Microsoft)

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Παράδειγμα: B2B Ολοκλήρωση (από παρουσιάσεις της Microsoft)

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές ,5 δις αγορές μέσω Auctions 15 Προμηθευτές - 7,500 Προϊόντα 56,25% μείωση διαχειριστικού χρόνου (Αργυρομεταλλευμάτων & Βαρυτίνης) σε συγκεκριμένα προϊόντα και 20% κατά Μέσο Όρο. 27% ΜΟ μείωση σε σχέση με τιμή εκκίνησης 33% ΜΟ μείωση σε σχέση με τιμή τελευταίας αγοράς Συγκεντρωτικά Στατιστικά Παράδειγμα: B2B Ολοκλήρωση (από παρουσιάσεις της Microsoft)

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Καινοτομικό μοντέλο ηλεκτρονικής αγοράς Ανεξάρτητος ενδιάμεσος μεταξύ των Supermarket και των προμηθευτών τους Επικοινωνία μεγάλων αλυσίδων όσο και των μικρών σημείων πώλησης με τους προμηθευτές τους Στην πρώτη εφαρμογή συμμετέχουν - όμιλος σουπερμάρκετ Βερόπουλος και οι εταιρίες προμηθευτών ΕΛΓΕΚΑ, Procter&Gamble και Unilever. Το ενδιαφέρον τους για συμμετοχή έχουν ήδη εκφράσει οι εταιρίες: Shell- Select, ΑΒ Βασιλόπουλος, Τροφό, Μετρό, Agrino, Bingo, Chipita, Colgate- Palmolive, Georgia Pacific, Johnson & Johnson, Kraft, Rilken, Schwarzkopf, Tasty, Wella, Αθηναϊκή Ζυθοποιϊα,, Ελαϊς, Θράκη, Μινέρβα, Μπισκότα Παπαδοπούλου, Μπουτάρης, Νίκας, κ.ά. Παράδειγμα: B2B Ολοκλήρωση (από παρουσιάσεις της Microsoft)

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Διαχείριση και αυτοματοποιημένη ενημέρωση καταλόγου προϊόντων Διαχείριση και παρακολούθηση μειγμάτων Παρακολούθηση πωλήσεων (POS) σε καθημερινή βάση και αποθέματος (stock) στο κατάστημα Προτεινόμενη παραγγελία από τον προμηθευτή Παραγγελία από το κατάστημα Παρακολούθηση κατάστασης παραγγελίας Ενημέρωση για ελλείψεις στο ράφι των ταχυκίνητων προϊόντων Διαχείριση και αξιολόγηση προωθητικών ενεργειών Στατιστικά στοιχεία & αναλύσεις οι υπηρεσίες που παρέχονται μέσω της ηλεκτρονικής αγοράς ΩΝΙΑ-ΝΕΤ περιλαμβάνουν: Παράδειγμα: B2B Ολοκλήρωση (από παρουσιάσεις της Microsoft)

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Οφέλη Λιγότερες ελλείψεις στο ράφι Μικρότερα αποθέματα Αποτελεσματικότερη και οικονομικότερη διαδικασία παραγγελιοδοσίας Μείωση λειτουργικού κόστους Άμεση και έγκαιρη πληροφόρηση για προσφορές, νέους κωδικούς και προωθητικές ενέργειες Αυτόματη ενημέρωση καταλόγου προϊόντων Υπηρεσίες μάρκετινγκ ανάλυσης και διαχείρισης κατηγοριών Βελτίωση της διαδικασίας επικοινωνίας και ενημέρωσης των ειδικών συνεργατών Καλύτερη πληροφόρηση για πωλήσεις και διανομή Παράδειγμα: B2B Ολοκλήρωση (από παρουσιάσεις της Microsoft)

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές B2B ηλεκτρονικής αγορά στο χώρο της αγοράς προμηθειών των ξενοδοχείων, caterings, νοσοκομείων και ναυτιλιακών εταιρειών. Τώρα εταιρείες προμηθευτών με συνολικά ενεργούς 1250 χρήστες και 600 εταιρείες πελατών (ξενοδοχείων) με συνολικά ενεργούς 2600 χρήστες (με σύνολο προϊόντων των προμηθευτών ~ ) Στο μέλλον - Πάνω από 1000 εταιρείες προμηθευτών, εταιρείες πελατών (ξενοδοχείων) με συνολικά ενεργούς χρήστες (με σύνολο προϊόντων των προμηθευτών > ) Αγοραστές: περισσότερα από 550 ξενοδοχεία και 25 νοσοκομεία και caterings. (με αγοραστική δύναμη άνω των 80 δις. δρχ.) Όπως: Grecotel, Famous Gastronomy, Holiday Inn, Mamidakis Hotel Chain, Amalia Hotels, Louis Hotels, G-Hotels, Robinson Club Hotels, Ιασώ. Προμηθευτές: Πάνω από 350 εταιρείες του χώρου με περισσότερα από 10,000 προϊόντα (Pepsico, SC Johnson, Vileda, Creta Farm, Λαζαρίδης, Lavazza, Misko-Barilla, Hepp, Υφαντής). Παράδειγμα: B2B Ολοκλήρωση (από παρουσιάσεις της Microsoft)

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Παράδειγμα: B2B Ολοκλήρωση (από παρουσιάσεις της Microsoft)

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Πάνω από 1400 μέλη (650 αγοραστές, 800 προμηθευτές) προϊόντα επισκέψεις το μήνα, 352 επισκέψεις ημερησίως, διάρκεια επίσκεψης 20 λεπτά –To Yassas.com υλοποιήθηκε πάνω στo που με τη σειρά του βασίζεται σε state-of-the-art, καθιερωμένες και δοκιμασμένες τεχνολογίες ηλεκτρονικού εμπορίου (XML, LDAP, COM, κλπ) και ακολουθεί την τυποποιημένη πλέον 3-tier Microsoft Windows DNA αρχιτεκτονική Συγκεντρωτικά Στατιστικά Value-added services: υπηρεσία στατιστικής πληροφόρησης (data warehousing, BI) για την αρτιότερη αξιοποίηση, μελέτη και εκμετάλλευση των δεδομένων τους. ολοκλήρωση με ERP προμηθευτών σχεδιασμός και υλοποίηση ολοκληρωμένων ενεργειών marketing προμηθευτών Παράδειγμα: B2B Ολοκλήρωση (από παρουσιάσεις της Microsoft)

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Ελληνικά Marketplaces Be24 –Η Business Exchanges S.A έχει αναλάβει τη δημιουργία της τεχνολογικής και υποστηρικτικής υποδομής, καθώς και την προσέγγιση αγοραστών και πωλητών για τη δημιουργία μιας Οριζόντιας καθώς και εξειδικευμένων Κάθετων Ηλεκτρονικών Αγορών μέσα στον επιχειρηματικό της κόμβο, –Η Business Exchanges Α.Ε. είναι το αποτέλεσμα της συνεργασίας τριών κορυφαίων ελληνικών εταιρειών, της EFG Eurobank Ergasias, της Panafon-Vodafone και της Hellas On Line που ένωσαν τις δυνάμεις

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Η λειτουργία του Παγκόσμιου Εμπορικού Δικτύου (από MICROSOFT) H Αγορά GTW (Global Trading Web)

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές H Αγορά GTW (Global Trading Web) Συμμετέχοντες: British Telecom, που έχει δημιουργήσει και λειτουργεί το BT Marketsite στην Αγγλία Singapore Telecom, που έχει δημιουργήσει και λειτουργεί το SESAMi.net στη Νοτιοανατολική Ασία Nippon Telephone and Telegraph, που έχει δημιουργήσει και λειτουργεί το NTΤ Marketsite στην Ιαπωνία Cable and Wireless Optus, που έχει δημιουργήσει και λειτουργεί το Optus Marketsite στην περιοχή της Αυστραλίας - Νέας Ζηλανδίας Banacci, που έχει δημιουργήσει και λειτουργεί το Banacci Marketsite στην Λατινική και Νότια Αμερική Tοronto Dominion Bank, που έχει δημιουργήσει και λειτουργεί το TD Marketsite στoν Καναδά EMediate Consortium, που έχει δημιουργήσει και λειτουργεί MarketSite στη Νότια Αφρική CosmoONE, Onianet, Yassas, …

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Company-Centric Market Places

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Concepts and Characteristics of B2B Market Places 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)

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Concepts and Characteristics of B2B Market Places (cont.) 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

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Concepts and Characteristics of B2B Market Places (cont.) Product Customer Supplier Product process Transportation Inventory Supply chain Competitor Sales and marketing Supply chain process and performance Information processed in B2B

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Concepts and Characteristics of B2B Market Places (cont.) 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

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Models 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

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Models (cont.) 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

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Sell-Side Marketplace Architecture

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Sell-Side Marketplaces:One-to-Many 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

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Sell-Side Marketplaces: One-to-Many (cont.) 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

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Sell-Side Marketplaces: One-to-Many (cont.) 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

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Sell-Side Marketplaces: One-to-Many (cont.) 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

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Sell-Side Marketplaces: One-to-Many (cont.) 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

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

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Sell-Side Marketplaces: One-to-Many (cont.) 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

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Sell-Side Marketplaces: One-to-Many (cont.) 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

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Selling Side: Auctions and Other Models 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

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Selling Side: Auctions and Other Models (cont.) 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

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Selling Side: Auctions and Other Models (cont.) 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

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

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Cisco Connection Online (CCO) (cont.) 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

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Cisco Connection Online (CCO) (cont.) 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

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

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Sell-Side Intermediaries 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

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Sell-Side Intermediaries (cont.) 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

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Sell-Side Intermediaries (cont.) 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

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Sell-Side Intermediaries (cont.) 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

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Boeing’s PART –Spare parts business using traditional EDI Mechanic tells purchasing department parts are needed, purchase is approved, purchase is made Large airlines connect 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.)

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές 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.)

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Sell-Side Intermediaries (cont.) 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

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Sell-Side Intermediaries (cont.) 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

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Buy Side: One-from-Many, E-Procurement 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

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές A Traditional Purchasing Process Flow

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Buy Side: One-from-Many, E-Procurement (cont.) 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

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Buy Side: One-from-Many, E-Procurement (cont.) 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

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Buy Side: One-from-Many, E-Procurement (cont.) Goals of procurement reengineering (cont.) –Reduce administrative processing cost per order –Find new suppliers and vendors to provide faster/cheaper goods and services –Integrate procurement process with budgetary control in an efficient and effective way –Minimize human errors in buying or shipping process

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Buy-Side B2BMarketplace Architecture

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Buy Side: One-from-Many, E-Procurement (cont.) Direct vs. indirect sourcing –Tools to automate purchasing goods Direct or mission critical –80% of manufacturer’s expenditure –Long-term relationship with vendor of known quality goods –Tight integration with suppliers along supply chain Indirect—use of public exchanges for indirect sourcing

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Buy Side: Reverse Auctions Pre-Internet Reverse auction process –Prepare description of product to be produced –Announce project via ads, mail, telephone –Send detailed information to interested vendors –Vendors prepare proposals –Bidders submit document proposals –Proposals evaluated –Problems: Laws Expensive Errors

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Buy Side: Reverse Auctions (cont.) Web-based reverse auction process –Buyers prepare bidding project information –Buyers post project on portal –Identify potential suppliers –Invite suppliers to bid –Suppliers download project information –Suppliers submit electronic bid –Reverse auction in real-time, or it can take a few days –Buyers evaluate and award contract

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Buy Side: Reverse Auctions (cont.) Web-based reverse auction process –Benefits: Electronic process is faster Administratively much less expensive Enables location of cheapest possible products

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Procurement Revolution at GE TPN at GE Lighting Division –Purchasing was inefficient—too many administrative transactions Process for each requisition took 7 days Complex and time-consuming Could only send out bids for 2 or 3 suppliers –Trading Process Network (TPN)—electronic bids Entire process takes 7 days (for suppliers to bid) 2 hours to send information to suppliers Evaluate and award bids same day

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Procurement Revolution at GE (cont.) Benefits to GE –Involvement in procurement process Labor declined 30% Material costs declined 5%-20%--wider base of suppliers online –Redeployment 60% of the staff Sourcing department concentrates on strategic activities instead of paperwork, etc.

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Procurement Revolution at GE (cont.) Benefits to GE –Time to identify suppliers, prepare a request for bid, negotiate a price, and award the contract Was days Now 9-11 days –Invoices automatically reconciled reflecting modifications –GE procurement departments share information about their best suppliers across the world

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Procurement Revolution at GE (cont.) Benefits to buyers –Worldwide supplier partnerships –Current business partners Strengthen relationships Streamline sourcing process –Rapid distribution of information –Transmit electronic drawings to multiple suppliers –Decrease sourcing cycle time –Quick receipt and comparison of pricing bids

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Procurement Revolution at GE (cont.) Benefits to suppliers –Increased sales volume –Expanded market reach, finding new buyers –Lowered administration costs for sales and marketing activities –Shortened requisition cycle time –Improved sales staff productivity –Streamlined bidding process

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Procurement Revolution at GE (cont.) Deployment strategies –Start EC in one division and slowly go to all divisions –Use the site as public bidding marketplace to generate commission income to GE

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Aggregating Catalogs Aggregating suppliers’ catalogs: an internal marketplace –Maverick buying to save time leads to high prices –Aggregating all approved suppliers’ catalogs in one place Reduced number of suppliers –Buyers at multiple corporate locations Fewer and remote suppliers Larger quantity/lower costs

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Group Purchasing Group purchasing—orders from several buyers are aggregated –Internal aggregation Economy of scale Reduced transaction processing cost –External aggregation Aggregating demand online Putting together orders from multiple buyers to make large volumes/lower costs

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Electronic Bartering Electronic bartering –Exchange of goods or services without the use of money –Exchange a surplus for other need –Bartering exchange Submit surplus to exchange for points Points used to buy what company needs –Benefits: Faster than manually Easier to match

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές B2B Infrastructure Server to host database and applications Software for executing sell-side (catalogs) Software for conducting auctions and reverse auctions Software for e-procurement (buy-side)

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές B2B Infrastructure (cont.) Software for CRM Security hardware and software Software for building a storefront Telecommunications networks and protocols

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Integration ERP software Customer, supplier, and other databases Legacy systems Catalog (product) information Inventory systems Sales statistics Decision support systems (DSS) and SCM applications

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Integration (cont.) Integration with existing information systems –Issues in integrating with back-end information systems: Intranet-based work flow Database management systems (DMBS) Application packages ERP Back-end sell-side integration works for sellers but not buyers and vice versa

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Integration (cont.) Integration with business partners –Easy integration with one company-centric side –Not easy to integrate for many buyers or sellers –Need buyer owned shopping cart that can interface with back-end information systems

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Extranet

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Intelligent Agent-Based Commerce B2B Agents

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Managerial Issues Integration—trading in e-marketplaces is interrelated with logistics –Particularly true in many-to-many exchanges –Company-centric marketplaces must integrate: Logistics Other support services

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Managerial Issues (cont.) Business ethics –Accessing unauthorized areas in the tracing system should not be allowed –Privacy of partners should be protected technically and legally Auctions—both forward and reverse –Benefits are substantial –Implementation is relatively simple –Considerable flexibility in implementation

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Managerial Issues (cont.) E-procurement—critical success factors –Need to cut down number of routine tasks –Reduce overall procurement cycle using appropriate information technologies Workflow Groupware ERP software B2B models

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Basic Infrastructure NETWORKS The Internet Intranets—intra-business delivery systems Extranets

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές An Extranet

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές B2B Support Services

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Electronic Commerce Services and Analysis Insert Fig 8.1 here

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές EC Services: Overview & Services (cont.) –Why outsource B2B services? Desire to concentrate on core business Need to have services up and running quickly Lack of expertise for support services Economy of scale for project not possible from inside In-house options do not keep up with rapidly changing demands Too many services for one company to handle

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές –Steps in the process of developing and managing EC applications EC strategy formulation Application design Building (or buying) application Hosting, operating, and maintaining EC EC Services: Overview & Services (cont.)

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές EC Application Development Process

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Τhe Evolution of E-Marketplaces

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές WEB SERVERS Apache IIS (Microsoft) NES Netscape

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές ICAT: on-line catalog shopping, order placement (Icat) Websphere Commerce Suite: merchant server supporting Secure Electronic Transactions protocol (IBM) MerchantXpert:: search tools, order management, tax, payment, logistics modules (Netscape) Microsoft - Commerce Server 2000 and Biztalk Server Electronic Commerce Servers

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές OPEN MARKET TRANSACT: customer authentication, order & payment processing, tax, multi-language customer service (Open Market) Spectra: E-commerce Toolkit with back-end integration (Allaire) INTERNET COMMERCE SERVER: integrates orders, inventory, customer service, payments (Oracle) Electronic Commerce Services

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές WEB CONTENT MANAGEMENT TOOLS: Software facilitating the collection, assembly and management of content on a web site, intranet or extranet. (Website, which also does monitoring) ELECTRONIC PAYMENT SYSTEMS: using Web for electronic funds transfers, credit, smart & debit cards ELECTRONIC COMMERCE SUPPORT SYSTEMS

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Web Hosting and Other Services WEB HOSTING SERVICES: provides large servers for Web sites of fee-paying customer (IBM Global Services, Exodus Communications, etc.) Business hosting—hosting is popular for SMEs; large businesses need more advanced services –Dedicated server—assigned for specific purpose or customer –Co-location (physical location for the server) –Free Web hosting attractive option for small start-ups Provider company inserts a banner ad on their site Starting point for small company—minimize start-up costs

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Web Hosting and Other Services (cont.) Sources of information about Web hosting –Web Host Review (hostreview.com): how to select free Web hosting based on various criteria –Host Search (hostsearch.com): search engine recommends best host based on: Monthly cost Disk space requirements Monthly transfer volume Other –WebHosting Magazine (whmag.com):comprehensive information for members of Web hosting industry and those looking for outsources

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Web Hosting and Other Services (cont.) Management service provider (MSP) –Deliver IT infrastructure management services –Multiple customers over networks on a subscription basis –Specialize in e-business and enterprise solutions –See imspassociation.org and crosscommerce.com

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Web Hosting and Other Services (cont.) End-to-end solutions –Builds Web sites and EC applications from conceptual design to deployment –Also supply: Payment systems Delivery management Site monitoring Other services See bccentral.com and WebVision.com

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Application-Building Services and Required Standards (cont.) Industry standards –XML—improve compatibility between disparate system by defining meaning of data in business documents –XSL– and XML require international agreements and cooperation –Support organizations UN body for facilitation of EC W3C—XML and other EC standards RosettaNet—supply chain topics

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Order Fulfillment, Logistics, and Supply Chain Services Supply chain management –Reengineering & managing complex supply chains Supplier Manufacturer Distributor Customer Transportation services –Manages complex Transportation networks Dedicated fleets Carriers Multimodel shipments UPS Logistics Group

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Order Fulfillment, Logistics, and Supply Chain Services (cont.) Parts distribution –Comprehensive return-and-repair –Parts distributions operations Logistics technologies –Integration of logistics information systems –Services to provide supply chain visibility EC solutions –Logistics services –Web-based businesses worldwide Global services –Logistics facilities –Staffing –Expertise about global commerce

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Order Fulfillment, Logistics, and Supply Chain Services (cont.) Call center services –Customer care –Communications (call center services to EC capabilities) Financial services—full range of financial services that complement: –Logistics –Transporting –Additional business needs Solutions for EC initiatives –Tracking systems –Product return systems –Shipping solutions –E-document exchange –Customization EC software/providers E-services/partners

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Online Data Mining Services Clickstream data—data collected by monitoring what people do online Analyzed and mined to produce useful knowledge used to improve: –Services –Marketing efforts Firms use these services to extend their ability to execute EC a successful strategy –NetTracker –WebTrends

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Other Marketing Services Three examples of other services: –Digitalcement.com provides corporate marketing portals; builds stronger relationships with customers –Vantagenet.com free tools that help ease traffic to a company’s Web site –Businesstown.com has an online directory that enables small businesses to identify and evaluate service companies

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Directory Services & Search Engines Directory services –B2Business.net –B2BToday.com –Communityb2b.com –A2zofb2b.com –I-stores.co.uk –Websteronline.com –Thomasregister.com –Bocal.com –B2b.yahoo.com Search engines and news aggregators –Moreover.com –Google.com –Ientry.com Newsletters

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές E-Communities E-communities –Chat rooms –Bulletin boards –Personalized Web pages B2B are basically communities of transactions –Classified ads –Job vacancies –Announcements –Industry news E-communities connect: –Personnel –Partners –Customers –Any combination of these three Service providers –Design of exchange portals –E-community service

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Partner Relationship Management (PRM) In B2B environment the partners include: –Suppliers –Partners in joint ventures –Service providers PRM—relies on: –Trust –Commitment –Quality of services –Continuity Strategy for e-service How much to invest in services What services to provide

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Other B2B Services Trust services Trust Trademark and domain names Digital photos Global business communities Client matching E-business rating sites Promotion programs Encryption sites Web research services Coupon-generating sites

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Integration Integration in e-marketplaces and exchanges –B2X hubs connect: All Internet business services Merchant services Exchange infrastructure Buying and selling Member enterprises Other B2X exchanges

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Hypermediation Hypermediators are: –Content providers –Affiliate sites –Search engines –Portals –ISPs –Software makers –Other entities

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Collaborative Commerce (C-Commerce) Web-based systems used between and among suppliers for: –Communication –Design –Planning –Information sharing –Information discovery

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Collaborative Commerce (C-Commerce) (cont.) Webcore construction goes online with its partners

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Suppliers Extranet: Hudson Dayton Case

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Collaborative Commerce (C-Commerce) (cont.) Reduce design cycle time by connecting suppliers: Adaptec, Inc. –Microchip manufacturer supplying electronic equipment makers Outsources manufacturing tasks Delivery times exceeded their competitors –Solution to the problem Extranet and enterprise-level supply chain integrated software Significantly reduced order-to-product delivery time

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Collaborative Commerce (C-Commerce) (cont.) Suppliers Distributors Overseas Factories Customers Reduce product development time by connecting suppliers: Caterpillar, Inc. Heavy machinery manufacturer uses extranet Request for customized component directly to designers and suppliers ship to buyers Connect engineering and manufacturing division with worldwide

Ε.Μ.Π.Ι. Βασιλείου --- Electronic Commerce Αγορές Collaborative Commerce (C-Commerce) (cont.) Other examples of c-commerce –Tricon Restaurant International—global brand marketing management –RE/MAX—real estate franchiser improved communication and collaboration between independent owners –Marriott International—links corporations, franchising partners, suppliers, customers –Nygard of Canada—interorganizational collaboration