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E-Commerce: Supporting External and Internal Linkages Part 2

E-Commerce: Supporting External and Internal Linkages Part 2. MIS 320 Kraig Pencil Summer 2013. Game Plan. Introduction Supporting Internal Linkages Intranets Supporting External Linkages B2C: Business to Consumer C2C: Consumer to Consumer B2B: Business to Business.

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E-Commerce: Supporting External and Internal Linkages Part 2

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  1. E-Commerce: Supporting External and Internal LinkagesPart 2 MIS 320 Kraig Pencil Summer 2013

  2. Game Plan • Introduction • Supporting Internal Linkages • Intranets • Supporting External Linkages • B2C: Business to Consumer • C2C: Consumer to Consumer • B2B: Business to Business

  3. G. Business-to-Business Applications (B2B) 1. Objective • Support external linkages • Foster trading between businesses • Reduce costs and time • e.g., purchasing supplies, just-in-time inventory 2. Early growth (see figure) Corporate Buyer Supplier Shipping Information

  4. Comparison of B2C vs. B2B: Growth 2005$8.5 Trillion B2B B2B is about 50 times larger than B2C B2C 2004$6 Trillion 2003$3.6 Trillion 2005 2002$1.9 Trillion 2002 $184B $92B Source: Garnter, Inc (http://findarticles.com/p/articles/mi_m0EKF/is_12_47/ai_72068777 )

  5. G. Business-to-Business Applications (B2B) 3. Example applications • Scan-based Trading – e.g. Electronic data interchange (EDI) • EDI involves • Repetitive business transactions (e.g., orders, bills) • Computer-to-computer exchange • Standard format for data exchanged • “EDI translator” converts data to a format that TPS software will understand • Benefits • Significant cost savings • $50 per paper transaction vs. $1-2 per EDI transaction • Time savings -- from initiation to completion • Reduction of errors • Costs • High initial investment ($) and startup period • EDI systems can be inflexible • Multiple EDI standards exist (e.g., different customers may use different EDI standards)

  6. Order Delivery: Without EDI and With EDI Lots of paperwork and manual processing  Costly, Slow, Error-prone Electronic data interchange and processing  Cheaper, Faster, More accurate Source: Rainer, Turban, Potter, Introduction to IS, Fig 8.4

  7. G. Business-to-Business Applications (B2B) 3. Example applications (cont.) • Extranet • Extend portions of an intranet to selected business partners • E.g., Share current inventory, production schedules • Inventory replenishment • “Electronic bread man” • Supplier scans inventory database and is responsible for restocking • Marketplace exchanges • Request for quotes, automated procurement • e.g., ChemConnect, Automotive Network Exchange (ANX)

  8. Marketplace Exchange: ChemConnect

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