Understanding B2B Commerce Instructor: Anthony Borquez
Objectives • Define Business-to-Business E-Commerce • Explain the Value Chain Concept in business • Discuss B2B need in todays marketplace • Evaluate common business scenarios on the web • Differentiate between B2B and B2C • List B2B Requirements • Explain the role of Security in Business Transactions • Create an e-Partner group in a web site
B2B Explained • What is Business-to-Business E-commerce?
The Value Chain Concept A Value chain identifies 5 primary and 4 support activities that add cost and value to a business: • Primary Activities (in manufacturing): • Acquiring Raw Materials • Production (raw mat finished good) • Shipping • Marketing • Servicing • Support Activities • Procurement • Developing Technology • Managing HR • Managing Infrastructure
Core Business Processes • Research, Development, and launching of quality new products • Managing adequate inventory levels • Orders, Shipping, and receiving payments • Customer Service
B2B E-Commerce Intro • Automation of business processes between buyers and suppliers • Defining standards for PO’s (e.g.) • EDI (standardizing both inter- and intraorganizational interactions) • http://Instructor/FiveLakes/ • http://Instructor/Ramona/
Benefits of B2B E-Commerce • Low Procurement Costs • Low cycle times • More efficient customer service • Low sales and marketing costs • New sales opportunities
B2B E-Commerce Scenarios • Corporate Purchasing • Peoplesoft initiative (www.peoplesoft.com), mySap.com, MS Market • Supply chain trading • Volcano Coffee (coffee and tea shops) • Cascade Coffee Roastes/Margo Tea Co. • East Indonesia Coffee Company (add’l trading partner • Direct Marketing • 1-800-Flowers web model and use of ePartnerID’s.
Internet Based Unrestricted Access Verified credit card payments Extranet Based Restricted to business partners Payment by predetermined credit terms Electronic Catalogs Firewall security, passwords, authentication, encryption, and authorization Transacted using EDI B2C vs. B2B B2C B2B
B2B E-commerce Requirements • Electronic Catalogs • Secure Access • Standards-based solutions • Simpler, low-cost exchange of business documents • ANSI x.12 transaction sets
Sample Web Site Demo • www.hsupply.com • http://Instructor/FiveLakes • http://Instructor/Ramona
B2B Security • Secure Sockets Layer (SSL) – protocol for transmitting private documents over the net • SSL creates a secure connection between a client and a server • SSL uses private key to encrypt data (optional client authentication) • What protocol is used to transfer data over the internet? • HTTP and SSL = HTTPS or HTTP Secure • SET – enables secure credit card transactions on the internet • SET uses digital signatures which enables merchants to verify prospective buyers (Merchant never sees credit card numbers) • SET is not widely used because some implementations of SET do not match the specification
Security Implementation Methods • Authentication • Typically using passwords • Digital signatures are also an option • Encryption • SSL encrypts data between client/server • Authorization • Granting access to files/data based upon user • Firewall Security • Software/hardware that monitors, filters, and protects an internal corporate network or intranet
What is an E-Partner Group? • Trusted business entity • Generally given privileges to certain pages that are hidden from unauthorized Internet users • DEMO: Creating an E-Partner Group
LAB 1 - Overview • Setting up the B2B E-Commerce Architecture • Windows NT Server 4 • Windows Service Pack 6 • Windows NT Option Pack 4.0 • Windows SQL Server 7.0 • MDAC 2.1 • Microsoft Site Server 3.0 • Microsoft Site Server Commerce Edition 3.0 • ADSL (Active Directory Services) • CIPM (Commerce Interchange Pipeline Manager)