B2B Strategies and Implementation

1. B2B Strategies and Implementation Developing a B- Web INBS 510 B2B Module

2. References • Tapscott, Ticoll, Lowy. Digital Capital: Harnessing the Power of the Business Webs. Harvard Business School Press. 2000. • Fingar, Kumar, Sharma. Enterprise E-Commerce. Meghan-Kiffer Press.2000 • Turban, Lee, King, Chung. Electronic Commerce. Prentice Hall, 2002 • Siegel, 2000.

3. Shared Vision Inter-enterprise • Clear vision • Common direction, focus • Personal, team, organization • Motivate learning • Peter Senge’s “5th discipline” • General systems learning • Big picture view • If it ain’t broke, break it • Ask questions • Peter Drucker-” a knowledgeable worker is the greatest single asset” • Hyperarchy versus hierarchy

4. The Questions to ask • What can we do now that we couldn’t do before the net? • Who is the current and future e-commerce customer? • What can and should we outsource? • How can we add value to our present and future customers? • How do we design a value chain? • Should we cannibalize our present business? • How should we reintermediate?

5. More Questions • What roles should we play: standalone web site, aggregator, Open Market, supply chain portal? • What competitive threats do we face? • What is the readiness of our trading partners? • How do our pricing policies change? • How do we create or play a leading role in communities-of interest?

6. And more still…. • Should we create niche portals that may host our competitors? • What organizational and ownership forms should we create? • What are the people and technology requirements of the new architecture? • How do we bring more buyers together electronically and keep them there?

7. Now analze the gap… • Answers derived from 2 perspectives • Could be • As is • Analyze the “gap” • Eureka!! • Gap revealed • People, processes and technology to implement • A strategic plan emerges

8. The Strategic Plan • Conduct necessary education and training • Review current distribution and supply chain models • Speed up, shrink, or virtualize the value chain • Wholesalers, distributors, retailers? Are they disintermediated? • Understand the expectations of your customers and partners

9. The Strategic Plan 4. Reevaluate your products and services 5. HR demands new role • New policies • New jobs 6. Extend your current systems to the outside • Online links • Backend links- extranets 7.track competitors and market shares

10. The Strategic Plan 8. Develop a Web-Centric Marketing Strategy 9. Participate in the creation and Development of Virtual Marketplaces 10. EB Management Style Mougayar, Opening Digital Markets. New York: McGraw Hill, 1998

11. New Roles and Responsibilities • E-business program manager • Bridge tech and business divide • Enterprise architect • Chief architect and coordinate work info, infrastructure and application architects • Design • Business and Information Architects • Create a application neutral models

12. More roles… • Infrastructure architects • Identify technical infrastructure • Application architects • They guide solutions development in blending the business models with the infrastructure services needed to implement them in a platform • Solution developers • Assemble business solutions from components • Use integrated development Environments • Configure the ERP • Ranks of object oriented developers

13. And more still… • Component developers • Masters of component technology • Progamming in Java, C++ • Modeling in UML and XMI • Platforms- Cobra, DCOM and EJB • Human Factor Engineers • GUI • Extremely important – more than ever before • HCI- Human Computer Interaction • Read Donald Norman’s Design of Everyday Things • www.uie.com

14. Cooperative Strategies • Joint venture- cooperative activity formed by separate organizations- preserving autonomy • Combine different strengths to achieve value • Virtual corporation • Value chain partnership • Long term arrangement- mutual advantage • FedEx as mentioned previously does this with many

15. Web Corporations • The confluence of widespread Internet use, emerging standards, and the economic crunch may hasten the advent of the Web corporation, also known as the virtual corporation. • A Web corporation "is composed of temporary collaborating partnerships for the purpose of creating one particular product or service," according to IDC Analyst Gisela Wilson. • IDC- article related to Web Corporations

16. Who are the Business-Webs?http://www.digital4sight.com/aboutus.php • Where “Corporation” embodied capital in the industrial age • B-web does the same in the digital economy • “interconnected, fluid sets of contributors coming together to create value for customers and wealth for shareholders” • “each participant focuses on a limited set of core competencies” inventing new value propositions • A system of … that use the Internet for primary communications and transactions

17. So who are they? • MP3 • Microsoft • IBM • Oracle • Amazon • Travelocity • Etc

18. Internet is infrastructure Value proposition innovation i.e. MP3 Multi-enterprise capability --machine- partnering 4. 5 classes of participants Customers- receive and contribute Context providers- interface Content providers- forms of value Commerce service providers- enable flow Infrastructure providers-deliver Features of B-Webs

19. 5. Coopetition- cooperate and compete 6. Customer-centricity- customer value Context reigns- choreographs Rules and standards Bathed in knowledge There are corollaries Uncharted territory Potential for high returns Customers have more power than ever before Disaggregation leads to “disintermediation” and “reintermediation” B-web is a revolution not a tea party More features of B-Webs

20. Agora Theme- Dynamic pricing Value-Liquidity: converting goods into a desirable price Customer is a market player Timing and market intelligence Examples: Ebay Priceline NASDAQ FreeMarkets Aggregation Theme- selection and convenience Value-optimization of selection, organization, price, convenience Customer is the buyer Know market segments, supplier offerings and fulfillment factors Examples: Amazon HomeAdvisor E*Trade Travelocity Five Types of B-Webs

21. Value Chain Process integration theme Value- to design and deliver an integrated process or service The customer is the value driver Innovation and supply chain management are key Examples: Cisco Dell GM Bidcom Alliance Theme is creativity Goal shared across a community of contributors The customer is a contributor Focus on community., creativity and standards and roles Examples: AmericaOnline Linux MP3 Wintel B-web types

22. Distributive Network Theme is allocation and distribution Value is to facilitate the exchange and delivery of information, goods and services Customer is sender/recipient Focus is network optimization Examples: AT&T- all telcoms UPS Well Fargo Enron One more b-web type