Beruflich Dokumente
Kultur Dokumente
Types of E-Commerce
1. B2B (Business to Business)
2. B2C (Business to Consumer)
B2B E-Commerce
B2B deals with companies who are doing business with each other.
B2C E-Commerce
Business-to-consumer typically involves selling products and
services to the general public or consumers through the use of
catalogs utilizing shopping cart software.
With the help of ecommerce, you can easily purchase many
things at time without having human interaction.
Example:
Dell selling me a laptop
C2B (Consumer-to-Business)
An example of C2B is when a consumer posts his projects or assignments in the
Internet and web site. The consumer sets a budget online where within hours many
companies reviews the requirements needed by the consumer and then bid on the
project. It empowers the customers around the globe by providing the meeting
ground and platform for that certain transaction.
C2C (Consumer-to-Consumer)
Consumer-to-consumer e-commerce or C2C is simply commerce between private
individuals or consumers
1. A very good example for C2C is the eBay. It is where consumers sell their
products to other consumers through bidding. Thus, the one who bids the
highest can buy the product.
2. Another example is the sites offering free classified ads, auctions, and forums
where consumers can buy and sell products to other consumers. They use
PayPal as a tool for online payment system where they can send and receive
money with ease through online.
3. Mary buying an iPod from Tom on eBay
4. Me selling a car to my neighbour
B2G E-Commerce
Business-to-government e-commerce or B2G is generally defined
as commerce between companies and the public sector.
It refers to the use of the Internet for public procurement,
licensing procedures, and other government-related operations
Example:
Businesses pay taxes, file reports, or sell goods and services to
Govt. agencies.
B2B E-Commerce
Buyer and seller are both business entities and does not
include an individual customer.
B2B E-commerce is being used in a variety of items such as
electronics, computers, utilities, shipping and warehousing, food,
agriculture and many more.
B2B e-commerce covers a broad spectrum of applications
that enable an enterprise or business to form electronic
relationships with their distributors, resellers, suppliers and other
partners.
f)
4.
5.
6.
7.
Electronic Marketing
B2B platform can be used to sell companys products
and services to business customers on the Internet.
This business model can be termed as seller oriented
marketing because customers visit the website which
the seller has prepared.
1. Models of B2B EC
Based on who controls the market place: the
supplier, the customer or the intermediary
Others: Virtual corporation, networking
between headquarter and subsidiaries, online
services to businesses
Models of B2B EC
Virtual
corporation
Networking
between HQ
and Sub.
Online
services to
business
Both individual customers and business buyers use the same market
place.
The suppliers electronic store maintains the following information:
product catalog, order and transaction information and customer
database.
Supplier-oriented
Marketplace
Buyer 1
Buyer 2
Buyer 3
Supplier
www.udaysatya.blogspot.com
21
www.udaysatya.blogspot.com
22
Example
Cisco Connection Online(CCO) which operates Ciscos electronic
marketplace. The various services that the website offers to
customer is:
1. Customer Service: The website is accessed million times in a
month by individual and organizational customers to receive
technical assistance, check order status or download software.
Nearly 70% of inquiries and 90% of software updates are delivered
online.
1.
2.
3.
4.
5.
Bidding Process.
Buyers prepare the bidding information and post it on
Internet(RFQ)
Buyers identify the potential suppliers and invite them for
bidding
Suppliers submit their bids for projects
Buyers evaluate the suppliers bids and may negotiate
electronically to get the best deal.
Buyers accept the bids that best meet their requirements.
Benefits to Buyers
1. Identify and build relationship with new suppliers
2. Rapidly distribute information and specifications
3. Cutting down on cost
4. Quickly receiving and comparing bids from large number of
suppliers to negotiate better prices
5. Strengthening relationships with existing partners
Benefits to Sellers
1. Boosted sales
2. Expanded market reach
3. Lowered costs for sales and marketing activities
4. Shortened selling cycle
5. Improved productivity
6. Streamlined bidding process
Buyer-oriented
Marketplace
Supplier 1
Buyer
Supplier 2
Supplier 3
Intermediary-oriented
Marketplace
Supplier 1
Buyer 1
Buyer 2
Buyer 3
Third Party
Supplier 2
Supplier 3
33
www.udaysatya.blogspot.com
35
www.udaysatya.blogspot.com
36
1.4 Virtual
Corporations(Networking between
business partners)
A virtual corporation is an organization consisting of several
business partners or businesses which are sharing costs and
resources for the purpose of producing a product or service.
Example
Computer organizations that have successfully
implemented forms of this new structure include
Apple Computer . When Apple Computer linked
its easy-to-use software with Sony's manufacturing
skills in miniaturization, Apple was able to get its
product to market quickly and gain a market share
in the notebook segment of the PC industry.
Advantages
1. Virtual corporations require less individual investment in human
resources, manufacturing space, investment in tools, and
development time. Participating companies need not invest
heavily in fixed assets and thus can use scarce resources to
better advantage.
2. They focus on the core competencies of each participating
organization. Virtual corporations are beneficial to all partners
involved, as only win-win alliances are made.
3. They offer power and manufacturing flexibility Virtual
corporations make it possible to quickly respond to changes in
the manufacturing environment and to turn out new products in
a short time.
Disadvantages
1. First, participating partners have access to each other's trade
secrets, technology, and data.
2. Second, virtual organizations need a new breed of managers and
workers.
3. Power and authority that play an important role in classic
organizations do not have the same place in virtual organizations.
4. Differences in the corporate cultures of participating companies
can be an obstacle.
Because of the serious limitations and complexity of the partnership,
not all virtual corporations are successful.
Example
Marriott Internationals Extranet Links Global
Franchisees
1. Marriott International has 1500 hotels in 50
countries and 600 of them are franchisees.
2. The company first went on the internet in 1995 with
an online brochure with the marketing strategyWhatever the customer wants to buy, we make that
available which helped it achieve a revenue of $10
billion in 1998.
www.udaysatya.blogspot.com
48
www.udaysatya.blogspot.com
49
.
Consider the scenario where an employee used to fill
out requests for various office supplies and then wait
weeks for delivery due to paperwork involved. Using eprocurement, the employee browses the catalog from
approved vendor list makes selections and drops them in
his shopping basket. The e-procurement system
automatically gets purchase order approved and ships the
production.
E-procurement has shifted the procurement paradigm
from paper based processes to automation, thereby
increasing efficiency and effectiveness.
Product
Selection
Approval
Cycle
Requisition
E-Procurement Chain
Purchase
Order
E-Payments
Supplier
Fulfillment
Product
Received
Product
Shipped
BENEFITS TO FEDEX
4. FROM TRADITIONAL TO
INTERNET BASED EDI
Majority of B2B transactions are conducted by EDI
using dedicated or leased telephone lines, private networks or
Internet.
TRADITIONAL EDI
Translate
Business
Application
Application
Value
Added
Network
NNetwork
Translate
EDI
Formatted
Message
Business
Application
Application
Phone
/Fax
Document
Sending
computer
Data
Entry
Post
Office
Document
By
Hand
EDI
Receiving
Computer
Data
Entry
Quotation
Purchase order
Purchase order acknowledgement
BUYER
Shipping Notice
Invoice
Status request/response
SELLER
Strategic Benefits
1. Competitive edge is maintained and enhanced.
2. Reduction in product cost is achieved.
3. Better customer and supplier relations through
more effective and faster communication and
exchange of information.
4. More accurate forecasting and business planning is
achieved due to information availability at the
right place and right time and with the help of data
mining techniques.
Buyer
Web
Server
ERP System
Seller
Outside in Approach
Rather then extending the reach of ERP based business
processes through web server, the outside in approach uses a
robust software named application server which has the ability
to integrate multiple systems into an e-business solution.
This architecture is suited for complex e-business with
multiple back end and front end applications.
Various application servers are: Websphere(IBM), Enterprise
Server(Microsoft), Enterprise Server(Sun) etc.
These approaches are limited by the capabilities of the
application server platforms upon which they are built.
Web Based
catalog
Web Browser
Mainframe
Application Server
Sales from
Automation
Supply Chain
Planning
Data Mark
ER System
Direct Marketing:
In business organizations, buying decisions are made by group of individuals.
Also there are some key people in the organization who play the role of
influencers. Hence, it is for the selling company to identify such people and
reach them appropriately.
2.
Relationship Marketing:
- Business buyers are not always ready to buy products when your are ready to
sell them.
- Due to many factors like companys budgeting process, need for additional
approvals, long purchasing procedures, it may not be possible to match the
timings of the buying organizations decision to buy and the selling
organizations desire or ability to sell.
- There exists an uncertainty always for the B2B marketer as to when buyer
may buy. To make up for this, B2B marketer uses continuity program.
Continuity Program
The B2B marketer maintains a regular, ongoing communication with the buyer. This may
be achieved through email or by placing the information on the website and may include
information on new products, product up gradations, discounts and schemes, newly
establishes relationships of seller with other partners and so on. This helps in building a long
term impact of selling organization on the buying organization.
3. Electronic/Interactive Media:
Business organizations depend mainly on three basic media for B2B marketing: email,
web, CD-Roms. Email and web are internet based media. Cd-Roms are used to execute fullfledged multi-media promotions with text, sound, animation and full motion video.
Solutions of B2B EC
Most B2B EC platforms are supplier oriented market place
which is similar to B2C platform. How is it different?
1. Management of buyer information at buyer sites to integrate
with corporate information system.
Platform for supplier oriented market place store the customers
data in suppliers servers. Business buyers cannot manage the
procurement information at their servers resulting in poor
integration with buyers information systems. So, the B2B
platform needs to store buyers ordered information in buyers
server
Limited bookkeeping-supported
Comparison-shopping needs to be
treated as multiple criteria decision
support
3. Just-in-Time Delivery
Business who operates the assembly line in JIT manner needs
JIT delivery.
Current B-to-C Platform
Intermediary directory is
necessary to coordinate
between seller and buyer
oriented directories
Electronic version of
traditional bidding and
auction are implemented
Purchasing is an individual
buyers decision
Purchasing is an organizational
buyers decision
Managerial Issues
1. Focus of EC management: Select from the three business
models-supplier oriented, buyer oriented or intermediary
oriented.
2. Sales Promotion: To promote sales, adopt supplier oriented
marketing approach and consider joining the other popular
intermediary oriented marketplaces as well.
3. Purchase Process Reengineering: To reengineer the purchasing
process, establish a customer oriented marketplace if the sales
volume is big enough to attract attention of major vendors.
4.