E-Business and Operations

management
 Procurement
Procurement entitles the acquisition of goods,
services or works from an external source. It is
a vast service, of which buying is a part. In
procurement, one tries to find the correct
goods and services at the right and affordable
price, ensure the quality of goods, and if they
meet the purchasers requirement of quality,
quantity, time, and location.
Compare and selection then buy
 e Procurement
The electronic acquisition of goods and
services for organizations
 Ecommerce
E-commerce is the exchange of information
across electronic networks, at any stage in the
supply chain, whether within an organization,
between businesses and consumers, or
between the private and public sector,
whether paid or unpaid
When evaluating the strategic impact of e-
commerce on an organization, it is useful to
identify the opportunities for buy side and sell
side e-commerce transactions.
 Market Solutions
1. Buy side
2. Sell side
3. Marketplace based
 Buy Side:
Buy side refers to transactions to procure resources
needed by an organization from its suppliers.
It basically indicate using communications
technology to support the upstream supply chain
from procurement to inbound logistics.
They are e-commerce transactions between a
purchasing organization and it suppliers, possibly
through intermediaries.
 Sell Side
Sell side refers to transactions involved with
selling products to an organizations customer.
They doesnt only involve selling products such
as books and CDs online, but also involves
using internet technologies to market services
using a range of techniques.
 Market Place:
An online is a type of e-commerce site where
product and inventory information is provided
by multiple third parties, whereas transactions
are processed by the marketplace operator.
Typically, they are intermediaries that are part
of reintermediation.
Example of marketplace based e-commerce
includes Chemdex, VerticalNet etc.
 Integration of product catalogue
Product catalog integration is the process of offering
products from different vendor catalogs for sale on a
Web site.

Product Catalogue Consists:

-Product Name
-Model Number
-Price
- Product Image
-Detail information of Product (Full specification)
-Product Category
 Procurement Service Provider(PSP)

A Procurement Service Provider, or PSP, is a

third party organization or consultant which is
used to supplement internal procurement
departments. PSPs have their own staffing
which assist in a variety of tasks for their
clients.
Why Use a Procurement Service Provider?

At most organizations, it is very costly and

difficult to maintain domain expertise in every
category of spend. Using a PSP avoids the
burdens of procurement infrastructure for
non-strategic categories.
 Difference between purchase and
procurement
PURCHASE PROCUREMENT
It involves ordering and Procurement Involves Selecting
receiving goods and service. Vendors ,Establishing Payment
It is subset of procurement. Terms ,Strategic Vetting Selection &
Negotiation of Contracts. It is an
umbrella term which covers
purchase
It doesnt deal with supplier It includes supplier management.
relationship. Maintains fruitful relationship with
It is more transactional in suitable supplier
nature.
It has short term goals. It has long term goals.
 Chapter -5

E- Contracting
 Contract is legally binding agreement between
two or more people on a statement of
intention.
E-contract is any kind of agreement formed in
the course of e-business by the interaction of
two or more individuals using electronic
means, such as e-mail.
 Business Phases of a eContracting Process

Information Phase
Intention Phase
Agreement Phase
Settlement Phase
 Information Phase :Contract Conception
Intention Phase : Contract Preparation
Agreement Phase : Contract Negotiation
negotiation, archiving, enforcement,
reconciliation
Settlement Phase : Contract Fulfillment
 Structure of a contract
Who Clause
It Includes seller and buyer info.
What Clause
It includes what the product is being deal.
How Clause
It includes payment and delivery details for what
clause
Where Clause
It includes legal act specified the government.
 Contract for Purchase of a Car
Buyer's Name:
Seller's Name:
Address:
Phone:
The Seller hereby conveys to the Buyer full ownership and title to the motor vehicle
described below:
Description of Motor Vehicle Sold:
Year ___________ Make ________ Model _______
The Buyer hereby agrees to pay the Seller NPR X on MM/DD/YY, and NPR Y on the Nth day
of each month beginning MM/DD/YY, until all payments made to the Seller total NPR X.
If Buyer fails to make a payment on or before its due date, a late fee of NP X shall be added
to the balance due and shall be payable immediately.
Both parties hereby agree that this is an "as-is" sale, with no warranties of any kind
expressed or implied.
This agreement shall be governed by the laws of the Nepal Government act _______
The parties hereby signify their agreement to the terms above by their signatures affixed
below:
_____________________________________
Buyer's signature, date
_________________________________
Seller's signature, date
 Methods of elecctronic Contract
There are three main methods of contracting
electronically:
Electronic mail, or e-mail
Website Contracts
Online/Click to Agree Contracts
 Types of eContract
There are several types of contracts that persons engaged in the
business of manufacture of software or hardware would, in course of
their business, be required to enter into. These are:
Click Wrap Contract
Source Code Escrow Agreements
Software Development & Licensing Agreements
Shrink Wrap Contract
Employment Contracts
Consultant Agreements
Contractor Agreements
Sales, Re-Seller & Distributor Agreements
Non-disclosure Agreements
 Requirements on Electronic Contracts
Clear identification of the contracting parties.
Clear indication of the subject of the contract.
Clear indication of the time period of validity.
The contract has to have valid signatures of the involved
parties certifying their acceptance of the liabilities laid down
in the contract. The signature should be accompanied by a
date indicating the start of the contract validity.
Non-repudiation, i.e. nobody should be able to change the
content of the contract after the contract is signed.
 Digital Signature
A digital signature is a mathematical scheme for
demonstrating the authenticity of digital
messages or documents. A valid digital signature
gives a recipient reason to believe that the
message was created by a known sender, that the
sender cannot deny having sent the message, and
that the message was not altered in transit
Digital code which is attached to an electronically
transmitted document to verify its contents and the
sender's identity.
 Legal Affairs
After Completion of Information and Intention
phase of contract Agreement Phase starts.
Legal Affairs arrives when any one fails to
meet the agreement signed during settlement.
Court will handle the issue according to the
agreement done.
Online Distribution
Chapter-6
 Distribution is transfer of goods from buyer to
seller.
It is the delivery or distribution of media
content such as news, audio, video, software
etc. The term is generally used to describe
distribution over an online delivery medium,
such as the Internet, thus bypassing physical
distribution methods, such as paper, compact
discs.
Components of a distribution system
Characterization of online distribution
 Hybrid distribution networks

In this marketer utilizes more than one

distribution design the marketer is following a
multi-channel or hybrid distribution system.
They use online and offline distribution
system.
Eg: Bhatbhateni supermarket has offline store
and it also deals with online sales.
 Model for electronic software distribution

Electronic Software Distribution (ESD) is a

solution invented by software producers,
meant to allow users to download software
products over the Internet (i.e. electronically).
This approach comes as a counter-offer to the
common practice of delivering the software
on physical media (e.g. CDs, DVDs).