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File: Amex_b2b.PPT 1
Business 2 Business 101
American Express Canada Presentation Presenter: Yogi Schulz
Business 2 Business 101
RoadmaptoSelf-education
February 2001
“Get me to the
Web
on time or else!”
File: Amex_b2b.PPT 2
Business 2 Business 101
HousekeepingItems
Refreshments
Facilities
Messages
Cellular phones & beepers
File: Amex_b2b.PPT 3
Business 2 Business 101
Yogi SchulzBiography
President of Corvelle Management Consultants
Information technology related management consulting
Project management and systems development
Computing Canada columnist
Industry presenter:– Project Management Symposium
– CIPS Informatics
– PMI - Information Systems SIG
– Convergence
File: Amex_b2b.PPT 4
Business 2 Business 101
Web is full of E-commerce help
PresentationOutline
Introduction
Importance of the Internet
B 2 B Major Applications
B 2 B Benefits
E-commerce publications
Questions & Answers
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Business 2 Business 101
I’m creatingan E-businessadviceweb site.
MANAGEFASTER,
YOU LAZY DOG!
Using the Webfor Business Success
DOGBERT.COM had asuccessful IPO today,
Netting billions for Dogbert.
File: Amex_b2b.PPT 6
Business 2 Business 101
Presentation Objectives
Build an understanding of business-to-business application:– categories
– benefits
– success criteria
Build awareness of available resources
Improve B 2 B E-commerce understanding
Why don’t you already understand all this stuff?
Importance of theInternet
E-mail surpassed the telephone as the most frequently used tool for business communication in 1998. Frost & Sullivan 1999
Corporate spending on Web-based technology is predicted to top out at $85 billion in 1999, and jump to $203 billion by 2002. International Data Corp. 1999
More than 79.4 million adults, or 38% of the U.S. population age 16 and older, are now online. IntelliQuest Research 1999.
71% of Internet users spend over 1/2 hour online each day. Pew Research Center 1999
Approximately 77% of all employed people use the Internet at work. U.S. Dept. of Commerce 1999
NewTopic
File: Amex_b2b.PPT 8
Business 2 Business 101
The Internet and E-commercein Canada
0
10
20
30
40
50
60
70
80
90
1996 1997 1998 1999 2000 2001 2002 2003
WWW Users (M) E-commerce (B$CDN)
Source: IDC Internet Commerce Market Model, V 5.0
Huge
Impact
on
Business
File: Amex_b2b.PPT 9
Business 2 Business 101
Business-to-Business E-commerceDefinition
Conducting business transactions:
electronically– not fax/phone/mail/in-person
online– typically through the web or EDI
– not via e-mail
between two businesses– not with consumers/government
Buying and selling
products and services
through the web
File: Amex_b2b.PPT 10
Business 2 Business 101
Business Impactof the Internet
Communication effect– dramatically reduce cost of finding and transferring
information
Brokerage effect– access global markets with minimal incremental costs
Integration effect– shorten, enhance the value chain
Wharton School of the University of Pennsylvania• Sendil Ethiraj, Isin Guler - Ph.D. students• Harbir Singh - Chair, Management Department
Can’t you get it through your thick skull?
Old vs. New Economyinfluenced by David Barry
Owner
Currency
Stock exchange
Distribution channel
Characteristics Old
Money
NYSE
All of us
Bricks & mortar
New
High tech stocks
NASDAQ
Bill Gates
Fedex
Strategy Make money Spend money
Communication Telephone Voice mail
Meeting communication Talk Palm Pilot
Product liability Ridiculous None
Key activity Make products Buy/sell stocks
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Business 2 Business 101
B 2 B Major Applications Software Packages
Procurement
E-Marketplaces
Content Management
E-Marketing
Supply Management
Content Distribution
E-Commerce
Customer Support
Reference:
Business Week E.BIZ
11 December 2000
page EB 32
NewTopic
File: Amex_b2b.PPT 13
Business 2 Business 101
Procurement
Description:– enables automated purchasing
Leading supplier - Ariba– www.ariba.com
Key competitors:– Oracle
– SAP
– Commerce One
– upstarts
File: Amex_b2b.PPT 14
Business 2 Business 101
E-Marketplaces
Description:– creates online exchanges to link buyers and sellers
Leading supplier - Commerce One– www.commerceone.com
Key competitors:– Ariba
– FreeMarkets
File: Amex_b2b.PPT 15
Business 2 Business 101
Content Management
Description:– manages thousands of pages on web sites
Leading supplier - Vignette– www.vignette.com
Leading supplier - Interwoven– www.interwoven.com
Key competitors:– IntraNet Solutions
– Plumtree
File: Amex_b2b.PPT 16
Business 2 Business 101
E-Marketing
Description:– tracks customer buying patterns
– predicts what and when they’ll buy
Leading supplier - E.piphany– www.epiphany.com
Key competitors:– Siebel Systems
– SAP
– Art Technology Group
File: Amex_b2b.PPT 17
Business 2 Business 101
Supply Management
Description:– connects a company’s Web operations with its suppliers
Leading supplier - i2– www.i2.com
Emerging competitors:– Oracle
– SAP
Leading Enterprise Application Integration competitors:– webMethods
– Vitria
File: Amex_b2b.PPT 18
Business 2 Business 101
Content Distribution
Description:– accelerates content availability to end-users
Leading supplier - Akamai– www.akamai.com
Leading supplier - Inktomi– www.inktomi.com
Expected competitors:– Oracle
– Cisco
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Business 2 Business 101
E-Commerce
Description:– builds product catalogues
– collects payments
– tracks deliveries
Leading supplier - BEA Systems– www.beasys.com
Key competitors:– BroadVision
– IBM
– Art Technology Group
File: Amex_b2b.PPT 20
Business 2 Business 101
Customer Support
Description:– automates online customer service
Leading supplier - Kana Communications– www.kana.com
Leading supplier - Ask Jeeves– www.askjeeves.com
Key competitor - Siebel Systems
File: Amex_b2b.PPT 22
Business 2 Business 101
B 2 B Benefits
Sellers
Buyers
Market Makers
NewTopic
“You mean there was a time
before the Web?”
File: Amex_b2b.PPT 23
Business 2 Business 101
B2B eCommerce BenefitsSellers
Lower costs in:– marketing
– administration
– order fulfillment
Access new customers
Extend market reach still further by:– creating and leveraging close collaboration among trading
partners
– tightening the relationship between supplier and buyer
– promoting price discovery and spend aggregation
– slashing supply chain costs
File: Amex_b2b.PPT 24
Business 2 Business 101
Return 15-27% back in reduced costs - AMR estimate 1999
B2B eCommerce Benefits Buyers
Reduce direct and indirect supply chain costs by:– leveraging their global scale
– focusing their spend on preferred suppliers
– taking advantage of dynamic models such as auctions and bid-quote for efficient sourcing and spot buying
Utilize new tools for logistics and payment creating new opportunities to:– build transparency in the supply chain
– decrease logistics costs
– increase inventory turns
– improve the overall performance of the manufacturing and procurement processes
File: Amex_b2b.PPT 25
Business 2 Business 101
B2B eCommerce Benefits Market Makers
Catalyze the growth of the B2B economy by:– leveraging their domain expertise, customer relationships
and supply chain strength
Reap substantial rewards by:– delivering incredible value
– sharing in the returns achieved by buyers and suppliers
File: Amex_b2b.PPT 27
Business 2 Business 101
E-CommercePublications
Senior management
IT professional
IT research organizations
Printed and web
NewTopic
“Customers won’t see me
with my pants down!”
File: Amex_b2b.PPT 28
Business 2 Business 101
Senior Management Publications
Business.Com– www.business.com
CIO Canada– www.itworldcanada.com/cio
CIO Magazine– www.cio.com
Commerce Net– www.commerce.net
InfoSystems Executive– www.plesman.com/ise/home.html
NDU Information Resources Management College– www.nduknowledge.net
IT OrientedPublications - 1
About.com – Electronic Commerce– ecommerce.about.com/smallbusiness/ecommerce
Bit Pipe– www.bitpipe.com
BizWeb - Web business guide– www.bizweb.com– www.bizweb.com/categories/web.software.html
BrainStorm Group– www.brainstorm-group.com
CIO Magazine– webbusiness.cio.com
CNET– www.cnet.com
ComputerWorld Canada – www.itworldcanada.com/cw/
IT OrientedPublications - 2
Computing Canada– www.plesman.com/cc/home.html
Cutter Information Corp.– www.cutter.com
E-Business– www.plesman.com/eb/home.html
ebiz– www.ebizmag.com
ebizQ.net– www.ebizq.net
The Eco Framework– eco.commerce.net– eco.commerce.net/rsrc/index.cfm
Ecom World– www.ecomworld.com
ExcellentGlossary
IT OrientedPublications - 3
ecommerce Guide– ecommerce.internet.com
estreet– www.canoe.ca/eStreet/home.html
E-Commerce Times– www.ecommercetimes.com
Information Week– www.informationweek.com
Internet.com– www.internet.com– www.internetnews.com
TechRepublic– www.techrepublic.com
File: Amex_b2b.PPT 32
Business 2 Business 101
IT ResearchOrganizations - 1
Electronic Commerce Research Laboratory– elabweb.com
Forrester– www.forrester.com
Gartner Group– gartner5.gartnerweb.com/public/static/home/home.html
Giga Information Group– www.gigaweb.com
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Business 2 Business 101
IT ResearchOrganizations - 2
IDC– www.idc.com
Meta Group– www.metagroup.com
Round Table Group– www.round.table.com
Yankee Group– www.yankeegroup.com
Xephon– www.xephon.com
File: Amex_b2b.PPT 34
Business 2 Business 101
U. S. GovernmentE-commerce Sites - 1
Center for Research in Electronic Commerce– cism.bus.utexas.edu
Federal Electronic Commerce Program Office– www.ec.fed.gov
Electronic Commerce Policy– www.ecommerce.gov
Electronic Commerce Resource Center– www.ecrc.ctc.com
The Framework for Global Electronic Commerce– www.whitehouse.gov/WH/New/Commerce
File: Amex_b2b.PPT 35
Business 2 Business 101
U. S. GovernmentE-commerce Sites - 2
Government Technology– egov.govtech.net
National Electronic Commerce Coordinating Council (NECCC)– www.ec3.org
Electronic Commerce Knowledge Center– www.knowledgecenters.org
Office of Information Technology– www.itpolicy.gsa.gov
File: Amex_b2b.PPT 36
Business 2 Business 101
Canadian GovernmentE-commerce Sites
Canadian E-business Opportunities Roundtable– www.bcg.com/practice/
ecommerce_canadian_roundtable.asp
Electronic Commerce Canada Inc.– www.ecc.ca/Index.html
Electronic Commerce in Canada– Industry Canada
– e-com.ic.gc.ca/english
File: Amex_b2b.PPT 37
Business 2 Business 101
Canadian Government Industry Canada - E-commerce Sites
Consumers and Electronic Commerce– strategis.ic.gc.ca/SSG/ca00622e.html?pacregion=bcecomnet
Electronic Commerce– strategis.ic.gc.ca/sc_indps/sectors/engdoc/ecom_hpg.html
The Electronic Market Place– strategis.ic.gc.ca/SSG/mi06840e.html
Net Gain –Business on the Internet– strategis.ic.gc.ca/sc_indps/sectors/engdoc/gain_hpg.html
Retailing Resource Centre– strategis.ic.gc.ca/engdoc/retailer.html
File: Amex_b2b.PPT 38
Business 2 Business 101
Business 2 Business 101
Importance of the Internet
B 2 B Major Applications
B 2 B Benefits
E-commerce publications
“With these ideas you can
succeed
and still sleep in your cubicle!”
File: Amex_b2b.PPT 40
Business 2 Business 101
700, 205 - 5th Ave. S.W.Calgary, Alberta Canada T2P 2V7
Phone: (403) 249-5255E-mail: YogiSchulz@corvelle.com
Web: www.corvelle.com
President of Corvelle Consulting
Information technology related management consulting
Project management and systems development
Computing Canada columnist
American ExpressBusiness 2 Business 101
File: Amex_b2b.PPT 41
Business 2 Business 101
Bibliography- 1
Ariba B2B Update Exclusive– Don Tapscott, Chair of Digital 4Sight and co-author of Digital Capital
– www.ariba.com/corporate/news/tapscott.cfm
B 2 B Major Applications - Software Packages– Business Week E.BIZ, 11 December 2000, page EB 32
B2B Marketplaces in the New Economy– Ariba white paper
Beyond Today's Turning Point for Net Business – www.businessweek.com/bwdaily/dnflash/oct2000/nf2000105_825.htm
– Business Week, 5 October 2000
Blueprint for B2B Success– Ventro white paper
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Business 2 Business 101
Bibliography- 2
Content Management in E-Commerce– Tony White and Kathleen Hall, March 2, 2000, Giga Information
Group
E-Business and the Myth of Disintermediation– M. Bernstein, 8 November 1999
– gartner5.gartnerweb.com/public/static/hotc/hc00084111.html
E-commerce waits for no one – Victoria Berry, ComputerWorld Canada, 28 July 2000
Electronic Commerce Solutions ‘99– vendor presentations about E-commerce technology/cases
– www.okreg.com/ecomm
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Business 2 Business 101
Bibliography- 3
Exchange: Breaking the B2B Barrier– Oracle Magazine, January/February 2000, p. 66
Organizing for E-Business: Getting It Right – M. Gerrard. 12 September 2000
– gartner5.gartnerweb.com/public/static/hotc/hc00092498.html
Proper Staffing Is Key To E-Commerce Success– Ben Slick, Internet Week Online, 5 July 1999
– www.internetwk.com/change/change070599-2.htm
Purchasing in Packs– Ken Ferguson, Business Week E.Biz, 1 Nov. 1999, p. EB33
– By Stephen Kindel, Executive Edge, February - March 1999
– www.ee-online.com/feb/feb_feat_03.htm
File: Amex_b2b.PPT 44
Business 2 Business 101
Bibliography- 4
Reassessing E-Commerce– Despite its size and explosive growth, e-commerce requires close
attention to all of a company's other marketing channels
RosettaNet key to 3Com’s supply chain– PC Week, 14 February 2000, p. 25
The secret of e-business success – Rod Travers, 09/15/2000, CIO
Supply chain management: the big payoff– Christopher Koch - CIO Magazine, 2 October 2000
– www.itworld.ca/portals/portal_template.cfm?view=true&PortalID=6&ArticleID=1297&CategoryID=3
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Bibliography- 5
10 success factors for e business– www.ibm.com
Ten Ways IT And E-Biz Projects Are Different– David Smith, Internet Week Online, 11 October 1999
– www.internetwk.com/transform/transform101199-2.htm
The Devil in the Details– How the Canadian Imperial Bank of Commerce hopes to save over
$50 million a year automating the purchasing function
– The Seven Caveats of On-Line Procurement
– By Catherine Fredman, Executive Edge, April - May 1999
– www.ee-online.com/apr/apr_feat_04.htm
File: Amex_b2b.PPT 46
Business 2 Business 101
B2B Procurement - 1
Obtain product information – requisitioner obtains information about products that are
available from Intranet-accessible electronic catalog.
– catalog is maintained by suppliers and corporate purchasing department.
Create the order– requisitioner creates order by completing a web-based form.
– requisitioner must know how to fill out form correctly, including the entry of information, such as product codes, cost centre codes and supplier codes.
Electronic automation of traditional business practices
File: Amex_b2b.PPT 47
Business 2 Business 101
B2B Procurement - 2
Obtain approval– requisitioner seeks approval from the relevant authorizer(s).
– form is routed to the correct individual or individuals using workflow features of software.
Create/transmit purchase order– purchase order is generated and submitted to the supplier for fulfillment.
– transmission uses EDI, XML or proprietary data format
Fulfill the purchase order– supplier checks that the product is currently in stock and that the quoted price
is valid.
– supplier fulfills the customer order by removing it from inventory.
– supplier transmits order confirmation to requisitioner.
File: Amex_b2b.PPT 48
Business 2 Business 101
B2B Procurement - 3
Ship the product– supplier relies on address on purchase order for delivery of
goods.
– requisitioner can access supplier web site to track the status of the purchase order.
Receive the product– product is delivered to and processed by the receiving
department of the customer.
– receiving department will notify the requisitioner via e-mail
– receiving department will deliver product to requisitioner.
File: Amex_b2b.PPT 49
Business 2 Business 101
B2B Procurement - 4
Pay for the product– when the arrival of the product is confirmed, payment is made
to the supplier for the amount stated on the purchase order.
– Payment is made via EFT transaction.
Process description derived from: The Procurement Processhttp://www.microsoft.com/TRAININGANDSERVICES/content/training/samples/2260/Webfiles/Mod02/02m8.htm
File: Amex_b2b.PPT 50
Business 2 Business 101
Features of e-Procurement - 1
Online discovery of product information – requisitioner uses a self-service Web application to place their order.
– available products listed in a centrally maintained online catalog with pricing information.
– availability can be checked directly with the supplier's system
– anticipated delivery time can be provided.
Simplified order creation– requisitioner will be prompted by the application to fill out any required parts of the order form.
– Look-ups for codes can be implemented.
Intelligent approval process– The application will automatically submit the order to the correct individual for approval. The requisitioner need not know the identity of this individual. If more than one
individual is involved in the approval, the request can be automatically routed between the individuals as approval is gained.
Automatic submission of the order to the suppliers – At the end of the approval chain, the order can be automatically processed to segregate the goods from different manufacturers. The system can automatically combine
multiple orders on a daily, weekly, or cost basis before creating a purchase order and submitting it to the supplier.
Automatic fulfillment of the order – The supplier system can automatically process the order. After the information on the order has been validated, warehousing and billing systems can be contacted to fulfill
the order.
Efficient, automated shipping process – Orders can be sent to the pre-stored standard location for the purchasing company (if appropriate) through a shipping company (again, if appropriate). Links between the
purchasing organization's systems and those of the supplier/shipper allow the requisitioner to track the progress of the order.
Automatic routing, inventory updates, and delivery of goods to the recipient– As goods arrive, they can be entered into a system that tracks goods received. The system can match the goods to the orders submitted and provide information about the
recipient of the goods.
Automatic payment for the goods– The system may require the requisitioner to confirm receipt of the goods. The confirmation could be used as a trigger to automatically pay the supplier for those goods.
File: Amex_b2b.PPT 51
Business 2 Business 101
Features of e-Procurement - 2
Intelligent approval process– application automatically submits the order to the correct individual
for approval.
– requisitioner need not know the identity of this individual.
– if more than one individual is involved in the approval, the request can be automatically routed between the individuals as approval is gained.
Automatic submission of the order to the suppliers – At the end of the approval chain, the order can be automatically
processed to segregate the goods from different manufacturers.
– system can automatically combine multiple orders on a daily, weekly, or cost basis before creating a purchase order and submitting it to the supplier.
File: Amex_b2b.PPT 52
Business 2 Business 101
Features of e-Procurement - 3
Automatic fulfillment of the order – The supplier system can automatically process the order. After
the information on the order has been validated, warehousing and billing systems can be contacted to fulfill the order.
Efficient, automated shipping process – Orders can be sent to the pre-stored standard location for the
purchasing company (if appropriate) through a shipping company (again, if appropriate). Links between the purchasing organization's systems and those of the supplier/shipper allow the requisitioner to track the progress of the order.
File: Amex_b2b.PPT 53
Business 2 Business 101
Features of e-Procurement - 4
Automatic routing, inventory updates, and delivery of goods to the recipient– As goods arrive, they can be entered into a system that tracks
goods received. The system can match the goods to the orders submitted and provide information about the recipient of the goods.
Automatic payment for the goods– The system may require the requisitioner to confirm receipt of
the goods. The confirmation could be used as a trigger to automatically pay the supplier for those goods.
Process description derived from: Automating the Procurement Processhttp://www.microsoft.com/TRAININGANDSERVICES/content/training/samples/2260/Webfiles/Mod02/02m9.htm
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