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Prentice Hall, 2002
Chapter 8
B2B Support Servicesmodified by Judith Molka-Danielsen
12-02-02
Prentice Hall, 2002 2
Learning Objectives
E-commerce services and analysisWhy outsourced?Role and types of e-strategy consultantsRole of Web hostingFinancial services, logistics services and order fulfillment services, marketing, advertisement, and sales, Describe content creation, syndication, delivery, and managementRole of directory services, how CRM is done
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Figure 8-1Electronic Commerce Services and Analysis
Insert Fig 8.1 here
Source: Choi et al., The Economics of Electronic Commerce (Indianapolis: Macmillan Technical Publications, (1997), p. 18.
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EC Services:Overview & Services (cont.)
Why outsource B2B services?Desire to concentrate on core businessNeed to have services up and running quicklyLack of expertise for support servicesEconomy of scale for project not possible from insideIn-house options do not keep up with rapidly changing demandsToo many services for one company to handle
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REWARDS & PENALTIES OF OUTSOURCING
REWARDS FOR EXCELLENCEREWARDS FOR EXCELLENCE
PE
NA
LT
Y F
OR
PR
OB
LE
MS
PE
NA
LT
Y F
OR
PR
OB
LE
MS
LOWLOW HIGHHIGH
HIGHHIGH
HIGH HIGH OUTSOURCING OUTSOURCING POTENTIALPOTENTIAL
CAFETERIA ACCOUNTING
PAYROLL PLANT SCHEDULING
ENGINEERING ANALYSIS TOOLS
AIRLINE RESERVATIONS
12.29
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Steps in the process of developing and managing EC applications1. EC strategy formulation2. Application design3. Building (or buying) application4. Hosting, operating, and maintaining
EC
EC Services:Overview & Services (cont.)
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Figure 8-2EC Application Development Process
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Figure 8-3The Evolution of E-Marketplaces
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ProductSupplier Digital Intermediaries End Users
ServiceSupplier
ProductIntegrator
PortalDigital connectorCustomer agent Consumer
Enterprise
Marketplace builder (infrastructure supplier)
Distributor
-System-integrator
Payment-provider
ProductSupplier
E-Marketplaces and Network Supply Chain Actors
Network access provision
(e-handel services access
-Payment system
- physical and digital delivery
Market placeBtB
Terminal, mobileTlf, tv, pda
•We will talk about this again in another lecture.
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Consulting Services
E-strategyConsultants help determine which specific EC applications to implementFirst step in infrastructure development
TechnologyConsultants advise companies on technology issues
EC architectureSecurity
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Consulting Services (cont.)
Four types of consulting firms1. Provide expertise in area of EC2. Traditional firms that maintain divisions
focused on EC3. A large firm that consists of many small
firms that specialize in EC4. Hardware and software vendors that
provide consulting services
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Application-Building Services and Required Standards
Industry standards are important for shared applications on the web —XML and related standards have been in focus.Compatibility
Efficient interaction between B2B companies necessitates connection of:
ServersApplicationsDatabases
Standard protocols and data representation schemes are needed. Support organizations for XML and EC.
UN/CEFACT body for the facilitation of ECW3C—XML and other EC standardsRosettaNet—supply chain topics
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Points on XML
1. XML is for structuring data2. XML looks a bit like HTML3. XML is text, but not all content4. XML files are larger than binary files5. XML is a family of technologies and standards6. XML is not that new, 7. XML leads HTML to XHTML8. XML lets you design new document formats and
reuse old ones (modular)9. XML is the basis for RDF and the Semantic Web10.XML is license-free, platform independent,
supported by manyYou can read: http://www.w3.org/XML/1999/XML-in-10-points.html
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Web Hosting and Other Services
Business hosting—hosting is popular for SMEs; large businesses need more advanced services
Dedicated server—assigned for specific purpose or customerCo-location (physical location for the server)Free Web hosting attractive option for small start-ups
In echange fo, the Provider company inserts a banner ad on their siteStarting point for small company—minimize start-up costs
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Examples of Hosting Options
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Web Hosting and Other Services (cont.)
Sources of information about Web hostingWeb Host Review (hostreview.com): how to select free Web hosting based on various criteriaHost Search (hostsearch.com): search engine recommends best host based on these criteria:
Monthly costDisk space requirementsMonthly transfer volumeOther
WebHosting Magazine (whmag.com):comprehensive information for members of Web hosting industry and those looking for outsources
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Web Hosting and Other Services (cont.)
Management service provider (MSP)Deliver IT infrastructure management servicesMultiple customers over networks on a subscription basisSpecialize in e-business and enterprise solutionsSee imspassociation.org and crosscommerce.com
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Web Hosting: Categories of Service
Managers Choices: Web Server Software Categories of services: 1. Core Capabilities 2. Site Management 3. Application Construction and Dynamic
Content 4. Site Development 5. Electronic Commerce
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Web Hosting and Other Services (cont.)
End-to-end solutionsBuilds Web sites and EC applications from conceptual design to deploymentAlso supply:
Payment systemsDelivery managementSite monitoringOther servicesSee bccentral.com and WebVision.com
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1. Core Capabilities
Virtual Server – one or multiple domain names on one server machine. Security - can make use of SSL (secure sockets layer) and other measures. IP-aps: FTP, Telnet (remote logins), Gopher (hierarchical structure of files on the Web), etc. Search engines and index programs - Microsoft's Web Server Software, Internet Information Server, has Indexing Server as part of its Web Server package. Data Analysis - who is visiting the site, how long, what documents are being viewed, dates, times. These statistics are recorded in a Web log file. Analyzer programs can be used to extract information from the log files.
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2. Site Management
Authoring tools - Microsoft's FrontPage or Dreamweaver site builder software. Extra services: validate links, validate graphics, compute page download time, validate HTML code. (Allaire Corporation's HomeSite) Link checking programs or services- software or 3rd party service that check each url on your site, reports broken or dead links where you get an error message instead of a file. Customers will leave your site if there are too many failures. Exampls of site analyzers are: Linkbot Pro, Big Brother, SiteInspector. Linkbot Site Report can locate many problems. Script checking - locate error prone pages and code, e-mail reports to the site manager. Remote server administration - to allow the site administrator manages a site from an Internet connection (ie. Web Site Garage).
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3. Application Construction
Application Construction - web editors and extensions. These can allow you to develop code without knowing CGI. Dynamic programs may recognize requests from different browsers and send back different reponses. Examples of editor programs: FrontPage, Dreamweaver, Cold Fusion, PageMill, HotMetaL Pro, and Netscape Composer.
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3. Dynamic Content
Dynamic Content - Individual reponses are generated based on the customer information filled in forms and sent with the request. Sometimes the server side program will access a database. A web server using ODBC (Open DataBase Connectivity) can assemble information from separate and distributed databases (Oracle, SQL Server, Informix) for use in an application.
ASP (Active Server Pages) or JSP (Java Server Pages) are mechanisms to run server side programs. Programs can be written in VBScript, Jscript, Perl, or Java.
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4. Site DevelopmentSoftware Development Kits - include visual Web page editor software, for writing HTML code, as mentioned in the Application Construction. But also more: sample code, instructions for developing scripts in a selected language. Wizards - can help you create features on web pages like, what's new keys, site search, site maps, search forms, and portal construction. One-button publishing - supports web page changes and uploads. Remote developers can change the file on a local PC and move it to the web server. This tool helps to keep site information current. Dreamweaver has a file collaboration system that allows users to modify the same file through using a file checkout system.
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5. E-commerce support
A web server should support electronic commerce software. O'Reillys' WebSite Professional Web Server Software also comes with e-commerce templates. Turnkey software - can feature support for specific functions. These include
Product information publishing, Catalogs, Shopping cards, credit card processing, Sales report on demand, measures when ads are shown.
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Financial B2B Services (cont.)
Purchasing Cards are an advantage to big government agencies or deparments. Electronic letters of credit (for big businesses)
Benefits to sellerCredit risk reducedPayment highly assuredPolitical/country risk reduced
Benefits to the buyerAllows negotiation of lower purchase priceExpansion of supply sources Payment received after document inspected by issuing bank
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Figure 8-4Participants and Process of Using a Purchasing Card
Source: napcp.org/napcp.nsf/Cardparticipants!OpenPage. Used with permission of NAPCP.
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Financial B2B Services (cont.)
Payments (cont.)Payments in B2B global tradingVenture capital to fund e-commerce initiativesInternet incubators (show ad)Tax calculation services
DPCHotSambaSales tax clearinghouseTaxware international
Implementing tax collection in the U.S.
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Financial B2B Services (cont.)
Payments (cont.)Other financial services
Credit reporting firmsNew credit intermediaries broker credit risksAssurance firms guarantee qualityExchanges strike insurance dealsE-credit services
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Order Fulfillment, Logistics,and Supply Chain Services
UPS Logistics GroupHandles outbound
logistics and delivery.
This is only one part of order fulfillment.
See the List of Services on page 328.
Solutions for EC initiatives
Tracking systemsProduct return systemsShipping solutionsE-document exchangeCustomization
EC software/providersE-services/partners
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Marketing and Advertisement
Advertising methods used by offline marketers
Vertical trade showAds in industry magazinesSalespeople call on:
Existing customersPotential buyers
Digital advertisersAd server network providerElectronic wholesalers
Affiliate Programs
Affiliate programs (B2C services)Affiliates invited to put a banner of a vendor on their sitesConsumer clicks on the banner and brings up that company’s EC siteCommission paid to affiliate if customer makes a purchase
32© Prentice Hall, 2002
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Infomediaries
Infomediary servicesCollect data about consumer behavior (clickstream)Analyze itRepackage it (Data Mining Technology)Sell the results
As marketing and profiling informationPurpose to increase customer loyalty
Identify likely buyersIncreased sales (Services, Market efforts)Reduced marketing costs
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Other Marketing Services
Three examples of other services:Digitalcement.com provides corporate marketing portals; builds stronger relationships with customersVantagenet.com free tools that help increase traffic to a company’s Web siteBusinesstown.com has an online directory that enables small businesses to identify and evaluate service companies
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Content Generation, Syndication, Delivery, and Management (cont.)
Syndication Content-delivery networks (CDNs)Catalog contentContent management options
Do it yourselfLet the suppliers do itBuy the content from an aggregatorSubscribe to a vertical exchangeOutsource to full-service Internet exchange
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Content Generation, Syndication, Delivery, and Management (cont.)
Content maximization and streaming services—companies provide media rich content to reach target audience
Video clipsMusicFlash media
Use content delivery solutions that do not cause “traffic jams” with slow download times (e.g., Akamai Corporation)
Oppgave 9 side 255
ebay.com
Group 8: Kim Ingebrigsten
ebay.com
• Verdensledende i online salg
• 42,4 millioner registrerte brukere
• Selger ”alt mulig”: biler, båter, møbler, datamaskiner…
Aktiviteter tilknyttet auksjonene
• Før hver auksjon utgir auksjonshuset en online katalog med alle gjenstandene som skal selges
• Kjøpere må registrere seg for å få delta
• De som ikke kan følge selve auksjonen, kan legge inn et ”absentee bid”
• Selve auksjonen sendes direkte på nettet
• Kjøpesummen betales til auksjonshuset, som sender det du har kjøpt direkte til deg
Hvilke tjenester tilbyr ebay?
End Group 8, …
• Next Group 3b……
GRUPPE OPPGAVE I E-HANDEL
Laget av:
Tony Rodrigues
Fredrik Slåtsveen
Sabine Nicholaysen
Oppgave 2, side 78Oppgave 2, side 78
• Konkurranse mellom:– http://www.billettservice.no/
– http://www.tickets.com/
– http://www.ticketmaster.com/
– http://www.ticketonline.com/
• Hvordan:• Strategi
• Målgruppe
• Off-line samarbeid
http://www.billettservice.no/
• Strategi• Enkel hovedside
• Reklame
• Ticketmaster
• Målgruppe• Unge som gamle normenn
• Off-line• Posten
http://www.tickets.com/
• Strategi• Detaljert side• USA• Reklame• Formidler• Medlem
• Målgruppe• Ung og gammel• Til deler av verden
• Off-line• Mange muligheter
http://www.ticketmaster.com/
• Strategi• Enkel hovedside
• Underholdningsbasert reklame
• Formidler
• Samarbeidspartnere
• Citysearch
• Målgruppe• Unge
• Hele verden
• Off-line• ”Ingen”
http://www.ticketonline.com/
• Strategi• Kan gi full pakke
• Brukervennlig
• Målgruppe• Primært amerikanere
• Unge og gamle
• Off-line• Ingen
Prentice Hall, 2002 55
Resume Lecture….
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Directory Services &Search Engines
Directory servicesB2Business.netB2BToday.comCommunityb2b.comA2zofb2b.comI-stores.co.ukWebsteronline.comThomasregister.comBocal.comB2b.yahoo.com
Search engines and news aggregators
Moreover.comGoogle.comIentry.com
Newsletters
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E-Communities
E-communitiesChat roomsBulletin boardsPersonalized Web pages
B2B are basically communities of transactions
Classified adsJob vacanciesAnnouncementsIndustry news
E-communities connect:
PersonnelPartnersCustomersAny combination of these three
Service providersDesign of exchange portalsE-community service
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Partner RelationshipManagement (PRM)
In B2B environment the partners include:
SuppliersPartners in joint venturesService providers
PRM—relies on: TrustCommitmentQuality of servicesContinuity
Strategy for e-serviceHow much to invest in services
What services to provide
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Other B2B Services
Trust servicesTrust Trademark and domain namesDigital photosGlobal business communitiesClient matching
E-business rating sitesPromotion programsEncryption sitesWeb research servicesCoupon-generating sites
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Figure 8-8The B2X Hub
Source: Compiled from “B2B Exchanges,” Internet Exchange 2000 at Keenanvision.com, April 24, 2000.
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Integration
Integration in e-marketplaces and exchanges
B2X hubs connect:All Internet business servicesMerchant servicesExchange infrastructureBuying and sellingMember enterprisesOther B2X exchanges
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Hypermediation
Hypermediators are:Content providersAffiliate sitesSearch enginesPortalsISPsSoftware makersOther entities
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