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PPT Slides by Dr. Craig Tyran & Kraig Pencil
E-Commerce: Supporting External and Internal
LinkagesPart 2
MIS 320
Kraig Pencil
Summer 2014
PPT Slides by Dr. Craig Tyran & Kraig Pencil
Game Plan
• Introduction• Supporting Internal Linkages
– Intranets• Supporting External Linkages
–B2C: Business to Consumer –C2C: Consumer to Consumer–B2B: Business to Business
PPT Slides by Dr. Craig Tyran & Kraig Pencil
G. Business-to-Business Applications (B2B)
1. Objective– Support external linkages– Foster trading between businesses– Reduce costs and time
• e.g., purchasing supplies, just-in-time inventory
2. Early growth (see figure)Shipping Information
Supplier Corporate Buyer
PPT Slides by Dr. Craig Tyran & Kraig Pencil
2005
2002
2005$8.5
Trillion
2005$8.5
Trillion2004
$6 Trillion2004
$6 Trillion
2003$3.6 Trillion
2003$3.6 Trillion
2002$1.9
Trillion
2002$1.9
Trillion
Comparison of B2C vs. B2B: Growth
Source: Garnter, Inc (http://findarticles.com/p/articles/mi_m0EKF/is_12_47/ai_72068777 )
B2C
B2B
$184B$92B$92B
B2B is about 50
times larger than B2C
B2B is about 50
times larger than B2C
PPT Slides by Dr. Craig Tyran & Kraig Pencil
G. Business-to-Business Applications (B2B)3. Example applications
– Scan-based Trading – e.g. Electronic data interchange (EDI)• EDI involves
– Repetitive business transactions (e.g., orders, bills)– Computer-to-computer exchange– Standard format for data exchanged
• “EDI translator” converts data to a format that TPS software will understand
• Benefits– Significant cost savings
• $50 per paper transaction vs. $1-2 per EDI transaction– Time savings -- from initiation to completion– Reduction of errors
• Costs – High initial investment ($) and startup period– EDI systems can be inflexible– Multiple EDI standards exist (e.g., different customers may use
different EDI standards)
PPT Slides by Dr. Craig Tyran & Kraig Pencil
Order Delivery: Without EDI and With EDI
Lots of paperwork and manual processing
Costly, Slow, Error-prone
Electronic data interchange and processing
Cheaper, Faster, More accurate
Source: Rainer, Turban, Potter, Introduction to IS, Fig 8.4
PPT Slides by Dr. Craig Tyran & Kraig Pencil
G. Business-to-Business Applications (B2B)
3. Example applications (cont.)– Extranet
• Extend portions of an intranet to selected business partners• E.g., Share current inventory, production schedules
– Inventory replenishment• “Electronic bread man”• Supplier scans inventory database and is responsible for
restocking
– Marketplace exchanges• Request for quotes, automated procurement• e.g., ChemConnect, Automotive Network Exchange (ANX)
PPT Slides by Dr. Craig Tyran & Kraig Pencil
Marketplace Exchange: ChemConnect