Revisions are needed on the paper I submitted for school. I have uploaded a file titled default.pdf which explains. Any section that scored less than a 3 needs to be revised. Please read teachers comments. Aspects B3, B5, C2 - C2f, D1 and D2 require addre

INTE1208-Lecture2AA.ppt

Home >Business & Finance homework help >Management homework help >Revisions are needed on the paper I submitted for school. I have uploaded a file titled default.pdf which explains. Any section that scored less than a 3 needs to be revised. Please read teachers comments. Aspects B3, B5, C2 - C2f, D1 and D2 require addre

E-PROCUREMENT & SUPPLY CHAIN TECHNOLOGIES
INTE 1208

Dr Alka Nand

Sem 1, 2016

INTE1208 – Session 2

B2B Infrastructure and
B2B eMarketplaces

Issues for Managers

What are the practical risks to the organization of failure to adequately manage e-commerce infrastructure?
How should staff access to the Internet be managed?

What is infrastructure?

According to Chaffey (2007, p. 82):

The architecture of hardware, software, content and data used to deliver eBusiness services to employees, customers and partners.

Benefits, Problems and Challenges

In groups, identify problems with running an organisation with a bad technological infrastructure.
Identify benefits of good technological infrastructure for organisations.
Make a list of the potential problems for customers of an online retailer

CLASS ACTIVITY

Typical problems involved with infrastructure we experience

Web site communications too slow.
Web site not available.
Bugs on site through pages being unavailable or information typed in forms not being executed.
Ordered products not delivered on time.
E-mails not replied to.
Customers’ privacy or trust is broken through security problems such as credit cards being stolen or addresses sold to other companies.
Site is not viewable on mobile

Benefits of eCommerce infrastructure

Include:

Faster time to market for new products;

Effective communications with partners, suppliers, customers;

Higher revenue growth;

Efficient business processes;

Single point of contact;

Integrated information from separate business units; &

Shared services, applications.

Challenges of eCommerce infrastructure

Include:

Infrastructure capabilities as a fusion of technology and human assets;

Standard – does one size fit all?;

Stable services;

Dynamic functionality;

Frequent changes of eBusiness applications; &

In-sourcing or outsourcing infrastructure?

Infrastructure for B2B eCommerce

Electronic marketplaces need flexible trading relationships

Inter-organisational systems (IOS) require tight system integration

B2B sector requires a dynamic enabling infrastructure with specific approaches to different types of strategic initiatives

E-business infrastructure refers to

E-business client/server environment

E-business applications

E-business networking

E-business content hosting

All of the above

Changing role of IT infrastructure

Before:

Technology driven

Developed in reactive manner, extending and replacing components as needed,

Fragmented

IT professionals in charge of management and decision making

No public IT infrastructure

Now:

Viewed as services enhancing and supporting business performance

BUNDLE OF BENEFITS

Need proactive approach to development

Linked to business strategy

Business managers in charge of decision making

Must consider taking advantage of the emerging industry and public infrastructure.

A five-layer model of e-business infrastructure

eBusiness infrastructure

Further Infrastructure Components

Architectures

indicate how the various applications, information stores and linkages are mapped into the physical model.

Policies

should address such matters as sourcing, standards, audit and security, contingency plans, service levels.

Management processes and services

include planning and management of facilities, vendor management, provision of technical support to users.

Human Infrastructure

includes knowledge, skills, and experience

Internet of Things

The Internet of Things is bringing about that world at a furious pace - very soon over 26 billion devices of all shapes and sizes will be connected to the Internet.
New Technology Also Means Greater End-to-End Visibility and Predictive Power

Reroute inventory at will

Consolidate and create efficient shipments

Accommodate painless and profitable returns

Support servicing parts on-demand

Manufacture quick runs of short-lifecycle products

Configure and change orders even in the middle of production

Aggregate data across regions to predict future demand accurately

Omnichannel

The property of being present everywhere
“Connected customers can shop for and purchase the same items across many different channels, in a retail store, on their home or laptop computers and perhaps most importantly on their connected mobile devices which allow them to shop online for virtually anything, virtually everywhere…”
The poster child for omnichannel has been buy online, pickup in-store.

Enterprise Resource Planning Systems

Systems that integrate all the information flows through a company, given the richness of such systems in terms of functionality and potential benefits to the adopting organisations.
Essentially:

Software tools

Manages business systems (supply chain, receiving, inventory, customer orders, shipping, accounting, HR, etc)

Allows automation and integration of business processes, enterprise-wide

Enables data, information and knowledge sharing

Introduces ‘best practices’

http://www.iqms.com/erp-success/

*Interesting cases of companies using the software

OLD VS NEW

Before and After ERP

Various ERPs and their market share

http://www.forbes.com/sites/louiscolumbus/2014/05/12/gartners-erp-market-share-update-shows-the-future-of-cloud-erp-is-now/#74e6f0cc74a1

RMIT University©March 2011

International & Development Portfolio

Reasons for adopting an ERP

Checklist before going ERP: EXTRA INFO

Do your organisation’s business leaders support the system implementation?
Who are the line-of-business professionals that can be responsible for measuring the business benefits relevant to their department’s ERP module?
Who will be the ERP project manager?
What are the specific business problems you need to solve with ERP?
What are the goals and metrics that you will use to measure the business benefits of your organisation’s new ERP solution?
What features and functions do you need from a new ERP solution that will help increase users’ productivity and provide access to the business data users most need?
Which modules will you begin rolling out your ERP package?
Is the prospective ERP solution built with service-oriented architecture (SOA) capabilities?
Which users across your organisation will need to be trained on the new system?
Will the ERP package be able to adapt to changes in your business as your company grows?

Costs and Benefits

Major investment

Between $50,000 and 100,000,000+

Variety of business justifications

Replace legacy systems

Enable organisational standardisation

Reduce cycle times

Lower operating costs

Enables strategic management decisions (real time)

Do we go to the cloud?

‘The use of distributed storage and processing on servers connected by the Internet, typically provided as software or data storage as a subscription service provided by other companies’ (Chaffey, 2009, p. 171).
Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction (National Institute of Standards and Technology).
Extension of SaaS, Paas, IaaS, ASP, SOA.
http://www.computerworld.com.au/article/394080/rmit_goes_google_says_no_microsoft_cloud/

Rmit’s move to not use cloud but opt for google

Extras:
SaaS, PaaS, IaaS, Huh?

SaaS applications are designed for end-users, delivered over the web
PaaS is the set of tools and services designed to make coding and deploying those applications quick and efficient
IaaS is the hardware and software that powers it all – servers, storage, networks, operating systems

Examples of the Cloud

Webmail readers;
e-commerce account and purchasing management facilities such as Amazon.com, Google Apps;
CRM through Salesforce/Oracle;
SCM through SAP, Oracle;
E-mail and web-security management through MessageLabs.

Issues with the cloud

Is it secure? Is it backed up? Is it always available?

Data availability for business continuity

Malware issues

Rogue clouds

Choosing an infrastructure

Focus on infrastructure investments that

promise clear cost savings

Enable strategic flexibility

Facilitate business agility on appropriate level

Allow fast response to change in the global marketplace

Infrastructure capabilities should be right for the firm’s strategy.
Market leaders make different choices depending on their business context.

Infrastructure for B2B eCommerce

With the technologies and infrastructure correctly selected and implemented within an organisation, the following are possible:

Intranets

Extranets

Barcode scanning

EDI

eMail systems

Web-based e-Forms

Data warehousing

Telephone-based information systems

Six Steps in developing eCommerce architecture

consider business issues that count
in-house or outsource?
consider an approved service provider
detailed EC architecture study
security and ethics
choosing a vendor and software

Final view of broad SCM Trends

Agility, responsiveness, compliance and risk management are the driving factors of differentiation for both manufacturers and retailers alike.
Customers are leveraging software platforms and service firms to drive process-oriented and organizational changes focused on achieving corporate goals.

Holistic Solution Landscape

Cloud and Mobility

Big Data and Analytics

Collaboration and Social Networking

Compliance and Sustainability

A company ________ can be used to provide specialised content such as sales histories to key account customers.

Intranet

Extranet

Opranet

Internet

None of the above

A company ________ can be used to provide shared content for staff only:

Extranet

Opranet

Intranet

Internet

None of the above

A company ________ site can be used to provide access to all interested users:

Intranet

Internet

Extranet

Opranet

None of the above

B2B eMarketplaces

A book retailer has transactions that are predominantly:

Consumer to business

Business to business

Business to consumer

Consumer to consumer

None of the above

A chemical manufacturer has transactions that are predominantly:

Business to consumer

Consumer to consumer

Business to business

Consumer to business

None of the above

Issues for managers

Can we justify the cost of B2B applications?

What are the implications of changes in marketplace structures for how we trade with customers and other partners?

Which business models and revenue models should we consider to exploit the Internet?

What are the benefits and risks of joining an exchange?

Can we trust new trading partners?

Learning Resources

Timmers, P. (1999) Business models for electronic commerce, Electronic Commerce: Strategies and Models for Business-to-Business Trading, John Wiley & Sons, Chichester, pp. 31–45.

Business model - Definition

Timmers (1999) defines a ‘business model’ as:

An architecture for product, service and information flows, including a description of the various business actors and their roles; and a description of the potential benefits for the various business actors; and a description of the sources of revenue.

What is a Business Model?

A method of doing business – how a company generates revenue to sustain itself

A description of how a business work: its interaction with the value chain, the business processes, cost structure and revenue streams

Concentrates on the activities that generate value for the company, the customers, and the suppliers.

Focuses on the resources required for manufacturing the product (goods &/or services)

A Business Model should:

Articulate value proposition

Identify market segment

Define value chain structure

Estimate cost structure & profit potential

Identify the position of the firm within the value network

Formulate strategies

Innovative business models

Class Discussion Industries – Apparel, Travel , Retail, Manufacturing, Education etc

Southwest airlines
Uber
Zara
Airbnb

RMIT University©March 2011

International & Development Portfolio

Figure 2.10 Business Model Canvas example
Source: Smart Insights. With permission.

Why should organizations use Electronic Markets?

For Buyers (Customers):

Lower prices
Lower costs
Access to more suppliers
Enhanced product comparison , more informed decision-making

For Sellers (Suppliers):

Lower costs
Access to new markets, more customers
Greater market share
Greater profitability
Access to market information

Why do we need Business Models?

Changing business environment

Advanced Technological Capabilities,

Global Connectivity and Reduced Transaction Costs

Issues:

Redefinition of Core Competency and Products

Change in Revenue Models

Change in Relationships: Coopetition Buying (collaboration between business competitors),

Change in Functional Processes

New Models of Outsourcing

New Models of Customer Interaction

E-Marketplaces

Electronic marketplaces (e-marketplaces or marketspaces), changed several of the processes used in trading and supply chains

Greater information richness

Lower information search costs for buyers

Diminished information asymmetry between sellers and buyers

Greater temporal separation between time of purchase and time of possession

Greater temporal proximity between time of purchase and time of possession

Ability of buyers and sellers to be in different locations

E-Marketplaces

Market space components

Customers

Sellers

Products and services

Infrastructure

Front end

Back end

Intermediaries

Infomediaries (collects and analyses customer data on behalf of the company)

e.g., Nostradata

Collaborative Commerce

7-*

Collaborative Commerce

grid computing

A form of distributed computing that involves coordinating and sharing computing, application, data, storage, or network resources across dynamic and geographically dispersed organizations

service-oriented architecture (SOA)

An architectural concept that defines the use of services to support a variety of business needs. In SOA, existing IT assets (called services) are reused and reconnected rather than the more time consuming and costly reinvention of new systems

7-*

Collaborative Commerce

Representative Examples of E-Collaboration

Vendor-managed inventory (VMI)

The practice of retailers’ making suppliers responsible for determining when to order and how much to order

Information sharing between retailers and suppliers

Retailer–supplier collaboration

Lower transportation and inventory costs and reduced stockouts

Reduction of design cycle time

Reduction of product development time

7-*

Collaborative Commerce

Barriers to C-Commerce

Most organizations have achieved only moderate levels of collaboration because of:

A lack of internal integration, standards, and networks

Security and privacy concerns, and distrust over who has access to and control of information stored in a partner’s database

Internal resistance to information sharing and to new approaches

E.g., Bosch Australia

A lack of internal skills to conduct c-commerce

7-*

Flavours of B2B business model

The B2B business models that we will evaluate:

E-Shop (more B2C)

E-Mall (more B2C)

E-Procurement

E-Auctions

Virtual Communities

Independent E-Markets

Value-Chain Service Providers

Value-Chain Integrators

Collaboration Platforms

Information Brokerage, Trust and other Services

E-Shops aka online shopping

Activities supported:

Product promotion

Online catalogue

Order taking

Payment

Online channel for a brick and mortar

Example

Travelocity (www.travelocity.com)

Alibaba

Amazon

Ebay

E-Malls

A collection of E-Shops (aggregator)

Activities supported:

Product promotion

Online catalogue

Order taking

Payment

Delivery & Logistics

Can become vertical or horizontal markets

Example

www.shopnz.co.nz

E-Procurement

Electronic tendering and procurement of industrial goods and services
Emphasizes standardized procurement channel and integrated business processes
Examples

Coles

Woolworths

RMIT

E-procurement Companies

Create and sell access to digital electronic markets
B2B service provider is one type – offer purchasing firms sophisticated set of sourcing and supply chain management tools
Application service providers a subset of B2B service providers
Examples:

Ariba

CommerceOne

E-Auctions

Forward Auctions (for sellers) and Reverse Auctions (for buyers)
Activities supported:

Electronic bidding

Dynamic price determination

Examples

Freemarkets.com

Global eXchange Services (gxs.com)

Virtual Communities / Portals

Concentrate on adding value through relationship, memberships and affiliations
Online communities with mutual interests discuss using social media

Activities supported:

Collaborative purchasing

Collaborative product design

Integrated supply chain activities

Examples

Fencepost/Fonterra

Revenue model

Membership fees