Business 2 Business 101

Report
American Express Canada Presentation
Presenter: Yogi Schulz
Business 2 Business 101
Business 2 Business 101
Roadmap
to
Self-education
“Get me to the Web
on time or else!”
February 2001
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Housekeeping
Items
Business 2 Business 101

Refreshments

Facilities

Messages

Cellular phones & beepers
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Yogi Schulz
Biography
Business 2 Business 101

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
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Presentation
Outline
Business 2 Business 101

Introduction

Importance of the Internet

B 2 B Major Applications

B 2 B Benefits

E-commerce publications

Questions & Answers
Web is full of E-commerce help
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I’m creating
an E-business
Business 2 advice
Business 101
web site.
MANAGE
FASTER,
YOU LAZY DOG!
Using the Web
for Business Success
DOGBERT.COM had a
successful IPO today,
Netting billions
for Dogbert.
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Presentation
Objectives
Business 2 Business 101
Why don’t you already understand all this stuff?

Build an understanding of business-to-business
application:
– categories
– benefits
– success criteria

Build awareness of available resources
Improve B 2 B E-commerce understanding
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New
Topic
Importance of the
Internet

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 $203 billion by 2002.
International Data Corp. 1999

More than 79.4 million adults, or 38% of the U.S. population age
16 and older, are now online. IntelliQuest Research 1999.

71% of Internet users spend over 1/2 hour online each day.
Pew Research Center 1999

Approximately 77% of all employed people use the Internet at
work. U.S. Dept. of Commerce 1999
The Internet and E-commerce
in Canada
Business 2 Business 101
90
80
70
60
50
40
30
20
10
0
1996
1997
1998
WWW Users (M)
1999
2000
2001
2002
2003
E-commerce (B$CDN)
Source: IDC Internet Commerce Market Model, V 5.0
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Business-to-Business E-commerce
Definition
Business 2 Business 101
Conducting business transactions:

electronically
– not fax/phone/mail/in-person

online
– typically through the web or EDI
– not via e-mail

between two businesses
Buying and selling
products and services
through the web
– not with consumers/government
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Business Impact
of the Internet
Business 2 Business 101
Can’t you get it through your thick skull?

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
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Old vs. New Economy
influenced by David Barry
Characteristics
Old
New
Currency
Money
High tech stocks
Stock exchange
NYSE
NASDAQ
Make products
Buy/sell stocks
All of us
Bill Gates
Communication
Telephone
Voice mail
Product liability
Ridiculous
None
Key activity
Owner
Distribution channel Bricks & mortar
Strategy
Meeting communication
Fedex
Make money
Spend money
Talk
Palm Pilot
New
Topic
B 2 B Major Applications
Software Packages
Business 2 Business 101

Procurement

E-Marketplaces

Content Management

E-Marketing

Supply Management
Reference:
Business Week E.BIZ

Content Distribution

E-Commerce

Customer Support
11 December 2000
page EB 32
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Procurement
Business 2 Business 101

Description:
– enables automated purchasing

Leading supplier - Ariba
– www.ariba.com

Key competitors:
–
–
–
–
Oracle
SAP
Commerce One
upstarts
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E-Marketplaces
Business 2 Business 101

Description:
– creates online exchanges to link buyers and sellers

Leading supplier - Commerce One
– www.commerceone.com

Key competitors:
– Ariba
– FreeMarkets
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Content Management
Business 2 Business 101

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
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E-Marketing
Business 2 Business 101

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
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Supply Management
Business 2 Business 101

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
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Content Distribution
Business 2 Business 101

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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E-Commerce
Business 2 Business 101

Description:
– builds product catalogues
– collects payments
– tracks deliveries

Leading supplier - BEA Systems
– www.beasys.com

Key competitors:
– BroadVision
– IBM
– Art Technology Group
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Customer Support
Business 2 Business 101

Description:
– automates online customer service

Leading supplier - Kana Communications
– www.kana.com

Leading supplier - Ask Jeeves
– www.askjeeves.com

Key competitor - Siebel Systems
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Safe Credit Card
Use
Business 2 Business 101
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New
Topic
B 2 B Benefits
Business 2 Business 101

Sellers

Buyers

Market Makers
“You mean there was a time
before the Web?”
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B2B eCommerce Benefits
Sellers
Business 2 Business 101

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
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B2B eCommerce Benefits
Buyers
Business 2 Business 101

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
Return 15-27% back in reduced costs
- AMR estimate 1999
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B2B eCommerce Benefits
Market Makers
Business 2 Business 101

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
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Create Memorable
Web Sites
Business 2 Business 101
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New
Topic
E-Commerce
Publications
Business 2 Business 101

Senior management

IT professional

IT research organizations
“Customers won’t see me
with my pants down!”
Printed and web
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Senior Management
Publications
Business 2 Business 101

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
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
About.com – Electronic Commerce
IT Oriented
Publications - 1
– 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 Oriented
Publications - 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

Excellent
Glossary

The Eco Framework
– eco.commerce.net
– eco.commerce.net/rsrc/index.cfm
Ecom World
– www.ecomworld.com
IT Oriented
Publications - 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
IT Research
Organizations - 1
Business 2 Business 101

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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IT Research
Organizations - 2
Business 2 Business 101

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
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U. S. Government
E-commerce Sites - 1
Business 2 Business 101

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
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U. S. Government
E-commerce Sites - 2
Business 2 Business 101

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
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Canadian Government
E-commerce Sites
Business 2 Business 101

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
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Canadian Government
Industry Canada - E-commerce Sites
Business 2 Business 101

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
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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!”
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Any Questions?
Business 2 Business 101
Dogbert
will explain it
to you
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American Express
Business 2 Business 101
Business 2 Business 101
700, 205 - 5th Ave. S.W.
Calgary, Alberta Canada T2P 2V7
Phone: (403) 249-5255
E-mail: [email protected]
Web: www.corvelle.com
 President of Corvelle Consulting
 Information technology related management consulting
 Project management and systems development
 Computing Canada columnist
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Bibliography
-1
Business 2 Business 101

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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Bibliography
-2
Business 2 Business 101

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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Bibliography
-3
Business 2 Business 101

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
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Bibliography
-4
Business 2 Business 101

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
Business 2 Business 101

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
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B2B Procurement - 1
Business 2 Business 101

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
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B2B Procurement - 2
Business 2 Business 101

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.
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B2B Procurement - 3
Business 2 Business 101

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.
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B2B Procurement - 4
Business 2 Business 101

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 Process
http://www.microsoft.com/TRAININGANDSERVICES/content/training/
samples/2260/Webfiles/Mod02/02m8.htm
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Features of
e-Procurement - 1
Business 2 Business 101

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
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Features of
e-Procurement - 2
Business 2 Business 101

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.
51
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Features of
e-Procurement - 3
Business 2 Business 101

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.
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Features of
e-Procurement - 4
Business 2 Business 101

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 Process
http://www.microsoft.com/TRAININGANDSERVICES/content/training/
samples/2260/Webfiles/Mod02/02m9.htm
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