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Electronic Commerce between Companies (B2B) - Coggle Diagram

- - - - EDI is expensive and, despite the years it has been on the market, its implementation has been limited and restricted to different segments.
        In its place, Sé is developing a new standard called XML ("Extended Markup Language") that will allow the systematization of the fields of the documents that are used by the different companies and the structuring of the latter. In this way, the systems, without the intervention of people, will be able to exchange documents.
        
        CommerceNet, the main association for the promotion of Electronic Commerce in the world, is the promoter of this technology.
      - In Spain, the Spanish Association of Merchants (AECOC) has a solution of this nature. There are even versions developed on the Web with lower installation and implementation costs.
- - - - The companies that are in this relationship through the Internet through the B2B model integrate a very wide value-added chain, which goes from the supplier of the raw material to the final consumer.
        The improvements in the quality of the product and in the service with the use of the Internet are multiplying the sales of the companies. Representing significant reductions in operating expenses, on the other hand, transaction costs are falling in products that are substitutes, but with increasingly greater price differentials.
        
        Consequently, business to business electronic commerce awaits a very optimistic future, and it is predicted that it will reach 7.29 trillion dollars in 2008, compared to the 145 billion dollars reached in recent years.
- - - - There are six different types of e-procurement:
        
        ERP-based websites: creating and approving purchase requirements, placing purchase orders, and receiving merchandise and services through the use of a software solution based on Internet technology.
        
        e-MRO (Maintenance, Repair and Operation): Same as Web-based ERP except that the goods and services ordered are related to MRO services.
        
        e-sourcing: identifying new providers for a specific category of procurement requirements using Internet technology.
        
        e-tendering: sending requests for information and prices to suppliers and receiving responses from them, using Internet technology.
        
        e-reverse auctioning: using Internet technology to purchase merchandise and services from a number of known or unknown suppliers.
        
        e-informing: aggregating and distributing purchasing information to and from internal and external groups using Internet technology.
        
        E-procurement is the automation of internal and external processes related to the requirement, purchase, supply, payment and control of products using the Internet as the main means of customer-supplier communication. The flow of information is carried out in real time, and allows the data to be known instantly if there is a change in the variables.
- - - - To meet this goal, your computer applications can be used as an effective remedy to eradicate some of the great evils of organizations:
        
        Failure to obtain the best quality, service and price conditions in the acquisition of products/materials.
        
        Lack of transparency and impossibility of traceability (monitoring) of the purchasing process.
        
        Little agility in purchases and difficulty in carrying out their control.
        
        Lack of a single purchasing policy.
        
        How do e-purchasing tools work?
        In general, they take advantage of the Internet to facilitate the relationship between buyers and suppliers, so that there is a website (marketplace) where buyers reflect their needs and suppliers make their offers.
        The main features it presents are:
        • Access is done by entering a user code and a password.
        • Depending on the profile assigned by the application administrator, the functionalities to which the users of the tool have access are different.
        • They are “Modular” applications, so that only those modules that are really going to be used can be purchased. • Once the order award phase has been completed, they integrate the data with the companies' ERPs.
        
        What e-purchasing applications can we find in the market?
        The tools on the market are usually specialized in one of the two processes of the purchasing function (e-sourcing and e-procurement), although almost all of them cover both functionalities. It is not possible to highlight a tool as the best, but it is possible to know what each one of them is specialized in.
        The companies focused on e-sourcing or negotiation are:
        • Fullstep. • Portum. • Goodex.
        What savings can e-purchasing provide?
        Despite the recent appearance of these applications, there is already a true legend about the savings they cause in the organizations in which they are implemented; although, these cost reductions must be taken with great caution.
        Tool providers speak of two types of savings:
        
        Savings in transaction cost.
        
        Savings in the cost of materials.
        
        e-Purchasing constitutes the spearhead of B2B penetration in traditional companies due to the ease with which the investment made is recovered and the benefits that its adoption entails.
        These are:
        . Reduction of transaction costs.
        . Reduction of acquisition costs.
        . Reduction of the duration of the purchasing cycle.
        . Improved market prospecting.
        . Optimization of the time dedicated to non-productive tasks.
- - - - Business models have been defined and categorized in many different ways.
        This is an attempt to present a comprehensive and consistent taxonomy of business models observed on the Web.
        The proposed taxonomy is not intended to be exhaustive or definitive. Business models continue to evolve and new and interesting variations can be expected.
        
        The basic categories of business models discussed in the table below include:
        
        Brokerage
        
        Advertising (Advertising)
        
        Infomediary
        
        Merchant (Merchants)
        
        Manufacturer (Direct)
        
        Affiliate
        
        Community
        
        Subscription
        -Utility
        
        The models are implemented in a variety of ways, as described below with the examples. Furthermore, a firm may combine several different models as part of its overall Internet business strategy. For example, it's not uncommon for content-oriented businesses to mix with a subscription model.
        
        Business models have recently become more important as a form of intellectual property that can be protected by a patent. In fact, business models (or more broadly speaking, "business methods") have increasingly fallen into the realm of patent law. A number of business method patents relating to electronic commerce have been granted. But what is new and original as a business model is not always clear.
- - - - The Internet has also allowed less common markets to flourish by connecting buyers and sellers from disparate locations.
        Prosper and Globe Funder for example allows anyone to offer loans or get loans from other people. Another example is uHaul's affiliate eMove.com which allows anyone to offer or request moving or shipping services.
- - - - DEVELOPING
        Regularly, the ideal way in which the decision-making process in SMEs should be carried out would be as follows:
        
        Determine the need for the decision, define the reasons that led us to the current situation and why it is necessary to make a decision to fix it.
        
        Identify the decision criteria, that is, have knowledge of the variables that will come into play when making our decision.
        
        Identify the decision criteria, that is, have knowledge of the variables that will come into play when making our decision.
        
        SMEs must take advantage of their main advantage over large corporations, which is flexibility, largely due to their size, and realize that the implementation of a DSS or any other information system is more viable in this type of company than in large ones. .
        The competitiveness given by the fact of being updated in the use of information systems and in making quality decisions in time, will allow SMEs to survive in a market that is increasingly open and hard at the same time.
        
        Most SME executives know that there are many benefits that can be obtained in relation to the use of DSS, the problem is that most of them do not know the concepts related to the subject, which makes acceptance very difficult. of the same for not having the grounds to trust the true benefit of an available DSS solution.
        
        After this brief review of the DSS and the importance they have in SMEs, it only remains to recommend the definition of 3 basic points:
        1-The identification of the needs of the organization in relation to the DSS,
        2- What are the appropriate functions of a DSS to serve the needs of the business,
        3- Is the proposed DSS a guaranteed solution.
- - - - Other systems have followed this trend such as that of Open Market Inc., which has developed OM Transact for a superior sales server aimed at very large retailers and Internet service providers, while IBM launched Net Commerce, which debuted in ticket sales for the Olympic Games and whose first commercial client was L.L. Bean, the largest catalog seller in the United States. IBM is also offering to host online catalogs that allow entities to trade electronically without making a large initial investment that does not ensure benefits.
        
        Despite the success of B2C in highly developed countries, many analysts agree that these purchases from the home or office may be overshadowed by B2B or business-to-business e-commerce. The world's most successful book-selling CE publishing site, amazon.com, sold an estimated $87 million in 2005. By comparison, B2B sales totaled more than $1.18 billion.