INLS 21096 Electronic Business for Information Professionals

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INLS 210-96Electronic Business for Information
Professionals

• Business-to-Business
• June 5, 2000

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Todays Reading

• Forbes - Have your computer call my computer
• Business 2.0 - Let's Get Vertical
• Forbes Digital Tool - Music biz uses web for new
  business-to-business initiatives

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Estimated savings from B-to-B ecommerce

• Aerospace machining 11
• Chemicals 10
• Communications 5-15
• Computing 11-20
• Electronic components 29-39
• Food ingredients 3-5
• Forest products 15-25
• Freight transport 15-20

• Health care 5
• Life sciences 12-19
• Machining (metals) 22
• Media and advertising 10-15
• Oil and gas 5-15
• Paper 10
• Steel 11

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General Electric

• Increased materials cost
• Examination of purchasing procedures
• Inefficient
• Too many transactions between GE and vendors and
  within GE
• GE did not use advantage of making a large volume
  of purchases
• 25 of invoices were reworked due to errors

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GE Lighting

• Sent hundreds of price requests to corporate
  departments daily
• Requests required copies of blueprints
• Various other paperwork included
• Corporate would sent requests to
  vendors/suppliers who would bid on the job
• Process took seven days
• Able to send out 2 or 3 requests for each project

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GE Trading Post Network

• Corporate receives requests from GE Lighting in
  digital format
• Sends vendors/suppliers an electronic information
  request form

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GE Trading Post Network

• Cut processing time by 99
• Requests made globally to hundreds of registered
  vendors
• Reduced labor needed by 30
• Cut material costs by up to 20
• Use 60 of corporate staff elsewhere
• Cut time for entire process in half

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B2B Objectives

• Simplification
• Integration
• Openness

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Aiding Information Flow

• Products
• Customers
• Suppliers
• Planning
• Transportation
• Inventory

• Alliances
• Competitive analysis
• Sales
• Marketing
• Performance

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Supply Chain Management

• Generating orders
• Taking orders
• Distributing orders

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Players in B2B

• Sellers
• Buyers
• Intermediaries
• Deliverers
• Networks Systems

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Sellers Buyers

• Sellers
• Developing online catalogs as sales tool
• Integration with buyers systems is crucial
• Focus on self-service

• Buyers
• Looking to reduce their purchasing price and
  quicker turnaround on placing orders
• Able to expand market and market share

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Intermediaries

• Companies that run marketplaces where buyers and
  sellers meet
• FreeMarkets.com
• Simultaneous negotiations will thousands of
  suppliers
• Few marketplaces will survive

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Intermediaries E-Marketplaces

• Communities
• Catalogs
• Procurement Hubs
• Auctions
• Exchanges
• Collaboration Hubs

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Tuesday Delivery

• Just-in-time delivery

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Tuesday Networks Systems

• EDI
• ERP
• Agents

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Tuesdays Readings

• Posted by 3 pm Monday