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INLS 210-96 Electronic Business for Information Professionals

INLS 210-96 Electronic Business for Information Professionals. Business-to-Business June 5, 2000. Today’s 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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INLS 210-96 Electronic Business for Information Professionals

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  1. INLS 210-96Electronic Business for Information Professionals Business-to-Business June 5, 2000

  2. Today’s 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

  3. 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% Estimated savings from B-to-B ecommerce Business 2.0 May 2000

  4. 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 Source: Turban Electronic Commerce: A Managerial Perspective

  5. 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

  6. GE Trading Post Network • Corporate receives requests from GE Lighting in digital format • Sends vendors/suppliers an electronic information request form

  7. 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

  8. B2B Objectives • Simplification • Integration • Openness

  9. Products Customers Suppliers Planning Transportation Inventory Alliances Competitive analysis Sales Marketing Performance Aiding Information Flow

  10. Supply Chain Management • Generating orders • Taking orders • Distributing orders

  11. Players in B2B • Sellers • Buyers • Intermediaries • Deliverers • Networks & Systems

  12. 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 Sellers & Buyers

  13. Intermediaries • Companies that run marketplaces where buyers and sellers meet • FreeMarkets.com • Simultaneous negotiations will thousands of suppliers • Few marketplaces will survive Source: BusinessWeek June 5, 2000

  14. Intermediaries: E-Marketplaces • Communities • Catalogs • Procurement Hubs • Auctions • Exchanges • Collaboration Hubs

  15. Tuesday: Delivery • Just-in-time delivery

  16. Tuesday: Networks & Systems • EDI • ERP • Agents

  17. Tuesday’s Readings • Posted by 3 pm Monday

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