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Chapter 8 B2B Support Services
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Learning Objectives
Identify the major B2B services usually provided by specialized e-service providers Understand why EC services are frequently outsourced Describe the role and types of e-strategy consultants Understand the e-infrastructure process and the role of Web hosting and integration Describe various financial services in B2BPrentice Hall, 2002
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Explain the various B2B logistics services and order fulfillment services Differentiate B2C from B2B with respect to marketing, advertisement, and sales, and describe some B2B initiatives Describe content creation, syndication, delivery, and management Describe the role of directory services in B2B Describe how CRM is done in B2B and its relationships with e-communitiesLearning Objectives (cont.)
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Hewlett Packard Closes the Payment Gap in B2B E-Commerce
HP payment solution00eamless electronic B2B payment Two components are preintegrated and provide end-to-end automation Embedded options that establish rules to facilitate direct debit payment options Buyer accounts Purchasing limits Corporate discounting The system connects all these accounts with their online financial institutionsPrentice Hall, 2002
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Hewlett Packard Closes the Payment Gap in B2B E-Commerce (cont.)
HP payment solution The integrated system reduces cost of: Order processing Contract administration Customer service Captures and analyzes information that allows company to offer unique purchasing experience Customers00est value online experience Partners00andle complex transactions quickly and securely Employees00educe cost and time for processingPrentice Hall, 2002
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Figure 8-1 Electronic Commerce Services and Analysis
Insert Fig 8.1 here
Source: Choi et al., The Economics of Electronic Commerce (Indianapolis: Macmillan Technical Publications, (1997), p. 18.
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EC Services: Overview & Services (cont.)
Why outsource B2B services? Desire to concentrate on core business Need to have services up and running quickly Lack of expertise for support services Economy of scale for project not possible from inside In-house options do not keep up with rapidly changing demands Too many services for one company to handlePrentice Hall, 2002
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Steps in the process of developing and managing EC applications EC strategy formulation Application design Building (or buying) application Hosting, operating, and maintaining ECEC Services: Overview & Services (cont.)
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Figure 8-2 EC Application Development Process
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Figure 8-3 The Evolution of E-Marketplaces
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Consulting Services
E-strategy Consultants help determine which specific EC applications to implement First step in infrastructure development Technology Consultants advise companies on technology issues EC architecture SecurityPrentice Hall, 2002
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Consulting Services (cont.)
Four types of consulting firms Provide expertise in area of EC Traditional firms that maintain divisions focused on EC A large firm that consists of many small firms that specialize in EC Hardware and software vendors that provide consulting servicesPrentice Hall, 2002
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Application-Building Services and Required Standards
Services that support B2B applications Utilized by in-house design teams putting together system that incorporates best-of-breed EC components (building blocks) Vendors and system integrators may do the job EC components can be: Special-purpose niche tools (tax-calculation) Broad packages that facilitate all aspects of successful transactions onlinePrentice Hall, 2002
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Application-Building Services and Required Standards (cont.)
Industry standards00ML, XSL, and support organizations Efficient interaction between B2B companies necessitates connection of: Servers Applications Databases Standard protocols and data representation schemes are neededPrentice Hall, 2002
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Application-Building Services and Required Standards (cont.)
Industry standards XML00mprove compatibility between disparate system by defining meaning of data in business documents XSL00and XML require international agreements and cooperation Support organizations UN body for facilitation of EC W3C00ML and other EC standards RosettaNet00upply chain topicsPrentice Hall, 2002
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Web Hosting and Other Services
Business hosting00osting is popular for SMEs; large businesses need more advanced services Dedicated server00ssigned for specific purpose or customer Co-location (physical location for the server) Free Web hosting attractive option for small start-ups Provider company inserts a banner ad on their site Starting point for small company00inimize start-up costsPrentice Hall, 2002
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Web Hosting and Other Services (cont.)
Sources of information about Web hosting Web Host Review (hostreview.com): how to select free Web hosting based on various criteria Host Search (hostsearch.com): search engine recommends best host based on: Monthly cost Disk space requirements Monthly transfer volume Other WebHosting Magazine (whmag.com):comprehensive information for members of Web hosting industry and those looking for outsourcesPrentice Hall, 2002
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Web Hosting and Other Services (cont.)
Management service provider (MSP) Deliver IT infrastructure management services Multiple customers over networks on a subscription basis Specialize in e-business and enterprise solutions See imspassociation.org and crosscommerce.comPrentice Hall, 2002
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Web Hosting and Other Services (cont.)
End-to-end solutions Builds Web sites and EC applications from conceptual design to deployment Also supply: Payment systems Delivery management Site monitoring Other services See bccentral.com and WebVision.comPrentice Hall, 2002
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Figure 8-4 Participants and Process of Using a Purchasing Card
Source: napcp.org/napcp.nsf/Cardparticipants!OpenPage. Used with permission of NAPCP.
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Financial B2B Services (cont.)
Payments (cont.) Electronic letters of credit Benefits to seller Credit risk reduced Payment highly assured Political/country risk reduced Benefits to the buyer Allows negotiation of lower purchase price Expansion of supply sources Payment received after document inspected by issuing bankPrentice Hall, 2002
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Financial B2B Services (cont.)
Payments (cont.) Payments in B2B global trading Venture capital to fund e-commerce initiatives Internet incubators Tax calculation services DPC HotSamba Sales tax clearinghouse Taxware international Implementing tax collection in the U.S.Prentice Hall, 2002
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Financial B2B Services (cont.)
Payments (cont.) Other financial services Credit reporting firms New credit intermediaries broker credit risks Assurance firms guarantee quality Exchanges strike insurance deals E-credit servicesPrentice Hall, 2002
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Figure 8-5 Transaction-Based Financing
Source: Aberdeen Group, Inc. November 2000
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Order Fulfillment, Logistics, and Supply Chain Services
Supply chain management Reengineering & managing complex supply chains Supplier Manufacturer Distributor Customer Transportation services Manages complex Transportation networks Dedicated fleets Carriers Multimodel shipmentsUPS Logistics Group
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Order Fulfillment, Logistics, and Supply Chain Services (cont.)
Parts distribution Comprehensive return-and-repair Parts distributions operations Logistics technologies Integration of logistics information systems Services to provide supply chain visibility EC solutions Logistics services Web-based businesses worldwide Global services Logistics facilities Staffing Expertise about global commercePrentice Hall, 2002
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Order Fulfillment, Logistics, and Supply Chain Services (cont.)
Call center services Customer care Communications (call center services to EC capabilities) Financial services00ull range of financial services that complement: Logistics Transporting Additional business needs Solutions for EC initiatives Tracking systems Product return systems Shipping solutions E-document exchange Customization EC software/providers E-services/partnersPrentice Hall, 2002
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Marketing and Advertisement
Advertising methods used by offline marketers Vertical trade show Ads in industry magazines Salespeople call on: Existing customers Potential buyers Digital advertisers Ad server network provider Electronic wholesalersPrentice Hall, 2002
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Figure 8-6 The Architecture of Ad Server Networks
Source: Warkentin, Merrill, Vijayan Sugumaran, and Ravi Bapna. 00Knowledge Networks for Inter-Organizational Collaborative eBusiness,00Logistics Information Management, Vol. 14, No. 1/2, March 2001, pp. 1490062. Used with permission of MCB University Press.
Affiliate Programs
Affiliate programs (B2C services) Affiliates invited to put a banner of a vendor on their sites Consumer clicks on the banner and brings up that company00 EC site Commission paid to affiliate if customer makes a purchase30
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Infomediaries
Infomediary services Collect data about consumer behavior Analyze it Repackage it Sell the results As marketing and profiling information Purpose to increase customer loyalty Identify likely buyers Increased sales Reduced marketing costsPrentice Hall, 2002
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Online Data Mining Services
Clickstream data00ata collected by monitoring what people do online Analyzed and mined to produce useful knowledge used to improve: Services Marketing efforts Firms use these services to extend their ability to execute EC a successful strategy NetTracker WebTrendsPrentice Hall, 2002
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Other Marketing Services
Three examples of other services: Digitalcement.com provides corporate marketing portals; builds stronger relationships with customers Vantagenet.com free tools that help ease traffic to a company00 Web site Businesstown.com has an online directory that enables small businesses to identify and evaluate service companiesPrentice Hall, 2002
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Figure 8-7 Digital Delivery Content Life Cycle
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Content Generation, Syndication, Delivery, and Management (cont.)
Syndication Content-delivery networks (CDNs) Catalog content Content management options Do it yourself Let the suppliers do it Buy the content from an aggregator Subscribe to a vertical exchange Outsource to full-service Internet exchangePrentice Hall, 2002
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Content Generation, Syndication, Delivery, and Management (cont.)
Content maximization and streaming services00ompanies provide media rich content to reach target audience Video clips Music Flash media Use content delivery solutions that do not cause 00raffic jams00with slow download times (e.g., Akamai Corporation)Prentice Hall, 2002
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Directory Services & Search Engines
Directory services B2Business.net B2BToday.com Communityb2b.com A2zofb2b.com I-stores.co.uk Websteronline.com Thomasregister.com Bocal.com B2b.yahoo.com Search engines and news aggregators Moreover.com Google.com Ientry.com NewslettersPrentice Hall, 2002
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E-Communities
E-communities Chat rooms Bulletin boards Personalized Web pages B2B are basically communities of transactions Classified ads Job vacancies Announcements Industry news E-communities connect: Personnel Partners Customers Any combination of these three Service providers Design of exchange portals E-community servicePrentice Hall, 2002
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Partner Relationship Management (PRM)
In B2B environment the partners include: Suppliers Partners in joint ventures Service providers PRM00elies on: Trust Commitment Quality of services Continuity Strategy for e-service How much to invest in services What services to providePrentice Hall, 2002
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Other B2B Services
Trust services Trust Trademark and domain names Digital photos Global business communities Client matching E-business rating sites Promotion programs Encryption sites Web research services Coupon-generating sitesPrentice Hall, 2002
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Integration
Integration in e-marketplaces and exchanges B2X hubs connect: All Internet business services Merchant services Exchange infrastructure Buying and selling Member enterprises Other B2X exchangesPrentice Hall, 2002
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Hypermediation
Hypermediators are: Content providers Affiliate sites Search engines Portals ISPs Software makers Other entitiesPrentice Hall, 2002
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Managerial Issues
Which services and to what level? Complex decision situation for managers; use: Check out the competition Vendors can provide useful direction Read white papers etc. Hire a reputable EC consultant Selecting service providers00/font> Public ratings and rankings of service providers Talk to others in the industry Examine growth rate of provider00 business Try vendor with small projects firstPrentice Hall, 2002
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Managerial Issues (cont.)
E-infrastructure00arge part of outsourcing funds go to e-infrastructure Join ventures00ook for potential partnerships with service providers End-to-end outsourcing vs. best-of-breed Complete end-to-end service Different vendors for best-of-breed approach
