Concepts, Characteristics and models of b2b ec ypes of Materials Traded direct materials Materials used in the production of a product ( e.g steel in a car or paper in a book) indirect materials Materials used to support production(e.g, office supplies or light bulbs) MRo (maintenance, repair, and operation) Indirect materials used in activities that support production Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 11 Concepts, Characteristics, and Models of B2B EC – Types of Materials Traded direct materials Materials used in the production of a product (e.g., steel in a car or paper in a book) indirect materials Materials used to support production (e.g., office supplies or light bulbs) MRO (maintenance, repair, and operation) Indirect materials used in activities that support production
Concepts, Characteristics and models of b2b ec Direction of trade vertical marketplaces Markets that deal with one industry or industry segment(e.g, steel, chemicals) horizontal marketplaces Markets that concentrate on a service. materials or a product that is used in all types of industries(e. g office supplies, PCs) Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 12 Concepts, Characteristics, and Models of B2B EC – Direction of Trade vertical marketplaces Markets that deal with one industry or industry segment (e.g., steel, chemicals) horizontal marketplaces Markets that concentrate on a service, materials, or a product that is used in all types of industries (e.g., office supplies, PCs)
Concepts, Characteristics and models of b2b ec Supply Chain relationships in B2B B2B private e-marketplace provides a company with high supply chain power and high capabilities for online interactions A public e-marketplace provides a business with high buying and selling capabilities, but results in low supply chain power Using an intermediary results in low supply chain power and buying/selling capabilities Electronic Commerc Prentice Hall 2006 13
Electronic Commerce Prentice Hall © 2006 13 Concepts, Characteristics, and Models of B2B EC • Supply Chain Relationships in B2B – B2B private e-marketplace provides a company with high supply chain power and high capabilities for online interactions – A public e-marketplace provides a business with high buying and selling capabilities, but results in low supply chain power – Using an intermediary results in low supply chain power and buying/selling capabilities
Concepts, Characteristics and models of b2b ec Virtual services Industries in B2B Travel and entertainment services Real estate Financial services Online stock trading Online financing Other online services Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 14 Concepts, Characteristics, and Models of B2B EC • Virtual Services Industries in B2B – Travel and entertainment services – Real estate – Financial services – Online stock trading – Online financing – Other online services
Concepts, Characteristics and models of b2b ec Benefits of b2B Creates new sales (purchase) opportunities Eliminates paper and reduces administrative costs Expedites processing and reduces cycle time Lowers search costs and time for buyers to find products and vendors Increases productivity of employees dealing with buying and/or selling Reduces errors and improves quality of services Makes product configuration easier Electronic Commerce Prentice Hall 2006 5
Electronic Commerce Prentice Hall © 2006 15 Concepts, Characteristics, and Models of B2B EC • Benefits of B2B – Creates new sales (purchase) opportunities – Eliminates paper and reduces administrative costs – Expedites processing and reduces cycle time – Lowers search costs and time for buyers to find products and vendors – Increases productivity of employees dealing with buying and/or selling – Reduces errors and improves quality of services – Makes product configuration easier