the b2x world b2c & b2b
TRANSCRIPT
THE B2X WORLD
B2C & B2BElectronic Transactions
byAlvertis I., Biliri E., Askounis D.
Desicion Support Systems Laboratory, NTUA Electronic Transactions 2017 - The B2x World - B2C&B2B 1
eTransaction Categories
Desicion Support Systems Laboratory, NTUA Electronic Transactions 2017 - The B2x World - B2C&B2B
G2C
B2B
C2C G2G
2
B2CBusiness to Consumers Transactions
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B2C
Business to ConsumerGeneral
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WHAT IS B2C
Most probably known as “eCommerce”
“a type of industry where buying and selling of product or service is conducted over electronic systems such as the Internet and other computer networks”Wikipedia
Includes:
• ePurchases
• eCatalogues
• eAuctions
• Online Exchanges
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The Dimensions of eCommerce
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Source: Economics of Electronic Commerce, I/W by Choi/Stahl/Whinston,1997
6
Where did it start?
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Source: Forrester growth numbers, IDC accepatance rates
7
Quiz!
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When did PizzaHut started to
provide online ordering?
HINT: In Greece around… 2008
1994
Sant Cruz, California
8
eCommerce Timeline
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Source: http://businessworld.in:8080/en/storypage/-/bw/e-
tailing-wars/386306.0/page/0
9
Digital and Virtual Products. What are they?
• eDocuments
• eNewspapers
• eCoupons
• eTraining Material
• Digital Photos
• Digital Calendars
• Music
• Videos
• Podcasts
• eBooks
• Software & Applications
• Cloud Infrastructure
• Hosting Space
• Domain Names
• Computer Games
• eTickets
• eCredit Cards
• Security Certificates
• eFax
• eTelephony
• eMoney (Digital but also Virtual)
• Virtual Reality Objects (Virtual)
• Avatars (Virtual )
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Delivery Channels of Physical Products
Ordinary Post OfficePrivate Courier
Companies
Private Delivery Networks (InterFlora, eGrocery, eShop.gr)
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Delivery Channels of Digital Products
Traditional Delivery
• DVDs
• CD-ROMS
• USB Sticks
• …..
Wire Delivery
• HTTP
• Webcasting
• FTP
• eStores
• …..
• P2P networks ☺
• TOR networks (dark web)
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From Physical to Digital Products:
The NY Times Case 1/3
Online version of the NY Times
Launch Date: January 1996
Originally, most of site’s content came from the hard-copy
edition
• Easier for people to access news information
• Access to additional information such as video feeds,
slideshows, online chat with columnists and writers.
• Customisable news feeds <-Personalisation
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From Physical to Digital Products:
The NY Times Case 2/3
Today:
• Subscription Based Content
• Free content
• Continuous Updates
• Sharing Capabilities - Social
Sharing allows greater visibility and
attracts people
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From Physical to Digital Products:
The NY Times Case 3/3
A new Business Model
Money comes from:
• Subscriptions to exclusive content
• Advertising
• Sale of related products/services
(analytics, games, etc…)
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Desicion Support Systems Laboratory, NTUA Electronic Transactions 2017 - The B2x World - B2C&B2B
Source: http://www.webnethosting.net/online-shopping-around-the-
world-infographics/
16
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Source: http://www.webnethosting.net/online-shopping-around-the-
world-infographics/
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Types of (e)Customers
Types of Ordinary Customers
Loyal
Types of eCustomers
Brand LoyalistsE-bivalent Newbies
Clicks and Mortars
Time Sensitive Materialists
Hipsters/New Technologists
Hunter-gatherers
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Reasons that eCommerce works
• Price
• Quality
• Variety – Long Tail
• Service Added Value
• Delivery Times
• Personalisation
• Technical Support
Marketing 4 P’s: Product, Price, Promotion, Packaging
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The Economic Cycle
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Search
Negotiation
Order
DeliverInvoice
Payment
AfterSales
21
eCommerce covers the whole Economic Cycle
EDI Trade Cycle
(B2B)
Consumer i-Commerce
(B2C)
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Source: The e-Commerce Trade Cycle
http://www.doc.mmu.ac.uk/STAFF/D.Whiteley/ecgrp/ec-doc2.htm
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Business Models for eCommerce
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Subscription
Models
23
eCommerce Intermediaries
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Comprehensive –Portals
• Shopping.yahoo.com
• Bizrate.com
• Amazon.com
Niche Oriented –Vortals
• elastika.gr
• Insurancemarket.gr
eMalls
Escrow
Ebay (+ Paypal)
Betfair
iTunes Store
24
Comprehensive Portals: The Amazon Case 1/3
An online retailer of
• books
• music
• DVD/video
• toys, electronics
• software
• home products
• Cloud Services!
Spent 98 cents for every $1 of revenue it generated in 2006
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THE LONG TAIL!
25
Comprehensive Portals: The Amazon Case 2/3
• Easier for people to shop
• Like the one-click shopping feature (but may prove… dangerous)
• Comprehensable and rich information
• Compare the features, benefits, and prices of products
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Comprehensive Portals: The Amazon Case 3/3
• Personalisation: Tracks users
purchasing behavior and
suggests similar or related items
• Free Products/Services:
Information, Reviews, Samples
• Offers the “Long-Tail”: A HUGE
variety of products
• Strong SEO and paid adverts to
attract people
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Why eCommerce Cuts Down Searching Costs 1/2
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Sellers Consumers
N2 Connections
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Why is eCommerce Cuts Down Searching Costs 2/2
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2N Connections
ConsumersSellers
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Type of eStores
Physical +
Virtual Store
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Size does not always matter!
• Big Companies started from small ideas!!
• Technology helps SMEs to scale up their ideas fast!
• User-friendliness and attractiveness is a key
• Performance and added value are also important
• Different Revenue Models Exist
• and can be changed over time
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NTE.com Example 1/2
Back in 1995…..
A spot market on ground transportation
Retrieves information:
• From Truck Owners
• Destination Points
• Trip Duration
• Available Space in Truck
• From Consumers
• Customer Needs
• Flexiility in Delivery dates
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NTE.com Example 2/2
Benefits for Stakeholders
• Better Deals between truck owners and senders
• More income for truck owner
• Lower prices for senders
• Deal takes only some minutes
• Greener Transportation
Benefits for nte.com
• A commission based on each contract’s value
Now offering SaaS and other solutions (ERPs, etc…)
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eCommerce Benefits for the Enterprise 1/2
Business Operation
• Increased Competitiveness
• Reaching new markets
• Tracking and Monitoring of
Requests
• Consumers Profiling
• Personalised Marketing
• Direct Assement and evaluation
of Services
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• Shorter Response Times
• Improved Customer Support
• Brand name building
• Minimisation of Supply Chain
Operations
• Minimisation of Stock
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eCommerce Benefits for the Enterprise 2/2
Business Transformation
• New Technologies
• Improved Systems and Operations
• Customer Relationships on a different level
• New Products
• New Business Models
• New Selling Channles
• New Marketing Techniques
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eCommerce Benefits for Consumers
• Reduced Prices
• Product Variety
• 24/7 Availability
• Convenient
• Global Options regarding Sellers
• Improved Information Collections and Analysis
• Support
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eCommerce Restraining Factors
• IT Security
• Trust amongst parties
• Confedentiality of
Information
• Privacy Issues
• Cost and initial ROI
• Absence of Legal
frameworks
Desicion Support Systems Laboratory, NTUA Electronic Transactions 2017 - The B2x World - B2C&B2B
• Linguistics
• Need for BPR
• Interoperability
• Network/Broadband Availability
• Internet Penetration
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Things that one need to consider
• When to expect profits?
• What is the main profit activity?
• How to build my brand name?
• What products to trade?
• Which services to provide?
• What functionailites should I offer?
• Complement Physical Stores or
build just Virtual ones?
• What type of Infrastructure is
needed?
Desicion Support Systems Laboratory, NTUA Electronic Transactions 2017 - The B2x World - B2C&B2B
dot com bubble
38
ePurchases
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ePurchasing in General
Buyers and Sellers
Product Definition• Characteristics of Products
• Selection of different Products
Searching (sellers/buyers)• Product Information
• Price Information
• Offers Ranking
• Offers Matching
Price Searching• Price Definition
• Price Comparison
Ease of Transaction
Logistics• Product/Information delivery
• Payment Clearance
• Transfer of Funds
Trust• Banking System
• Broker Evaluations
• Consumer Ratings
• Certifications
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Rules
Legalislation• Code of Conduct in
eCommerce
• Contracts
• IPR
• Conflict Resolution
• Country Legislation
• Customs & Taxes
Regulations• Control
• Enforncement
40
ePurchases 1/2
Trading between sellers and buyers but….
Electronically
Which means:
• eStatements
• eMoney
• eWarranty
• eProduct
• eServices
• ….
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ePurchases 2/2
ePurchases offer the following benefits
• Faster Information Flow
• Matchmaking is faster and instant
• Faster Payments
But of course need
• Proper Infrastructure
• Rules and Codes of Conduct
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ePurschases Characteristics
Desicion Support Systems Laboratory, NTUA Electronic Transactions 2017 - The B2x World - B2C&B2B
• Lower Prices
• High Profit
• Low (physical) Volume
• See Buys categories
• Brokers (required but replaceable)
• Marketplaces
• Rules
• Competitors
• Type (digital/physical)
• Price (low/high/free/…)
• Availability of Information
• Demos
Product Market
SellersBuyers
43
Basic Elements in an ePurchase 1/2
Desicion Support Systems Laboratory, NTUA Electronic Transactions 2017 - The B2x World - B2C&B2B
Buyers
Get Offers
State Needs
Sellers
Have eStores
Place Advertisement
Operate Websites
Products
Physical Products
Digital Products
Services
Infrastructure
Hardware
Software
Networks
44
Basic Elements in an ePurchase 2/2
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Front-end Functions
Portal/Website
eCatalogue
Shopping Cart
Search Engine
Payment Method
Back-end Functions
Order Fulfillment
Inventory Management
Supplier Notifications
Payment Processing
Packaging
Delivery
Supportive ProcessesTrust providers (for example Verisign)
Knowledge Providers (Google Analytics)
45
eCatalogues
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eCatalogues
Presentation of information in digital format
The skeleton of most ePurchase websites!
• Sellers’ Aim: Advertisement and Promotion
• Buyers’s Aim: Information and Comparison
Most probably powered by a DBMS and a search engine.
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eCatalogues CharacteristicsIn
form
ation Static
Dynamic
Interactive
Pers
onalis
ation Not available
Semi-personalised
Fully personalised
Inte
gra
ted F
unct
ions Buying functions
Shopping Cart
Auction functions
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Focus on:• Information• Personalisation• Functions
48
Benefits from using eCatalogues
• Easy to update product information
• Easy to integrate buying functions
• Ability to search and compare
• Multimedia Content
• Interactive presentations of goods
• Customised / (Hyper)Personalised presentations
• Global Reach
• Easy to send over!
• ….
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The Boise Cascade Example
A huge catalogue >900pages every year
+
Mini catalogues per customer!
1week for eCatalogue vs. 6weeks for printed ones
ePurchases are 55% cheaper for the company
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• boiseoffice.com went online1996
• 20% of total volume of orders1997
• 30% of total volume of orders1999
• 80% of total volume of orders2004
50
C2CConsumer to Consumer Transactions
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eTransaction Categories
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G2C
B2B
C2C G2G
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eAuctions
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eAuctions
Auctions via electronic channels
Websites are brokers!
… offering services, infrastructure and support… but not responsibility for goods
There are rules for a fair trade!
Top selling products:
• Consumer goods
• Electronics
• Art
• Software
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The eBay Case 1/3
Matchmaking service between Sellers and Buyers
The most successful e-commerce site ever?
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The eBay Case 2/3
• Huge Variety of Goods
• Low Prices for Sellers
• Free for Buyers
• Comprehensive Bidding Process
• Powerful Search Engine
• Transaction Monitoring
• Third Party Controls the Transactions
• Review and Ranking Procedures
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The eBay Case 3/3
Money to eBay comes from:
• A commission for listing
• A commission to each transaction
• Extra Services to Sellers (ebay Stores,
Galleries, Scheduling, Designers, etc.)
• Advertising space
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eExchanges
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eExchangesBased on “points system”
A seller is offering something priced in
“points”
A seller who has already earned some
“points” can buy the product
The seller then uses his “points” to buy
another product
Tricky part: “Earn starting points”
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B2BBusiness to Business Transactions
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eTransaction Categories
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G2C
B2B
C2C G2G
61
Business to Business
Transactions
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Towards eBusiness Processes 1/3
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Manufacturer
Consumer
Wholesaler
Distributor
Retailer
Manufacturer
Consumer
Intermediates
Manufacturer
Consumer
E-intermediaries
Manufacturer
Consumer
t
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Towards eBusiness Processes 2/3
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Traditional
Traditional
Nowadays
Supplier Manufacturer Distributor Customer
Digital Value Network
Suppliers Manufacturers Distributors
Customers
64
Towards eBusiness Processes 3/3
Desicion Support Systems Laboratory, NTUA Electronic Transactions 2017 - The B2x World - B2C&B2B
Customers
Suppliers
Partners
Manufacturers
Procurement
IT Consulting
Hardware/
Infrastructure
Software
R & D
Sales
Finance/
Accounting
ICT
Interfaces
65
Competitiveness in the Modern World
Desicion Support Systems Laboratory, NTUA Electronic Transactions 2017 - The B2x World - B2C&B2B
Porter’s Five Forces
Threat of Potential Entrants
Bargaining Power of Buyers
Threat of Substitution
Bargaining Power of Suppliers
Competitive Rivalry
66
eBusiness and Competitiveness
Low Prices and Differentiation/Options are keywords for B2B
ICTs are in a position to:
• Lower Supply Chain Operations
• Minimize Order Handling Expenses
• Lower Distribution Costs
• Shorten Delivery and Response Times
To build more attractive and quality based products
= Strengthen enterprise’s position in the market
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B2B General Characteristics
• Today, most B2B Transactions are Client-Server based
• Web is the main platform used
• Cost in hardware (and software) is reasonable and low
• Systems are user-friendly
But customisation is pricey and difficult!
Offered some times by Application Service Providers (ASPs), guaranteeing operation with high security and availability
B2B transactions rely (often) on Value Added Networks (VANs): Hardware, Software and Infrastructure for data exchange
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Β2Β Benefits – Operational Level
• Ease and Automation of Business Transactions
• Lowering Information Processing Costs
• Improving Information Accuracy
• Lowering Inventory related Costs
• Minimizing Human Errors
• Enable Electronic Payments between partners
• Getting rid of traditional Intermediaries
• but others emerge!! – Consultants, IT Integrators, Providers of platforms
for B2B
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Β2Β Benefits – Strategic Level
• Acceleration of Business Cycle
• Re-orientation possibilities (in Operations, ICTs, etc…)
• Improvement of offered services
• Strengthening the Brand Name
• Multiple competitive advantages
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B2B Examples
• Electronic Document Exchange• Invoices
• Contracts
• …..
• Electronic Supply Chain Operations• Raw Material Planning
• Equipment Monitoring
• ….
• Electronic Collaboration• Resource Sharing
• Data/Information Sharing
• ….
• Electronic Provision of Services/Goods
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From EDI to XML/RDF/JSON etc…
EDI was the dominant exchange protocol until 1999
EDI = Electronic Data Interchange
• Automatic electronic exchange of data through strictly defined
templates
• Includes templates for Ordering, Shipping Notice, Invoicing, etc…
• Information of EDI transaction resemble conventional documents
• Based on ANSI ASC X12 standards
• On top of LAN, MAN, WAN Networks
http://h18000.www1.hp.com/corporate/edi/edi-def.html
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Benefits of EDI (back then….)
Reduced costs for transactions • Less time and lower costs associated
with receiving, processing, and storing documents
Improved accuracy• Eliminates inefficiencies
Increased Productivity• Streamlines tasks
However EDI implementationshave been extremely pricey!
Desicion Support Systems Laboratory, NTUA Electronic Transactions 2017 - The B2x World - B2C&B2B
http://www.edibasics.com/what-is-edi/what-comprises-an-edi-document/
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The next Step: Internet (Open) EDI
SMEs were not able to deploy private networks for obvious reasons
Internet (Open) EDI deals with the deployment of EDI over the
Internet
Data and Information are based on template documents
Less Accuracy/Compliance and Security == Lower Cost
The use of cryptography is a solution towards security issueshttp://www.ediuniversity.com/intro/works.php
http://www.ediuniversity.com/intermediate/images/as1-full.gif
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Today’s B2B World is full of….
• Different Systems and Installations (SAP, IBM, CAS, Oracle,..)
• Different set of standards (XML, JSON, ebXML, ebisXML,
Rosettanet, UN/CCTS, RDF, …..)
• Different Architectures (Centralized, Federated, Cloud based,
Broker based, …..)
• Different Communication mechanisms/channels
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Hot Topics Include…
• Data
• Services
• Infrastructure
• People
• ….
Interoperability
• Country Legislation
• Domain Legislation
Legal Rules
• Unspoken Rules
• Common Rules & Ethics
Business Rules
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Again the need of a MIDDLE man -
The Middleware
• Middleware consists of computer software for connecting applications
• Connects software components or people and their applications.
• A set of services that allows multiple processes running on one or more machines to communicate and interact.
• Runs on top of web servers, application servers, and similar infrastructures that support application development and delivery.
• Middleware is especially integral to modern information technology based on XML, SOAP, Web services, and service-oriented architecture.
• Examples include EAI (Enterprise Application Integration) software, telecommunications software, transaction monitoring systems, and messaging-and-queueing software.
But there are also many efforts for common standards!
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QUESTIONS
Dr. Alvertis Iosif - [email protected]
Biliri Evmorfia - [email protected]
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