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 Assignment 3 (Due: before December 26, 2008, 13:00hrs)

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PostSubject: Assignment 3 (Due: before December 26, 2008, 13:00hrs)   Tue Nov 25, 2008 9:17 pm

Discuss the role of internet technologies in enabling an organisation to obtain competitive advantage through B2B e-commerce. (at least 1,500 words)
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regina e. abadilla


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Age : 28

PostSubject: competitive advantage in B2B   Thu Dec 25, 2008 9:55 am

In ecommerce, there are different aspects existing to provide smooth and legal transaction is e-business matter – regarding email spasm, advices and advertisements in commercial advertisements, internet business practices, copyright infringement, piracy, data protection, surveillance and piracy, offshore commerce, digital signatures end electronic contracts were few to mention.

There is no definite consensus on an absolute definition of ecommerce, but then it is commonly defined as doing businesses over internet. There are business models where the companies and individuals make transactions over the web, and one of is what we so called B2B (business to business). It is also known as e-biz, wherein there is an exchange of products, services and consumers between businesses rather than between businesses and consumers. It is studied that the progression of B2B transactions are due with the elimination of intermediary, which allows a business to deal directly with the supplier. With the direct relationship of buyer and supplier lowers the purchasing and inventory expenses and would lead to a more efficient customer services.

The widespread of internet has lead for a big change in business organization structure and even there strategies. With the accommodation of the wide range of opportunities provided which had been connected in digital platform, the companies can now construct a new face of market place from traditional value chains to a more flexible and interactive synchronized means. Electronic commerce had been a great driving force of the changes and transformation of the companies in having transactions in transfer of goods, services and information in digital means. In the main point, the business- to business relation plays a big role in changing the structure of the vertical value chains. But then, I guess what drives most of the businesses to be involved into the new B2B marketplace is the profound impact on competition. Information sites, or what they so called infomediaries provide digital services which indeed make a great effect in the strategic resource that higher the competitive advantage of the companies.
B2B e-commerce enables the organizations to have data and information exchange in electronic means, which made it to be quick, and cheaper than in traditional means which is using a paper-based system. Because of these benefits, many companies are adapting the B2B e-commerce. Suppliers who would refuse to employ ecommerce in there business would potentially lose there business, to think with the other big organizations as competitors who are adapting ecommerce who are able to meet the current demand of the consumers, which are the other businesses also. E-bidding is one of the aspects. Some marketplace allows the buyers to post their requirements in real time bidding event. Many suppliers are competing to sell the particular product or services to a buyer, and BayanTrade is one of the marketplace that providing that matter.

Some companies are utilizing the EDI or the electronic data interchange data format in there business process transactions. This plays a big advantage in businesses since most of there daily transactions are bulky and may tend to be delayed because of notification and scheduling matters. The use EDI gives an immediate and accurate communication of the processes in businesses. The success of SM is associated with there wise utilization of the benefits of E- commerce.

Some companies are utilizing there own e-commerce system as competitive strategy, to direct there goals and target on demands. But there are some companies that require investing and subscribing to a trading portal to remain its competitiveness and not be left behind from the other companies. Potentially it generates more possible trading using an electronic means utilizing the internet technologies than in the manual way of doing transactions. The buyers’ demand may lead fro the suppliers to use the B2B ecommerce systems. Value Added Networks are companies that provide ecommerce services in trading matters between buyers and suppliers. It acts as central post office for business forms such as ordering and acknowledging receipt and transfer of information. This is a big use in the business since using this system would made the buyers ate ease, they don’t have to manually prepare a bulky paper documents such as orders, invoices, receipts fro every business branches. The system is associated with the inventory, sales and accounting system, it is integrated in one ecommerce system to meet the needs of every business. This provide a proper audit, ensure no missing and misplace orders, in short it enables error handling and accuracy of information.

As the trend of business is fast changing from traditional means to e-business, a business is in need to be competent, and indeed there so many ways on how the investment in B2B be in profitable B2B site; They could be considered as company sites since the target of the business web sites are the other companies and other business industries. They could exhibit trading, sometimes they just perform user registrations but some sites also were doing direct selling with the other businesses; They could be categorize also as product suppliers and exchanger if the user can request proposals and in some case bid for a desired price, this is so called e-bidding; A specialized portals which provide a subweb of information to its users; Brokering site if they act as intermediary between the customers and the providers; and Information site when they provide information about a particular companies.

There are cases that the business are having and developing a technological strategy for the success of there B2B initiative. Of course strategic planning is vital in the world of business even in a simple tasks or works, from implementing legal and secure order-entry system to a newer technologies such as internet based collaboration system. Measuring the value of a B2B technology strategy and building the related business case can be difficult and complex. Before you begin, you should assess your strategy's value both qualitatively and quantitatively. Qualitative assessment can include evaluating how effectively the B2B initiatives support your business strategy by reinforcing unique competitive advantages or adopting industry best practices. Quantitative assessment can include evaluation of cost-saving efficiencies and new revenue opportunities, both on the buy-side with suppliers, and the sell-side with channels and customers. Pricing strategy is one of the prospects that could create a competitive advantage in B2B markets also. It is noticeable that transactions online are cheaper than the traditional way, example of this is booking online. There are so promo available over the web, just be wise and choose the way where you can save more. Businesses are taking advantage with this since, there is no need for service charges and the transactions are directly done.

Through the internet technology, the business could have an open knowledge about nice strategy in running a business. The information is over the internet, they could determine how large there target customers are, necessary technical requirements and other useful data in running a business. But then I had read an article which said that some business owners are realizing that market matters, and not necessarily the technology. As the internet booms, many businesses saw an opportunity in making business to business exchanges, earning money trough completion of transactions. But then, many businesses are now engaging in B2B market exchange, which in need of strategy. There are what we so called breakthrough market and the reformed market. Breakthrough market is a new field created by technology and any strategy involved wouldn’t be that helpful, it is because that entails the sweet spot in the economy. The business can continuously adapt with the trend. However, reformed market uses technology to adapt the existing way of doing business, rather than creating entirely new in doing business. They just facilitate interactions and cuts down the costs but definitely didn’t change its existing market. Any strategy could be used by the company depending on how it leads them to success. An example is the success of Google and Yahoo! Where they open up a brand new market where the existing media companies don’t have advantage – just a strategy. Many internet based B2B exchanges came to the idea of making business over the internet to lower there purchasing cost. This could be a good advantage; however, competition must not be focus in price matter. Usability and security concerns are one of the aspects to be considered – protection against data leakage.

Take it as points to ponder, know the competition; know whether you have got the competitive advantage. Many businesses overestimated also the scale of their business, so in doing a business over the internet, be realistic regarding the market size. Just as eBay have more attention in market dynamics as to technology, where making alliance with other companies and adapting still a competition, with there strategy they gain early profits and large make capitalization and strong brand quality. There are so many strategies we could create with the application of the internet technology and the environment we are working on. Just be wise.! We should put in mind that many businesses are had been successful through taking advantage of the benefits of the internet technologies, but then it doesn’t mean that changing our business structure in e-commerce lead us in success. It’s just the way how we create strategy and have analysis for a wise implementation in the business. Technology could drive businesses to competitive but then it is still in market that matters. Technology is just an instrument for the e-commerce to be accomplished.

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Glayra P. Bustamante


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PostSubject: Re: Assignment 3 (Due: before December 26, 2008, 13:00hrs)   Thu Dec 25, 2008 1:53 pm

"A cent less spent adds a cent to profits."

This is one of the guiding notions for an organisation to boost a business. Indeed, with the advent use of internet technologies, there is a significant cost reduction for every business transactions a company is involved. E-commerce has inevitably played a vital role in a company’s profits. Business to Consumer (B2C) and Business to Business (B2B) are the two common business models of E-Commerce which have guided an organisation to do their business processes electronically which certainly, two of the defining factors to succeed in the great competition both in local and international market. With the emergence of virtual market, every activity has converted digitally bringing good advantages with them.

Organisation’s edge to outdo its competitors is to make and go through new innovative strategies to correspond with the mainstream. Indeed, B2B transactions have been perceived as considerable factor to thrive well in E-Commerce. B2B makes an organisation possible to exchange information electronically. It has several advantages compared to that traditional B2B transaction. B2B involves several processes and costs that need to be simplified and cut off. These processes may undergo delays in traditional B2B that definitely reduces quality and good services. Wasting time is losing customers, which is equivalent to throwing away the profits the company may have absolutely gained when the procedures and stages the business transactions undergo has been conveniently handled and done. And so, cost is a major factor to be considered too. It is comprehensible that each processes or transaction may cost money which has been reduced by the innovative form of B2B transaction. This cost spent before in traditional way has been cut down with B2B e-commerce which significantly added to the profits may have not been gained before e-commerce has made into practice.

In relation with this, I have researched and come up with several functions the internet technologies have aided an organisation to gain better competitive advantage in the market. These are the following:

1. Location Flexibilities in Business Activities

Traditionally, large organisations or even the average businesses oftentimes acquire their products from other distant businesses which are termed as suppliers. Business entrepreneurs have to do inventory from time to time to check their stocks before they reach product scarcity. So before such event will occur, and since the distance of suppliers is a problem, they have to negotiate with them as early as they could before they run out of stocks that will lead to putting off the products that may have been requested or ordered by their customers. Now, another problem to be encountered is that the requisition of these orders as well as processing them, also require lengthy time before it reach the suppliers and in turn, the delivering of stocks from them. The very obvious problems of this are postponement of services, shortage of products, and customer’s dissatisfaction which will entirely ruin the business processes.

So, it has been a critical and difficult issue for business entrepreneurs to transact and negotiate with their suppliers from long distances. Now, this has been solved with the use of e-commerce from which such dilemma is unlikely. Internet has provided a wider horizon to connect the space between ends. Overcoming the distance has been made easier. Business owners can easily transact with their suppliers through a common medium with ease and convenience in negotiation. E-commerce has reduced the cost to create branches just to be near with suppliers since these electronic stores do not need to have several sites to reach suppliers and customers. Other business activities in traditional B2B having difficulties with distances have been done thoroughly with more convenience. Since location would not be a problem anymore for business entrepreneurs, this could help hasten the processes, widen the scope of customers and increase the profits.

2. Free Flow of Information

Before, the data and information in business transaction go through lengthy procedures before it connects two ends, the link between supplier and business owner. Data processing and the information flow follow through physical and conventional system wherein interruptions are quite unavoidable. Purchase orders are manually written, processes are physically done etc. This has significantly reduce the convenience and quick services delivery to the business establishment which in turn, follows a deferred cycle making it longer to provide the customers the product they desire.

B2B e-commerce has somewhat eradicated such tight spots. Similar to Government to Employee (G2E) e-commerce, the flow of information in B2B e-commerce with the aid of internet technologies, has been processed without restraints and is delivered with transparency. Indeed, the reliability and security of information flowing in the systems are ensured. Information from one end to other is delivered quicker, more accurate, even cheaper compared to the paper-based system and more organized compared to the traditional way. Information entailing the business transactions is one of the best assets and most important matters a company should look into since it is bringing a concrete basis to every decision to be made and key to every process to be done. Indeed, information is a powerful tool of an organisation.

3. Continuous Connection

E-commerce has provided businesses, 24/7 nonstop transactions making it more money-making for entrepreneurs. This certainly means that since there is a continuous transaction, the link between business owners and customers, workers and suppliers never ends too. There is a constant link between them. And so, with this, hastening the processes is done better as well as, productivity increases bringing more profits to the organisation.

So seeing these obvious distinctions, we realize that unlike the traditional, continuous transactions can never be done. Business owners still close their establishment at the end of the day losing the customers they might have served while the business is closed. Additionally, they can not enjoy a wider audience and suppliers compared to that in virtual businesss wherein they can reach any customers and any suppliers with absolute and speed.

4. Enhanced Services and Improve Productivity

Internet technologies have significantly brought lots of leads in B2B transactions. Certainly, some of these are more enhanced services and increased productivity. Why is this so, it is because the conventional system has been replaced with more convenient procedures from requisition up to the delivery of the products. Increased productivity is the outcome of the flawless and quicker cycle a business process has gone through.

With suppliers more than a reach of hand, several and different services can be acquired and delivered to the customers. With continuous flow of information as well as, constant connection, it is undeniable that more services could be made and done with the suppliers which in turn, provide the business entrepreneurs with more stocks and products attracting more customers. Thus, means more profits.

5. Data Processing Simplicity

Requisition of products undergo paper-based transactions, after then, purchasing orders are recorded manually, follows after are the step-by-step conventional procedures from which would likely produce delays and postponements and could entirely reduce the efficiency of the whole business process.

So with internet technologies, bulks of paper and complicated data processing has been slowly eradicated. Data is processed directly between two entities openly, manual operations from requisition, purchase orders to payment etc. Traditionally, the setup is less convenient and quick compared to electronic transaction.

6. Long-Term Relationship with Suppliers

Traditionally, business owners have their “suki” or regular suppliers when it comes to business, but this requires a lot of effort and trust-building in the relationship they make with suppliers. Maintaining it (specifically for distant suppliers) is to spend and put effort to negotiate with them physically considering the distant.

Now, with internet technologies, one does not need to spend lots of effort to connect the spaces between such distances between supplier and business owners. They can instantly negotiate, discuss and process business transactions digitally. With this continuous connection with suppliers, trust between the business owners and them could be easily developed. Delays are unlikely, postponed transactions are eliminated, thus, promotes to a healthy and professional relationship between them and the fact lies, that with this constant virtual interaction, definitely, it would last long.

7. Simplifying Procurement Processes

E-procurement is the most common subject in B2B e-commerce. Procurement processes has been done electronically providing lots of advantages. E-procurement processes include receiving of delivery data announcement, supplier's requisition request, transport ordering, retrieval and bidding. These are the common procedures between business owners and suppliers.

Common advantages of using internet technologies in e-procurement are:

a) Easy Purchasing
b) Eliminating Paperwork
c) Automating Approval Process
d) Cost Saving
e) Better Inventory Level
f) Better Information Flow between Buyers and Supplier

Seeing through these advantages brought by internet technologies in B2B e-commerce transactions, we could certainly see the ease and expediency it brings to a business. The most significant distinctions seen through all of these are to cut off the time between stages and procedures as well as, to save a large cost a company is spending in traditional B2B. Indeed, a company’s competitiveness is best perceived on how they control the cost within organisation. And so, a cost that is lessened brought of the use of internet technologies, returns good profits to an organisation.


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Mark Van M. Buladaco


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PostSubject: Re: Assignment 3 (Due: before December 26, 2008, 13:00hrs)   Fri Dec 26, 2008 10:04 am

Internet is the prime medium for electronic commerce. Eventually, internet technologies have become an advantage for organizations and companies for further advancement and progression with their status in the business world. The amount of trade conducted electronically has grown extraordinary since the spread of the Internet. A wide variety of commerce is conducted in this way, spurring and drawing on innovations in electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at some point in the transaction's lifecycle, although it can encompass a wider range of technologies such as e-mail as well. A small percentage of electronic commerce is conducted entirely electronically for "virtual" items such as access to premium content on a website, but most electronic commerce involves the transportation of physical items in some way. Online retailers are sometimes known as e-tailers and online retail is known as e-tail. Electronic commerce that is conducted between businesses is referred to as Business-to-business or B2B. B2B can be open to all interested parties (example is the commodity exchange) or limited to specific, pre-qualified participants (private electronic market). E-commerce or electronic commerce is generally considered to be the sales aspect of e-business.

A large percentage of electronic commerce is conducted entirely electronically for virtual items such as access to premium content on a website, but most electronic commerce involves the transportation of physical items in some way. Online retailers are sometimes known as e-tailers and online retail is sometimes known as e-tail. Almost all big retailers have electronic commerce presence on the World Wide Web. Electronic commerce that is conducted between businesses is referred to as Business-to-business or B2B. B2B can be open to all interested parties (e.g. commodity exchange) or limited to specific, pre-qualified participants (private electronic market). Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of the business transactions.Early development The meaning of electronic commerce has changed over the last 30 years. Originally, electronic commerce meant the facilitation of commercial transactions electronically, using technology such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT). These were both introduced in the late 1970s, allowing businesses to send commercial documents like purchase orders or invoices electronically. The growth and acceptance of credit cards, automated teller machines (ATM) and telephone banking in the 1980s were also forms of electronic commerce. From the 1990s onwards, electronic commerce would additionally include enterprise resource planning systems (ERP), data mining and data warehousing. The recent shake-out of the so-called "dot.com" companies, which have included the collapse of noted names such as eToys, boo.com and pets.com, have the experts re-evaluating their forecasts for e-commerce. But few can deny that the Internet revolution has led to a fundamental review of business planning strategies in corporate boardrooms around the world. It is now unthinkable for a major company not have its own website extolling its virtues and peddling its wares. Even for small companies, establishing an on-line presence has become a business necessity.

According to www.itu.int, “The frontiers of the Internet revolution do not stop at Silicon Valley. Take for example the Câmara dos Dirigentes Lojistas de Belo Horizonte (CDL/BH), an association of local retailers and exporters in the Brazilian city of Belo Horizonte, some 300 km inland from Rio de Janeiro. Originally set up in 1960 to share information among shopkeepers on credit purchases of customers, CDL/BH has now moved into the world of cyber-selling. Thanks to assistance provided through the International Telecommunication Union's Electronic Commerce for Developing Countries project (EC-DC), the association's 10 000 members have established a Business Exchange Service for business-to-business (B2B) transactions. Web purchasers can now click on the CDL/BH website to make electronic payments, access their commercial page listing of local businesses, learn about the association's services such as telemarketing, electronic transfer of funds, or even find out how to book space at the city's convention centre.” Despite CDL/BH's success in getting its members on-line, the rise of e-commerce, like the Internet itself, is still largely confined to the rich. In 1999, the United States accounted for more than 70 per cent of commercial websites around the world, with owners of those websites garnering over 90 per cent of global e-commerce revenues. In contrast, e-commerce revenues in Latin America and the Asia-Pacific region accounted for just over two per cent of the total in the same year. Internet and e-commerce businesses are in particular need of legal guidance with respect to intellectual property matters such as trademark and service mark registration and protection, copyright matters, software licensing, customer data ownership, the assignment of intellectual property rights from employees, and advertising, promotional, and media issues. The Firm’s extensive intellectual property practice helps internet and e-commerce companies to create and protect what is often their most valuable asset—intellectual property. One example of this disparity is in the Asia-Pacific region. The research firm eMarketer said in a recent study that, in the year 2000, the region's share of e-commerce jumped to 13.8 per cent of global on-line transactions. However, nearly 70 per cent of this commerce was centred in Japan. China and India, the world's two most populous nations, account for only a fraction of the region's total e-commerce. Even where e-commerce is picking up, the trade tends to be a North-South affair rather than between developing countries themselves. While eMarketer predicts that Latin American e-commerce will leap to USD 15 billion by 2003, it also noted that nearly 75 per cent of current on-line buying in the region is done through United States-based Internet sites. Part of the problem for businesses in the developing world is the cost of setting up an e-commerce platform on the Internet. ITU notes that the average cost for a company is around USD 250 000 while for major international firms the cost can run anywhere from USD500 000 to 2 million. Then there is the cost of Internet access. Internet service providers (ISP) in developing countries must cover both circuit and traffic costs to connect to a point of presence on the Internet backbone (usually in the United States), which makes the service more expensive for end-users. Users in the developing world must also contend with additional hurdles such as the high cost of Internet hardware/software, Internet access provision and telephone service charges, and the shortage of infrastructure, notably of telephone lines.

Eventually, internet technologies have been a great help for not only in large companies for also small developing enterprise.


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Charmaine Joy Abrenica


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PostSubject: ASsgt 3   Fri Dec 26, 2008 10:54 am

In a not so long future that will come, e-commerce would undoubtedly be one of the most significant factors in the global economy. The e-commerce technology has made this kind of industry progress at such a fast pace and such an unstable environment. These technologies that will bring the e-commerce industry into a greater space will continue to bring transformation to personal communication and conducting global business world wide. Though the global economy may falter at times or in the past years of crisis, but the advances of the e-commerce would surely be able to help the global market to get back on its track and do well or even greatly. These advances are also significantly related to bringing the whole world online. Its advantages offered will attract lots of newbie or non-newbie on conducting business or just simple transaction online. According to NUA Internet Surveys (http://nua.ie./surveys/), over 620 million people worldwide are linked to the internet or are getting used to the World Wide Web (WWW). And experts predict that the global Internet usage will be growing more and more for the next succeeding years. By 2009, it was even estimated that 47 percent of all business-to-business (B2B) commerce will be done online already.

The rapid growth of the Internet also attracts the increase of organizations opting to use the World Wide Web in conducting business at a greater speed, access and efficiency. This shift is very common in business-to-business (B2B) commerce and trade. Companies now adapt to a system called e-procurement that offers and uses different B2B protocols for interaction with seller system. Examples are Ariba, Commerce One, and mySAP. Many others participate as buyers in e-marketplaces, such as Commerce One MarketSet, Ariba Hosted Market Place, and IBM’s Web Sphere Commerce Suite, Marketplace Edition (WCS MPE, or MPE for short), among others. Many other protocols for B2B methods, many proprietary to procurement and other systems, and others custom-made for specific partners are being defined and implemented. In addition to the procurement systems that usually reside in the firewall of the buying organizations, marketplaces are being situated on the Internet through which buyers can access a large number of suppliers, typically for specific industry divisions. Several of these marketplaces use the same or similar technology to connect to procurement and supplier systems and offer buyers at small and medium-sized businesses access to suppliers.

E-commerce technology will not only become smarter and faster but it can also cast a wider net for companies and organizations globally and renovate their methods of dealing with internal information, customer service and other important business transactions in a whole lot better way. Internet technology has also been used not just for business them selves to cater their business transaction needs but there are also internet portals that provide service for those who do e-commerce, another facet of business-to-business commerce. Some of which are domain name service which includes simple transactions in a business namely, transfer, agreement, domain forwarding and e-mail forwarding. There are also other website services provided like online shopping, website packages, web page, web store, custom design and also other promotion services. These internet technologies that are employed would surely help business get better and for those who are just thinking of transforming theirs to an e-business. An e-commerce business solution can provide an organization’s customers with detailed information of their products and services a year for a fraction of the cost just like having an international sales staff that is really efficient and always available as what is offered in Web Sphere commerce Suite, an IBM’s award winning e-commerce software. The solutions they offer comes in both a B2C and a B2B likes and allowing them to strengthen their relationship with their valued customers by cross selling and up selling products and services, streaming inventory management, returns and refunds, providing live help and online collaboration with suppliers and customers.

E-commerce technology could surely increase one’s company by boosting beyond their physical locations, culture, and time zones. Affordability, scalability, and profitability are a very important terms for e-businesses and they should make sure they could be able to offer these such importance and advances. One of advantage of an internet technology that could offer to any businesses or organizations is that it could bridge the problem of those companies in having limited resources, limited skills and as well as limited budget that growing a business as well as transforming a growing one into an e-business is very daunting. So getting connected to the internet would really help you in building a business and make it grow more by initially building a virtual storefront and creating a global Web presence for the online audience who would be the probable online customers. With e-commerce technology, finding solutions to problems that organizations get to face everyday like customer retention and increasing supply costs are few to mention and with this, a B2B e-commerce could never be that hard as it was and to make an e-business faster and cost efficient with just the appropriate solutions to be implemented.

There are also other suggested ideas to make e-business a success. New features are already starting to emerge from years after years that could bring several technologies apart that could be later on used in e-commerce extensively. A) Collaboration Key - companies set up smart hubs that are not only used by their own customers, but also interact with other companies' sites. Particularly on the business-to-business (B2B) side, this innovation could change the way companies do business with one another, according to Mark Byrd, senior vice president of product management at VerticalNet. B) Breaking Barriers - breaking down barriers between different departments and companies to achieve potential ‘real-time’ future, allowing constant updates of information related to inventory, product availability and shipping status. C) Supercharged Kiosks - consumers could have more direct contact with the next generation of e-commerce technology. Such kiosks will see increased use for actual purchases and financial transactions. D) IM's New Role - transforming instant messaging (IM) from a chat enabler into a serious e-commerce asset. Enable companies more easily create communities of like-minded customers, and will offer more secure ways to vouch for information that is sent back and forth over a network. E) Speeding Things Up - the real-time aspect of future e-commerce technologies will allow users to engage in "threaded discussions" as they negotiate contracts and share data. F) On the Same Page - smart interactive portals, accessible from wired or wireless locations, are the best way to consolidate information in a single place, separate mission-critical functions from other operations and control that has access to specific data.

Although the technology that has been incorporated now in doing e-commerce could provide lots of advances to those who opt to employ them, it is very important for these businesses to be very prepared in engaging to an e-business world. This kind of economy as is situated in the virtual world is running in a fast pace and catching up is one thing that one should never neglect or else. Technology could just be that useless despite its advances offered if one doesn’t know how to be a good player in such an economy.

The dynamic nature of the kind of new economy calls for new challenges to industry and the policymakers, although the internet promises great features for such businesses. The decision makers involved are entitled to develop procedures that would motivate growth and press on consumer interests. To craft groundwork for the fast paced growth of e-commerce appropriately, enterprises must learn to adopt effective e-commerce technology policies and strategies. These strategies involve strong intellectual property protection, online trust, free and open international trade and investing in an e-commerce technology infrastructure. Strong intellectual property protection refers to strong copyrights, patent, rewarding creativity to foster innovation and other forms of intellectual property protection to strengthen the economy. Of course online trust involves the ever important security and privacy, which without consumer’s confidence in security and privacy of their information could mean less growth and weaker e-commerce. So protecting information and interactions on the internet is a total key to ensure success. Closed markets and inequitable management is not very good for e-business. It is said that it should be realized that only in an open and free market will the Internet’s potential be realized. Investing in an e-commerce technology is a very good step and very vital to stimulate technological growth. The future of electronic delivery demands a dramatic evolution of the telecommunications infrastructure in every part of the world. Also, the digital divide is a major concern for organizations who have worked independently to increase access to computer technologies in underserved regions. They distinguished that a global e-commerce technology future depends on extensive access to new technologies, mainly by individuals who have accordingly far failed to share in many of the communications and productivity benefits that technology offers. For all these motives, many e-commerce organizations support policies to support broadband deployment in a way that will augment widespread access to technology and, in so doing, lessen or even close the digital divide.


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Clenemae G. Galgao


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PostSubject: Assignment 3   Fri Dec 26, 2008 5:29 pm

Internet is apart of technologies existence and as useful as computer; internet also plays a very important role nowadays. It helps you to communicate, it either be socializing or making business or reaching your loved ones from any part of the world. It uses as news paper where we can view several and unstoppable issues in any field or area, from the past event or current and even the future issues. It provides you information from an article, book, or dictionary. It can entertain you. It provides you information and services.

In terms of business internet contribute a lot to their company. The Internet has also become a large market for companies; some of the biggest companies today have grown by taking advantage of the efficient nature of low-cost advertising and commerce through the Internet, also known as e-commerce. It is the fastest way to spread information to a vast number of people simultaneously. The Internet has also subsequently revolutionized shopping—for example; a person can order a CD online and receive it in the mail within a couple of days, or download it directly in some cases. The Internet has also greatly facilitated personalized marketing which allows a company to market a product to a specific person or a specific group of people more so than any other advertising medium(Wikipedia.com).

A survey to organizations using business-to-business e-commerce enabling technologies that the results indicates that there is a strong relationship between the contribution to business performance of cooperative arrangements with both suppliers and customers, and that derived from used of Internet. At the same time, although extent of involvement in partnerships with both customers and suppliers appear to be complimentary, it is less apparent that extent of use of the Internet supports the same relationships. The results also show that the use of multiple stakeholders for the development of Internet strategy is the dominant driver of both implementation and performance. The findings therefore indicate that focus on involvement of multiple stakeholders in formulation of strategies will be more likely to yields better outcomes rather than focus in technologies pre se. technical capacity will determine the ability to extend implementation of Internet based applications across the supply chain, but a broad and coordinated approach to the development of strategy will more likely determine performance outcomes.
For using the internet as the way of dealing and interaction between suppliers and customers, here are some strategies or ways that is presented from a “blog (Enquiro blog)” to become in the cutting edge with online businesses.

1. Consider Creating an Online Community of Interest Around Your Solution - social marketing continues to be an effective method for reaching new prospects and can provide access to leads that may have otherwise been overlooked.

"Everyone has ideas, and everyone needs exposure and marketing feedback," Steiner said to a morning crowd at the "Achieving Innovation through Collaboration" symposium hosted recently by the Center for Advancing Business through Information Technology at the W. P. Carey School of Business.
Creating a site for your products will be preferable. Updating what’s new and what’s hot about your product.

2. Make use of Online Video or a Video Blog with Product/Solution Demos - with the surging popularity of online video with YouTube and Google Video, creating a video blog with a series of your solution demos or interviews with key company personnel is a great way to generate top of mind awareness and build trust with your potential prospects.

Considering that if you look at web analytics, product demos are the type of content that people actually click on and will watch, companies ought to invest in making quality product demos—and leveraging this communication across various mediums(viewstream blog).

Also, John Assalian(2008) says that product demos are best in the awareness / stage — at the point at which a prospect knows that they have a problem, and need a solution, and looking at the overall product landscape. Search is the one medium that traverses through Awareness, Consideration, and Decision phases of sales cycle, so you your product demos should support your search strategy on landing pages, as content on website once a search prospect comes to your site, and in matching product demo copy with search keywords.

3. Use Mobile Marketing to Compliment your Online Presence – the number of cell phone users continues to increase. Having a mobile marketing strategy through mobile ads can help promote traffic to your web properties. Marketing on a mobile phone has become increasingly popular ever since the rise of SMS (Short Message Service) in the early 2000s in Europe and some parts of Asia.

It will help the process of increasing visitors to your web properties through the use of mobile marketing and promotion.

Short Message Service (SMS) is also known as “text-messaging” and is a telecommunications protocol that allows the sending of "short" (160 characters or less) text messages.

Since the start of the decade, Short Message Service (SMS) has become popular in Europe and Asia. As a result, businesses in these areas started to compile mobile phone numbers and send off content and ad messages. Mobile Marketing via SMS has expanded rapidly in Europe and Asia as a new channel to reach the consumer. As a side note, the first cross-carrier SMS shortcode campaign in North America was run by Labatt Brewing Company in 2002(enquiro blog).

4. Have Dedicated Resources for Search Engine Marketing – whether in-house or outsourced, the organizations that realize search is here to stay have dedicated budgets for online marketing. Dedicated online marketing staff can keep on top of the latest online strategies and evaluate which strategies can be of the most benefit.

From an article summary having a dedicated resources is important. “From a business standpoint, it makes sense to try to leverage internal resources to maximize your company’s productivity and profitability – whenever possible. However, there must be a line drawn in the sand between knowing what your organization’s capabilities are and what they are not.”

5. Check out the Competition – what are they doing? What are they not doing? Are they using some new online marketing strategy that you can leverage and make better use of?

It is the easy to use tool that automatically tells you when a competitor gets a new link; make sure you stay on top of your competitors. Continually monitor your competitors website so you know automatically every new link that a competitor gets.

6. Live and Breath Relationship Marketing – The longer, more complex buying cycle means that relationships have to be cultivated and grown over a lengthy period of time. Having plans in place for building a long-term relationship for prospects through your website is critical in creating top of mind awareness and building the relationship between your organization and your prospects.

7. Learn, Understand and Utilize Widget Marketing - with a surging increase in the use of widgets, widget marketing can help help promote your product or solution as widgets are all about providing your users with the tools to promote your B2B business or any business/online property.

8. Determine your most important and actionable KPIs – Being cutting edge means that realizing that not all leads should be treated as equal. Successful lead generation will rely on multiple KPIs to keep the online marketing program focused and effective—and to keep you from wasting time and money on leads that just don’t matter. Three KPIs to live by: Leads Generated (This metric is very high level and should be considered a long-term trended KPI. As traffic fluctuates, leads will naturally fluctuate.), Lead Conversion Ratio (the conversion ratio is generally influenced positively by incentives including offers and negatively by barriers like poor navigation or onsite security concerns), Cost per Lead (Cost per Lead is a ratio and strategic metric, should never be managed independent of revenue)

9. Prepare for the Personalization of Search - the switch from a universal Search Engine Results Page (SERP) to a some what unique results page for each and every user who performs a query for one of your keywords. Ensuring that you have the relevant content to be found in "personalized" search results can improve your chances for consideration as your prospect goes through their buying process.

10. Have an Interactive Site – providing avenues for user generated content can help enhance the user experience and improve your presence in the search engines. Updating your site to be search engine friendly and to allow for user interaction is a great way to generate traffic, interest and leads for your business.

Making your site dynamic which clients can interact and give some comment the presented products it can be helpful to the company on what’s the most likely by the customers.

The Internet has finally arrived for the business-to-business market. The infrastructure has been built, companies are interested, and the economic environment is robust. Technology is changing from a cost of doing business to a way of doing business.

Centralized markets for B2B commerce over the Internet will create unprecedented levels of market transparency and lower the cost of procurement (not necessarily the cost of the products).



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Agnes Galinato


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PostSubject: Re: Assignment 3 (Due: before December 26, 2008, 13:00hrs)   Sat Dec 27, 2008 5:55 pm

Roles of internet technologies in enabling an organisation to obtain competitive advantage through B2B e-commerce
Business now faces its new phrase by the use of Internet, where most of the customer and the producer are doing transaction only in the virtual realm. It is undeniably true that almost all businesses have its corresponding web site to advertise their business to the public. Most of the people also are creating their business already in the virtual world or in the virtual market. The internet gives greater advantage both in the consumer as well as in the producer’s side. There are many processes that are cut off because of the direct linked of businesses in the internet. Markets are globally competitive even if it only has small funds in the beginning, because trade in the internet doesn’t require big requirements.
Companies are using exchange of information through the use of proprietary EDI systems. Although companies have been doing business electronically for many years using proprietary EDI systems, B2B commerce over the Internet remained in the early adopter stage at the start of the 2000s. The notion of an early adopter comes from a popular marketing theory which holds that buyers of a new product enter the market in several stages, starting with the early adopters who set the trends and ending with so-called laggards who purchase only after the vast majority has already bought. If B2B is still attracting mainly the early crowd, it suggests great potential for growth, as do the figures from the Census Bureau and private firms. However, another part of the theory suggests there is a gap, sometimes called a chasm that must be bridged between the early adopters and the early majority buyers; many products are believed to fail after doing well among early buyers but failing to catch on in the wider market. Whether B2B Internet commerce crosses the chasm remains to be seen. The same with the traditional way of marketing the internet doesn’t guarantee a 100 percent loyalty of customers. Businesses also have responsibility to maintain to be able to attract many customers not to mention the now growing competitiveness of companies regarding e-commerce. If anyone is having their customer a priority, they should have a flexible strategy that even in the change of trends can still cope up.
It was said that the economic slowdown that began in 2000 was expected to dampen the development of B2B e-commerce and decelerate the migration from proprietary EDI systems to the Internet. Because of this event in the industry many businesses was not able to easily transfer their means of information exchange to the internet. Starting to a new way could also mean a new investment a new capital, and because of the occurrence of striving within businesses it is not possible in the quickest way. All this came on top of the reality that corporate decision-makers were slow to adopt the benefits of B2B e-commerce, even though the technology was available. Some believe part of the problem has been that adopting B2B e-commerce could be challenging to the existing corporate culture. There are also a lot of barriers, ranging from a shortage of technology resources to competitive strategies.
Most and the often problem is interoperability between systems in companies. Often a prerequisite to certain types of B2B e-commerce is compatibility between a company's computer systems and the online exchanges or marketplaces where it seeks to conduct e-commerce. A survey by Computer Sciences Corp. found that in late 2000, less than 15 percent of North American businesses' Web sites had the ability to conduct business online. Other estimates of enterprises able to transact business online ranged up to 20 percent.
There are several reasons why businesses have remained on the sidelines of e-commerce. Small and mid-size suppliers appear to be waiting to see what kind of e-commerce initiatives their larger trading partners will undertake. Suppliers are faced with a choice of building their own Web site, selling over a public exchange, or joining the private exchanges of multiple trading partners. They may feel there is not enough demand from their customers to sell online. Also, many businesses do not have the internal information technology (IT) resources to enter into e-commerce. E-commerce operations typically require significant deployment costs and integration work, much more than simply offering a hosted Web site.
There are also many studies to which says that the first-generation B2B e-commerce Web sites were difficult for customers to use. Problems included too many Web pages to click through, distracting and unhelpful content, difficulty signing up for online service, and difficulty researching products. Next-generation B2B Web sites are expected to be more customer-friendly. They will incorporate such elements as personalization software that will reduce the number of click-throughs required. Other features will facilitate customer self-service, letting them check such things as inventory status on potential orders and track order shipping. Next-generation sites will reflect customer service as business's top priority, with companies leveraging the Internet to better serve their customers.

With the rapid growth of the Internet, organizations are increasingly using the Web to conduct business with greater speed, reach, and efficiency. This transformation is especially prevalent in business-to-business (B2B) commerce and trade. In many studies they had found out that many of the Fortune 500 companies have adopted e- procurement systems such as Ariba (see sidebar, “Ariba”), Commerce One, and mySAP. Many others participate as buyers in e-marketplaces, such as Commerce One MarketSet, Ariba Hosted Market Place, and IBM’s WebSphere Commerce Suite, Marketplace Edition (WCS MPE, or MPE for short), among others.

B2B buyers have diverse procurement systems, such as those offered by Ariba, Commerce One, and SAP, among others. Each of these procurement systems uses different B2B protocols for interaction with seller systems. Many of these protocols are proprietary and specific to the procurement system. Check attached example:
Ariba uses the punchout process between the Ariba Order Request Management System (ORMS) and seller systems using their Commerce XML (cXML, or Commerce Extensible Markup Language) specification for the messages. Commerce One uses XML Common Business Library (xCBL) as the format of messages, and mySAP uses the Open Catalog Interface (OCI; for a process similar to punchout) between buyer and seller systems.The following are some things that are being offered by the internet that enables competitive advantage in the B2B e-commerce:
Open Exchange of Information:
The internet present unlimited amount of information that no one could possibly limit it. Anyone can view the data of certain business and is able to compare it with others. Information also is not limited to time since the internet is open for the whole day, 24 hours a day, 7 day a week, thus everyone can view it.
Online Transaction: Online trust: security and privacy:
Having this advantage, business would not necessarily have many papers to fill up just to complete a transaction. In doing it in the web, one can easily done it without too much hassle. With the growing trust in the cyberspace, almost all transaction is now absolutely in good hands. Without consumer confidence in the safety, security, and privacy of information in cyberspace, there will be no e-commerce and no growth. Protecting information and communications on the Internet is an absolute prerequisite to the continued success of the Internet and the information economy.

Free and open international trade:
The web as it is defined is a linked to all connection in the whole wide world, thus the market in the cyberspace do not have any limits to its audience and customers. Closed markets and discriminatory treatment will stifle e-business. The Internet is a global medium, and the rules of the information economy must reflect that fact. Only in an open, free market will the Internet’s potential be realized.

Investing in an e-commerce technology infrastructure:
Because of the growing electronically driven business, government are also supporting and studying for ways to have a concrete structure in the internet. Supporting the physical infrastructure necessary to deliver digital content (primarily through telecommunications deregulation and government efforts to reduce the digital divide) is vital to spurring technological growth.

Speeding Things Up:
From an article in the E-commerce times , Martin Boyd, director of product marketing at Ariba (Nasdaq: ARBA) Latest News about Ariba, said the real-time aspect of future e-commerce technologies will allow users to engage in "threaded discussions" as they negotiate contracts and share data. The advantage of this is that all are able to see the latest updates and documents in the business.
Because of processes is being done over the internet, things are easily being done, things are speeding up to its high rate. That is why people are now engaged in doing business over the net.

Transactions are simplified:
The net is the home of all possible businesses around the world. From house equipment to the trendy gadget are all in the web. Even finding work is easily done in the internet. Doing the transaction is the internet is so easy to adopt and learn. One just simply have to fill up some information to transact, rather from the traditional ways that there are many needed papers and other documents to be filled and comply to be able to complete the transaction.

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Eric Ibasco


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PostSubject: Assignment 3   Sun Dec 28, 2008 8:24 pm

Internet nowadays is growing vastly in terms of the user who uses the power of internet for their new style of gathering of information and communication and for the business who use it as a new trend of transaction for the customers or clients. But before we go the role of internet technologies in giving an advantage mostly in business we must know first the definition of the internet and the origin of it. An internet is a network of computer networks, connected by the gateway computers. And the internet technology is lately begun in the year of 1960 and it is used only for the military project purposes like in creating a computer communication system that could withstand a nuclear attack. But when the time passed by the computer network is began to grow that they lately used to send personal messages which is the electronic mail or Email we know today. And the following sector who used this technology is the colleges and universities because they saw the benefits of the internet for sharing information between students and instructor for making researches. But now when the time that internet came to us especially in our country which in the year of 1999, internet links today is become millions and still growing. And the reasons of it is to communicate with each other, next for the distance education, third is to access information from far away places and last to promote their businesses. This is why the new style of transaction of businesses which is the e-commerce in selling and buying goods is been click to the online customer for making their shopping fast and easy. E-commerce is the exchange of information or transactions using any form of electronic communication. Having or implementing e-commerce there are three elements of electronic commerce to select and this are the Business-to-consumer (B2C) where consumer are been shopping through World Wide Web, Business-to-business (B2B) where the transaction of both businesses is conducted on the world wide web and last is the Electronic Funds Transfer (EFTs) also called wire transfer where the transaction and the business process that support selling and purchasing activities is been made through world wide web. But the most famous in these three elements for making business through website is the B2B method.

B2B is the short form that is used for Business to Business. Most of the electronic commerce today is of this type. It includes the electronic market transactions between organizations. B2B implies that both the seller and the buyers are business corporations and while business-to-business electronic commerce implies that the buyers are individual consumers. Business to business covers a broad spectrum of application that enables an enterprise or business to form electronic relationship with their distributors, resellers, suppliers and other partners. Business-to-business e-commerce can obtain and achieve a competitive business transaction in both user and other business. Because applying B2B can have lots of benefits to get and this are the following of benefits and advantages of developing B2B:

- reducing search time
- conveying information at low cost to many potential buyers that otherwise could not be exchanged
- automating process of reaching agreement and completing the transaction
- software needs to be written just once
- Project a larger picture of your organization
- Increase productivity
- Put your presence before a great number of prospects
- Save time and money
- Provide better reputation
- Its is cost reduction technique for the company so as to overcome mediator
- With the help of online auction the buyer of industrial goods can get the product at a cheap deal, as
there are many competitors in an online auction.
- B2B helps in lowering the cost for selling and marketing.
- Shortens the selling cycle.

And according to MDFsystems that taken from http://www.mdfsystems.com/artman/publish/article_104.shtml by Alan J. Zell (2004).

Business-to-Business (B2B) selling on the Internet will always be important to B2B although it may not be seen as being as important as business-to-consumer (B2Consumer) is. However, B2B e-commerce is 10 times greater than B2Consumer e-commerce. There are reasons for this:

1) There are, on average, 5 levels of distribution for most all products from the raw material through to the end user as a finished product. So, while we see retailing every day, there is much more going on beneath the surface that the public does not see. As more and more suppliers at each level get their products on line, the more important the Internet becomes in B2B selling.

2) In most cases, there is no need to transfer money via the Internet in B2B transactions. A working relationship has, in most cases, already been established. While the news and anticipation about fantastic growth is about the potential of using credit cards, it is directed at B2Consumer transactions. Credit card transactions between businesses play a very small part in how businesses pay their bills when buying from other businesses.
In the B2B business world, the problems associated with the worries about credit card and personal information being "stolen" via the Internet and misused hardly exists, if at all.

3) The main reason behind the growing importance of the Internet in B2B commerce is that it can shorten up the sales process for reorders, add-ons and getting business by referral -- better known as "second sales." Second sales are more profitable that first time sales because the money spent getting the customer on the books goes right to the bottom line. Increasing the number of second sales or decreasing the time between second sales, whichever way one wants to phrase it increases turnover for both suppliers and customers.
It so happens, although not often reported, that a vendor helps a customer increase the customer's turnover, the customer will look to see how else a vendor can help; conversely, when a customer helps a vendor increase the vendor's turnover, the vendor will go out of their way for the customer.
With service businesses, while there may not be as many levels of distribution of information, once a relationship between the two parties has been established, the same advantages can be realized. And let us not forget that so-called service businesses have products to sell their outputs.

4) Another advantage to the Internet in B2B business -- and it has been put forward many times -- is that a business can have a presence in their potential and current customers' hands 24 hours a day and that no matter where they each reside, business can be transacted.

5) A question that will arise, with B2B selling on the Internet, how will it affect the need to have as large as sales staff or even if one is needed? Will or can they be replaced by the Internet? I doubt it. Businesses, still buy "personality" -- the personality of the vendor, the vendor's management, staff and agents, and the product or services they provide.

As the Internet grows in B2B arena, so will the need for better informed salespeople. A web site can give lots of information, but it is static information, what's there is there and it can't be changed from what one is reading or viewing. Ah, but a really good salesperson can help tailor or customize the vendor's products and services to meet the needs of customers. The sales forces of the future will come from the technical sides of a business who understand how the product or service works and how it can be altered to fit what the customer is doing, planning to do or would like to do.
The Internet can become another way for you to distribute information about your firm's products and services. It will not replace what you've been doing, it will enhance what you've been doing.
B2B is growing very rapidly and is the future trend of conducting business. In every possible way e-business should mask the value of the products sold to its customers. The biggest advantage which this kind of business over the other conventional businesses is the Just In Time delivery. The delivery of the products can be traced very easily and effectively thus satisfying both the Client and the Vendor. Prompt delivery satisfies not only the business but also ensures instant profits, thus making the transaction a successful one.
Because the role of Internet in e-commerce Internet helps in connecting today's online savvy shopper with any retail or wholesale merchant that you can think of, an easy task. Because internet today can do everything like in gathering information, knowledge, News, online shopping is one of the most promising functions of the Internet world. When we think about online shopping, many thoughts come to mind, like checking out merchandise late at night when everybody else is asleep, searching for your favorite and private item to buy, so that no one knows. Online shopping is very popular, it is now possible to compare prices on various items, do research on new items that just hit the market, get the best possible deals, and have your product in a good condition.

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Miah Mae C. Bernaldo


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PostSubject: Re: Assignment 3 (Due: before December 26, 2008, 13:00hrs)   Wed Dec 31, 2008 1:43 pm

E-commerce is the new trend in doing business these days. Talking about business to business in e- commerce, B2B commerce is done through negotiating a contract which allows the seller to anticipate and plan for how much the buyer will purchase. Compared to traditional business, doing electronic business is more advantageous. That is why more and more companies are embracing this type of dealing. In the part of the company, e-commerce helps out to be more competitive with other companies in the market.

Internet is the finest tool in these days specially in doing business. It is mostly used for advertising, for doing competitive research, for providing customer service, in education and training, for job hunting or employee hunting, for shopping online, and for news services. There are many advantages we can get if we use internet in doing our business. According to engineeringtalk.com, the major advantage of using internet in doing business is that because the information of the products and the selling of products are interwoven like never before. The internet also enables a company to showcase its products and provide up to date information, specifications and applications about the product. This made it more attractive to customers to buy the product. The information provided on the internet can be changed or be updated instantly. You can sell or order products anytime. Compared to traditional selling methods, web based transactions are faster and more convenient for a business that is with the use of the internet.

The internet transform the way how business works. Since the evolution of the internet many are using it specially in running a business because of the benefits a company and an individual get from it. Most of the big companies have their own system to run their business over the internet. These systems provide them better strategies in order for them to be more competitive in the business and make increase their sales. For instance e-Procurement or electronic procurement which is also known as supplier exchange, this is system used for making purchases online. Through internet companies are now capable of selling and purchasing of products and services. E-procurement connects companies and their business processes directly with suppliers and manages the interaction between them. With the usual interactions includes for looking for a buyers or a sellers of goods and services in which buyers and sellers may spell out costs or invite bidding and questions and answers. According to epiqtech.com a good e-procurement systems helps companies and business firms to organize their interactions with most crucial suppliers. It also provides a set of built in monitoring tools which helps control costs and assure maximum supplier for the users of this system. It also provides an organized way to keep an open line of communication with potential suppliers during business process.
There are seven types of e-procurement according to Wikipedia, those are:

• Web based ERP (Electronic Resource Planning) :
Creating and approving purchasing requisitions, placing purchase orders and receiving goods and services by using a software system based on Internet technology.

• e-MRO (Maintenance, Repair and Overhaul) :
The same as web-based ERP except that the goods and services ordered are non-product related MRO supplies.

• e-sourcing :
Identifying new suppliers for a specific category of purchasing requirements using Internet technology.

• e-tendering :
Sending requests for information and prices to suppliers and receiving the responses of suppliers using Internet

• e-reverse auctioning :
Using Internet technology to buy goods and services from a number of known or unknown suppliers.

• e-informing :
Gathering and distributing purchasing information both from and to internal and external parties using Internet technology.

• e-marketsites :
Expands on Web-based ERP to open up value chains. Buying communities can access preferred suppliers' products and services, add to shopping carts, create requisition, seek approval, receipt purchase orders and process electronic invoices with integration to suppliers' supply chains and buyers' financial systems.

More companies are using this system because of the benefits they get form it. Initially, e-Procurement system is standardized and easy to use. Other advantages includes in getting the right product from the right supplier and to the right buyer which is also with the right price and the quality of the product. The e-procurement system also allows multiple access levels and permissions which helps managers organize administrative users by roles, groups or task. It also help out the decision making process by keeping relevant information organized and time-stamped. The e-procurement system also takes the supply chain management to the next level and provides real time information to the vendor as to the status of a customer's needs. In addition, a Well-managed e-procurement system will help reduce inventory levels. Knowing product numbers, bid prices and contact points will help each business close a deal to other companies.

Some companies are using EDI or Electronic Data Interchange. EDI is the transfer of data between different companies which enables electronic trading with business partners. More and more companies get connected online and use EDI as a tool in doing their business because of the advantages they get from EDI. To begin with, EDI eliminates the need for re-entering data. By this means, the accuracy and speed of the transaction increases while significantly reducing the cost of expense. EDI also allows business transactions to take place in less time and with fewer errors. It also reduces the amount of inventory companies must invest in by closely tying manufacturing to actual demand, allowing for just-in-time delivery. EDI also reduces postage costs and the expenses and space considerations involved in paper-based record storage. These days, Electronic Data Interchange had become increasingly vital as a tool for companies to buy and sell products.

Because of the competition, each company or business firms have their own strategies on how to make their business grow. And for small and starting businesses and even the big companies are using internet as their primary tool to reach the global market. Using internet in promoting is business according to ezinearticles.com will help your business to:
• Market Penetration
Since millions and millions of people have access to the internet, people who are searching for products and services can possibly and easily access your products and offered services. Your business can also stay open for 24 hours which gives more visibility that creates more opportunities to increase your costumer.
• Low Cost, Instant Communication
With the help of internet and the services it offers instant communication is possible. The Emial for example, this makes different companies or business firms communicate with one another instantly disregarding the place where you are in.
“ It makes it easier for customers to maintain contact and readily facilitates repeat purchasing. An effective online strategy can therefore turn a small web business into a virtual cost saver and income-generating machine. The net result is that the small business can gain significant competitive advantage in a given market.”[/i] Accordingly, “[i]Many online businesses have therefore resorted to the use of ezines, blogs, pop-up ads and other online marketing tools to let customers know about new products or services as well as provide information relevant to their respective industry. The benefits of this strategy are two fold. Marketers can effectively heighten brand awareness for relatively new products on the market whilst strengthening customer relationships, with shorter time frames.”
• Content is Timeless
"Internet Promotion also provides the advantage of being enduring. Whereas participation at a trade fair or conference loses sales impact, once it is over, and an advertisement in a newspaper or business magazine may quickly lose its sales generating value within a day or two or as soon as the next issue is released; Internet Promotion is often timeless. Apart from the dates and sometimes prices, much of your website content remains valid years after."
• Real Time Statistics For Measuring Success of Promotion Campaign
"One of the most significant advantages of Internet Promotion is that its success is measurable. Marketers can use tools that provide real time statistics, on unique visitors, repeat visitors, click through rates (CTR) on advertisements, thereby allowing them to evaluate the effectiveness of a promotion campaign. This enables marketers to determine what works for their particular market and to make timely changes in their marketing strategies."
• Time Saving
"Another important advantage of Internet Promotion is that it saves time since it generally does away with counselling on product uses and benefits, service information and sales administration. Visitors can access "frequently asked questions" to help themselves, and can buy online, without the involvement of staff. This saves time and money. So, whether 10 or 10,000 visitors visit the site, the increased cost is marginal whilst the savings can be immense."

Internet indeed plays a very important role in business today, especially to the companies in order for them to stay competitive with other companies. As what I have researched, with the help of internet the companies would be able to increase of productivity, save time and money, provide better reputation, shorter supply chain times, reduced supply chain costs, Access to a wider range of business customers are only some of the advantages of doing business to business e- commerce. Companies who are using internet as a tool in their business surely will be competitive enough to race in the global market.

Reference :
1. http://www.engineeringtalk.com/news/wib/wib101.html
2. http://www.talltech.com/student/BusinessOnNet/sld029.htm
3. http://managementhelp.org/infomgnt/e_cmmrce/e_cmmrce.htm
4. http://www.innovise.com/page/120/what-is-edi.htm
5. http://www.webopedia.com/TERM/E/EDI.html
6. http://ecommerce.hostip.info/pages/380/Electronic-Data-Interchange-EDI-ADVANTAGES-EDI.html
7. http://student.dcu.ie/~lawlesc5/E_Commerce.html
8. http://www.websoftwareoutsourcing.com/b2bdevelopment.shtml
9. http://en.wikipedia.org/wiki/E-procurement
10. http://www.epiqtech.com/e-procurement.htm
11. http://ezinearticles.com/?Internet-Promotion---Advantages-and-Disadvantages&id=53561
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norma galua

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Join date : 2008-06-12

PostSubject: Re: Assignment 3 (Due: before December 26, 2008, 13:00hrs)   Wed Jan 21, 2009 9:53 am

E-commerce is known as the most important facet of internet technologies nowadays. B2B e- commerce (Business to Business) which is one of business models in varying business over the internet. B2B e- commerce is the exchange of products and services between businesses rather than between business and consumers. Its competitive advantage not only in local and international market are recognized in the recent time and is believed to increased more rapidly in the next several years. More and more businesses are turned into B2B e- commerce especially there business is associated in World Wide Web. Buying and selling of goods are done through digital communication which offers a lot of benefits for business organization over a traditional way of making transaction. In the past, to succeed in the business and got a place in the marketplace depends on each strategy in running the business. Once you’ve got the best strategy definitely you’ve gain more profit over other business. To have the best strategy, you need to have a lot of minds to think and compare with to come up with the optimum strategy suited for the company to gain more profit over the other. However, these become successful for big companies who got a lot of employees and have some group which specializes in finding for the best business strategy. This job before requires someone to research and study the current trend in the market, have to go to other places just like the traditional ways of gathering information. This will take time and cost that mostly big scale businesses can afford. That’s the reason why, only multinational companies and the like dominate in the market. How about the medium especially small scale businesses? They were not given the enough chance to excel in the market. It will take long time for them to gain little progress on their business, as well as its hard for them to be informed with the latest business strategy the suit for the current business trend since information was not made available for everyone.

With e- commerce discrimination issues large, medium, small scale businesses have been eliminated. Internet technologies offer a chance to each business organization to excel in the market. Information has been made available in the internet. The company can search for the best strategy in running a business in different scope, as well as provide them information with an update on current business trend and how to put their business inline. It enables them to make their business compete both in local and international market.

In this technological age, internet has been a necessity in almost all fields. Its contribution in e- business and e- commerce opens an opportunity to a faster, accurate and efficient customer service with a less consumed time and cost. With internet technologies offer a direct communication link for customer and supplier, thus eliminate intermediary people which the main cause of high cost and delay. From that, lower cost on purchasing and selling products are achieved as well as offers satisfaction to both customer and supplier in terms of time spent from business transaction to delivery. Direct transaction definitely reduces time and cost spent, thus leads to more profit for the organization.
The internet offers a wider range of marketplace. Companies are able to compete both in local and international market without considering so much its size. Putting your business in World Wide Web, you’re making it available around the world and you’re doing business in different nationalities. E- commerce allows people to carry out business without the barriers of time and distance. Anyone can log on to the internet at any point of time. With e- commerce it makes your business available anytime, either day or night. As e-commerce system also made available with do automation in almost all business process the company does. You can directly purchase and sell products and services at a single click of the mouse via organization website with accuracy and speed. It is made possible to negotiate and deal business virtually anytime even without human supervision. E-commerce is known as the most important facet of internet technologies nowadays. B2B e- commerce (Business to Business) which is one of business models in varying business over the internet. B2B e- commerce is the exchange of products and services between businesses rather than between business and consumers. Its competitive advantage not only in local and international market are recognized in the recent time and is believed to increased more rapidly in the next several years. More and more businesses are turned into B2B e- commerce especially there business is associated in World Wide Web. Buying and selling of goods are done through digital communication which offers a lot of benefits for business organization over a traditional way of making transaction. In the past, to succeed in the business and got a place in the marketplace depends on each strategy in running the business. Once you’ve got the best strategy definitely you’ve gain more profit over other business. To have the best strategy, you need to have a lot of minds to think and compare with to come up with the optimum strategy suited for the company to gain more profit over the other. However, these become successful for big companies who got a lot of employees and have some group which specializes in finding for the best business strategy. This job before requires someone to research and study the current trend in the market, have to go to other places just like the traditional ways of gathering information. This will take time and cost that mostly big scale businesses can afford. That’s the reason why, only multinational companies and the like dominate in the market. How about the medium especially small scale businesses? They were not given the enough chance to excel in the market. It will take long time for them to gain little progress on their business, as well as its hard for them to be informed with the latest business strategy the suit for the current business trend since information was not made available for everyone.

With e- commerce discrimination issues large, medium, small scale businesses have been eliminated. Internet technologies offer a chance to each business organization to excel in the market. Information has been made available in the internet. The company can search for the best strategy in running a business in different scope, as well as provide them information with an update on current business trend and how to put their business inline. It enables them to make their business compete both in local and international market.

In this technological age, internet has been a necessity in almost all fields. Its contribution in e- business and e- commerce opens an opportunity to a faster, accurate and efficient customer service with a less consumed time and cost. With internet technologies offer a direct communication link for customer and supplier, thus eliminate intermediary people which the main cause of high cost and delay. From that, lower cost on purchasing and selling products are achieved as well as offers satisfaction to both customer and supplier in terms of time spent from business transaction to delivery. Direct transaction definitely reduces time and cost spent, thus leads to more profit for the organization.
The internet offers a wider range of marketplace. Companies are able to compete both in local and international market without considering so much its size. Putting your business in World Wide Web, you’re making it available around the world and you’re doing business in different nationalities. E- commerce allows people to carry out business without the barriers of time and distance. Anyone can log on to the internet at any point of time. With e- commerce it makes your business available anytime, either day or night. As e-commerce system also made available with do automation in almost all business process the company does. You can directly purchase and sell products and services at a single click of the mouse via organization website with accuracy and speed. It is made possible to negotiate and deal business virtually anytime even without human supervision. Furthermore the direct cost of sale for an order taken form an organizational website is lower than through traditional means (retail, paper based), as there is no human interaction during the online electronic purchase order process. Also electronic selling virtually eliminates processing errors as well as being faster and convenient for the visitors.

E- commerce centralizes business process that leads to faster, accurate and up to date data processing. For instance, once the companies cater order from customer via organizations website, the order taken out will be automatically recorded: update inventory with the latest available stocks, create invoice then manage payments. This process will only take a very short period of time as compare to traditional way of business process. Then delivery of orders is taken right afterwards. The strategic benefits of making the business e- commerce enabled is that it helps reduce the delivery time, labor cost and cost incurred most in the common areas: document preparation, error detection, mail preparation, telephone calling, data entry, overtime, supervision expenses. These tasks are included for the task to automatically perform by the e- commerce system.

Converting business into e- business also provides operational benefits, as mentioned human interaction is no longer that necessary. E- commerce include reducing both time and personnel required to complete business processes, and reducing strain on other resources.

With the continuous progress and development of internet technologies, it also offers progress and development in all the fields associated with it, including e- commerce. With that, e-commerce technology will not only become faster and smarter, but could completely transform the way companies’ processes in terns of handling internal information and customer service.

In B2B e- commerce, one promising concept is the “collaborative commerce”, in which companies set up hubs that can be used not only by their customers but can interact also with other companies site. This innovation was found out to change the way companies do business with one another. With these portals, companies that regularly do business with one another will be able to access real time information about product availability and pricing. Companies will be able to send invoices and pay liabilities.

In e- commerce, the internet serves as the primary medium to handle almost all of business transactions. It provides low cost advertising and fastest way of doing business open to all size of businesses.


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Richard Mark Daliba


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PostSubject: Assignment 3   Wed Jan 21, 2009 4:39 pm

Having internet technology to work on business makes it easy to communicate and transact businesses. Even a small transaction like business to consumes, internet technology really works well and in the case of business to business, this strategy will be the most effective since huge transactions could easily enjoy this kind of ease in this kind of business model. Some businesses right now are using this kind of strategy since there are lots of internet technologies that are very helpful in doing e-commerce. By the help of this kind of technology, businesses could easily do e-commerce and strategy should be based on internet technology capabilities to allow thorough flow of transactions. Internet technology really makes businesses possible to clients to be more competitive in doing e-commerce. More and more of the clients right now are really engaging on online commerce and this having this lots of internet technology makes it possible for businesses to obtain competitive advantage on other businesses. Businesses that don’t use internet technology would impossible to cater those business customers online and the competitiveness doing business to business e-commerce would be so low.

Internet-based business-to-business (B2B) e-commerce is conducted through industry-sponsored marketplaces and through private exchanges set up by large companies for their suppliers and customers. Of course, companies also sell to business customers through their own Web sites.

In the early 2000s, industry-sponsored marketplaces (ISMs) accounted for only a small percentage of B2B transactions. The main reason, according a survey of 25 ISMs published in the industry periodical B to B, is that ISMs have had problems convincing buyers and sellers to use them. For one thing, companies are reluctant to acquire customized designs through marketplaces because they don't want to reveal proprietary information on an site that is shared by competitors. These companies fear they will give away too much information about their competitive strategies simply by taking part in such a marketplace. ISMs also do not necessarily level the playing field for small companies against larger competitors. As a result, companies use such marketplaces mainly to purchase commodity goods, manage their supply chains, and conduct indirect procurement transactions not related to their core business.

B2B E-commerce helps to remove barriers raised by geographic fragmentation of the market. While buyers get to know about new sellers with better products, suppliers discover new buyers. B2B also helps in eliminating unnecessary inventory build-up for both buyers and sellers. Lack of information about production schedules of the buyers lead to inventory build-up for the sellers. At the same time, the difficulty associated with finding alternative supply sources forces the buyers to build-up inventory. As B2B promotes information flow and enhances transparency, supply-chain management becomes possible. In addition, both the sellers and sellers enjoy reduced order processing costs and lower cost of interacting with each other.

Mere order matching, which earns commission, is just not enough for the third-party exchanges. They will have to strive to retain the buyers and sellers, that is, they have to provide other value-added services (providing specialized information, for instance) that help retain the existing sellers and buyers and attract fresh traders. Buyers and sellers, in turn, benefit through specialized information content. In effect, the market benefits from buyer and seller discovery and price and product transparency.

The B2B process starts with a requisition for an order. Purchasing organizations have internal approval process to prevent unauthorized orders. Though the exchanges do not directly offer these facilities, they do it with the help of software provided by companies. Second, before the orders are processed, the exchanges have to have the set of suppliers for each of the products for the industry which they are catering to. In the third stage, the exchanges match the orders of the buyers with the suppliers. The fourth stage is ensuring that the orders are fulfilled. This includes all post-order requirements, including arranging for shipping of the material ordered. The fifth stage would be to process the payment schedule. Though there are very few exchanges which offer the entire gamut of the above services, there are many which go up to order matching.

How do the B2B exchanges earn revenue in the process? The B2B initiatives earn primarily through transaction fees which ranges between 0.50 per cent and 10 per cent of the total value of each transaction based on the complexity. More the orders matched, the higher the revenue. Others charge a annual subscription fees, irrespective of the number of orders. The exchanges also earn through membership fees, auction fees and license fee for the use of any specialized customized software that is offered. Revenue is also generated by providing specialized content. This could be in the form of analysis, statistics, price and product data, industry news, forecast reports and other technical services.

E-commerce evolves in different states and we are now on the third state of evolution. The first stage in the evolution of B2B was the Electronic Data Interchange (EDI) where a buyer maintained separate connections with each supplier. This was both difficult and expensive to maintain. It neither increased the population of buyers and sellers nor was it transparent. The second stage was the basic E-commerce model where companies put their product catalogues on the Internet and conducted one-to-one transactions. Now, B2B E-commerce is in the third stage of evolution. Unlike the first and the second, now a B2B E-commerce initiative brings together large numbers of buyers and sellers, thereby creating a community of traders. As many buyers and sellers gather at a common place, the information flow increases and hence the transparency. This in turn reduces the overall transactions cost.
There are 3 different types of B2B exchanges operate. The first category is buyer-controlled. It is a consortium of buyers who aggregate their purchases. The recently-formed consortium among DaimlerChrysler, Ford and General Motors (to which Toyota recently joined) is an instance. By this process the buyers are looking to manage efficiently the procurement process; lower administration cost, and ensures uniform pricing. The second category is seller-controlled. Here the sellers who cater to fragmented markets such as chemicals and auto components come together to create a common trading place for the buyers. While the sellers aggregate their market power, it greatly eases the buyers search for alternative sources. The third category is third-party exchanges that are neither buyers nor sellers. They thrive purely on the fees generated by matching buyers and sellers.

How does B2B differ on B2C ecommerce? Business-to-business (B2B) e-commerce is significantly different from business-to-consumer (B2C) e-commerce. While B2C merchants sell on a first-come, first-served basis, most B2B commerce is done through negotiated contracts that allow the seller to anticipate and plan for how much the buyer will purchase. In some cases B2B is not so much a matter of generating revenue as it is a matter of making connections with business partners.Amazon.com, which sells books over the Internet, is an example of a B2C E-commerce initiative where the company gets in touch with its consumers directly. This is equivalent to the direct selling concept popularized by companies such as Amway. The only difference is that the selling is done via the Net. On the other hand, ChemConnect.com and Chemdex.com (which deal with chemicals) are B2B E-commerce initiatives that bring two firms together on the virtual market place. A B2B initiative needs a large infrastructure and a company would need to restructure its systems and business processes. It involves many participants with complex rules, higher purchasing amounts and complex products. Unlike B2C, greater certainty is required for order fulfillment.

Engaging on the use of different internet technology would be an advantage for business that are targeting online business customers since the connectivity and the communication process are the ones to be catered. Most of the business’s model right now is engaging into this kind of strategy and it’s because of the fast changing and vast changing of interconnectedness. We all know that this change is in fact the factors why we are to engage in this fast chance of business strategies. Business to business e-commerce is really a great type of strategy that would really target a big output on the end of every transaction. We could also say that business to business should really adopt internet technology as a partner in order for the business model to be implemented wisely. Some were successful and some not but the process of business continue as we go on fast changing. We could not conclude right now that there is a proper strategy for such business. We only conclude that it is in our management on how we could gain a success on different kinds of business. There should be a proper kind of model in different kinds of business. We only have to select what suits on our business type. We have our own freedom to select and we also have the freedom to do a certain model that would totally fit on the business we have right now. The involvement of internet technology is a practical way and wise implementation of business then we should try also to select internet technologies that would totally fit on our needs.

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giesi mae l. gorgonio


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PostSubject: assignment 3   Tue Jan 27, 2009 2:45 pm

The Internet has blow up into the world of opportunities and chances for the business entrepreneur. The Internet has brought us quicker communication with and allows us to access into specific market places we want. Through the use of email, putting resources of business at our reach (because today, it is now in our finger tips) and giving us a broad basis of knowledge and education, the Internet has created a very productive atmosphere for ecommerce and small business. The development of high speed internet connectivity and millions of individuals as well as businesses online engaging in online commerce all over the world at any given moment has opened the doors to reach customers everywhere. At the present, we can now see customers purchasing stock online, purchasing shoes online, purchasing prescription drugs online and many more. The Internet today is truly the hottest trend in doing business entrepreneur. The changing of strategy of modern business is progressively becoming more and more reliant upon online transactions. In the present day, doing business to business ecommerce (also called b2b ecommerce) has turn out to be a key feature for the marketing sales or strategy in many companies doing online commerce planning. It is widely believed to promise a radical change in the way that firms trade with one another. Business to business ecommerce applications are being promoted as tools that will enable producer firms in developing countries to reduce their cost substantially, thereby easing their access to global market. Gaining knowledge about this great potential market place is very significant for the ecommerce business as a technique to increase Internet sales.

Business to business ecommerce involves two or more merchants doing business with one another on the Internet. These merchants need to be online as businesses to be considered as doing business to business ecommerce. In our time, these merchants are doing and using the World Wide Web in they’re business to spread out and increase. The Internet provides an open global network and access to this network is relatively cheap. Internet based business to business e commerce help producers obtain better information on global markets and give them direct access to new customers.

There are many marketing benefits and advantages when doing business to business ecommerce. In doing a business, these are the following common activities: Finding customers through sales and marketing; Obtain quotations, negotiate price, specifications and contracts; R&D. Product (or service) development; Sell to retail and wholesale customers and through distributors; Inventory control including disposal of distressed inventory and demand intelligence; Qualifying customers to prevent rogue transactions; Procurement of raw materials, components and supplies; Optimizing business through negotiations with suppliers, distributors and customers; Manage IT Resources; Invoicing; Strategic planning; Project management; Managing finance, cash, debt and investments; Manage Human Resources (Staff); Manage Property; Manufacturing or performing services; and Warehousing.

Today that transactions are done online, so I have research some of the negotiations online to understand and appreciate how the Internet technologies enable the organization to obtain competitive advantages through this kind of ecommerce. Here are the following:

• Initiated through requests or offers; Buyers want something, sellers have something to offer
• Sellers respond to buyers by offering products or services at a suggested price
• Buyers respond to sellers by offering a price for specific products or services
• Buying and selling can be via open or secret processes and may be for a fixed time
• Specifications can be negotiated instead of or as well as price

There are also many features of business to business marketplace portals and these are the following: Registration of suppliers (or buyers in a demand marketplace); Suppliers offer products or services; Suppliers provide additional details to allow buyers to select (qualify) potential suppliers; Portal may provide additional checks to enable further qualification of its suppliers: credit, references, research; Portal offers mechanism for searching suppliers; May include public or secret forms of offer (bids, prices, estimates); Marketplace may hold deposits or payment on behalf of the buyer (escrow) until the seller releases goods or meets a delivery milestone; May support contractual elements of transactions providing audit trail for purchase orders and invoicing; May aggregate demand from multiple buyers; Relationships may be short term or the basis for on-going trade; Portals may charge fees to buyers or suppliers or a percentage of contracts negotiated; and Marketplaces may be created independently or within existing industry relationships.

Aside from the list that I have mention above, there are also ways in generating new ways in communication channels for on going relationships and these are the following: ordering; invoicing; shared planning, product development and problem solving; reducing errors in communication; enabling just in time, JIT, ordering or shipping and moving warehousing costs to your suppliers; enabling distributors and customers to your marketing for you; and making it harder for your competitors to work with your suppliers.

The following are some of it:

1. It reduces costs – ordering and searching for raw materials online significantly reduces the costs of purchasing them. Many businesses prefer the “virtual” world that offers online sales of parts and materials. According to them, a company using the Internet sellers that supply this parts or supplies function can reduce the cost to one third.

2. It improves the marketing and sale of parts, materials, or products – doing ‘window shopping’ for parts, materials or resale products becomes tremendously easy so many buyers for companies and online merchants are on the Internet. You can get and compare the information about prices, features, delivery procedures and other useful information easily so you can guarantee that you have and get the best on what you need at the lowest possible price by means of internet commerce.
3. High efficiency – today, orders costing millions or even billions can be performed at the click of a button by the use of an Internet commerce software program in a matter of seconds which is formerly done over months.

4. No inventory worries – since the transactions are given online and goes directly to an e commerce server, all the needed information of having some verification of the needed material or product and its transportation is clearly traceable. Today, easy delivery proof is very easy because of the Internet e commerce functionality.

5. Supplying business to business e commerce is a great way to help businesses save money, effort and time. It is very ideal for those companies that are very demanding in deadlines.

6. Maximize company profit and reduce turnover time greatly.

7. Outsourcing the unprofitable parts of your business.

8. Speeding up your product development activities – reducing time to market

9. Improved business and market intelligence. Understanding your market better than your competitors.

10. Cloning your business in further market – according to many studies and researches, there are many successful establishments and companies doing traditional businesses experiencing difficulties in translating their reputation to the virtual podium the web offers.

11. Improving the speed of communication – as mention above, the Internet has provided a cheaper and faster way of communication in both the merchants and the potential customers.

12. Facilitating communication between your customers and suppliers – with the aid of the Internet, both parties (may it be situated in different part of the globe) can communicate and exchange though and concerns in real time.

13. Reducing wastage through additional sales channels – the waste can be reduce because in virtual world, you can have unlimited customers viewing your web site which possibly means more sales.

14. Improved ability to experiment and learn – you can test and study every customer visiting your web site. Example placing security logo in different areas of the page was discovered to affect the sales. Many examiners believed that testing is the key to success. They said that without it, you can’t be certain what impact the alterations you make have on conversion.

15. Higher customer retention rates.

16. Lower customer acquisition costs.

17. Reduced cost can be passed on in favorable pricing.

According to different studies and research conducted about this new e commerce application, they found out that e commerce opens new and cheaper access to global markets for producer firms. It strengthens the existing relationships between the manufacturers and global bargain hunters. It also reinforces existing power relations.

Though there are many benefits in doing businesses in the virtual world, we cannot deny the fact that it has also negative effects like in one study conducted which resulted that the developing country producers aren’t benefiting the business to business e commerce. According to them “..the use of the Web was being limited by inadequate and costly domestic telecommunication infrastructures and slow connection speeds. The use of Web-based applications might increase as ICT costs decline, but the costs of dealing with new suppliers and customers will continue to be high. Most of the B2B e-commerce activities of developing country exporters are not dependent on very sophisticated ICT requirements. However, cost-effective and reliable access to telecommunication and Internet services is required.”

However, though there are some drawbacks and inconvenience, the overall outcome of the online business to business e commerce is truly a success in the field of technology and business.

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PostSubject: Assignment 3   Tue Mar 17, 2009 3:22 am

The Internet has completely changed the way most businesses operate today. E-commerce uses internet worked computers to create and transform business relationships. Web applications provide business solutions that improve the quality of goods and services, increase the speed of service delivery, and reduce the cost of business operations. However, many ventures into web application development fail because the systems are very complex and the users’ requirements are continuously changing. Inefficient communication between the end user and the developer is another contributing factor. To successfully accomplish the development of a web application, one needs to visually model the system’s architecture. A visual model helps in coherently grasping the changing user requirements and effectively communicates them to the development team.

Internet based e-Commerce is flourishing, but mostly in the Business-to-Consumer world. The lack of well accepted standards is hindering the success in promoting Business-to-Business e-Commerce solutions.

The basic framework of e-commerce enables doing business online. The framework consists of a comprehensive structure beginning with the based technology layer to the general service layer. E-commerce has, to a certain extent, changed markets structure. Traditionally, market ties were created through the exchange of goods, services, and money. E-commerce has brought in an essential element: information. Market ties are now based on information services, information goods and electronic money. Although the nature of exchanging products remains unchanged, the channel and the format of doing business have changed. To better understand the basic framework of e-commerce, the following paragraphs explain the features of the major layers in the environment of e-commerce.

E-commerce can be thought of as an activity wherein the customer uses the internet to order a product or service. In most circumstances, the transaction may happen online also. Online shopping places a heavy demand on the use of the internet. One major hurdle that online shopping faces is the security of transactions, since it is necessary for shoppers to submit their financial details on the web too. Currently, only a limited number of merchants are doing business online due to the problems related to technology. The major hurdles faced are low penetration of computers in India, lesser amount of credit or debit card holders, and many adverse taxation rules. Also, many internet users are reluctant to reveal their financial information online, which hampers the growth of the online business. Conversely, online shopping has a great potential to become big. According to many ecommerce observers, ecommerce has the potential of reaching $ 100 billion in the year 2008. Accordingly, many enterprises both big and small, are opening to the idea of having their B2B and B2C portals on the internet in a big way.

The internet is also proving to a boon in disguise for many small and medium enterprises, which are joining hands with major online portals to display their products and advertise their services. Analysts predict that in the next 18-24 months, several national brands and retailers will have their online shops ready for B2B and B2C transactions. This indicates that the total number of merchants online would go up to nearly 50,000 and the total number of users would go up to around 50 million. Analysts also predict that the online shopping market could go up to nearly USD $ 50 million. Already, a jewelry piece sells every five minutes, and a mobile handset every eight minutes, and a car every nine hours on the popular commodity site eBAy.com.
B2B e-commerce was expected to lead the way into a brave new online world of business communications, management and international trade. However, it turns out that the business-to-consumer movement has blazed the e-commerce trail and garnered most of the attention. That's not to say that the B2B sector has been a laggard in any way, shape or form, however. It's just that the initial hype surrounding its potential outstripped reality and greatly underestimated the difficulties businesses would face in dealing with each other online. There are many valid reasons for that outcome, including the more complicated and longer-term nature of B2B e-commerce. For one thing, finding and working with a B2B partner to purchase, supply, distribute or sell products on behalf of a business is a much more arduous task than buying a birthday gift for a loved one. While quality, credibility and trust are important in any form of commerce, they are paramount when it comes to B2B. Despite the challenges and pitfalls, some B2B e-commerce networks are making their mark and realizing the aspirations many initially foresaw.
B2B and B2C are converging as more firms look to gain efficiencies across one e-commerce platform. B2B e-commerce is taking a cue from the B2C world in that marketing is more involved, and the focus is shifting from just supporting transactions to creating a better online experience that can be used to drive increased sales and loyalty. However, there are still distinct requirements of B2B platforms like support for RFQs (requests for quotations), multiple partner catalogs and pricing, and support for contract agreements. The B2B sales models can also be more complex, requiring platforms with greater flexibility. As has been the case with other business and IT functions, an outsourcing model is developing within the B2B marketplace.
Supplier networks and catalog management are trending towards an outsourcing model, whereby supplier connection is becoming the domain of expert-based shared service functions rather than an internal, and self-enablement model. Subsequently, online supply chain technology expanded to meet the needs of companies that sell to the average consumer, and B2C was born. B2C technology required the complex selling, configuration and order-management capabilities found in traditional B2B solutions, but also used portal-style Web sites that featured added flash, such as product ratings, reviews and promotions on B2B e-commerce.
Business provides online information search and information download by charging a fee per view. It allows consumers the option of buying the content of an article, a chapter or a certain page of a book according to their needs. Contents from the data bank are also available to viewers by paying a fee.
Recently, some market leaders coined the term "B2E," or business-to-everyone, to refer to a value chain in which everyone -- suppliers, so-called trusted partners, consumers, etc. – is properly represented in an ever-flattening, horizontal e-business platform. As e-commerce technology has advanced, B2B platforms and networks have benefited from improved software methods, tools and standards -- XML and SOA (service-oriented architecture) among them. As different flavors of B2B mature, slumbering giants such as India and China are getting into the act.
The potential for major growth in the B2B markets is clear, particularly in Asia, where growth in manufacturing, international trade and incomes continue to outstrip that of other regions. However, these are countries in which B2B networking is in the early stages of development, he added. Long a center of international trade and a doorway to China, the Asian market space as a whole has made strong B2B inroads. As politics play an increasing role in international trade and investment, government agencies actively participate in the B2B marketplace. Considering its importance and steady growth, the B2B market continues to attract a wide range of e-commerce technology and service providers. Likewise, B2B tools and technology have grown in number and quality.
Commerce platforms have evolved into much more than a platform and toolset for building online storefronts. Today, they behave much closer to an application, and include packaged components and business logic far beyond the shopping cart. They can now also natively handle complex catalog structures, merchandising, campaign management, and sophisticated selling scenarios to drive revenue and efficiency. The vendors tap into their respective core strengths to enhance their commerce platform offerings.
E-commerce and IT executives are limited in the choice of enterprise-quality B2C platforms, unlike the number of choices in B2C and small to mid-range B2B platforms. While mid-market commerce platforms are still plentiful, the booming but fragmented enterprise commerce platform market became a mature, consolidated one, as the post-2000 e-commerce technology spending drought weeded out weaker contenders.
Each vendor's platform was evaluated against 175 criteria in eight groups: product architecture, administration and management, catalog and content management campaigns and marketing, customer management, order management, B2B capabilities, and reporting and analytics.
IBM's e-commerce platform's architecture and support for B2B contract and order management. It also praised IBM's Extended Site functionality, which also makes it a good fit for firms that sell products under several brands or support multiple tiers of partners, offering the flexibility of separate sites and delegated management, but with the control to manage and reuse data assets across sites. Any e-commerce platform must be flexible.
From the beginning, the Comergent platform was designed to support multiple storefronts and, in some cases, storefronts that can handle the complexity of integrating multiple third parties into the sales model. The latter scenario is typical of many of our customers who take advantage of both the storefront model, as well as the opportunity to cross-sell and up-sell between business units, as appropriate.
The convergence of communication and computer technologies, culminating in internet technologies, has made it possible, technologically, to transfer a vast amount of information, in digitized form, to locations across the boundaries of nations. The declining costs of telephoning, a positive outcome of deregulation of telecommunications industry, has made such a transference also cost effective, leading to a rapid growth in trade in information intensive and information processing services, often defined, specially for data collection, as Business to Business (B2B) sector of the e-commerce.

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Anthony E. Catamora


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PostSubject: Assignment 3   Tue Mar 17, 2009 5:56 am

Internet has been very proficient and effective tool in establishing a fast and effective communication all over the world. Since internet is doing very well using its very innovative technologies, electronic commerce has establish a great means of selling products and services throughout the cyber world.

Internet technologies are the different kind of tools or technologies that are being well utilized well through the internet and are helping well the different internet users to make their works easier as everyone ever though of. Thus, different electronic commerce is dealing with this and taking advantage of these internet technologies work well and even a lots of individuals are getting more to this since then the internet arouse and used as an effective tool in dealing with different persons in the world. There are various internet technologies which are also the products of electronic commerce services and these technologies are driven to use in the electronic commerce. To mention or name those internet technologies are as follows such as .shtml, 32-bit IP address, 32-bit IP addressing, 802.11 Fast Guide, 802.xx Fast Reference, 911, AAA, AAA server, acceleration server, access log, ActionScript, Active Server Page, address, address space, addressable call endpoint, Adobe AIR, Advanced Research Projects Agency, aggregate, AIM, Ajax, Ajax quiz: Do you speak Geek?, ALE,alt.alternate newsgroup, analog telephone adapter, anonymizer, anonymous Web surfing, anti-replay protocol, antidisintermediation, and many more (whatis.techtarget.com, 2009). These internet technologies truly found as a great instrument in internet to provide a better performance in lifting up the businesses with greater advantage among other business ways of transaction. This is how internet technologies become a very important thing in dealing with the business processes.

In electronic commerce, B2B or Internet-based business-to-business (B2B) e-commerce is conducted through industry-sponsored marketplaces and through private exchanges set up by large companies for their suppliers and customers. Of course, companies also sell to business customers through their own Web sites (ecommerce.hostip.info, 2009). This is also to mean that Business to Business electronic commerce is dealing transactions through private exchanges of different products and services aiming of the same interests in their own respective fields of industry such that many big companies likewise with those huge corporations selling their products and services to other business companies through online transactions. Business to Business commerce is said to be one of the active and progressive way of transaction of electronic commerce such that it raises higher rate of progression among other types of electronic commerce methods. Business to Business has three different types of exchanges such those are as categorized in three; buyer controlled, seller controlled, and third party exchanges. Buyer controlled is the first category of form of exchanges where the seller must be able to establish an assurance and visibility to its buyers or clients regarding with their products and services. The seller must let see and experience how the products are manageable and accessible to a certain way of how the customers or clients may wanted to do regarding in purchasing and procuring the products and the its price consistency as well. The seller controlled is the second category in exchanging process where the sellers manage the disunified market in order to form an indulgent and common atmosphere of trading place. This makes more advantageous to more buyers in finding the best and quality products to their selected and trusted producer or the seller. In engaging in a homogeneous marketplaces, it provides a great help for the buyers to make the most of it in searching what is the best resources in such a way that the sellers would be able to strengthen their marketing strategy in establishing their advantage among the others. The other one or the third exchange is the third party exchanges. This exchange of buyers or sellers makes sense in forming a third party. This exchange provides a development in generating fees to both parties.

Although companies have been doing business electronically for many years using proprietary EDI systems, B2B commerce over the Internet remained in the early adopter stage at the start of the 2000s. The notion of an early adopter comes from a popular marketing theory which holds that buyers of a new product enter the market in several stages, starting with the early adopters who set the trends and ending with so-called laggards who purchase only after the vast majority has already bought. If B2B is still attracting mainly the early crowd, it suggests great potential for growth, as do the figures from the Census Bureau and private firms. However, another part of the theory suggests there is a gap, sometimes called a chasm, that must be bridged between the early adopters and the early majority buyers; many products are believed to fail after doing well among early buyers but failing to catch on in the wider market. Whether B2B Internet commerce crosses the chasm remains to be seen. (ecommerce.hostip.info, 2009). Proprietary EDI of Electronic Data Interchange system are one of the Internet technologies that has been helping businesses regarding with their electronic activities in obtaining their objectives such to create an advantageous marketplace, to create a dynamic business operations in addressing the needs of the customers, to create a very easy and fast way of communication among the buyers and sellers, to lower the cost in managing the business operations, and to create a competitive atmosphere among the other sellers as well as to the buyers in generating and utilizing the most of the Internet technologies. Since the electronic commerce has landed in the world of business, adoption of Internet technologies became dynamic and active in enabling the organisations to attain competitive advantage through electronic commerce specifically to B2B or Business to Business electronic commerce. Hence, this adoption creates more marketing theory in different marketing atmosphere which creates new buyers and a new sellers as well in observing the new trends in the market place. This makes sense the productivity of Business to Business or B2B electronic commerce and its greater potential for growth in the electronic-business world. This fact is affirmed by the different electronic commerce articles showing the figures. In B2B electronic commerce, there is a chasm, a gap between early adopters and majority buyers, remained to be observed. As the technological developments including the internet technologies are moving forward, the early might be able to have an immediate adoption that required by the early majority buyers in which it fails stand in the wider market.

According to goizueta.emory.edu (2009) that e-commerce technologies cannot be successfully leveraged without considering the organizational relationships in which the technologies are being embedded. Technologies do not operate in a vacuum, but exist in tandem with the processes, activities, and people operating at the boundaries of the firm. By appropriately matching the goals one is hoping to achieve in leveraging Internet technologies with the nature of the organization's relationships, companies can be in a better position not only to achieve he promised economic outcomes, but also to attain sustainable competitive advantages, improve coordination and collaboration processes, and decrease channel resistance. As I affirmed to this ideas illustrated upon, in utilization of Internet technologies there must be a further accordance to what the oraganisations have aimed to come up with. Technologies are not just used without its specific or its intended used or functions to the business processes and to the people surrounded working in a place. This will enable the organisation to work on effectively with their desire to attain the main objective through getting used properly the internet technologies and be able to maximize the time in providing competitive advantage through this called Business to Business (B2B) electronic commerce. As Internet accessibility became a life blood in electronic commerce, its technologies keep allowing more efficiencies such that it establish information sharing, improvise the accessibility of the products and services to its buyers or client regardless of the distance knowing there is this Internet, and provides real time and dynamic pricing in which the market pricing becomes unpredictable. This is also helps to increase and strengthen the customer service, the relationship quality, cooperation, and decreases the channel resistance in which it helps more opportunities to come, with regards to information sharing,. As the reach improved, the customer service has increased, the relationship quality is strengthen, and the cooperation as well and the channel resistance has decreased. In establishing a dynamic pricing, the customer service is lowered and the relationship quality is lowered as well, the cooperation has decreased, and the channel resistance increased. This make sense that buyers are gone to different stages, as Business to Business electronic commerce illustrates and indicates how the buyers and sellers interact with each other, where these internet technologies play its important role in taking into another steps in reaching the objectives of the organisations and as always the competitive atmosphere it provides is heading for advantageous marketing strategy as it may also provides economic stability as more opportunities come on the way.

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PostSubject: Re: Assignment 3 (Due: before December 26, 2008, 13:00hrs)   Fri Mar 27, 2009 2:38 am

“Internet has emerged as a powerful force in business in the new millennium, ushering in an astonishing period of new business creation….” Every business enthusiast is seeking for the best way in deploying electronic commerce (or e-commerce) in their own organization or company. Thus, with the birth of internet had provided the business enthusiasts a wider and bigger range of opportunities and they are looking for ways in facilitating internet technologies in their business.

Most of business has utilized the benefits of what the internet offers. Businesses had been including the internet as part of the company’s business strategy. The reason behind is that they are order to obtain competitive advantage to their competitors. With this, then, a question arises. What is the role of internet in the competitiveness of a business?

According to Boisvert in his article entitled “Making E-commerce Profitable: What role does the internet play in your corporate strategy” states that the answer(s) are not always clear. In addition to the statement, it also states that they depend on other factors like the company’s industry, the resources at its disposal, its growth objectives, the level of penetration of e-commerce in industry practices, and many other factors.

Internet, it has the capacity to share information across organizations resulting in radical transformation of organizational practices for procuring supplies, delivering goods and services, and carrying out financial transactions. In addition, it has been considered as the prime medium in business nowadays for the reason that most of business establishments or business companies engaged in electronic commerce (or e-commerce). Since the emergence of the internet has boomed the companies’ strategies in gaining greater profits. It is by utilizing the benefits of internet they could get.

The drastic popularity of internet in businesses had become quite advantageous in every aspect. There is lot of people who gained benefits from internet, more specifically for businesses. Everyone gains lots of benefits from internet; not just the consumer and sellers but also the suppliers. Suppliers and sellers started to do some transactions through internet; maximizing the capability and the benefits that it offers. The relationship between the seller and supplier is called B2B or business-to-business e-commerce.

Internet is the prime medium of electronic commerce (or e-commerce). Its emergence has become an advantageous to all and has made all our lives easier. The daily transactions that would take time (e.g. like hours) could be done only in minutes or less. To take an example it is the business transactions among suppliers and the sellers. Internet offered the both parties different advantages. To mention among the few advantages that allows an improvement among them in terms of competitiveness are the following:

- Flexibility
- Transparency
- Reliability
- Security
- Enhance services
- Improvement in production
- Improvement in data processing
- Improvement of trust


One of the advantages that a business enthusiast gains in facilitating internet in his/her business is the flexibility of every transaction. What if meant in flexibilities in business transactions is about the ordering and purchasing of supplies, the deliveries and many others. It has been a critical issue between sellers and suppliers on how make every transactions flow smoothly without any problems.

It has been a problem way back from the past on the purchasing of products in which the suppliers and sellers’ location is of great distance. Thus the problem lies from communication for the order of the product ‘til the schedule for delivery of the said product has been a problem. With the existence of internet this problem has seemingly been addressed.

Transparency, Reliability, and Security

The flow of information during transaction is assured that their will be no problem. And the confidentiality of the data is secured. Thus, there is transparency in the flow of information and is assured that there are no restraints in the flow of data.

With the existence of internet technology it is assured that the data is delivered faster compared with traditional transaction and there is transparency with a reliable and secured flow of data that ensures that there are no restraints.

Continuous connection

Compared to the traditional way of during business, everything is limited and thus gaining a bigger profit is not maximized well. Internet technology has improved this. It offers a whole day transaction thus; the coming of money in the business is continuous. In addition, the purchasing can be done anytime of the day whether day or night. And the update of delivery information is improved thus with this the internet technology has offered a continuous connection to their suppliers or a continuous connection to their buyers.

Enhance services and improve productivity

The utilization of internet technology will surely increase the organizations’ productivity for the reason that there is a flawless and faster cycle business process. And also the reason behind is that with their utilization of internet technology buyers’ services is enhanced. Transaction is faster and no flaws in which invites more buyers. Therefore, along with it their will be an increase in their production.

Improved Data processing
The birth of internet has led to the elimination or to the minimal usage of paper-based transaction. In the past, every transaction is recorded manually and has to follow a step-by-step procedure. This conventional procedure may produce delays and greater errors during transactions thus, the efficiency of the entire business process is not as much of. The materialization of internet technologies in the business has eliminated the bulk of papers and complicated business transaction. It produced a reliable data. In addition, it also produced an efficient and faster business transaction for buyers and suppliers.

Improvement of Trust among buyers and suppliers

The application of internet-based B2B electronic commerce had given a potential result in profound changes in the patterns of organizational uses of technology; inter-organizational relationships between trading partners, and also the reliance on close coordination to create value.

The essence of the usage and the maximization of internet between sellers and suppliers had strengthened the trust in trading partner relationships. In which trust has become the subjective probability by which organizations believe that the underlying technology infrastructure is capable of facilitating transactions according to their confident expectations. Therefore, maximizing internet in an organization has strongly helped the strengthening of trust in which it has become a fundamental importance for value creation in B2B e-commerce.

In addition to aforementioned advantages of internet technologies in B2B e-commerce is that there is an easier purchasing, it eliminates paperwork, it automates approval process, it is cost saving, it will generate a better inventory level, and also gives a better information flow between buyers and suppliers.

Internet, the ease and expediency that it offers has invited more business enthusiasts to utilize internet technologies in their business. This allows them to be more competitive and expand their business strategies that will adapt to ever changing business world.


1. Boisvert, Hugues. Making E-commerce Profitable: What role does the internet play in your corporate strategy?. CMA Management. http://www.allbusiness.com/sales/internet-e-commerce/830125-1.htm
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PostSubject: Re: Assignment 3 (Due: before December 26, 2008, 13:00hrs)   

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