E-Commerce Background
In the not-too-distant future,most companies will conduct at least part of their business operations through e-commerce,that is,on the Internet.When people think of e-commerce,they often think of retail e-commerce,typified by companies like Amazon.com.Most of the sales growth on the Internet,however,has benn in the area of business-to-business(B-to-B)e-commerce,rather than in retail business-to-business (B-to-C) e-commerce. Let’s look at B-to-C e-commerce,then at B-to-B e-commerce.
Business-to-Consume E-Commerce
There are many reasons why companies want to use e-commerce to sell their products to the public:
1.E-commerce is a good way to reach customers.By 2004 B-to-C e-commerce sales are ecpected to reach $180 billion.
2.Web transactions allow a company’s to use data-mining techniques to record and analyze information about its customers.With that information,a company can improve marketing,thus making more sales and increasing profit.For example,when a customer goes to Amazon.com,she is presented with product suggestions that are based on her previous purchases.
3.E-commerce allows companies to be more efficient,streamlining operations and lowering costs.Streamlining operations often begins with changing the way in which a company interacts with its customers.For example,instead of employing customer service agents to take telephone orders,customers can order directly from the Web,check their orders online,and ask questions via e-mail.As a result,customer service is enhanced and costs are lowered.
4.E-commerce provides customers with incentives to order.For some buyers,the incentive is convenience:Ordering is quick and easy—and it can even be done from home.Other buyers are attracted to unique services.For example,one company created a toy “wish list”during a holiday season.Parents and relatives could view a child’s online wish list and make their purchases directly from the list.Other companies offer a “digital dressing room”
5.On their site where customers can see clothes on figures shaped like their own.Still other companies offer”Web only”bargains.
6.The Web gives small companies access to huge markets that once were only available to large companies.Using Web-based commerce technology is rapidly becoming a necessity however,as competitors adopt the same practices.For example,offering online banking was once a competitive advantage,but now most banks offer the service as a competitive necessity.In fact,customers now expect sellers to be on the Internet.
Customers also use the Web to find better prices and better price information.Currently,some Web search enginers go out on the Internet and find the lowest price for a particular type of item.For example,Cnet.com provides this kind of price comparison for computers and peripherals.
Business-to-Business E-Commerce
Business-to-business e-commerce is defined as buying and selling between two companies over the World Wide Web.The companies might fie manufacturers,suppliers,wholesalers,or retailers.Estimates of B-to-B e-commerce sales are currently about $400 billion per year and are expecting to reach $7 trillion by 2004.
Business-to-business e-commerce is transforming how companies sell to each other.For example,auctions allow companies to buy raw materials at the lowest possible cost.These auctions are run like eBay.com,but they are specific to a particular industry.So,for example,when a company’s purchasing manager wants to buy sugar,she can go to an auction site—either for the food industry of a general”wholesale/retail only”auction site—and click on “food products.”
Electronic Data Interchange(EDI)
B-to-B is not new.Prior to the invention of the World Wide Web,companies electronically transferred purchase oredrs a system known as Electronic Data Interchange(EDI).EDI is an electronic computer-to-computer transfer of standard business documents.According to one study,EDI trading volume was nearly $3 trillion in 1999.
Companies can set up their own networks to communicate with their suppliers’ systems,or they might subscribe to a network run by an outside EDI service provider,a value-added network(VAN).When a company runs low on a specific raw material,it can order materials electronically.EDI should not be confused with a simple e-mail message that reads,”Dear Joe,please send us 5,000 widgets.” Rather,the message is sent on a standardized business transaction form,following a computer protocol in North America known as the ASNI X.12.
The benefits of EDI have been enormous:
1. Costs of paper,printing,and postage have almost disappeared from ordering systems.
2. Errors have been brought to a minimum because orders do not have to be rekeyed into a supplier’s system.
3. Ordering is fast and efficient. As a result,large companies have forced their smaller suppliers to use EDI,via a VAN if necessary.The supplier pays the VAN per amount of information sent and received.
Suppliers and buyers are “locked” into business relationships:Once a company sets up an EDI system with its supplier, it takes effort to change suppliers, and most do not, hence locking in the relationship.This is an advantage an long as both suppliers and buyers remain satisfied.
Internet-Based Procurement
Even though EDI has benn useful, companies are moving from EDI to Internet-based procurement for the following reasons:
1. The Internet is a lower-cost network than private EDI networks.
2. Purchasing costs are further reduced as suppliers compete for orders on the buyer’s Web site.
Thus, locking in suppliers is not the same and may not take place at all in Internet-based procurement.Suppliers that cannot compete on price may fail by the wayside, leaving the buyer with relationships with only viable suppliers.Here are three recent examples of this phenomenon:
1. In 2000 Ford Motor Company and General Motors announced that they are putting together an enormous Web site called a”B-to-B automotive exchange.” This venture is in conjunction with Commerce One and Oracle, which is providing the necessary software.Each company, along with its suppliers, can buy and sell automotive parts on this Web site.Purchasing auto parts will be fast and efficient,and auto manufacturers can maintain a low inventory.These savings could translate to more than 10% of the purchase price of a car. Other industries, in addition to the auto industry, are setting up exchanges.
ERP companies like SAP have also entered the B-to-B e-commerce market.SAP has proposed a joint effort with Statoil, the world’s second-largest supplier of crude off, to develop a vertical marketplace for oil and gas services.SAP’s mySAP.com supports exchanges in buying and selling raw materials with large companies like Statoil as partners.Statoil is linking with SAP and offering a Web site to find all types of equipment and services for the oil and gas industry. SAP hosts the marketplace,gas industry. Statoil expects large savings by using a single marketplace.Other companies are expected to use die marketplace as well. As the long-established oil and gas industry has matured, pricing has become highly competitive.Any product that makes the industry more efficient is welcomed.
2. The World Chemical Exchange allows companies to buy, sell, and trade chemicals at chemconnect.com.The Web site claims the following advantages:
A. Best prices without traditional negotiations
B. Faster contracts
C. Access to new world wide market and new wadding partners
D. Instant market information
Internet Autions and Reverse Auctions
B-to-B e-commerce also features online bidding through auctions and reverse auctions. In a standard auction, a company might ask for bids to supply it with goods, services, or even telecommunications capacity.Here’s how a reverse auction works.The company needs raw materials such as oats and wheat germ,which for FS are essentially commodities.The company can go to a “bidding” Web site and set up a program to run overnight.The program uses the Internet to solicit bids to supply those raw materials.In the morning,FS’s purchasing agent can choose the lowest price offered for the oats and wheat germ,
Internet-based auctions are changing the way in which commodities are purchased.A few years ago, commodities would have been purchased through a supplier, or middleman,who negotiated prices of raw materials with suppliers.Now,the Internet and its bidding programs have threatened the middleman’s role and made the buying process more efficient—in a sense,the Internet has become the middleman.Pricing is dynamic and open.
In fact, dynamic pricing is not only forcing out middlemen,but it is also putting pressure on sellers.Sellers must be nimble and flexible to participate in this Past-paced market.This requires a seller’s accounting and logistics operations to be in excellent shape before trying to sell in the auction market.
As a result of these market changes,companies are seeing efficiency gains through Internet buying and selling.For example,General Electric’s appliance division ha seen transaction costs drop to one tenth of what they were with telephone and fax orders.With 45% ofthe division’s sales on the Internet,that relates to a whopping $4 billion in cost savings and $3 billion in sales growth in 2000.
Tins success is not without a downside: No company(or government agency,for that matter) is totally immune to security breaches.In 1999 some large trading firms were shut down due to denial-of-service attacks hackers were bombarding the sites with so many messages,the site couldn’t handle the volume.Security is an ongoing effort.E-commerce commpanies use virus-scanning software,encrytion,intrusion detection,and other measures to protect their sites and privacy of customer data.
E-Commerce and ERP
You might ask yourself,what does e-commerce have to do with ERP? The answer is that each technology complements the other,and each is necessary for total success.Without e-commerce, a company cannot compete with companies offering similar goods.Without ERP, a company cannot fill Web orders expeditiously.Here’s why.
When a company receives an order through its Web site,the company can’t merely file or print orders for later handling,like e-mail updates and order tracking.The orders must be efficiently fed into the company’s marketing,manufacturing,shipping,and accounting systems---a series of steps sometimes called back-office processing.
An efficient back-office operation is crucial for any company’s success.E-commerce often exacerbates problems and reveals weaknesses in current hack-office systems.For example,Amazon.com invests its cash flow back into warehouses and other support that the company needs to keep its back office in order, so it can continue its success. Some Web-only businesses are frightened that companies like Wal-Mart will enter the Web market. Why? Because those companies already have well-established,integrated back-office and distribution systems.
Some companies with unintegrated information system have built Web sites before creating an integrated back-office system.As a result, those companies often can’t fill orders in a timely fashion, as was apparent with many e-commerce businesses during the 1999 holiday season. One large toy company announced less than a week before Christmas that it would not be able to fill all its Web orders.Surprisingly enough, all the toys were in the warehouse, but the company could’t organize basic functions---like picking,packing,and shipping—to get toys to consumers on time.So integrating the Internet front-office operation and the ERP back-office operation is fundamental in today’s business environment.
ERP和万维网
电子商务背景
在不远的将来,大多数公司的经营活动至少有一部分会以电子商务的形式开展,也就是说,通过网络。当人们想到电子商务的时候,他们经常想到的是零售业的电子商务,以Amazom.com网络书店为代表。然而,在因特网上大部分销售增长已经属于企业――企业(B-to-B)电子商务的范畴,而不是零售业的企业――消费者(B-to-C)形式的电子商务。让我们看看B-to-C电子商务,再关注B-to-B电子商务。
企业――消费者形式的电子商务
有很多理由解释公司想运用电子商务向公众销售产品的原因:
1. 电子商务是很好的与客户接触的方式。到2004年,B-to-C电子商务销售收入预计将达到1800亿美元。
2. 网络交易公司能够使用数据采掘技术以记录和分析客户信息。有了这些信息,公司可以改进市场营销活动,由此创造更大的销售量并增加收入。举例来说,当客户去Amazon.com时,她会收到产品建议,这些建议就是根据她以前的购买活动记录提出的。
3. 电子商务使公司更高效、简化经营并降低成本。而简化经营通常是以改变公司与客户的沟通方式开始的。举例来说,客户可以直接通过网络订货、在线查询订单状况、用电子邮件质询,而不是打电话给公司客户服务部的人员。由此改进了客户服务降低了成本。
4. 电子商务会鼓励客户消费。对于有些客户来说,这种激励来自于电子商务的便捷:订货快捷简单,甚至在家也可以完成订货。另一些客户则为别致的服务吸引。举例来说,一家公司在假期推出玩具“愿望单”。父母和亲属可以浏览孩子在网上写下的“愿望单”,直接按单上的玩具采购。其他公司在自己的网站上提供“数码更衣室”,客户可以看到屏幕上按她的身材显示的模特穿着的衣服的效果。还有其他公司提供“网上特有”的折扣价。
5. 网络使小公司也能够接触大市场,而以前,这些大市场通常只对大公司敞开。然而,随着竞争者采用了同样的策略,使用以网络技术为基础的电子商务成为每个市场主体的必不可少的手段。举例来说,提供在线银行服务曾经是一项富有竞争力的活动,但是现在,大多数银行都提供该种服务作为一项必要的服务。实际上,现在的客户希望卖方在网络上开展业务。
客户也使用网络发现更优惠的价格和更有价值的价格信息。目前,有些网站搜索引擎搜索网络来发展某一特定商品的量低价格。举例来说,Cnet.com就向计算机和期刊业提供这类的价格比较。
企业――企业形式的电子商务
B-to-B电子商务是指,两个公司间通过万维网进行的买卖活动。公司可以是制造商、供应商、批发商或零售商。目前估计B-to-B电子商务量每年达到4000亿美元,预计到2004年将达到70000亿美元。
B-to-B电子商务正在改变公司间交易的形式。举例来说,拍卖让公司能够以最低的价格购买原材料。这些拍卖活动可以在像eBay.com这类网站进行,但是他们都是面对特定的行业。举例说,当公司的采购经理需要购买糖时,她可以去拍卖网站,或者去食品行业的站点,或者一个一般的“批发/零售”拍卖网站,然后点击“食物产品”。
电子数据交换(EDI)
B-to-B并不是新鲜事物。在万维网出现之前,公司通过系统进行的采购订单电子化传输被为电子数据交换(EDI)。EDI是标准化商务文档通过计算机进行的电子化传输。一项研究表明,1992年EDI的贸易量将近30000亿美元。
公司可以构建自己的网络与其供应商的系统保持联系,或者他们可以订购一个由外部EDI服务供应商运行的网络,称为增值网络(VAN)。当公司缺乏某种原材料时,他可以在网络上订购原材料。而EDI并不会与下面的邮件相混淆,“亲爱的Joe,请发给我5000个开罐器”。相反,消息会按照标准的商务交易形式传输,遵循在北美被称为ASNIx。12的计算机协议。
EDI有很多好处:
1. 订单系统中几乎不再存在纸张、打印和邮寄费用。
2. 已经将错误降到最低水平,因为订单不再需要重新键入供应商的系统中。
3. 订货迅速高效。所以,大公司已经迫使他的小型供应商在必要的情况下通过VAN使用EDI。供应商需要向VAN支付收发每条信息的服务费用。
4. 供应商和买方被“锁定”在生意关系中:一旦公司与他的供应商构建了EDI系统,更换供应商就会花精力,大多数情况下是不会替换供应商的,由此,双方锁定在固定的生意关系中。只要供应商和买方之间互相满意,这种关系就是一种优势。
网上获取活动
即使EDI非常有用,公司还是通过EDI向网上获取活动发展,原因如下:
1. 因特网比私人EDI网络成本低。
2. 因为供应商在买方的网站上竞相推销产品,使得采购成本大大降低。
所以,供应商的锁定方式与在网上获取活动中并不相同,甚至不会发生。不能在价格上具有竞争力的供应商会败下阵来,买方只与令人满意的供应商保持联系。该现象目前有三个例子:
1.2000年福特汽车公司和通用汽车公司宣布他们联合组建了大型网站,称为“B-to-B汽车交易网”。该网站是Commerce One和Oracle通力合作的结果,两家公司提供必要的软件。两家公司和其供应商都可以在网站上买卖汽车零部件。这样,采购汽车零部件将变得更加快捷高效,汽车制造商因此也可以维持较低的存货水平。这些节省下来的费用可以占到一辆轿车购买价的10%,除了汽车行业,其他行业也在建立这样的交易方式。
2.像SAP这样的ERP公司已经进入了B-to-B电子商务市场。SAP已经拟与Statoil,世界第二大原油供应商,合作开发石油和天然气的垂直交易场所。SAP的mySAP.com网站支持他的伙伴――像Statoil这样的大公司――在买卖原材料方面的各种交易。Statoil与SAP联系,并提供网站以查找各种石油天然气行业需要的设备和服务。SAP主办市场,这些市场会为石油天然气企业提供服务、设备和保养晶来源。Statoil希望通过在单一的市场活动节省大量成本。其他公司也应该利用该市场。随着历史悠久的石油天然气行业的成熟,价格上的竞争已经非常激烈。任何能使行业效率更高的产品都大受欢迎。
3.世界化学品交易网让公司可以在chemconnect.com上买卖、交易化学产品。
网站声称有如下优势:
A. 不需经过传统的谈判,即得到最满意的价格
B. 更迅速的订约
C. 进入新的全球市场,联系新的贸易伙伴
D. 及时的市场信息
网上拍卖和倒拍卖
B-to-B电子商务的另外一个特征,还包括通过拍卖竞价以及倒拍卖。在标准拍卖交易中,公司可能会将自己的产品甚至是报废的设备交付拍卖。在倒拍卖中,公司会出价以提供某种产品、服务,甚至电信设施。下面是倒拍卖进行的过程。公司需要原材料比如燕麦和小麦胚,这些是FS公司必不可少的商品。公司可以到“出价”网站并设置临时运营的程序,该程序用因特网来寻找供应该原材料的报价。早上,FS公司的采购人员就能够从提供燕麦和小麦胚的报价中寻找最低的价格。
网上拍卖正在改变商品采购的方式。几年以前,商品还是通过供应商、或与原材料供应商谈判价格的中间商来采购。现在,因特网和它的“报价”程序已经威胁到中间商的地位,使购买过程更加高效。从某种意义上说,因特网已经成为中间商,定价是动态、开放的。
实际上,动态定价不仅排挤中间商,还向卖方施加压力。卖方必须机敏灵活地参与瞬息万变的市场活动。这要求卖方的会计和后勤部门在从事市场拍卖活动之前就作好准备。
因为这些市场变化,公司已开始发现因特网交易高效率所取得的收益。举例来说,通用电器的家电部门发现,在电话和传真订单上他们的交易成本已经下降了1/10。网上销售额占部门销售总额的45%,其中成本锐减40亿美元,2000年的销售增长30亿美元。
成功并不都是一帆风顺:任何公司(或政府机构)都不能完全避免安全疏漏。1999年许多贸易公司停业,就是因为网站被黑客用大量消息袭击,不能处理这些消息而停止服务。安全是下一步努力的方向之一。电子商务公司用病毒扫描软件、加密、防干扰和其他诸多手段保护他们的网站以及客户的私人数据。
电子商务与ERP
你可以自问,为什么有了电子商务还必须拥有ERP呢?回答是技术间的互为补充,每个对于整体成功来说都缺一不可。没有电子商务,公司不可能与提供类似服务的公司展开竞争。没有ERP,公司不可能迅速有效地满足网上订货。以下是原因所在。
当公司通过网站接到订单后,不能仅仅记录或打印订单供以后处理就完了,比如电子邮件更新和订单追踪。订单必须有效地反馈给公司的市场营销、制造、运输和会计系统――这是一系列的步骤――有时称为内部处理。
高效进行内部经营对于任何公司的成功都至关重要。电子商务经常会恶化问题,使目前的内部系统中存在的弱点暴露无遗。举例说,Amazon.com把它的现金流投回仓储和其他有助于公司内部有条不紊经常的各项支出,以保证今后一如既往的成功。有些专门从事网上商务的公司担心象Walt-Mart这样的公司会进入网络市场中来,为什么?因为那些公司已经牢固建立了良好集成的内部经营和分销系统。
有些信息系统未集成的公司在建设集成的内部经营系统之前就创立了网站。结果,那些公司经常不能及时满足订货,1999年节假日期间许多电子商务公司这种现象都非常明显。一个大的玩具公司宣布在圣诞节之前不到一个星期的时间里,满足所有的上月订货已经不可能了。而令人惊奇的是,玩具货源很充足,都堆在库房里,但是公司不能组织象提货、包装、将玩具及时运输到消费者手中这样基本的操作。所以集成网络前台运营和ERP的内部经营活动在今天的商务活动中非常重要。