THE B2X WORLD B2C & B2B

THE B2X WORLD

B2C & B2BElectronic Transactions

byAlvertis I., Biliri E., Askounis D.

Desicion Support Systems Laboratory, NTUA Electronic Transactions 2017 - The B2x World - B2C&B2B 1

eTransaction Categories

Desicion Support Systems Laboratory, NTUA Electronic Transactions 2017 - The B2x World - B2C&B2B

G2C

B2B

C2C G2G

2

B2CBusiness to Consumers Transactions


B2C

Business to ConsumerGeneral


WHAT IS B2C

Most probably known as “eCommerce”

“a type of industry where buying and selling of product or service is conducted over electronic systems such as the Internet and other computer networks”Wikipedia

Includes:

• ePurchases

• eCatalogues

• eAuctions

• Online Exchanges


The Dimensions of eCommerce


Source: Economics of Electronic Commerce, I/W by Choi/Stahl/Whinston,1997

6

Where did it start?


Source: Forrester growth numbers, IDC accepatance rates

7

Quiz!


When did PizzaHut started to

provide online ordering?

HINT: In Greece around… 2008

1994

Sant Cruz, California

8

eCommerce Timeline


Source: http://businessworld.in:8080/en/storypage/-/bw/e-

tailing-wars/386306.0/page/0

9

Digital and Virtual Products. What are they?

• eDocuments

• eNewspapers

• eCoupons

• eTraining Material

• Digital Photos

• Digital Calendars

• Music

• Videos

• Podcasts

• eBooks

• Software & Applications

• Cloud Infrastructure

• Hosting Space

• Domain Names

• Computer Games

• eTickets

• eCredit Cards

• Security Certificates

• eMail

• eFax

• eTelephony

• eMoney (Digital but also Virtual)

• Virtual Reality Objects (Virtual)

• Avatars (Virtual )


Delivery Channels of Physical Products

Ordinary Post OfficePrivate Courier

Companies

Private Delivery Networks (InterFlora, eGrocery, eShop.gr)


Delivery Channels of Digital Products

Traditional Delivery

• DVDs

• CD-ROMS

• USB Sticks

• …..

Wire Delivery

• HTTP

• eMail

• Webcasting

• FTP

• eStores

• …..

• P2P networks ☺

• TOR networks (dark web)


From Physical to Digital Products:

The NY Times Case 1/3

Online version of the NY Times

Launch Date: January 1996

Originally, most of site’s content came from the hard-copy

edition

• Easier for people to access news information

• Access to additional information such as video feeds,

slideshows, online chat with columnists and writers.

• Customisable news feeds <-Personalisation




Today:

• Subscription Based Content

• Free content

• Continuous Updates

• Sharing Capabilities - Social

Sharing allows greater visibility and

attracts people




A new Business Model

Money comes from:

• Subscriptions to exclusive content

• Advertising

• Sale of related products/services

(analytics, games, etc…)



Source: http://www.webnethosting.net/online-shopping-around-the-

world-infographics/

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Source: http://www.webnethosting.net/online-shopping-around-the-

world-infographics/

18

Types of (e)Customers

Types of Ordinary Customers

Loyal

Types of eCustomers

Brand LoyalistsE-bivalent Newbies

Clicks and Mortars

Time Sensitive Materialists

Hipsters/New Technologists

Hunter-gatherers


Reasons that eCommerce works

• Price

• Quality

• Variety – Long Tail

• Service Added Value

• Delivery Times

• Personalisation

• Technical Support

Marketing 4 P’s: Product, Price, Promotion, Packaging


The Economic Cycle


Search

Negotiation

Order

DeliverInvoice

Payment

AfterSales

21

eCommerce covers the whole Economic Cycle

EDI Trade Cycle

(B2B)

Consumer i-Commerce

(B2C)


Source: The e-Commerce Trade Cycle

http://www.doc.mmu.ac.uk/STAFF/D.Whiteley/ecgrp/ec-doc2.htm

22

Business Models for eCommerce


Subscription

Models

23

eCommerce Intermediaries


Comprehensive –Portals

• Shopping.yahoo.com

• Bizrate.com

• Amazon.com

Niche Oriented –Vortals

• elastika.gr

• Insurancemarket.gr

eMalls

Escrow

Ebay (+ Paypal)

Betfair

iTunes Store

24

Comprehensive Portals: The Amazon Case 1/3

An online retailer of

• books

• music

• DVD/video

• toys, electronics

• software

• home products

• Cloud Services!

Spent 98 cents for every $1 of revenue it generated in 2006


THE LONG TAIL!

25


• Easier for people to shop

• Like the one-click shopping feature (but may prove… dangerous)

• Comprehensable and rich information

• Compare the features, benefits, and prices of products



• Personalisation: Tracks users

purchasing behavior and

suggests similar or related items

• Free Products/Services:

Information, Reviews, Samples

• Offers the “Long-Tail”: A HUGE

variety of products

• Strong SEO and paid adverts to

attract people


Why eCommerce Cuts Down Searching Costs 1/2


Sellers Consumers

N2 Connections

28

Why is eCommerce Cuts Down Searching Costs 2/2


2N Connections

ConsumersSellers

29

Type of eStores

Physical +

Virtual Store


Size does not always matter!

• Big Companies started from small ideas!!

• Technology helps SMEs to scale up their ideas fast!

• User-friendliness and attractiveness is a key

• Performance and added value are also important

• Different Revenue Models Exist

• and can be changed over time


NTE.com Example 1/2

Back in 1995…..

A spot market on ground transportation

Retrieves information:

• From Truck Owners

• Destination Points

• Trip Duration

• Available Space in Truck

• From Consumers

• Customer Needs

• Flexiility in Delivery dates


NTE.com Example 2/2

Benefits for Stakeholders

• Better Deals between truck owners and senders

• More income for truck owner

• Lower prices for senders

• Deal takes only some minutes

• Greener Transportation

Benefits for nte.com

• A commission based on each contract’s value

Now offering SaaS and other solutions (ERPs, etc…)


eCommerce Benefits for the Enterprise 1/2

Business Operation

• Increased Competitiveness

• Reaching new markets

• Tracking and Monitoring of

Requests

• Consumers Profiling

• Personalised Marketing

• Direct Assement and evaluation

of Services


• Shorter Response Times

• Improved Customer Support

• Brand name building

• Minimisation of Supply Chain

Operations

• Minimisation of Stock

34

eCommerce Benefits for the Enterprise 2/2

Business Transformation

• New Technologies

• Improved Systems and Operations

• Customer Relationships on a different level

• New Products

• New Business Models

• New Selling Channles

• New Marketing Techniques


eCommerce Benefits for Consumers

• Reduced Prices

• Product Variety

• 24/7 Availability

• Convenient

• Global Options regarding Sellers

• Improved Information Collections and Analysis

• Support


eCommerce Restraining Factors

• IT Security

• Trust amongst parties

• Confedentiality of

Information

• Privacy Issues

• Cost and initial ROI

• Absence of Legal

frameworks


• Linguistics

• Need for BPR

• Interoperability

• Network/Broadband Availability

• Internet Penetration

37

Things that one need to consider

• When to expect profits?

• What is the main profit activity?

• How to build my brand name?

• What products to trade?

• Which services to provide?

• What functionailites should I offer?

• Complement Physical Stores or

build just Virtual ones?

• What type of Infrastructure is

needed?


dot com bubble

38

ePurchases


ePurchasing in General

Buyers and Sellers

Product Definition• Characteristics of Products

• Selection of different Products

Searching (sellers/buyers)• Product Information

• Price Information

• Offers Ranking

• Offers Matching

Price Searching• Price Definition

• Price Comparison

Ease of Transaction

Logistics• Product/Information delivery

• Payment Clearance

• Transfer of Funds

Trust• Banking System

• Broker Evaluations

• Consumer Ratings

• Certifications


Rules

Legalislation• Code of Conduct in

eCommerce

• Contracts

• IPR

• Conflict Resolution

• Country Legislation

• Customs & Taxes

Regulations• Control

• Enforncement

40

ePurchases 1/2

Trading between sellers and buyers but….

Electronically

Which means:

• eStatements

• eMoney

• eWarranty

• eProduct

• eServices

• ….


ePurchases 2/2

ePurchases offer the following benefits

• Faster Information Flow

• Matchmaking is faster and instant

• Faster Payments

But of course need

• Proper Infrastructure

• Rules and Codes of Conduct


ePurschases Characteristics


• Lower Prices

• High Profit

• Low (physical) Volume

• See Buys categories

• Brokers (required but replaceable)

• Marketplaces

• Rules

• Competitors

• Type (digital/physical)

• Price (low/high/free/…)

• Availability of Information

• Demos

Product Market

SellersBuyers

43

Basic Elements in an ePurchase 1/2


Buyers

Get Offers

State Needs

Sellers

Have eStores

Place Advertisement

Operate Websites

Products

Physical Products

Digital Products

Services

Infrastructure

Hardware

Software

Networks

44

Basic Elements in an ePurchase 2/2


Front-end Functions

Portal/Website

eCatalogue

Shopping Cart

Search Engine

Payment Method

Back-end Functions

Order Fulfillment

Inventory Management

Supplier Notifications

Payment Processing

Packaging

Delivery

Supportive ProcessesTrust providers (for example Verisign)

Knowledge Providers (Google Analytics)

45

eCatalogues


eCatalogues

Presentation of information in digital format

The skeleton of most ePurchase websites!

• Sellers’ Aim: Advertisement and Promotion

• Buyers’s Aim: Information and Comparison

Most probably powered by a DBMS and a search engine.


eCatalogues CharacteristicsIn

form

ation Static

Dynamic

Interactive

Pers

onalis

ation Not available

Semi-personalised

Fully personalised

Inte

gra

ted F

unct

ions Buying functions

Shopping Cart

Auction functions


Focus on:• Information• Personalisation• Functions

48

Benefits from using eCatalogues

• Easy to update product information

• Easy to integrate buying functions

• Ability to search and compare

• Multimedia Content

• Interactive presentations of goods

• Customised / (Hyper)Personalised presentations

• Global Reach

• Easy to send over!

• ….


The Boise Cascade Example

A huge catalogue >900pages every year

+

Mini catalogues per customer!

1week for eCatalogue vs. 6weeks for printed ones

ePurchases are 55% cheaper for the company


• boiseoffice.com went online1996

• 20% of total volume of orders1997



50

C2CConsumer to Consumer Transactions




G2C

B2B

C2C G2G

52

eAuctions


eAuctions

Auctions via electronic channels

Websites are brokers!

… offering services, infrastructure and support… but not responsibility for goods

There are rules for a fair trade!

Top selling products:

• Consumer goods

• Electronics

• Art

• Software


The eBay Case 1/3

Matchmaking service between Sellers and Buyers

The most successful e-commerce site ever?


The eBay Case 2/3

• Huge Variety of Goods

• Low Prices for Sellers

• Free for Buyers

• Comprehensive Bidding Process

• Powerful Search Engine

• Transaction Monitoring

• Third Party Controls the Transactions

• Review and Ranking Procedures


The eBay Case 3/3

Money to eBay comes from:

• A commission for listing

• A commission to each transaction

• Extra Services to Sellers (ebay Stores,

Galleries, Scheduling, Designers, etc.)

• Advertising space


eExchanges


eExchangesBased on “points system”

A seller is offering something priced in

“points”

A seller who has already earned some

“points” can buy the product

The seller then uses his “points” to buy

another product

Tricky part: “Earn starting points”


B2BBusiness to Business Transactions




G2C

B2B

C2C G2G

61

Business to Business

Transactions


Towards eBusiness Processes 1/3


Manufacturer

Consumer

Wholesaler

Distributor

Retailer

Manufacturer

Consumer

Intermediates

Manufacturer

Consumer

E-intermediaries

Manufacturer

Consumer

t

63



Traditional

Traditional

Nowadays

Supplier Manufacturer Distributor Customer

Digital Value Network

Suppliers Manufacturers Distributors

Customers

64



Customers

Suppliers

Partners

Manufacturers

Procurement

IT Consulting

Hardware/

Infrastructure

Software

R & D

Sales

Finance/

Accounting

ICT

Interfaces

65

Competitiveness in the Modern World


Porter’s Five Forces

Threat of Potential Entrants

Bargaining Power of Buyers

Threat of Substitution

Bargaining Power of Suppliers

Competitive Rivalry

66

eBusiness and Competitiveness

Low Prices and Differentiation/Options are keywords for B2B

ICTs are in a position to:

• Lower Supply Chain Operations

• Minimize Order Handling Expenses

• Lower Distribution Costs

• Shorten Delivery and Response Times

To build more attractive and quality based products

= Strengthen enterprise’s position in the market


B2B General Characteristics

• Today, most B2B Transactions are Client-Server based

• Web is the main platform used

• Cost in hardware (and software) is reasonable and low

• Systems are user-friendly

But customisation is pricey and difficult!

Offered some times by Application Service Providers (ASPs), guaranteeing operation with high security and availability

B2B transactions rely (often) on Value Added Networks (VANs): Hardware, Software and Infrastructure for data exchange


Β2Β Benefits – Operational Level

• Ease and Automation of Business Transactions

• Lowering Information Processing Costs

• Improving Information Accuracy

• Lowering Inventory related Costs

• Minimizing Human Errors

• Enable Electronic Payments between partners

• Getting rid of traditional Intermediaries

• but others emerge!! – Consultants, IT Integrators, Providers of platforms

for B2B


Β2Β Benefits – Strategic Level

• Acceleration of Business Cycle

• Re-orientation possibilities (in Operations, ICTs, etc…)

• Improvement of offered services

• Strengthening the Brand Name

• Multiple competitive advantages


B2B Examples

• Electronic Document Exchange• Invoices

• Contracts

• …..

• Electronic Supply Chain Operations• Raw Material Planning

• Equipment Monitoring

• ….

• Electronic Collaboration• Resource Sharing

• Data/Information Sharing

• ….

• Electronic Provision of Services/Goods


From EDI to XML/RDF/JSON etc…

EDI was the dominant exchange protocol until 1999

EDI = Electronic Data Interchange

• Automatic electronic exchange of data through strictly defined

templates

• Includes templates for Ordering, Shipping Notice, Invoicing, etc…

• Information of EDI transaction resemble conventional documents

• Based on ANSI ASC X12 standards

• On top of LAN, MAN, WAN Networks

http://h18000.www1.hp.com/corporate/edi/edi-def.html


http://h18000.www1.hp.com/corporate/edi/edi-def.html

Benefits of EDI (back then….)

Reduced costs for transactions • Less time and lower costs associated

with receiving, processing, and storing documents

Improved accuracy• Eliminates inefficiencies

Increased Productivity• Streamlines tasks

However EDI implementationshave been extremely pricey!


http://www.edibasics.com/what-is-edi/what-comprises-an-edi-document/

73

The next Step: Internet (Open) EDI

SMEs were not able to deploy private networks for obvious reasons

Internet (Open) EDI deals with the deployment of EDI over the

Internet

Data and Information are based on template documents

Less Accuracy/Compliance and Security == Lower Cost

The use of cryptography is a solution towards security issueshttp://www.ediuniversity.com/intro/works.php

http://www.ediuniversity.com/intermediate/images/as1-full.gif


http://www.ediuniversity.com/intro/works.php

http://www.ediuniversity.com/intermediate/images/as1-full.gif

Today’s B2B World is full of….

• Different Systems and Installations (SAP, IBM, CAS, Oracle,..)

• Different set of standards (XML, JSON, ebXML, ebisXML,

Rosettanet, UN/CCTS, RDF, …..)

• Different Architectures (Centralized, Federated, Cloud based,

Broker based, …..)

• Different Communication mechanisms/channels


Hot Topics Include…

• Data

• Services

• Infrastructure

• People

• ….

Interoperability

• Country Legislation

• Domain Legislation

Legal Rules

• Unspoken Rules

• Common Rules & Ethics

Business Rules


Again the need of a MIDDLE man -

The Middleware

• Middleware consists of computer software for connecting applications

• Connects software components or people and their applications.

• A set of services that allows multiple processes running on one or more machines to communicate and interact.

• Runs on top of web servers, application servers, and similar infrastructures that support application development and delivery.

• Middleware is especially integral to modern information technology based on XML, SOAP, Web services, and service-oriented architecture.

• Examples include EAI (Enterprise Application Integration) software, telecommunications software, transaction monitoring systems, and messaging-and-queueing software.

But there are also many efforts for common standards!


QUESTIONS

[email protected]

Dr. Alvertis Iosif - [email protected]

Biliri Evmorfia - [email protected]


mailto:[email protected]

THE B2X WORLD B2C & B2B

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