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E-Business Models and Protocols

Iftikhar NadeemSenior Consultant, E-Business Solutions

Center for Economics & Management SystemsResearch Institute, KFUPM

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E-Business Models and Protocols

• Business models• Internet trading protocols• Saudi Tradanet (EDI)

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Business Model

• Business model is the method of doing business by which a company can sustain itself -- be profitable.

• The business model spells out how a company makes money.

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Business Models

• Brokerage

• Advertising

• Infomediary

• Merchant

• Manufacturer

• Affiliate

• Community

• Subscription

• Utility

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Types of Brokerage Models

• Buy/Sell fulfillment

• Market exchange

• Buyer aggregator

• Distributor

• Virtual mall

• Metamediary

• Auction broker

• Reverse auction

• Classified

• Search agent

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Types of Advertising Models

• Generalized portals

• Personalized portals

• Specialized portals

• Attention/Incentive marketing

• Free model

• Bargain discounter

• Recommender system

• Registration model

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Types of Merchant Models

• Virtual merchant

• Catalog merchant

• Surf-and-turf

• Bit vendor

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Types of Community Models

• Business trading community

• Knowledge networks

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Internet Transactions

• Purchase

• Refund

• Value exchange

• Authentication

• Withdrawal

• Deposit

• Inquiry

• Ping

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Internet Trading Roles

• Consumer

• Merchant

• Payment handler

• Delivery handler

• Merchant customer care provider

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Internet Trading Exchanges

• Offer

• Payment

• Delivery

• Authentication

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Electronic Data Interchange (EDI)

• EDI is computer-to-computer exchange between two companies of standard business documents in electronic format.

• EDI has two elements– Electronic document

– Standard format

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Major EDI Application: PURCHASES

Information• Orders• Invoices• Price lists• Remits• Statements

Issues• Mass of papers• Re-keying• Slow transfer• High # of errors• High cost

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Saudi Tradanet

Your Organisation

Customers Financial Institutions

Ports& Customs

Logistics &TransportationSuppliers

Saudi TradanetService

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Technical Overview of Saudi Tradanet

• Postboxes and mailboxes

• Binary data

• Trading relationships– EDI standards

– EDIFACT

– ANSI X12

• TRADACOMS

• Data security– Password

– Pre-established partnership controls

• Data integrity

• Error handling and reporting

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Saudi Tradanet (Contd.)

• Network protocols– Saudi PDN (Al-Waseet)

– Internet

• Session protocols– Tradanet interface protocol (TIP)

– Tradanet standard protocol (TSP)

– X.400/435

– Enterprise access protocol (EAP)