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Wei (David) DaiJing (Teresa) Qian

Marie SteinbachPapinya Yunibhand

Jingyao (Daisy) Zhang

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E-Commerce“Electronic commerce is the paperless exchange of

business information using electronic data interchange (EDI), e-mail, electronic bulletin boards, fax transmissions, and electronic funds transfer. It refers to Internet shopping, online stock and bond transactions, the downloading and selling of ‘soft merchandise’ (software, documents, graphics, music, etc.), and business-to-business transactions.”

The Definition of E-Commerce n.d.

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E- CommerceThink beyond the basic buying and selling

goods online

Complete TransactionMarketplaceSelectionPaymentDelivery/Receipt

Definition and Concept of Electronic Commerce 2003

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Business to Business (B2B)•B2B is a relationship

between 2 businesses interacting through digital/on-line channels

•More regular and in larger quantities than a business to consumer interaction.

•Think of it as selling wholesale – because it is.

Loewen n.d. Jones, Scott and Villars 2001

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U.S. Shipments, Sales, Revenues and E-commerce: 2007 and 2006[Shipments, sales and revenues are in billions of dollars.]

• 15.25% of the National Total comes from E-Commerce

• 92.5% of E-commerce comes from Business to Business transactions

2007 E-Commerce 2009

Table selections from the E-Stats 2007 E-Commerce report from the US Census Bureau

Description

Value of Shipments, Sales, or Revenue

2007 2006

Total E-commerce Total E-commerce

Total $21,847 $3,333 $20,797 $2,972

B2B $11,088 $3,082 $10,542 $2,761

B2C $10,759 $251 $10,255 $211

E-commerce & B2B in U.S. 2007

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E-commerce as Percent of Total Value: 2002 - 2007

2007 E-Commerce 2009

Manufacturing B2B accounts for highest share of e-commerce Less than 20% in

2002 Over 35% in 2007

Merchant Wholesale makes up the other half of B2B Averages ~20%

annually

Overall B2B growth: 15+%

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E-commerce & B2B in China 2009

09Q2 China Internet Economics Market Size Reached 16.76 Billion Yuan 2009

$1.00 = ~6.8 yuan

E-Commerce is 16.76 billion yuan$2.455 billion US

dollars

B2B revenue for the 2nd quarter (April-June) is 1.47 billion yuan$215 million US

dollarsUp from 1.38 billion

yuan in 2nd quarter 2008

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Manager/Company BenefitsThe E-environment is here and

it is changing the business world Business models and hierarchies

are changing Social interaction has changed

to include technology Technology is integrated into

everyday life and every decision

E-sourcing & navigating the e-environment

E-commerce marketplaces E-transactions

Tassabehji, Wallace and Cornelius 2007Watts 2009

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Manager/Company BenefitsQuality online presentation determines your

success Decrease the perceived customer risk Increase prior customer retention

Make it effective to work with your suppliers Clear transaction format Incentive to remain with partners who understand

the e-world

As an employee with e-commerce skills High demand low supply Better benefits offered to increase retentionWeathers, Sharma and Wood 2007

Gallaghar 2000

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Evaluating B2B transactions1. Size of exchange in terms of total sales made on the

exchange, number of customers, number of suppliers,

2. Major products of exchange 3. General characteristics of customers and suppliers 4. Who founded the exchange? When? 5. What is the exchange's business model (how do they

generate revenue, have they earned a profit?) 6. Are there competing exchanges in this market? If so,

how does this exchange differentiate itself? 7. How do members interact with the system? 8. Is the exchange successful or is it too early to tell? 9. What is the promised value to customers? 10. What is the promised value to suppliers?

Syllabus Questions

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Evaluating B2B transactionsWhy we chose our Case Studies

Alibaba.com demonstrates good layout and increases customer confidence

Farms.com integrates technology for everyday use and makes it effective to interact with suppliers

Rentacoder.com encompasses the whole business transaction cycle and connects you to in demand workers

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Size of exchange in terms of total sales made on the exchange, number of customers, number of suppliers.

69 million members240 countries and territories2 million retailers4.2 million suppliers4.8 million trade leads, company postings,

and product listings2012 forecasts increase to 100 million

membersalibabawtory.com

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Major products of exchange.

alibabawtory.com

Range of product in various industries

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General characteristics of customers and suppliers .Customers:

Focus on USA Aliblog started in 2008

Asia/IndiaEuropeAustralia

Suppliers:Small to Medium firmsFocused on

international tradeLooking for additional

communications channels

alibabawtory.com

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Who founded the exchange? When?What is the exchange's business model?

Wikipedia n.d.Zeng 2001

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Competitors? Differentiators?

•Competition and market overlapVertical competition with Industry

PortalsHorizontal competition with Supply

Chain Marketplaces•Differentiated by:Strength of search technologyEstablished brand nameDetailed product information Zeng 2001

Globalsources.com n.d.Meet China.net n.d.

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Take a tourTake a tour

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Video Demo: High Speed version

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Size of exchange in terms of total sales made on the exchange, number of customers, number of suppliers.

8.7 million dollars in sales reported for 2008

100,000+ registered users

30,000 visitors per day4 million page views

per month30% annual increase in

user traffic

We Deliver Your Audience

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Major products of exchange.

Information products & services Real time news, weather,

market quotes Media services Marketing software

solutions Freight & transportation

matchingVenue for buyer & seller

Livestock Land Machinery

Auctions

Discussion ForumsFarms.com

Serving the global agricultural & food industry

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General characteristics of customers and suppliers .Customers &

Suppliers:Who’s who of

agribusinessBig companies

John Deere Bayer Crop New Holland

Small farmsLocated:

Across North America

Maclean, 2007

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Who founded the exchange? When?What is the exchange's business model?

Maclean, 2007Corporate History

Laseter & Capers, 2002

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Competitors? Differentiators?• The Connell CompanyMany subsidiaries and marketplaces

Wholesale foodsIndustrial equipmentReal estateBusiness services

• E-Markets IncAgricultural market

Internet based information management tools• Differentiators:Scope of servicesCustomization for members

Connell Company DescriptionE-Markets Company Description

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http://www.farms.comhttp://www.farms.com

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Size of exchange in terms of total sales made on the exchange, number of customers, number of suppliers.

Gefen & Carmel

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Major products of exchange.

Rentacoder.com

Software

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Who founded the exchange? When?What is the exchange's business model?

www.rentacoder.com/RentACoder/misc/About/default.asp

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Competitors? Differentiators?

•Differentiators:Client has control over bidding and

acceptance process3 Payment options

Regular mail-in checkWestern UnionPayPal

Rentacoder.com does not charge quarterly service fees based on coder specialty

www.rentacoder.com/RentACoder/misc/About/default.asp

Elance

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Process for customers and suppliersSuppliers:

1) Receive bid requests

2) Make a bid3) Do the work

File weekly status reports

Send product to buyer

4) Receive payment5) Rate the buyer

Rentacoder.com

Customers:1)Post a bid request2)Receive bids from

coders3)Choose and accept a

bid4)Receive and approve

work5)Rate the coder

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http://http://www.rentacoder.com request bids

http://http://www.rentacoder.com request bids

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Evaluating B2B transactions

1. Are these exchanges even successful?

2. What is the promised value to customers?

3. What is the promised value to suppliers?

Syllabus Questions

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Promised Value to Customers

www.miit.gov.cn n.d.www.internetb2blist.com/business/farmscom_330256

www.rentacoder.com

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Promised Value to Suppliers

www.miit.gov.cn n.d.www.internetb2blist.com/business/farmscom_330256

www.rentacoder.com

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Name one feature all 3 of these B2B marketplaces had in common…

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Best PracticesReduce customer risk in the marketplace and

on your supplier sites by providing:Multiple searchable termsProduct images and picturesClear, concise descriptionsUser feedback and ratings

When outsourcing remember that B2B marketplaces provide connections to global suppliers

Weathers, Sharma and Wood 2007Reijers and Jansen-Vullers 2005

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Best PracticesBuffer – subscribe to the marketplace

Customize your dashboard for greater controlAvoid being bombarded by non-related offers

Rate your experiences with marketplaces, suppliers, and clientsTest the site (the output) to see how effective

your marketplace isMake sure the design of the marketplace is

useful to the buyers and suppliers who are using it

Reijers and Jansen-Vullers 2005Probert, et al. 2003

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B2B is worth TRILLIONS

of revenue dollars annually!

Shouldn’t YOU benefit from using this marketplace?

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 09Q2 China Internet Economics Market Size Reached 16.76 Billion Yuan. August 19, 2009. http://www.marketreportchina.com/market/article/content/3376/200908/207627.html (accessed October 19, 2009). http://www.farms.com/farmspages/aboutfarms/tabid/188/default.aspx."2007 E-Commerce." U.S. Census Bureau E-Stats. May 28, 2009. http://www.census.gov/estats (accessed September 26, 2009). alibabawtory.com. http://www.alibaba.com/trade/servlet/page/help/new_to_alibaba/alibaba_user_guide/alibaba_user_guide?showtour=on. Connell Company Description. http://www.hoovers.com/connell-company/--ID_40099--/free-co-profile.xhtml. Corporate History. http://www.farms.com/ContentPage/CorporateHistory/tablid/232/Default.aspx. Definition and Concept of Electronic Commerce . October 27, 2003. http://www.4th-media.net/overview/concepts.php (accessed October 14, 2009). E-Markets Company Description. http://www.hoovers.com/e-markets/--ID_60073--/free-co-profile.xhtml. Gallaghar, Terry. "The War for E-Commerce Talent." Consulting to Management 11, no. 01 (May 2000): 45-46. Gefen, and Carmel. "Offshoring at an Online Programming Marketplace." Digital Planet, 2008. Genfen, David, and Erran. "Is the World Really Flat? A look at offshoring at an onlie programming marketplace." MIS Quarterly.

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Globalsources.com. http://www.globalsources.com. "Part 1: An E-commerce Overview: You Will Be Graded on This." In E-Commerce for Dummies, by Don Jones, Mark D. Scott and Richard Villars, 10. New York: Hungry Minds Inc, 2001. Kwan, Savio. Alibaba's Story. 2004. http://www.unctadxi.org/.../Alibaba_WSIS_presentation_22_May_08_v3.ppt. Laseter, Tim, and Christopher Capers. E-Marketplace Survival Strategies. October 11, 2002. Loewen, Jacoline. B2B E-Commerce. Edited by Strategy International. http://www.strategyinternational.com/b2b_loewen.htm (accessed September 26, 2009). Maclean, Susan. "The cash crop is online." October 04, 2007. http://news.therecord.com/article/250904. Meet China.net. http://www.meetchina.net. Probert, Robert L., Yanping Chen, Behrad Ghazizadeh, D. Paul Sims, and Maurus Cappa. "Formal verification and validation for e-commerce: theory and best practices." Information and Software Technology (Elsevier) 45 (2003): 763-777. Reijers, Hajo A., and Monique H. Jansen-Vullers. "Better Processes = Better E-commerce." Quality Progress 38, no. 3 (March 2005): 57-63. Tassabehji, Rana, James Wallace, and Nelarine Cornelius. "E-technology and the emergent e-environment: Implications for organizational form and function." The Journal of High Technology Management Research (Elseiver) 18 (2007): 15-30.

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The Definition of E-Commerce. http://www.businesstown.com/internet/ecomm-definition.asp (accessed September 26, 2009). Watts, Steve. "Corporate Strategy: Best Practice - Online shopping." ProQuest. Jun/Jul 2008. (accessed October 20, 2009). We Deliver Your Audience. http://www.agpromote.com. Weathers, Danny, Subhash Sharma, and Stacy L. Wood. "Effects of online communication practices on consumer perceptions of performance uncertainty for search and experience goods." Journal of Retailing (Elseiver) 83, no. 4 (2007): 393-401. Wikipedia. http://www.wikipedia.alibaba.com. www.internetb2blist.com/business/farmscom_330256. http://www.internetb2blist.com/business/farmscom_330256.html. www.miit.gov.cn. http://www.miit.gov.cn/n11293472/n11293877/n11301602/n12222003/n12238789/12244609.html. www.rentacoder.com. http://www.rentacoder.com/RentACoder/misc/About/default.asp. XE - The World's Favorite Currency Exchange Site. http://www.xe.com/ (accessed October 19, 2009). Zeng, Ming. Insead - Alibaba. http://www.pinggu.org/bbs/viewthread.php?tid=486627&highlight=alibab, 2001.