eMarketplace

E-MarketplaceVirginie S. Nnang Amougou

OverwiewOverwiew

1- Definitions

2- Elements of supply Management

3- Functionalities of an e-Marketplace

4- Node types in an e-Marketplace

5- Topology of an e-Marketplace6- Conclusion

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1- Definitions

• e-Marketplaces are trading exchanges, sell-side hubs, and buy-side hubs that facilitate and promote buying, selling and business communities among trading partners within certain industries.

• originally e-market focus on e-commerce : buying and selling in internet.

• Businesses have more complicated purchasing and selling processes. For example, large enterprises often negotiate framework contracts and then order within these contracts.

• E-marketplace: platform which caters buyers and sellers equally.

www.emarketservices.com, handbook for small businesseshttp://www.ibm.com/developerworks/patterns/select-pattern.html

1-1 e-Marketplace

• A vertical e-Marketplace: very specific industry; completely oriented towards the distinct need of this particular group.

Buyers and sellers in the industry are connected to increase operating efficiency and decrease supply chain costs, inventories and cycle times.

• Horizontal e-marketplaces: tailored to functions or processes which are important in many industries.

They run across several or many industries and focus on precise knowledge of the appropriate processes for achieving optimal results.

The most common type of materials traded horizontally are MRO (maintenance, repair and operation) materials.

http://edocs.tu-berlin.de/diss/2002/hartmann_eva.pdf, p57 http://en.wikipedia.org/wiki/Business-to-business_electronic_commerce

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1- Definitions1-2 Vertical & Horizontal e-Marketplaces

1- Definitions2- Elements of supply

Management

Sourcing Ordering

Searching

Suppliers

Selecting Suppliers

Tendering

Negotiation

Order DeliveryBillin

g

Search engines, directories

Tendering services

classifieds

Trading Networks

Auctions

www.emarketservices.com, handbook for small businesses, figure 1 6



1- Definitions


3-3- Functionalities of an e-Functionalities of an e-marketplacemarketplace

3-1 Supplier directories and search engines• databases of suppliers, which are searchable by

products or services the supplier offers.

• Sellers can get listed in such databases to be found.

• Google and other search engines use to return far too many irrelevant entries if you use them to work

• As supplier having your own web site and optimising it for search engines is good.

• But a supplier have to be present exactly where his potential customers are looking out for him.

• As buyer, supplier directories and search engines inform you at low cost about alternatives to your current suppliers or about suppliers for products not yet purchased.

• Aggregated product cataloguesEx: BritishExporters www.export.co.uk Wer liefert was? www.wlw.com

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Wer liefert was ? Is a general supplier search engine for several countries, lists suppliers from all industries particular strong in manufacturing industries.

3-3- Functionalities of an e-Functionalities of an e-marketplacemarketplace3-1 Supplier directories and search

engines

• forum where buyers announce the wish to award a

contract to a large number of potential suppliers

• then collect their proposals offline (sometimes online

as well), and finally select the best proposal from those

received.

Call for tenders can take different forms:

• RFQs (requests for quotes) : ask for price quotes

for clearly defined products or services

• RFPs(requests for proposals): ask the tenderer

not only for a price but also for a description of

how a job could be best done

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3-2 Tendering services

• tendering services enable suppliers to take the initiative according to their profile and abilities.

There are two major types:

• Public tendering databases which aggregate the calls for tenders from several government institutions

• Open tendering platforms that enables any company or public institution to announce calls for tenders

Ex: www.vergabe-bayern.de , www.elance.com

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3-2 Tendering services

www.vergabe-bayern.de the tender database for building

contract for the German state of Bavaria. A typical example of

a regional government operated tender database.

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3-3- Functionalities of an e-Functionalities of an e-marketplacemarketplace3-2 Tendering services

Classifieds typically display discrete offers of product for

sale, sorted by the type of product, the brand or even the

seller.

They resemble very much the “for sale“ section in

newspapers or trade magazines.

They are an easy-to-use sales tool whatever product you are

selling –new or used, MRO product or direct input, surplus or

regular. Many services provide tips and variety of tools to

maximize your turnover. Professional photos and precise

descriptions are just two examples.

Examples: business.ebay.com

www.truckmarket.de

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3-3 Classifieds

3-3 Classifieds : www.truckmarket.de

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Some services list products without prices and prices

enquiries as well as price negotiation have to take place

offline. Others have a fixed price policy, and a third group

even provides auctions functionality.

Ebay ´s business site offers a combination of fixed

prices(“buy it now”) as well as auctions

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3-3 Classifieds


An auction is the process of buying and selling goods by offering them up for bid, taking bids, and then selling the item to the winning bidder.

The potential benefit for buyers is finding a bargain, e.g. buying a used expensive machine well below the price for a new one.

For sellers auction can help them to get a higher price for goods on sales.

Auctions in Internet enlarge the pool of potential bidders and create the tight competitive atmosphere that drives prices up

The auction platforms mostly use the best-known rule (English auction), an open bid ascending auction: everybody can see each others bids and the highest bid wins.

Example: www.dovebid.com , www.pefa.com, www.goindustry.com 16

3-4 Auctions


Reverse auctions are sourcing auctions or buyer´s auction,

where a buyer want to find the cheapest supplier for a

contract. Within the auction the potential supplier decrease

their bids and underbid each others until the supplier with

the lowest bid wins the contract.

Reverse auction often take place on dedicated Internet

platforms, but they can also be found as part of larger B2B

Internet platforms or as element within enterprise software

for supply management.

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3-5 Reverse auctions


For data exchange such as invoices, bills, and purchase orders between buyers and sellers within an e-Marketplace, a

B2B Integration technology is necessary:

◦ EDI : Electronic Data Interchange is a set of standardized electronic business documents that are exchanged in agreed-upon formats. It is about doing business and carrying

out transactions with your trading partners electronically ◦ ebXML : complete standard method to exchange business

messages, conduct trading relationships, communicate data

in common terms and define and register business processes ◦ RosettaNet: complete standard in the sense that it defines

all aspect of message exchange that are necessary to securely and reliably transmit a message.

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3-7 Integration infrastructure

3-3- Functionalities of an e- Functionalities of an e-marketplacemarketplace3-7 Integration infrastructure

3-3- Functionalities of an e- Functionalities of an e-marketplacemarketplace

1- Definitions



4- Node types in the e-Marketplace

Commerce Server: combines the functions of the Web server andthe application logic of the online buying front-end.components and interactions on this node are: ◦ Online buying server application ◦ Transactional Web Server◦ Connections to database server nodes ◦ Connections to back-end order processing system

search engine node : responds to user requests to search certain areas, such as the catalogue of the e-Marketplace.

personalization node : define the roles, organizations, and individual players in the e-Marketplace. These roles imply actions that can be performed and data that can be seen. An example of personalization is defining different views of the catalogue for different members

protocol firewall and domain firewall node : provide services that can be used to control access from a less trusted network to a more trusted network.

4-1 Provider-side

4-4- Node types in the e-Node types in the e-MarketplaceMarketplace

www.ibm.com/redbooks

directory and security services node supplies information on the location, capabilities, and attributes (including user ID/password pairs and certificates) of resources and users known to this Web application system

This node can supply information for various security services (authentication and authorization) and can also perform the actual security processing, for example, to verify certificates.

database server node represents the data repository for the transactions conducted within the e-Marketplace and relates to the specific business transactions conducted by the user.

For example, the data repository can store the order and delivery information for an online order or serve up the banking transaction history for an online banking customer

4-1 Provider-side



content management and aggregated catalogue

node represents the functionality supporting the creation

of the data that resides on the database server and commerce server nodes. This data includes catalogue information describing items offered by suppliers. The content manager includes methods for allowing multiple suppliers to provide this catalogue data.

notification server node provides notification

messages that can relate to the current state of a process or when a particular condition is reached in the system. It can provide user-oriented messages, such as e-mail containing a completed purchase order or system-oriented message, that can send notification messages to another system.

4-1 Provider-side



Workflow Server node manages the flow of operations

for users and applications within the e-Marketplace. The scope of workflow management is categorized into the groups macro (such as governing a complete business process) and micro (as the flow of user interaction associated with an online product purchase).

binding applications and data node are used to join B2B interactions with suppliers and buyers to the marketplace commerce functions. They would use a B2B protocol and message formats, which generally are XML messages, like cXML (Commerce XML), to communicate with partners.

B2B gateway manages the interactions between the

trading partners within the e-Marketplace based on an executable contract.

4-1 Provider-side



public key infrastructure (PKI) node is a system for verifying the authenticity of each party involved in an Internet transaction, protecting against fraud or sabotage, and for no repudiation purposes to help consumers and retailers protect themselves against denial of transactions.

Trusted third-party organizations called certificate authorities issue digital certificates -- attachments to electronic messages -- that specify key components of the user's identity.

PKI can be embedded in software applications, or offered as a service or a product. e-business leaders agree that PKIs are critical for transaction security and integrity, and the software industry is moving to adopt open standards for their use

mail server node : e-Marketplace users are sent notifications through e-mail. The mail server on this node is a POP3-compliant application

4-2 Buyers- or Seller-side



domain name service (DNS) node : assists in determining

the physical network address associated with the symbolic address (URL) of the requested information. The DNS is that of the Internet service provider, although DNS is also implemented on the

accessed site.

purchaser node: the purchaser node represents a

personal computer that supports a commercial Web browser.

The level of browser is expected to support SSL and some level of

DHTML.

Most online buying applications send a "cookie" to the browser on this node to maintain the shopping session. The cookie contains the session id which is used to re-establish the conversation between each of the user’s interactions with the online buying program.

4-2 Buyers- or Seller-side



1- Definitions



4- Node types in the e-Marketplace

5- Toplogy of an e-Marketplace

This design provides for the integration of suppliers and buyers using a Web interface only .

The obvious benefit of this model is that suppliers can participate in the e-Marketplace without developing applications or employing middleware services.

27http://www.ibm.com/developerworks/patterns/b2bemp/at1-runtime.html

5-1 Web Integrated e-Marketplace 5-5- Topology of an e-marketplace Topology of an e-marketplace

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5-2 e-Marketplace With automated supplier integration

5-5- Topology of an e-marketplace Topology of an e-marketplace

http://www.ibm.com/developerworks/patterns/b2bemp/at1-runtime.html

These additional nodes provide automated integration of data between the supplier and the e-Marketplace.

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5-3 Fully integrated marketplace 5-5- Topology of an e-marketplace Topology of an e-marketplace

http://www.ibm.com/developerworks/patterns/b2bemp/at1-runtime.html

These additional nodes provide automated integration of data between the supplier and the e-Marketplace.

WebSphere Commerce Suite, Marketplace Edition: the

IBM solution is built on and leverages open standards, including Java, XML, LDAP (Lightweight Directory Access Protokoll), WAP and TPAs (Trading Partner Agreements).

Open Supplier Network : hosted service that connects

buyers and suppliers to facilitate B2B transactions. It is fully compatible with all leading ERP applications

AceFlex® e-marketplace software

5-5- Some software Some software

SummarySummary

Definitions

Elements of supply Management

Functionalities of an e-Marketplace

Node types in an e-Marketplace

Architecture of an e-Marketplace

The redbook for ibm : e-Marketplace Pattern Using WebSphere Commerce Suite, Marketplace Edition Patterns for e-business Series www.ibm.com/redbooks

http://www.ibm.com/developerworks/patterns/b2bemp/at1- runtime.html

http://edocs.tu-berlin.de/diss/2002/hartmann_eva.pdf

http://en.wikipedia.org/wiki/Business-to-business_electronic_commerce

www.emarketservices.com, handbook for small businesses

Sources

eMarketplace

Business

Transcript of eMarketplace