1) VENDOR RELATIONSHIP MANAGEMENT: Re-engineering the Business Process Through B2B Infrastructure to Accelerate the Growth of Small Businesses in Geographically Isolated Areas William McDaniel Albritton Collaborative Software Development Lab University of Hawaii
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(1) VENDOR RELATIONSHIP MANAGEMENT: Re-engineering the Business Process Through B2B Infrastructure to Accelerate the Growth of Small Businesses in Geographically.
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VENDOR RELATIONSHIP MANAGEMENT:
Re-engineering the Business Process Through B2B
Infrastructure to Accelerate the Growth of Small
Businesses in Geographically Isolated Areas
William McDaniel AlbrittonCollaborative Software Development Lab
University of Hawaii
(2)
ParticipationCo-authored by
•Joy M. Agustin
Funding by•City Bank•UH New Economy Research Grant Program
Participants•Dr. Philip Johnson•City Bank•FedEx•Hilo Hattie•United States Postal Service (USPS)•University of Hawai’i•10 Local Businesses
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Geographically Isolated Businesses
Issue•Small businesses limited to local market
Solution•Global marketplace of the Internet
Example: Village near Chincheros, Peru•1995 – village’s income = $300 US per month
•1996 – Internet connection •Online partnership with export company•Sell produce in New York
•1998 – village’s income = $1500 US per month
“Wiring the Pueblo”, Business 2.0David Batstone, 1998
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Expanding Local Hawai’i Businesses
Virtual Merchant•(+) Ideal in early 90’s•(+) Direct control of inventory and information
•(-) Overhead of sales, marketing, and web site•(-) Problem of being noticed on the Internet
Metamediary/Virtual Mall•(+) Larger well-established company•(+) Has brand name recognition•(+) Takes care of sales, marketing, and web site
•(-) Maintaining inventory and information
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Vendor Relationship Management (VRM)
PartnersMetamediary (Host)
•Sales, marketing, and website
Virtual Merchant (Vendor)•Maintain inventory and information
Financial Institution•Transaction processing and loans
Shipping Provider•Order tracking
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Partner Services
Metamediary
VirtualMerchant
FinancialInstitutionShippin
g Provider
ProductShipping
OrderTracking
ProductInformation
OrderInformation
TransactionProcessing
TransactionProcessing
andLoans
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Virtual Merchant/Metamediary
Metamediary
VirtualMerchant
FinancialInstitutionShippin
g Provider
ProductInformation
OrderInformation
VRM System
OrderInformation
ProductInformation
(8)
Shipping Provider
Metamediary
VirtualMerchant
FinancialInstitutionShippin
g Provider
ProductShipping
OrderTracking
VRM System
OrderTracking
OrderTracking
(9)
Financial Institution
Metamediary
VirtualMerchant
FinancialInstitutionShippin
g Provider
TransactionProcessing
TransactionProcessing
andLoans
VRM System
MerchantSales
(10)
VRM PrototypeWeb-based application
Designed with Microsoft Components•Microsoft Windows 2000•Active Server Pages (ASP)•Internet Information Server (IIS)•Open Database Connectivity (ODBC)•Microsoft Access
4 main interfaces•Metamediary (Host)•Virtual Merchant (Vendor)•Financial Institution•Shipping Provider
•Virtual Merchants-no advertising-no web maintenance
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Returning a product
VirtualMerchant
Customer
Metamediary
Shipping Provider
VRM System
(25)
Returning a product
VirtualMerchant
Customer
Metamediary
Shipping Provider
VRM System
ReturnReques
t
ReturnRequest
(26)
Returning a product
VirtualMerchant
Customer
Metamediary
Shipping Provider
VRM System
ReturnReques
t
ReturnRequest
ShippingLabel
ShippingLabel
(27)
Returning a product
VirtualMerchant
Customer
Metamediary
Shipping Provider
VRM System
ReturnReques
t
ReturnRequest
ShippingLabel
ShippingLabel
Product
(28)
Returning a product
VirtualMerchant
Customer
Metamediary
Shipping Provider
VRM System
ReturnReques
t
ReturnRequest
ShippingLabel
ShippingLabel
Product
Product
ShippingInformation
ReturnNotification
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Returning a product
VirtualMerchant
Customer
Metamediary
Shipping Provider
VRM System
ReturnReques
t
ReturnRequest
ShippingLabel
ShippingLabel
Product
Product
ShippingInformation
ReturnNotification Received
Notification
(30)
Returning a product
VirtualMerchant
Customer
Metamediary
Shipping Provider
VRM System
ReturnReques
t
ReturnRequest
ShippingLabel
ShippingLabel
Product
Product
ShippingInformation
ReturnNotification Received
Notification ReceivedNotification
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Returning a product
VirtualMerchant
Customer
Metamediary
Shipping Provider
VRM System
ReturnReques
t
ReturnRequest
ShippingLabel
ShippingLabel
Product
Product
ShippingInformation
ReturnNotification Received
Notification ReceivedNotification
Refund
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Returning a productBenefits of VRM BPM
•Customer -only sees metamediary
•Metamediary-no product inventory-no shipping
•Virtual Merchants-no advertising-no web maintenance
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VRM PrototypePortability
•Windows NT/2000Reliability
•Microsoft products seem to attract viruses•Access database
-Typically 10 to 20 users-One megabyte of data
Scalability•Need to change to SQL Server
Security •Secure Socket Layer (SSL)•Cannot load pages unless go through Login page
•Other general security concerns
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Survey of 10 Local Businesses
Vendor interviews•E-commerce issues and solutions•30-45 minutes interview
Topics•Degree of technological sophistication•Use of Internet for sales and marketing•Desires for and barriers to growth•Present and future financial services
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Survey ResultsBusiness Size•Staff of 1-2 (7 businesses)•Staff of 5-25 (3 businesses)
E-commerce•9 businesses on the Internet•8 individual websites
-Trouble getting site noticed (4)-Product not easily sold online (2)-No problems (2)
•Percent of business from Internet-95%+ (3)-30-95% (0)-10-30% (2)-<10%(3)
(36)
Survey ResultsFuture Business Direction
•Keep growing (3)•Eventually sell business (3)•Have brick & mortar store (1)•Outsource web site (1)•Survive/continue at same pace (2)
Advantages of Using a Metamediary/Virtual Mall•9 companies gave positive comments
-High visibility-Wider customer base-Increase traffic -Less hassles-No maintenance of websites
(37)
Survey ResultsDisadvantages of Using a Metamediary/Virtual Mall •7 companies gave negative comments
-Concerns over setup with metamediary-Insufficient time to keep up with production-Possible competition with other products-Loss of control over advertising-Slower payment process-Increase number of small orders