emarketplace

The e-Marketplace

Agenda

e-Marketplace : Definitions & Scopee-Marketplace : Definitions & Scope Different types of e-MarketplacesDifferent types of e-Marketplaces C-CommerceC-Commerce e-Marketplace : Future Directionse-Marketplace : Future Directions Case I : High Tech Industry B2B e-MarketplaceCase I : High Tech Industry B2B e-Marketplace Case II : e-SourcingCase II : e-Sourcing Mobile Solutions for SCMMobile Solutions for SCM

e-Marketplace : Definitions & Scope

DefinitionDefinitionA network service shared by multiple individuals and A network service shared by multiple individuals and enterprisesenterprises

Information about products and services are shared Information about products and services are shared electronicallyelectronically

Products and services may be purchased without a aid of Products and services may be purchased without a aid of voice or paper-based exchangesvoice or paper-based exchanges

Translations of actual and commercial marketplaces to the Translations of actual and commercial marketplaces to the virtual environmentvirtual environment

Examples: Internet, Membership based online Examples: Internet, Membership based online services, Bulletin boards, Interconnected private services, Bulletin boards, Interconnected private networks and Value added third party networksnetworks and Value added third party networks

B2B e-MarketplaceB2B e-Marketplace Definition*Definition*

An enterprise that brings buyers and sellers in an An enterprise that brings buyers and sellers in an industry, geographic region or affinity group together for industry, geographic region or affinity group together for the purpose of commercethe purpose of commerceProvides content, value-added services and often not Provides content, value-added services and often not always commerce transaction capabilitiesalways commerce transaction capabilitiesA market intermediaryA market intermediary

Name calling: Exchanges, eHubs, iHubs, e-Markets, Name calling: Exchanges, eHubs, iHubs, e-Markets, Trading Networks, e-MarketPlaces, NetMarkets, Trading Networks, e-MarketPlaces, NetMarkets, B2B Markets.B2B Markets.

e-Marketplace : Definitions & Scope

e-Marketplace

Seller A

Seller B

Seller C Buyer C

Buyer B

Buyer A

Many-to-Many Internet based Many-to-Many Internet based IntermediaryIntermediary

Various Transaction Various Transaction FunctionalitiesFunctionalities

Catalog, Auction, Reverse Catalog, Auction, Reverse Auction, Exchanges Auction, Exchanges Focus on individual industry Focus on individual industry and business processand business process

Multiple types:Multiple types:Public Markets: Independent vs Public Markets: Independent vs Consortium-ledConsortium-ledPrivate Markets: Buy-side vs Private Markets: Buy-side vs Sell-sideSell-sideVertical vs HorizontalVertical vs Horizontal

e-Marketplace : Definitions & Scope

Electronics CommerceElectronics Commerce TypesTypesCatalogCatalog

One Buyer & One Seller at a TimeOne Buyer & One Seller at a Time The Largest SegmentThe Largest Segment Ex : Dell ComputerEx : Dell Computer

AuctionAuction On-line Auction EventOn-line Auction Event Many Buyers & Single SellerMany Buyers & Single Seller Ex : Auction.comEx : Auction.com

Reverse Auction (Bid)Reverse Auction (Bid) On-line Bidding EventOn-line Bidding Event Many Sellers & Single BuyerMany Sellers & Single Buyer Ex : FreeMarketsEx : FreeMarkets

Different Types of e-Marketplaces

Independent Market Maker LedIndependent Market Maker Led3rd Party becomes a market maker3rd Party becomes a market makerEx : GXSEx : GXS

Consortium LedConsortium LedA group of leaders in industry build a marketplace A group of leaders in industry build a marketplace Ex : E2Open, Converge, covisint, EXOSTAR, GHX Ex : E2Open, Converge, covisint, EXOSTAR, GHX

Solution Provide LedSolution Provide LedB2B Solution providers builds independent B2B Solution providers builds independent marketplacesmarketplacesEx : mySAP Exchanges, Commerce One.net™ Ex : mySAP Exchanges, Commerce One.net™

Private Portal ModelPrivate Portal ModelA big company and many suppliers or buyers A big company and many suppliers or buyers builds private transaction environmentsbuilds private transaction environmentsEx : Cisco’s ehub, Dell’s valuechain.dell.comEx : Cisco’s ehub, Dell’s valuechain.dell.com

Different Types of e-Marketplaces

Vertical e-Marketplaces

Hor

izon

tal e

-Mar

ketp

lace

s

Paper

Plastic

Steel

Logistics management

Energy management

Procurement

e.g. e-steel, Covisint, e2opne.g. MR

O.com

, LGM

RO

.com

Vertical MarketplacesVertical MarketplacesRequires industry Requires industry knowledgeknowledge Accelerate relationship in Accelerate relationship in specific industryspecific industryStart with e-procurement and Start with e-procurement and extend to other servicesextend to other services

Horizontal MarketplacesHorizontal MarketplacesNNo focus on specific o focus on specific industryindustry Process oriented approachProcess oriented approach Focus on common process Focus on common process across different industryacross different industry

Different Types of e-Marketplaces

Private MarketplacesPrivate MarketplacesMore expensive & upkeepMore expensive & upkeepUnilateral & therefore faster Unilateral & therefore faster implementationimplementationMay have to connect to May have to connect to multiple exchangesmultiple exchangesCan take advantage of buyer’s Can take advantage of buyer’s powerpowerEasier to integrate with other Easier to integrate with other systems & workflowsystems & workflowLess resource sharingLess resource sharing

Public MarketplacePublic MarketplaceUse it, without having to Use it, without having to build it.build it.Drives industry standards Drives industry standards for communication, for communication, processes and data.processes and data.Access to industry content, Access to industry content, knowledge and best knowledge and best practices.practices.Easier for global reach.Easier for global reach.More incentive conflicts.More incentive conflicts.

Different Types of e-Marketplaces

Collaborative CommerceCollaborative Commerce

C-Commerce

Limited to B2B intermediary Limited to B2B intermediary functionalitiesfunctionalities

Spot Buying Service based on Spot Buying Service based on CatalogCatalog

Dynamic Trading Dynamic Trading ((Auction, Auction, Reverse Auction and etc.Reverse Auction and etc.))

Support business process in Support business process in enterprise’s entire value chainenterprise’s entire value chain

Interactive Collaboration among Interactive Collaboration among business partnersbusiness partners

E-Hub with End-to-End E-Hub with End-to-End SCM process SCM process integrationintegration

Functionality

11st Generation e-Marketplacest Generation e-Marketplace 22nd Generation e-Marketplacend Generation e-Marketplace

Mainly MRO and some Mainly MRO and some Indirect MaterialsIndirect Materials

Some commodity type direct Some commodity type direct materialsmaterials

Mainly Direct MaterialsMainly Direct Materials Both Commodity andBoth Commodity and Customized Customized

MaterialsMaterialsTarget Material

Stand-alone and separate Stand-alone and separate channelschannels

Limited integration with Limited integration with transaction systems inside transaction systems inside enterpriseenterprise

Integrated structure with ERP Integrated structure with ERP and other enterprise’s and other enterprise’s transaction systemstransaction systems

Back-EndIntegration

Individual / Individual / Independent Independent MarketplaceMarketplace

Integrated structure considering Integrated structure considering M2M(Marketplace-to-Marketplace)M2M(Marketplace-to-Marketplace)

Other MarketplaceIntegration

E-Commerce Based C-Commerce Based

e-Marketplace : Future Directionse-Marketplace : Future Directions

Supplier

EMS

Distr

OEM

Supplier

OEM

Product Collaboration

Design Data2D/3D CAD Drawings

ECO/PNCs

Sample Requests

BOMs, AVL data

ToolsToolsVirtual collaboration workspaceVirtual collaboration workspace

Document check-in/check-outDocument check-in/check-out Version controlVersion control Multi-format file support; 2D view Multi-format file support; 2D view

and markupand markup Planned 3D ViewerPlanned 3D Viewer Parts informationParts information Search toolsSearch tools Planned large file transferringPlanned large file transferring Planned light PMS functionsPlanned light PMS functions

Multiple forms of trusted Multiple forms of trusted communicationcommunication

Web meetingsWeb meetings Threaded discussionsThreaded discussions WorkflowWorkflow

Case I : Case I : Product CollaborationProduct Collaboration

Service TypeService Type Collaboration ContentsCollaboration Contents

ForecastCollaboration

OrderCollaboration

InventoryCollaboration

Production PlanningCollaboration

SettlementCollaboration

LogisticsCollaboration

Buyer Supplier

Buyer Supplier

Buyer Supplier

Buyer Supplier

Buyer Supplier

Buyer Supplier

Demand Forecast

Supply Outlook

Order Create,Change,Cancel

PO Review, Change, Reject, ASN*

Inventory Level, Consuming Plan

Replenishment Plan

Settlement

Invoice

Order Status

Tracking & Trace

Mid-Long Term Production Plan

Capacity Plan

1st Service Area

Open M

a rk et Se rv ice

Shortage

Sourc

e

Case I : Case I : Supply Chain CollaborationSupply Chain Collaboration

ContractManufacturers

OEMs

Distributors

OEMs

Distributors

Value Added Resellers

Brokers

SellersSellers

Direct Selling

Channel Management

Excess Selling

Strategic Sourcing

Spot Purchase

BuyersBuyers

Trading Companies

ContractManufacturers

SELL SIDE SOLUTIONS

BUY SIDE SOLUTIONS

E-commerce Integration

POS Customers

Suppliers

Case I : Commerce CollaborationCase I : Commerce Collaboration

Status of e-Markets

Independent public markets are struggling.Independent public markets are struggling. Consortium-based public markets still at somewhat Consortium-based public markets still at somewhat

immature stage, and all have vision of adding immature stage, and all have vision of adding intelligence and pursuing supply chain services and intelligence and pursuing supply chain services and design collaboration.design collaboration.

Private exchanges are flourishing, and intelligent Private exchanges are flourishing, and intelligent exchanges are emerging. exchanges are emerging.

A period of explosive growth followed by extensive A period of explosive growth followed by extensive consolidation and exits.consolidation and exits.

Value proposition continues to be refined.Value proposition continues to be refined.

Case II : Market Characteristics

Fragmented supply marketFragmented supply market InefficientInefficient Variance among suppliersVariance among suppliers Supplier knowledge is not commonSupplier knowledge is not common

Commodity SpecializedFreeMarkets

•Efficient•Transparent

•Relationship•Quality

Strategic Goals:Strategic Goals:Select the mix of products, services, suppliers that Select the mix of products, services, suppliers that offers the lowest total costsoffers the lowest total costsBased on multiple parameters: quality, delivery, Based on multiple parameters: quality, delivery, price…price…Price is only one part of a sourcing decisionPrice is only one part of a sourcing decision

Problems of Traditional SourcingProblems of Traditional Sourcing::Insufficient product category expertiseInsufficient product category expertiseLack of proven sourcing methodologiesLack of proven sourcing methodologiesConstraints of traditional sourcing technologiesConstraints of traditional sourcing technologies

Case II : Market Characteristics

Mobile Solutions for SCMMobile Solutions for SCM

M-Commerce : Definition*M-Commerce : Definition*Any transaction using a data-enabled digital mobile phone or Any transaction using a data-enabled digital mobile phone or PDAPDAA wireless data connection to the internet or a vendor’s private A wireless data connection to the internet or a vendor’s private networknetworkUsually, financial transactions are excluded Usually, financial transactions are excluded

Mobile vs. WirelessMobile vs. WirelessMobile but offlineMobile but offline

Portability, Some PDA’sPortability, Some PDA’s Ex : e-bookEx : e-book

Mobile but onlineMobile but online ““Wireless”Wireless” ““Always on” connection to the InternetAlways on” connection to the Internet Ex : Inventory CheckEx : Inventory Check

M-Commerce : DriversM-Commerce : DriversConvenient and easy-to-use-Convenient and easy-to-use-applications that are useful to applications that are useful to mobile user immediatelymobile user immediatelyProliferation of mobile devices Proliferation of mobile devices and wireless communicationsand wireless communicationsPersonalizationPersonalization

Location-based technologies Location-based technologies will help drive the m-commerce will help drive the m-commerce market from 2003market from 2003

User context will be a key User context will be a key requirement for successful m-requirement for successful m-commerce applicationscommerce applications

Targeted advertising and Targeted advertising and marketing schemes marketing schemes

M-Commerce : InhibitorsM-Commerce : InhibitorsConsumer lack of Consumer lack of awareness or apathy about awareness or apathy about m-commercem-commerceUser interface limitations User interface limitations and application designand application designSecure transaction Secure transaction requirementsrequirements

CF. PC-based transactionCF. PC-based transaction

Convenient payment Convenient payment methodsmethods

Mobile Solutions for SCMMobile Solutions for SCM

Mobile Applications in Supply ChainMobile Applications in Supply ChainE-ProcurementE-Procurement

Ex : Order and Transaction, Approval Workflow, Receiving and Ex : Order and Transaction, Approval Workflow, Receiving and Payment WorkflowPayment Workflow

Supply Chain ExecutionSupply Chain Execution Ex : Mobility in Warehousing and Inventory Management, Work Ex : Mobility in Warehousing and Inventory Management, Work

Order Management, Facility Utilization ManagementOrder Management, Facility Utilization Management

Supply Chain VisibilitySupply Chain Visibility Ex : Bar Code, RFID Tags and Auto IDEx : Bar Code, RFID Tags and Auto ID

Mobile Service ManagementMobile Service Management Ex : Field Service ManagementEx : Field Service Management

Mobile Solutions for SCMMobile Solutions for SCM

Mobile Customer Service SystemMobile Customer Service SystemPDA OnlinePDA Online

Retrieve BOM, Part Inventory, OrderRetrieve BOM, Part Inventory, Order Service TrackingService Tracking Receive Specific Service RequestReceive Specific Service Request Schedule ManagementSchedule Management Symptom vs. Technical AdviceSymptom vs. Technical Advice Estimation on ServiceEstimation on Service BBSBBS

PDA Offline PDA Offline Service HandbookService Handbook Customer Information / Service HistoryCustomer Information / Service History SMSSMS Service Progress ReportService Progress Report

Mobile Solutions for SCMMobile Solutions for SCM

Mobility in SalesMobility in SalesOnlineOnline

Order Entry, Order Tracking, A/R Tracking, Customer Order Entry, Order Tracking, A/R Tracking, Customer Information, Inventory, Production Request, Shipping History, Information, Inventory, Production Request, Shipping History, Order Confirm, E-Approval, BBSOrder Confirm, E-Approval, BBS

OfflineOffline E-mail, Schedule Management, Employee Information, BBSE-mail, Schedule Management, Employee Information, BBS

Mobility in Factory Mobility in Factory Facility (Machine) Maintenance ManagementFacility (Machine) Maintenance Management

Periodic Maintenance on Facility (Leakage, Vibration, Noise, Periodic Maintenance on Facility (Leakage, Vibration, Noise, Temperature, and etc.)Temperature, and etc.)

PDA with Bar-codePDA with Bar-codeWork Order ManagementWork Order Management

Retrieve W/O List and Completion ResultRetrieve W/O List and Completion Result New Work Order EntryNew Work Order Entry Upload to LegacyUpload to Legacy

Mobile Solutions for SCMMobile Solutions for SCM

The Future B2B Trends

From simple to complex transactionFrom simple to complex transaction From middlemen to speculatorsFrom middlemen to speculators From transactions to intelligent solutionsFrom transactions to intelligent solutions