Intra-B Commerce: Internal Business Interactions

Intra-B Commerce involves transactions and interactions between different departments and individuals within a single firm.

• Core Mechanism: Uses a firm’s Intranet ——->Secured from the global internet via a Firewall.

• Key Function: Connects Marketing and Production ——->Enables production of customized products based on specific customer needs.

• Benefits:

  • Better coordination & faster decision-making workflows.

  • Internal trading: Business units can buy/sell materials from each other.

  • Employee sales: Staff can trade products via internal intranet advertisements.

 Importance for Exams (Potential MCQs):

• Inventory & Cash Management: Leads to more efficient use of resources.

• Resource Utilization: Greater use of plant, machinery, and human resources.

• Customer Interaction: Employees use electronic catalogs/order forms for better service.

 Business-to-Business (B2B) E-Commerce

B2B refers to electronic transactions between two businesses (e.g., Manufacturer ——-> Wholesaler).

• Market Share: Accounts for over 94% of all e-commerce transactions (Highest volume model).

• Access: Restricted to business partners only.

• Security: Relies on Firewalls, Encryption, and strict Authorization levels.

• Payment: Typically handled via predetermined credit terms rather than instant retail payment.

 B2B Building Blocks

B2B has two primary components: E-infrastructure and E-markets.

1. E-Infrastructure (The Architecture)

This includes the tools and services needed to run B2B:

• Logistics: Transportation, storage, and distribution (e.g., P&G).

• ASPs (Application Service Providers): Host and manage packaged software (e.g., Oracle).

• Outsourcing: Web hosting, security, and customer care (e.g., iXL Enterprises).

• Auction Software: Real-time internet auctions (e.g., Moai Technologies).

• Content Management: Facilitating website content delivery (e.g., Interwoven).

• Commerce Enablers: Frameworks like XML-enabled purchasing automation (e.g., Commerce One).

2. E-Markets

Websites where buyers and sellers interact and transact.

• Best Practice Examples: IBM, HP, Cisco, and Dell.

• Fact: Cisco receives over 90% of its orders via the Internet.

 B2B Marketplaces & Exchanges

B2B Marketplaces

Large companies use Industry Sponsored Marketplaces (ISMs) or private exchanges.

• Constraint: Some companies avoid ISMs for customized designs, using them primarily for supply chain management.

B2B Exchanges

An online platform for communication, collaboration, and transactions for the public at large (business users).

• Key Benefits:

  • Efficient Inventory: Products are integrated with electronic catalogs.

  • New Sales Channel: Low-cost way to reach a global audience.

  • Reduced Paperwork: Automated supply chains eliminate manual tasks.

  • Unauthorized Spending Control: Automated approval methods prevent “Maverick” spending.

 Benefits & Barriers of B2B

The Benefits (Why do it?)

• Speed: Faster product development ——-> Reduced time-to-market.

• Efficiency: Outsourcing unprofitable parts of the business.

• Intelligence: Improved business and market intelligence.

• CRM: Higher customer retention and lower acquisition costs.

• Wastage: Reduces waste through additional, more efficient sales channels.

The Barriers (Why is it hard?)

• Implementation Costs: High cost of hardware, software, and telecommunications.

• Financing: Difficult for Small and Medium Enterprises (SMEs) to fund.

• Maintenance: Ongoing technical charges and planning costs.

 MCQ Flashcards for Quick Recall:

• Intra-B = Internal (Intranet + Firewall).

• B2B = 94% of E-commerce.

• XML = Used for purchasing automation in B2B.

• Registry vs. Registrar = Registries maintain the TLD database; Registrars sell the names.

• Logistics = The physical “movement” part of B2B infrastructure.

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