34 eg procurement businesses can now use internet to

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Unformatted text preview: puter exchange of standard transactions such as invoices, purchase orders Major industries have EDI standards that define structure and information fields of electronic documents for that industry More companies increasingly moving away from private networks to Internet for linking to other firms • 9.34 E.g. Procurement: Businesses can now use Internet to locate most low-cost supplier, search online catalogs of supplier products, negotiate with suppliers, place orders, etc. Essentials of Business Information Systems Chapter 9 E-Commerce: Digital Markets, Digital Goods Electronic Commerce Electronic Data Interchange (EDI) Companies use EDI to automate transactions for B2B e-commerce and continuous inventory replenishment. Suppliers can automatically send data about shipments to purchasing firms. The purchasing firms can use EDI to provide production and inventory requirements and payment data to suppliers. Figure 9-5 9.35 Essentials of Business Information Systems Chapter 9 E-Commerce: Digital Markets, Digital Goods Electronic Commerce Business-to-Business Electronic Commerce: New Business-to-Business Efficiencies and Relationships Efficiencies • Private industrial networks (private exchanges) • Large firm using extranet to link to its suppliers, distributors and other key business partners • Owned by buyer • Permits sharing of: • • Marketing • Production scheduling and inventory management • 9.36 Product design and development Unstructured communication (graphics and e-mail) Essentials of Business Information Systems Chapter 9 E-Commerce: Digital Markets, Digital Goods Electronic Commerce A Private Industrial Network Figure 9-6 A private industrial network, also known as a private exchange, links a firm to its suppliers, distributors, and other key business partners for efficient supply chain management and other collaborative commerce activities. 9.37 Essentials of Business Information Systems Chapter 9 E-Commerce: Digital Markets, Digital Goods Electronic Commerce Business-to-Business Electronic Commerce: New Business-to-Business Eff...
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This document was uploaded on 02/11/2014.

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