B2B and B2C E-Commerce Systems
Running head: B2B & B2C ECOMMERCE SYSTEMS
B2B & B2C Ecommerce Systems
By: Troy JohnsonArgosy UniversityMSM programMicrosoft uses e-business to improve supply chains in their B2B and B2C operations. E-business is an integral part of supply chain optimization because it makes the purchasing of goods and services faster and less expensive. The dimensions of information integration, the synchronization of planning and the coordination of workflow are all key elements in the application of eBusiness to supply chain management." (Wall, 2007) Wallmart uses e-business to track inventories instantly through point of sale software. This data is computed and organized so orders can be made to fill inventories. Essentially e-business can provide an edge in predicting supply and demand for a given product. Microsoft produces database software that they sell to businesses for high level websites and they install complicated encrypted code that requires users purchase a license for the product. Microsoft uses its own supply chain management software to predict demand for its windows product. Microsoft has a large stake in the PC market in that they have the lion's share of each operating system. Rather than sending a cd rom for each new PC sold it uses a software license agreement which gives the computer companies the rights to pre install windows on their units. This process can reduce costs for Microsoft because it no longer needs to deal with the infrastructure needed to provide and distribute cd roms.In years past tracking shipments and orders was very difficult, but with the advent of e-business companies have improved every business metric available. The importance of implementing effective e-business strategies grows exponentially as companies grow. Even a small seasonal rental advertising firm can benefit greatly from developing information systems to increase order efficiency. For large corporations implementing e-business systems investments may improve inventory turnover by a few percentage points. A few percentage points translate into millions of dollars when working on the scale of a large corporation. "The common thread running through each of these applications is that they typically deal with the well-established value chain or supply chain. They are concerned with improving the execution of existing business transactions and communication." (Wall, 2007)Most of Microsoft's core products could be considered B2B, but they have used their e-business structure to promote their B2C e-commerce business. Their online portals Bing and MSN offer free services like MSN search and hotmail and this traffic is then monetized by running highly targeted advertisements on their homepage and search engine results pages. Their entertainment division is arguably the closest they get to direct business to customer sales. Their Xbox product offers gaming that works well using a standard television and has internet capabilities. This internet access enables users to link up all across the nation for large tournaments, which is terrific for brand awareness. The Microsoft Zoon product creates even more streams of revenue through digital music and media files.Bill Gates and his management team are experts in e-business and to remain business leaders they should update systems in all departments. This systems update includes the human resources department, facilities management, and any purchasing portals B2B or B2C. All divisions may benefit from increased use of e-business and supply chain management software.Key e-business terms:- Supply Chain optimization* Any system designed to improve supply and demand prediction- Electronic order processing * Reduces costs associated with purchasing departments.- E-commerce * Direct B2C sales using Google checkout or PayPal credit card processing services- RFI * Radio frequency ID used to track orders electronically instead of unloading entire crate to inspect contents.- Cookie * A file stored on website servers to analyze web traffic patterns and used for storing payment details for quick use by customer.- Open technology standards * Ensure smooth communication between a series of companies within a supply chain.- Iphone aps. * open source software designed to let anyone create useful applications. Open source software will spur innovationReferences: Wall, B.1Jagdev, H.2 HJagdev@manchester.ac.ukBrowne, J.1SA review of eBusiness and digital business - applications, models and trends.Production Planning & Control; Apr 2007, Vol. 18 Issue 3, p239-260, 22p. B2B and B2C E-Commerce SystemsBy: Troy Johnson Filing For A Bankruptcy Because Of Medical Bills Home Based Business Advice Now Model Houses Building Business Five Hand-picked Tips For Beginners To Start Home Business Online Creating Wealth From Home By Doing Business Online My 10 Best Home Based Business Ideas Every 11 Seconds Someone Joins A Home Based Business Best Business Ideas for Home - Easy Ways to Make Money Online Perfect Home Based Business Ventures for Everyone Online Home Business Tips for Beginners Home Based Business Opportunities Are Easy To Make Money With For 3 Main Reasons Improve Your Life With Your Own Online Home Business Candle Making At Home Business