Mindanao State University - Iligan Institute of TechnologySchool of Computer Studies

Department of Information Technology

IT 164: Principles of E-CommerceRequirement 3: B2B Exchanges

Submitted by:Cepada, Michelle O.

Cortez, Janice E.Herrera, Rhoda Pearl S.Magsacay, Niel Jeanie M.

Solano, Analou E.

Submitted to:PROF. ALOHA MAY HUFANA-AMBE

IT Department, SCS, MSU-IIT

Executive Summary

This document provides conceptual analyses and conversed about the B2B range of alternatives for the potential contribution available for Interpace-Gaisano Computer Systems, a computer software-hardware store lined industry. Assessed are the viable descriptions of exchanges presented that are evaluated carefully by the key aspects or criteria the industry should consider.

Site Analysis offered arguments applicable for the company to consider. For efficient and effective B2B exchanges, accessible sites offered could be reliable enough for contemplation as what the company needs at the present state of affairs.

Elaborated by discussions, the paper presented modifications and proposal for Interpace-Gaisano Computer Systems.

Background

Interpace-Gaisano Computer Systems is a growing hardware and software supplier of the Gaisano chain of Malls. It is owned by Neopace, Inc. which also runs Gaisano Mall branches in Mindanao. There are 12 Interpace-Gaisano branches located in different areas in the Philippines.

Other companies involved:

Intel Genx Samsung AOC LG

Xeon Apacer Seagate BenQ Windows

Asus Kingston Western Digital Acer Linksys

The Role of Exchanges

Exchanges were one of the first models to emerge in the B2B space, particularly for commodity products and services in which global market, distribution, and support structures already existed. Exchanges are two-sided marketplaces in which buyers and suppliers negotiate prices, usually with a bid-and-ask system, and in which prices move both up and down. The prices of perishable items such as food, or intangibles such as electric power, are sometimes volatile, particularly when a true market price is hard to define; however, an e-Marketplace provides a dynamic bid environment in which real-time pricing is always available.

B2B Exchanges for Hardware and Software Supplier

1. AppNet SolutionsAn Information technology provider of services and business solutions to a wide range of customers, with client relationships in the academic and government sectors, business and financial services, healthcare, and communications industries.appnetsolutions.com

2. Business One StopA website designed to make starting a business and running a business an uncomplicated, streamlined process. Provides everything a business may need.bostop.com

3. Intel Business ExchangeA software and partner directory of Intel Technology. Connects with vendors optimizing software and solutions for Intel products and services.ibx.intel.com

4. Do Trade EasyA free-to-join business directory where buyers and suppliers from around the world list the goods and services they want to buy and sell.dotradeeasy.com

5. Software N HardwareA B2B Market place & In-depth IT Knowledge Center Pioneered by a Team of People with background in International trade, Research and information service, Software, Content development, Editing, Website design, Marketing, etc.softwarenhardware.com

6. B2B Trade Portal Find qualified exporters, suppliers & manufacturers worldwide for free.www.mfgtrade.com

7. e2open Provides a global marketplace for computer companies to plan, collaborate, manage and execute supply chain transactions over the Internet.www.e2open.com

Key aspects or criteria the company should consider in evaluating the alternatives:

Regardless of the function the exchange provides, exchanges are service providers. Thus, the group sets these criteria to evaluate the exchanges to outsource some internal function, with the hope of gaining some financial benefit for Gaisano-Interpace Computer Systems. Therefore, before subscribing to any exchange, the organization should do a robust analysis.

There are a number of factors to evaluate when examining a particular exchange:

Target Market. Typically, large companies have sophisticated IT staffs that can manage much of the technical details involved with establishing a communications link with the exchange and managing that connection over time. SMEs, however, may lack the technical resources to setup and configure the necessary software and hardware to communicate with an exchange. They will need an exchange that is oriented around providing these types of services.

1. Focus. Horizontally focused exchanges will attempt to provide generic services, such as credit risk management, bill payment and presentation, or secure communications. In essence, horizontally focused exchanges are forms of application service providers (ASPs) offering mediated services that all companies might need. Vertically focused exchanges are oriented around solving a particular problem within a vertical industry, such as utilities, construction, or manufacturing.

2. Purpose. Exchange type is inextricably tied to exchange purpose. Typically, this category should provide some value-added service to an already existing function.

3. Profitability. When evaluating an exchange, it is important to understand how the exchange intends to generate revenue. The market has clearly shifted from rewarding technology innovation to rewarding profitability. Those B2B exchanges that survive and thrive will be based on a sustainable business model that generates revenue through their value-added services.

4. Community Size Opportunity. An exchange that serves a community of one, or few, will most likely not survive very long. It is important to be able to analyze the opportunity for community growth, as well as its current size. However, obtaining this data is going to require more resources than a simple topological examination.

5. Management Team. A very important component of the exchange is the experience of the team leading the endeavor. Organizations should remember the basics when performing any due diligence.

6. Implementation. Before a company commits resources to an exchange, it needs to feel confident that the exchange has a solid and extensible architecture that will grow and change with the needs of the market it is serving. The exchange should provide a level of security with which the trading partner is comfortable.

Site Analysis

1. AppNet Solutions appnetsolutions.com

Target Market. Their targets are businesses with client relationships in the academic and government sectors, business and financial services, healthcare, and communications industries.

Focus. The exchange is vertically focused on providing network integration services for all major brands of hardware and software.

Purpose. Presents services specific areas of expertise that include:

Server Platforms: Compaq, IBM, and HP Desktop Platforms: Compaq, Dell, Gateway, and IBM and compatible Server Operating Systems: Novell Netware, Microsoft Windows Desktop Operating Systems: Netware, Windows, IBM OS/2 Management Platforms: ZenWorks, Managewise, SMS Database Platforms: Microsoft SQL Server and Access Virus Protection: Symantec, McAfee Remote Access: PCAnywhere, Citrix Metaframe, Novell VPN Groupware/Email: Novell Groupwise and Microsoft Exchange Backup Solutions: ArcServe and Backup Exec Infrastructure: Cisco, BayNetworks, 3com, Linksys VPN/Firewalls: Cisco, Checkpoint, BorderManager Web Developement: Intranets, ASP, HTML, VBScript, JavaScript, CSS,

ADO, COM, IIS

Profitability. AppNet Solutions generates margins by providing most major brands of computer hardware online and delivers services and solutions focused on each client’s specific needs.

Community Size Opportunity. AppNet Solutions have a very big community sized opportunity. Ranging from leading computer brands to wide-range certification areas like certification expertise for Compaq, Novell, Microsoft, IBM, Citrix and Cisco.

Management Team. AppNet Solutions have great IT partners; Novell, Cisco Systems, 3com, Seagate, Hewlett Packard, Intel, Nortel Networks and Symantec.

Implementation. Gaisano-Interpace could effectively use the services of AppNet Solutions since the firm has twelve operating branches in the Philippines, they

could employ the Business Intelligence AppNet Solutions offer. Business Intelligence is the the gathering of information about the environmental elements that interact with the firm.

2. DoTradeEasy dotradeeasy.com

Target Market. The targets are the buyers and suppliers that find new and continuous global trading partners for the business growing market.

Focus. This exchange is horizontally focused on providing best communications of trading partners in the industry. They acquire new customers for the firm’s services and source out suppliers that offers reliable charges of the products.

Purpose. DoTradeEasy creates an environment of fast growing communication through consistent listings of the business’s services and products for free. They offer express browsing for industries and companies that may supply the firm’s needs.

Profitability. This exchange is competitive in terms of generating profits for the company. Aside from free advertisements, the exchange provides direct browsing of other industries where the business can tailor proposals to potential customers’ precise requirements.

Community Sized Opportunity. The exchange has 35 industries of company directories. Over 2000 companies are involved in the transactions of buying and supplying.

Management Team. DoTradeEasy consists of business ventures, engineers and Technicians who are experts and having the knowledge and commitment of the industry.

Implementation. This exchange creates a great environment of networking and communication for the suppliers and buyers of the firm. It improves visibility, collaboration and control across multiple rows of customers and supplier in the world.

3. Business One Stop bostop.com

Target Market. The exchange targets are the starting and fast growing enterprises of any ventures. Local and global industries which could either be large scale enterprise or small medium-sized enterprise.

Focus. The exchange is vertically focused on providing portals to the business. It is not a lender and is not a provider of any financial products. Rather, this website provides links to third party websites and also provides the business customer with price comparisons to competitive pricing.

Purpose. Business One Stop presents a clean atmosphere of growing businesses and its process. It is paralleled with articles and advertisements from different third party websites.

Profitability. This exchange engenders revenue by their services which include web services and advertising services. They also open business funding helping those SMEs to choose financial options. They also endow with One Stop Travel Center. A sitemap for easy access available enterprises.

Community Sized Opportunity. The exchange has a large scale of community that include computer associates, business and financial institutions like AmericaOneFundinf.com, Lending Universe, Small Business Administration (SBA) Loans and Merchant Cash Group. It also partners with structure in Web Hosting, affiliate Networks and Travel institutes.

Management Team. Business One Stop is owned by Smart Start LLC, a group of influential enterprises with IT partners consigned with the communication structure used by the exchange. Interpace-Gaisano Computer Systems could assure the privacy of its information. Bostop uses a security structure of usage tracking, cookies and use of information.

Implementation. Business One Stop provides gateways to third party business also exercising B2B Commerce. It serves as a communication contrivance for businesses to gain customers and suppliers. Bostop and its principals develops linkages to an enterprises with high versatility of using different metrics in its operations like web hosting, business loans and travel centers.

RECOMMENDATIONS

Interpace-Gaisano Computer Systems having been reflected as a growing Small-Medium Enterprise should consider the use of alternative exchanges in this fast evolving E-Business world. Exchanges are targeted to buyers, sellers, and market makers of goods and services within the information technology (IT) industry, with the goal of increasing liquidity, lowering prices, and reducing workflow costs. Interpace-Gaisano should assess the maintenance, exchange operations implemented in the terms and conditions, privacy and confidentiality of the use of information and technical resources. Interpace-Gaisano may be suitable for the B2B operations of Appnet Solutions for both have parallel correlation with the same big companies like Intel Technology and Seagate. Appnet Solutions could facilitate with the technical resources of Interpace-Gaisano. Conversely, Business One Stop is still in the process of creating its trademark so Interpace-Gaisano does not need to enter into this exchange. Moreover, a good B2B Exchange could prosper with the Do Easy Trade exchange, Interpace-Gaisano could make use of the free advertisements, the vast scope of industry already established and the great environment of communication that may increase the portals of Interpace-Gaisano.

References

Lou Celi. The Economist Intelligence Unit 2007. “Megatrends in B2B Marketing”. The Global Marketing Director. New York NY. 2007.

Raisch, Warren D. The E-Market Place: Strategies for Success in B2B Ecommerce. McGraw-Hill Professional. 2001.

Morgenthal, JP. “Which B2B Exchange is Right for You” February 25, 2001. http://www.softwaremag.com/archive/2001feb/SelectingB2BExchange.html

“The Practical Guide of Selling Efficiently on any B2B Exchange”. http//:www.wmarketer.com/

Team Member Roles and Contributions

Cepada, Michelle O.

Researcher, documented the background and minutes of the meeting

Cortez, Janice E.

Researcher, editor, contributed to the available exchanges and criteria

Herrera, Rhoda Pearl S.

Researcher, editor, documented aspects for evaluation and site analysis

Magsacay, Niel Jeanie M.

Researcher, contributed to the recommendations and financial support

Sonalano, Analou E.

Team leader, contributed her ideas to site analysis and financial support

MINUTES OF MEETING

Date of meeting: January 9, 2010

Time: 2 pm – 3pm

Venue:CBA 2nd floor

Agenda:

Discussion of what company to choose and recognition of the industry it is in lined to

Discussion of what further researches should be made for the B2B exchange Assignment of tasks for group members

Discussion:

The group started to propose different growing industries today. Proposed were clothing and textiles industry, machinery industry and merchandising industry. The group researched came up with Gaisano-Interpace, a growing hardware and software supplier Gaisano company.

The group added researches on the background and alternatives available for the decided company. The group finally assigned tasks to each member.

Date of meeting: January 10, 2010

Time: 10:00 am – 7:00 pm

Venue: SCS vicinity

Agenda:

Research additional data needed for Requirement 3 Attaching of documents the members were assigned to

Discussion:

The group put together the available documents necessary for the requirement. The group didn’t come up with the viable final paper of the requirement so more inquiries are to be made.