Identification And Identification And Tracking ToolsTracking Tools

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THE EAN SYSTEMTHE EAN SYSTEM(European Article (European Article

Numbering)Numbering) To maximize the benefits of electronic commerce. To maximize the benefits of electronic commerce.

It is also important to stream line information regarding It is also important to stream line information regarding the movement of goods that are being traded.the movement of goods that are being traded.

Goods need to be tracked and identified so as to Goods need to be tracked and identified so as to provide valuable information to the agencies involved.provide valuable information to the agencies involved.

This has been made possible through the integration of This has been made possible through the integration of EDI and identification/tracking tools.EDI and identification/tracking tools.

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The European Article Number (EAN) was The European Article Number (EAN) was established in 1977 as a result of standard established in 1977 as a result of standard article numbering system compatible with article numbering system compatible with UPC (Universal Product Code) UPC (Universal Product Code) system system which was set up in USA.which was set up in USA.

Steadily , EAN numbers began to be used Steadily , EAN numbers began to be used outside Europe and as a result EAN outside Europe and as a result EAN became the international article became the international article numbering association known as numbering association known as EAN EAN internationalinternational..

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Presently Presently one million member companies one million member companies in the in the world are using EAN system through an world are using EAN system through an international network of 96 member international network of 96 member organizations representing 98 countries.organizations representing 98 countries.

Numbering organizations Numbering organizations – provide full EAN system – provide full EAN system implementation support to member companies.implementation support to member companies.

Their main responsibilities are:-Their main responsibilities are:- Allocating NumbersAllocating Numbers Providing training Providing training on numbering, on numbering, Bar code and Bar code and

EDIEDI Supply information on the standards and the Supply information on the standards and the

evolution of the system.evolution of the system.44

EAN consist of following EAN consist of following elementselements

A system for numbering items - they are A system for numbering items - they are uniquely identifieduniquely identified. .

A system for representing A system for representing supplementary supplementary informationinformation such as batch number, date such as batch number, date and measurement.and measurement.

Standard bar codes Standard bar codes – readable by – readable by computerscomputers

Set of messages for EDI Set of messages for EDI transactions(EANCOM messages)transactions(EANCOM messages)

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EANCOMEANCOM Physical flow of goods using the bar codes Physical flow of goods using the bar codes

and business document flow using EDI - and business document flow using EDI - integrated with one another through the integrated with one another through the use of the EAN label. use of the EAN label.

EANCOM, a subset of EDIFACT msg – EANCOM, a subset of EDIFACT msg – implementation guideline of EDIFACT implementation guideline of EDIFACT standard msgs.standard msgs.

The information contained in the EAN label The information contained in the EAN label is transmitted using the EANCOM EDI is transmitted using the EANCOM EDI messages.messages.

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EANCOM CategoriesEANCOM Categories

Master Data Messages:Master Data Messages: Message Message containing data which does not containing data which does not change frequently.change frequently. This include name, This include name, address and production information.address and production information.

Commercial Transmission MessagesCommercial Transmission Messages: : This contain entire trade cycle like This contain entire trade cycle like quotation, purchase order and quotation, purchase order and transport logistics etc.transport logistics etc.

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Report and Planning messagesReport and Planning messages: : These messages include trading These messages include trading reports which allow user to develop reports which allow user to develop business plans. Acknowledgement business plans. Acknowledgement messages are example of it.messages are example of it.

General MessageGeneral Message: Data transmission : Data transmission for which there is no specific for which there is no specific standard message.standard message.

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Article NumberingArticle Numbering

The EAN numbering system guarantees The EAN numbering system guarantees unique and unambiguous unique and unambiguous identification of articles. identification of articles.

These numbers can be used by These numbers can be used by manufacturer, exporter, importer, manufacturer, exporter, importer, wholesaler or retailer to communicate wholesaler or retailer to communicate regarding the goods or services they regarding the goods or services they trade in. trade in.

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EAN numbers are:EAN numbers are:

EAN numbers are unique.EAN numbers are unique. Non-significant i.e the EAN number Non-significant i.e the EAN number

itself does not contain any product itself does not contain any product information. It is the key to access a information. It is the key to access a database.database.

Multi-industry and international.Multi-industry and international. Secure, a check digit in every number Secure, a check digit in every number

guarantees secure data capture.guarantees secure data capture.

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EAN number structuresEAN number structures EAN numbers are structured with 14, 13 or EAN numbers are structured with 14, 13 or

8 digits as EAN 14, EAN-13 or EAN 8 as 8 digits as EAN 14, EAN-13 or EAN 8 as shown below:shown below:

EAN-14EAN-14 VV123456789012C123456789012C EAN-13EAN-13 0123456789012C0123456789012C EAN-8EAN-8 0000001234567C0000001234567C

Here V is Here V is logistic variant logistic variant assigned by assigned by manufacturer for trade items and it varies manufacturer for trade items and it varies between 1 and 8 . between 1 and 8 . CC here is the check digit here is the check digit which serves to check that those which serves to check that those preceding have been correctly captured.preceding have been correctly captured.

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First three digits excluding V and C First three digits excluding V and C digit contains digit contains EAN prefix PPP EAN prefix PPP allocated by EAN international to any allocated by EAN international to any numbering organization and rest numbering organization and rest 9 9 digits contain company prefix and digits contain company prefix and item numbers.item numbers.

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BAR codesBAR codes EAN numbers which are used for EAN numbers which are used for

identifying items can be represented by identifying items can be represented by the bar codes.the bar codes.

Bar codes allow numbers to be encoded Bar codes allow numbers to be encoded in machine readable form.in machine readable form.

The data can be automatically captured The data can be automatically captured quickly and securely. The numeric value quickly and securely. The numeric value of the code is printed beneath the bar of the code is printed beneath the bar code symbol which can be read in code symbol which can be read in omnidirectionally by the scanner.omnidirectionally by the scanner.

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UCC/EAN-128 Bar code UCC/EAN-128 Bar code comprisescomprises

A light MarginA light Margin Start characters A,B or CStart characters A,B or C A FNC 1(Function 1 Character)A FNC 1(Function 1 Character) Data (Application Identifier +Data field)Data (Application Identifier +Data field) Symbol Check Character.Symbol Check Character. A stop CharacterA stop Character A light MarginA light Margin

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Issues of concern with Issues of concern with

RobustnessRobustness ReliabilityReliability BandwidthBandwidth securitysecurity

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RobustnessRobustness

Delivery of transaction should be Delivery of transaction should be guaranteed – i.e. internet must be guaranteed – i.e. internet must be robustrobust

Document missing – unacceptableDocument missing – unacceptable Dynamic routing – ensures packets Dynamic routing – ensures packets

reach destination.reach destination.

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ReliabilityReliability Commercial world demand - time of Commercial world demand - time of

deliverydelivery Some of the proposed initiatives for Some of the proposed initiatives for

reliable transmissionreliable transmission Special authentication/non-repudiation Special authentication/non-repudiation

programs would fetch delivery & receipt programs would fetch delivery & receipt reports.reports.

Tools exist for diagnosing problems across Tools exist for diagnosing problems across the interconnected system.the interconnected system.

Redundant mail servers at separate locations Redundant mail servers at separate locations are recommended.are recommended.

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bandwidthbandwidth Internet connection –b growing day by Internet connection –b growing day by

day.day. More people getting hooked to net.More people getting hooked to net. Result exponentially increasing traffic.Result exponentially increasing traffic. Internet getting chocked.Internet getting chocked. Nations are moving in the directions of Nations are moving in the directions of

setting up national information setting up national information infrastructure(NII), high bandwidth infrastructure(NII), high bandwidth information highways to link with (GII)information highways to link with (GII)

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securitysecurity

Hackers attacksHackers attacks Secure electronic transaction (SET) Secure electronic transaction (SET)

protocol – for credit card transaction protocol – for credit card transaction fully secure.fully secure.

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Types of E-CommerceTypes of E-Commerce B2B (seller and buyer are business entities)B2B (seller and buyer are business entities)

B2C (seller is business; buyer is consumer)B2C (seller is business; buyer is consumer)

Other typesOther types

C2C (seller and buyer are consumers; not C2C (seller and buyer are consumers; not covered in our outline; eBay)covered in our outline; eBay)

G2C, G2B, G2GG2C, G2B, G2G

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Main Ideas in B2B E-CommerceMain Ideas in B2B E-Commerce Buying and selling in B2BBuying and selling in B2B

Auctions support dynamic pricing (bidding)Auctions support dynamic pricing (bidding) Exchanges support dynamic and negotiated Exchanges support dynamic and negotiated

pricesprices Supporting technologies for buying/sellingSupporting technologies for buying/selling

VAN EDI and Web enabled EDI VAN EDI and Web enabled EDI Electronic funds transferElectronic funds transfer Digital signature and digital certificatesDigital signature and digital certificates

Activities other than buying and sellingActivities other than buying and selling AlliancesAlliances Sharing of supply chain informationSharing of supply chain information Sharing of product designs, logistics, Sharing of product designs, logistics,

forecastsforecasts2121

Size of the B2B MarketSize of the B2B Market

By 2004 market may reach $10 trillion; By 2004 market may reach $10 trillion; much larger than B2C marketmuch larger than B2C market

In the US 40 percent of all B2B transactions In the US 40 percent of all B2B transactions are done on-lineare done on-line

B2B commerce is about 10 times as great as B2B commerce is about 10 times as great as B2C commerceB2C commerce

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Classifying Auctions/Exchanges Classifying Auctions/Exchanges OverviewOverview

Public or privatePublic or private Auctions tend to be public; exchanges Auctions tend to be public; exchanges

tend to be privatetend to be private Number of participantsNumber of participants

Sell side one sellerSell side one seller Buy side one buyer (GE or ChoiceBuy)Buy side one buyer (GE or ChoiceBuy) Many sellers and many buyers Many sellers and many buyers

(ChemConnect)(ChemConnect) OwnershipOwnership

Industry giantIndustry giant Neutral third partyNeutral third party ConsortiumConsortium

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Sell-Side with One SellerSell-Side with One Seller

Sellers may be click-and-mortar Sellers may be click-and-mortar manufacturer or intermediariesmanufacturer or intermediaries

Use the Internet to sell through electronic Use the Internet to sell through electronic catalogscatalogs Cisco, Dell, StaplesCisco, Dell, Staples Separate pages and catalogs for major Separate pages and catalogs for major

buyersbuyers

Boeing sponsors a website for which airlines Boeing sponsors a website for which airlines can find maintenance and parts can find maintenance and parts

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Buy-Side with One BuyerBuy-Side with One Buyer

This model arises from the procurement needs This model arises from the procurement needs of firms where procurement involves the of firms where procurement involves the purchase of goods and services needed to purchase of goods and services needed to accomplish the mission of the businessaccomplish the mission of the business

In this model a buyer opens an electronic In this model a buyer opens an electronic market on its own server and invites potential market on its own server and invites potential suppliers to bid on the items the buyer needs. suppliers to bid on the items the buyer needs. The invitation is called a The invitation is called a request for quoterequest for quote (RFQ). This process is called the (RFQ). This process is called the reverse reverse auctionauction of bidding mode. of bidding mode.

GE was one of the first to do thisGE was one of the first to do this Online directories exist for suppliers that list Online directories exist for suppliers that list

open RFQs open RFQs

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Exchanges with Many Buyers and Exchanges with Many Buyers and SellersSellers

In these exchanges buyers and sellers may In these exchanges buyers and sellers may be interested in both long term contracts or be interested in both long term contracts or one-time transactions at prevailing prices.one-time transactions at prevailing prices.

ExamplesExamples ChemConnect Alibaba.com Converge.com (spot market for electric, (spot market for electric,

networking and computer componentsnetworking and computer components

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Classifying Exchanges/Auctions Classifying Exchanges/Auctions (cont) Ownership of Exchanges(cont) Ownership of Exchanges

Industry giantIndustry giant IBM established an exchange for selling IBM established an exchange for selling

patents (delphion.com)patents (delphion.com) Neutral entrepreneurNeutral entrepreneur

ChemConnect.comChemConnect.com The consortia or co-opThe consortia or co-op

Covisint (automobile)Covisint (automobile) Orbitz (airlines)Orbitz (airlines)

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Services Provided by Services Provided by Intermediaries in an Intermediaries in an Auction/ExchangeAuction/Exchange

Services for buyersServices for buyers Automate buying, contract management, Automate buying, contract management,

purchase orders, requisitions, business purchase orders, requisitions, business rules enforcement, and paymentrules enforcement, and payment

Services for sellersServices for sellers Catalog creation and content Catalog creation and content

management, order management, management, order management, invoicing, and settlementinvoicing, and settlement

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Other B2B E-commerce Practices:Other B2B E-commerce Practices:Alliances and Sharing InformationAlliances and Sharing Information AlliancesAlliances

Online business alliances of airlines such as Online business alliances of airlines such as Orbitz (Orbitz (www.orbitz.com) and Star Alliance ) and Star Alliance

Covisint is an alliance of major automobile Covisint is an alliance of major automobile makersmakers

In real estate (MLS)In real estate (MLS) Sharing of information (collaborative Sharing of information (collaborative

commerce)commerce) Extranet ideaExtranet idea Sharing of supply chain informationSharing of supply chain information Joint designJoint design

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Technologies that Support B2BTechnologies that Support B2B

VAN and Web-enabled EDIVAN and Web-enabled EDI

Electronic funds transfer (EFT)Electronic funds transfer (EFT)

Digital signatures and certificatesDigital signatures and certificates Ways to authenticate online messages similar to Ways to authenticate online messages similar to

physical signatures on paper.physical signatures on paper.

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Major Benefits of B2B to BusinessMajor Benefits of B2B to Business

Reduction of paper and administrative costsReduction of paper and administrative costs Reduces cycle time (time compression)Reduces cycle time (time compression) Reduces search costs and time for buyers Reduces search costs and time for buyers

and sellersand sellers Reduces inventory levels and costsReduces inventory levels and costs Reduction in errors and/or improved quality Reduction in errors and/or improved quality

of serviceof service Enables JIT and production flexibilityEnables JIT and production flexibility Expands the marketplaceExpands the marketplace

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An Overview of B2C E-commerce An Overview of B2C E-commerce PracticesPractices

Growth of B2C (see graph in textbook); over Growth of B2C (see graph in textbook); over 50% of US is online50% of US is online

E-tail revenues doubled from 2002 to 2005E-tail revenues doubled from 2002 to 2005 Types of e-retailers (e-tailers)Types of e-retailers (e-tailers)

Pure-play versus bricks-and-mortarPure-play versus bricks-and-mortar Clicks-and-bricksClicks-and-bricks Catalogue retailersCatalogue retailers

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E-tailingE-tailing Fulfillment concept (picking, packing, and Fulfillment concept (picking, packing, and

shippingshipping Advantages to the sellerAdvantages to the seller

Lower inventory by routing orders Lower inventory by routing orders directly to manufacturerdirectly to manufacturer

Lower labor costs (no registers)Lower labor costs (no registers) Lower building costsLower building costs

Advantages to the buyerAdvantages to the buyer Convenience and time savingsConvenience and time savings Search mechanisms and comparison Search mechanisms and comparison

shoppingshopping Selection and product reviewsSelection and product reviews

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E-tailing PracticesE-tailing Practices Consumer profiling and one-to-one Consumer profiling and one-to-one

marketing; both concepts relate to knowing marketing; both concepts relate to knowing the consumer better so that the business the consumer better so that the business can serve consumers more effectively at can serve consumers more effectively at lower cost to the businesslower cost to the business Cookies, clickstream trackingCookies, clickstream tracking Buying and selling information from third Buying and selling information from third

partiesparties Affiliate programsAffiliate programs

Location of the link versus target of linkLocation of the link versus target of link Compensation schemesCompensation schemes

Cooperation among competitorsCooperation among competitors Amazon exampleAmazon example

Conversion ratesConversion rates Pure-play beats clicks and bricks Pure-play beats clicks and bricks

companiescompanies Mass-customizationMass-customization Reverse auctions (Reverse auctions (Priceline.com))

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Digital Products and ServicesDigital Products and Services

Digital products include products like Digital products include products like software, photographs, music, movies, or software, photographs, music, movies, or text that can be delivered over the text that can be delivered over the InternetInternet regards.com (greeting cards) and regards.com (greeting cards) and

photodisc.com (photographs) photodisc.com (photographs) Why are these products special?Why are these products special?

Digital servicesDigital services Application service providers (renting Application service providers (renting

software)software) Renting storage space (rackspace.com)Renting storage space (rackspace.com) Online banking (direct.com)Online banking (direct.com)

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Pure-play Business ModelsPure-play Business Models

Virtual storefront:Virtual storefront: Sells goods or services Sells goods or services online (online (Amazon.com))

Information broker:Information broker: Provides information on Provides information on products or services (products or services (Edmunds.com))

Transaction broker:Transaction broker: Provides online transaction Provides online transaction facility (facility (eTrade.com, , Expedia.com) )

Online marketplace:Online marketplace: Provides a trading Provides a trading platform for individuals and firms (platform for individuals and firms (eBay.com, , alibaba.com))

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More Pure-play Business ModelsMore Pure-play Business Models

Content provider:Content provider: Creates revenue by providing Creates revenue by providing content (content (WSJ.com, , TheStreet.com, , mp3.com))

Online service provider:Online service provider: Provides online services, Provides online services, including search service. (including search service. (Google.com, , Xdrive.com))

Virtual community:Virtual community: Provides an online community Provides an online community to focused groups (to focused groups (Friendster.com, , iVillage.com) )

Portal: Portal: Provides initial point of entry to Web, Provides initial point of entry to Web, specialized content, services (specialized content, services (Yahoo.com, , MSN.com))

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M-CommerceM-Commerce M-commerce concerns the ability of mobile M-commerce concerns the ability of mobile

devices to reach the Internet and the ability devices to reach the Internet and the ability of merchants to locate a mobile device.of merchants to locate a mobile device.

Mobile devices must have GPS capabilityMobile devices must have GPS capability Competitive position of US relative to Competitive position of US relative to

Japan/KoreaJapan/Korea Consumer servicesConsumer services

Information based services – instant Information based services – instant messaging, email, search for informationmessaging, email, search for information

Transaction based services – purchase Transaction based services – purchase stocks, concert tickets, music, or search for stocks, concert tickets, music, or search for priceprice

Location based services –anticipate what Location based services –anticipate what you want based on your location or data you want based on your location or data profile (beam coupons for nearby profile (beam coupons for nearby restaurants)restaurants)

Business servicesBusiness services 3838

Practices (rules) that Attract and Practices (rules) that Attract and Retain Customers (both B2B and Retain Customers (both B2B and

B2C)B2C) Use of affiliate programs to target the right Use of affiliate programs to target the right

customer (links with related sites)customer (links with related sites) Use cookies and CRM software to analyze Use cookies and CRM software to analyze

customer behavior customer behavior Use CRM software to develop customer Use CRM software to develop customer

profiles and personalize shoppingprofiles and personalize shopping Shorten the business cycle; fill orders Shorten the business cycle; fill orders

quicklyquickly Empower customers to help themselves; Empower customers to help themselves;

see text for examplessee text for examples Be proactive; capture the customer’s email Be proactive; capture the customer’s email

address and use it to bring the customer address and use it to bring the customer back; de-commoditizeback; de-commoditize

E-commerce is every commerceE-commerce is every commerce3939

Ethical and Societal IssuesEthical and Societal Issues

Online annoyancesOnline annoyances SpammingSpamming

Advertisers viewpointAdvertisers viewpoint Consumers viewpointConsumers viewpoint

Pop-up windowsPop-up windows Adware and spywareAdware and spyware PhishingPhishing

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