CS155b E Commerce Lecture 9 Feb 11 2003 Introduction to B2B Commerce Covisint and VeriSign Office Hours Canceled February 13 2003 Professor Feigenbaum s office hours are canceled this Thursday Feb 13 2003 The TA will hold usual office hours on Wednesday this week Please stop by if you have questions Electronic Commerce Definitions Electronic commerce is a set of technologies applications and business processes that link business consumers and communities For buying selling and delivering products and services For integrating and optimizing processes within and between businesses Definitions continued B2B Commerce Interactions relating to the purchase and sale of goods and services between businesses Estimated to be 70 of the US economy B2B electronic marketplaces B2Bs Systems of suppliers distributors customers and infrastructure and service providers that use the Internet for communications and transactions Business Models for Electronic Commerce Stores and malls Virtual communities Purchasing center Auctions and reverse auctions Value chain service provider Value chain integrator Collaboration and concurrent engineering Information brokerage Traditional EnterpriseCentric View Supply Chain Customers Enterprise Indirect Procurement Internet Business Models and Integration Requirements The Internet enables new models for marketplaces trading communities outsourcing open sourcing buying consortia supply chain integration and virtual enterprises that are fundamentally different Networks of Commerce Communities Assembly Outsourcing Distribution Supply Chain Indirect Procurement Enterprise Customers Markets Procurement Outsourcing Specific B2B Tasks Search Source Specify Negotiate and bid Order Receive goods and services Horizontal B2Bs Serve many different industries Product focus is broad Examples from early 2001 HotOffTheWire consumer goods for small and midsized retailers NTE National Transportation Exchange which sells unused trucking capacity to businesses equalFooting obtains volume discounts for small businesses through virtual aggregation Vertical B2Bs Serve a single industry Product focus is on the supply chain of one product category or on expertise and in depth content knowledge for one industry Examples from early 2001 Covisint automotive MetalSite BuyProduce Revenue Models Transaction related fees Per transaction Flat e g monthly yearly Value based Membership Subscription fees Value added service fees Logistics e g shipping Financing Advertising and Marketing Sales of Data and Information Participant Ownership Advantages Economies of scale Technical expertise and content knowledge Incentive to maintain high volume participation Disadvantages Barriers to niche player and new player entry Anti trust Issues Alternatives Ownership by technology firms Ownership by 3rd party investors e g venture capitalists Covisint Founded officially Dec 11 2000 by Ford General Motors Nissan and Renault Started originally as a vision group 12 months earlier B2B e business exchange allowing automotive original equipment manufacturers OEMs and suppliers to speed the flow of material through the supply chain If Covisint lives up to its promise consumers will eventually be able to custom configure a car from engine size to upholstery color and drive it home a week after placing their order The Exchange Virtual Project Workspace Desktop application that allows members to buy and sell automotive parts supplies and services Procurement Auctions Seller and Buyer auctions Catalogs Custom and Community Supply SupplyConnect Access to every step of the supply process Quality Advanced Quality Planner minimizes quality defects by web enabling management of quality process requirements and deliverables Revenue Model One time licensing fees for members Flat transaction fees Variable rate transaction fees Additional fees for auctions and catalogs Covisint hopes to tap into the 1 3 trillion of purchased goods and services in the global automotive industry eventually Unresolved Issues Initially there isn t transparent real time two way supply chain connections between the auto companies and all tiers of suppliers no real improvement Not all auto companies and suppliers will be signed up Auto companies are the only ones to set the rules for the exchange Rising tensions between software partners as Covisint delays final specs for application development Other similar exchanges are planned by other automotive companies VeriSign An Internet Trust Services Company Full name VeriSign Inc Employees 3100 Stock Price VRSN 7 72 as of close 2 10 03 52 week range 3 92 33 50 Earnings Per Share 0 34 3Q02 Provides Internet security certificates payment services and domain registration VeriSign History Opened headquarters in Mountain View CA in 4 1995 Founding mission Enable everyone everywhere to use the Internet with confidence Stratton Sclavos current CEO became president in 7 1995 IPO in 1 1998 at 3 50 share Merged with Network Solutions most prominent domain registrar 6 2000 VeriSign VRSN Stock Chart Source Quicken com 2 9 2003 All time high 2 00 Merger with NSI approved 6 00 S Stock Split VeriSign Quarterly Revenues Millions Source VeriSign Corporate Press Releases and SEC Filings VeriSign Services Domain Registration Network Solutions is the active registrar for 15 5 million domain names in com net org and tv Website Security Digital certificates e g to use SSL Installed base of 305 000 certificates Payment Services Credit card processing capability and other e commerce tools 19 000 active online merchants Global Registry Maintains top level domains and global databases for DNS lookup The directory contains over 30 million addresses and serves over 2 million lookups per day Second Written Homework Assignment Now available online http zoo cs yale edu classes cs155 spr03 hw2 pdf Due Tuesday Feb 18 2003 submitted online using the Classes server Don t wait to check that you are able to access the Classes server you have added CS155 to your course list See instructions at the beginning of the homework assignment Reading for February 13 2003 More important for Homework 2 Websites on Total Information Awareness TIA http www darpa mil iao TIASystems htm Read Program Objective on this page and follow links to Information Paper and FAQs http www epic org privacy profiling tia Read Introduction and Recent News Flashes and follow link to letter from the ACM More important for 2 18 2003 invited lecture Chapters 1 and 2 of