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Lecture 7 e-Business Systems

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30/10/2019
Remember: Formal, academic/ professional report
Final thoughts-ISO Report
Kendall
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•
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Use headings and sub-headings
Readability is key
Support with examples, sources, graphics and discussion
Cite sources in-text
Reference list at end
Avoid writing how you speak- use third person/passive voice
Stick to word count
Overview of paper, structure-your focus
SWOT and PEST(EL)/other
graphics
• Write out long analysis
and put it into an
appendix at the end of
the document (so you
don’t go over the word
count)
• Bullet points in diagram of
short analysis
• Any necessary
explanation goes
underneath the diagram
Make sure you do something for all 10
criteria- if you miss one you lose marks
• Abstract- what you did, how, findings
• Introduction-context, definitions,
overview, structure of paper
• depth and detail of your report
• technical accuracy of descriptions and
diagrams (company structure, inputprocess-output, strategic grid, IPO)
• quality and detail of environmental
analysis (SWOT, PESTEL, others)
• accuracy of analysis of role of technology
(strategic grid)
• logic, structure and organisation of your
report
• conclusion
• range, currency and appropriateness of
your sources and references
• accuracy of references in the body of the
text and consistency with list at the end
Company background
Diagram of structure
Culture-Use of technology for systems
Role of tech-strategic grid-strategic? Drive growth?
Core business-specific focus on security/sales/service/HR
IPO to support
Specific technology chosen; brief description with analysis
supported by SWOT &PEST & other tools / frameworks
Summary of main findings- looking forward
challenges/suggestions
APA (sixth edition)-author/date in text citations and
alphabetical list at end.
MUST be a selection of reliable/academic sources but can
include some company docs
Supplemental/extra info- not directly relevant to supporting
discussion; if it is relevant, should be in body of report
This week’s reading
e-Business Systems
Lecture seven
Week eight
• Pages 350-356 of Stair et al (2018) on B2B and
m-commerce; test yourself on p356
• Pages 34-35 is a brief but useful introduction to
the value chain
• Pages 253-254 on the supply chain
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To-day’s lecture is about:
• Definitions of B2B and B2C
• Partnerships
• EDI – the major B2B system (paperless trading)
Nature of supply chains
The complexity of products requires the organisations that
produce them to collaborate in production supply chains or
business service networks, where each partner in a chain or
network contributes to part of the complex product (Klein
and Polymenakou, 2006)
B2B
B2C
• Transactions between
businesses
• Characterised by highvolume, automated
transactions that occur
repeatedly
• Speeded-up trade cycle
• Transactions between
businesses and their
customers (retail
consumers)
• 24/7 ordering and
shopping
• Intangibles such as music
downloads, software
• Account-based services,
eg, banks
Fig 1: The supply chain life cycle
Commit
Schedule
Make
Deliver
Fig 2:Typical Supply Chain for a Manufacturing Company
Partnerships across supply chains
Company
• The competitive unit in many industries has changed from
an individual firm to a whole supply chain
• Managing resources effectively across partner firms has
become paramount for the success of a supply chain
• The role of information technology (IT) in improving supply
chains lies in facilitating inter-organizational transactions
and collaboration
(Qu, Pinsonneault, Tomiuk, Wang, & Liu, 2015).
Upstream
Downstream
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Partnerships across supply chains
• Customer and supplier develop such a close and longterm information-rich relationship that the two work
together as partners
• Contrasts with the traditional adversarial relationship
between buyer and seller
• The technology can be used to stabilise relationships
within the supply chain, to lock-in customers and lock-out
competitors
Electronic Data Interchange (EDI) or paperless trading
Inter-organisational systems (IOS)
• IOS consist of boundary spanning technologies that link
suppliers and buyers
• They involve value added network-based electronic data
interchange, internet-based EDI, extranets, electronic
exchange in SCM and other decision support systems
• They offer supply chain partners the ability to effectively
meet end-user requirements by rapidly transferring
information and products back and forth in the supply
chain
(Liang, 2015)
Fig 3: Traditional vs EDI trading
“the transfer of structured data, by agreed message
standards, from one computer system to another, by
electronic means” (IDEA, cited in Whiteley, 2013, p.81)
“the electronic exchange of business transaction documents
over the internet and other networks, between supply chain
trading partners (organisations and their customers and
suppliers)” (O’Brien and Marakas, 2011, p.368)
Fig 4: Paper-based structured data example (Whiteley, 2013, p. 82)
ORDER
From:
Business
documents use
• standard format
• codes
To:
Office Services Ltd
123 London Road
Sheffield
S2 4HT
Address Code: 6464326
Sheffield Stationery
110 Glossop Road
Sheffield
S10 2JT
Address Code: 1149646
Examples include
• order
• invoice
Order Ref: AC6464
Order Date: 15.03.2013
Qty
20
40
Description
Product Code
Stapler: metal half strip
Staples: 5000 26/6
end of order
50023084156932
50023084340447
EDI standards for coding business documents
• EDIFACT (EDI for Administration Commerce and
Transport) set up by the United Nations for the electronic
transmission of data in relation to commerce in goods and
services, ISO 9735
• Legacy EDI standards still exist, for example
Odette: Automotive Industry
Tradacoms: UK ANA (retail trade and supply chain)
ANSI X12: US Standard
• The emerging standard is XML (a generalised markup
language which can be used as a vehicle for an EDI
standard) which is widely used in China
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Fig 5: EDIFACT example (Source: Whiteley, 2013, p.83)
Fig 6: Paper order coded into EDIFACT standard
(Source: Adapted from Whiteley, 2013, p.82 and 83)
EDIFACT Segments
UNH
BGM
Message Header
Beginning of Message
~ Order No
DTM
Date /Time/Period
~ Order Date
NAD
Name and Address
~ Buyer Address Code
~ Supplier Addr. Code
UNS
Section Control
LIN
Line Item
~ Product Code
QTYQuantity
~ Order Quantity
UNTMessage Trailer
UNH+000001+ORDERS:2:932:UN'
BGM+220+AC6464'
DTM+4:20130313:102'
NAD+BY+6464326::91'
NAD+SU+1149646::91'
UNS+D'
LIN+1++50023084156932:EN'
QTY+21:20'
LIN+2++50023084340447:EN'
QTY+21:40'
UNT+11+000001'
XML
Fig 8: Example EDI exchanges for stock replenishment
from a Supermarket stock control system
to the Supplier order processing system
Supermarket
Transaction
Supplier
Order
Execution
Delivery note
Execution
Invoice
Settlement
From:
To:
UNH+000001+ORDERS:2:932:UN'
BGM+220+AC6464'
DTM+4:20130315:102'
NAD+BY+6464326::91'
NAD+SU+1149646::91'
UNS+D'
LIN+1++50023084156932:EN'
QTY+21:20'
LIN+2++50023084340447:EN'
QTY+21:40'
UNT+11+000001'
Sheffield Stationery
110 Glossop Road
Sheffield
S10 2JT
Address Code: 1149646
Office Services Ltd
123 London Road
Sheffield
S2 4HT
Address Code: 6464326
Order Ref: AC6464
Order Date: 15.03.2013
Qty
20
40
Description
Product Code
Stapler: metal half strip
Staples: 5000 26/6
end of order
50023084156932
50023084340447
Fig 7: XML Example with XML tags defined by the users
• a multi-purpose language used to exchange data between
databases, to specify webpages, for communication in
web services, and for transferring structured data between
systems
• ideal for EDI as its standards are simple and the software
is readily available
• It is relatively new compared to EDIFACT and tends to be
used by late adopters of EDI
•
•
ORDER
Payment
Settlement
<? Xml version=”1.0 standalone=”yes” ?>
<purchase-order order-no=”AC6464”>
<order-header>
<reference-no>AC6464</reference-no>
<date>20130315</date>
</order-header>
<company>
<company-no>6464326</company-no>
</company>
<supplier>
<supplier-no>1149646</supplier-no>
</supplier>
<order-item>
<item-ean>50023084156932</item-ean>
<quantity>20</quantity>
</order-item>
<order-item>
<item-ean>50023084340447</item-ean>
<quantity>40</quantity>
</order-item>
</purchase-order>
ORDER
From:
To:
Sheffield Stationery
110 Glossop Road
Sheffield
S10 2JT
Address Code:
1149646
Qty
20
40
Description
Stapler: metal half strip
Staples: 5000 26/6
end of order
Office Services Ltd
123 London Road
Sheffield
S2 4HT
Address Code:
6464326
Order Ref: AC6464
Order Date:
15.03.2013
Product Code
5002308415693
2
5002308434044
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Long term benefits of EDI
• fosters a true and strategic partnership relationship
because it involves
– commitment to a long-term investment
– refinement of the system over time
• speeds up the trade cycle by sending invoices quickly,
thereby improving cash flow
• Adopting EDI enables small companies to do business
with larger firms that insist on using EDI
• In the long run, EDI saves money principally by cutting
staff costs
(Source: Whiteley, 2013, p.87)
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Long term benefits of EDI
EDI and ERP integration
• Reduces workforce requirements and human errors
associated with retyping orders, invoices, and other
documents
• Computerised data entered by one organisation is made
available to a business partner
• Large companies expect smaller suppliers to use EDI
• Small companies without IT expertise buy the services of
VANs (3rd party suppliers)
Fig 9: Value Added Network/VADS postbox and mailbox files
Value Added Networks (VANs)
• VAN providers offer a network. They also:
– EDI transaction services, security, document interchange
assistance, standard message formats, communication
protocols, and communication parameters
– they simplify the question of finding compatible
communications formats
• One of the biggest EDI network providers is OpenText
from GXS
Customer
VADS
Supplier
Customer
One
Postbox
Mailbox
Postbox
Mailbox
Supplier
One
Customer
Two
Postbox
Mailbox
Postbox
Mailbox
Supplier
Two
Customer
Three
Postbox
Mailbox
Postbox
Mailbox
Supplier
Three
Example:
 Customer Two submits orders for Suppliers One & Three
 The VADS empties postboxes and places message in mailboxes
 Supplier Three picks up its orders, at its convenience
(Source: Whiteley, 2013, p.87)
Internet-Based EDI through Virtual Private
Neworks
Fig 10: Example secure virtual private network
• Internet-based EDI is a better medium since:
– start-up costs are cheaper
– organisations are already connected
• Uses VPNs (Virtual Private Networks), secure corridors
through the Internet
• VPN use is growing for EDI and e-commerce-related
traffic
• VPNs can secure and give preferential treatment to EDI
traffic
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Additional references
• Liang, Y. H. (2015). Performance measurement of
interorganizational information systems in the supply
chain. International Journal of Production Research,
53(18), 5484-5499.
• Qu, W. G., Pinsonneault, A., Tomiuk, D., Wang, S., & Liu,
Y. (2015). The impacts of social trust on open and closed
B2B e-commerce: A Europe-based study. Information &
Management, 52(2), 151-159.
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