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UNIT-2
Business to Business E-Commerce
Introduction of B2B E-Commerce

B2B ecommerce, or business-to-business electronic commerce, is the

sale of goods or services through online transactions between
businesses. Because orders are processed digitally, buying efficiency
and effectiveness is improved for wholesalers, manufacturers,
distributors and other types of B2B sellers.

In recent years, extranets (more than one intranet) nave been

effectively used for B2B operations. B2B e-business creates dynamic
interaction among the business partners; this represents a fundamental
shift in how business will be conducted in the 21 century.

Companies using B2B e- business relationship observe cost savings

by increasing the speed, reducing errors and eliminating many manual
activities. In a B2B environment, purchase orders, invoices, inventory
status, shipping logistics and business contracts handled directly
through the network result in increased speed reduced errors and cost
savings.
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B2B e- business reduces cycle time, inventory and prices and enables
business partners to share relevant, accurate and timely information.
The B2B E-commerce will improve supply-chain management among
business partners.

For example, Wal-mart Stores is an example for B2B e business. Wal-

Mart’s major suppliers sell to Wal-Mart Stores electronically; all the
paperwork is handled electronically. These suppliers can access
online the inventory status in each store and refill needed products in
timely manner.
 Amazon Business is the B2B marketplace on Amazon,
providing business customers with the pricing, selection and
convenience of Amazon, with features and benefits designed for
businesses of all size
 Alibaba – Wholesale B2B Marketplace. Alibaba is the leading
platform for global wholesale trade.
 IndiaMART.
 TradeIndia – Online B2B Marketplace in India.

2.1 Characteristics of B2B EC

1) Parties to the transaction: B2B commerce can be conducted
directly between a buyer and a seller or it can be conducted via an
online intermediary. The intermediary is an online third party that
brokers the transaction between the buyer and seller;

2) Types of Transactions: B2B transactions are of two basic Types:-

a) Spot buying: It refers to the purchasing of goods and services as
they are needed, usually at prevailing market prices, which are
determined dynamically by supply and demand. The buyers and the
sellers may not even know each other. Stock exchanges and
commodity exchanges (Oil, Sugar etc.) are examples of Spot buying.
Spot buying may be conducted most economically on the public
exchanges
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b) Strategic (Systematic) Sourcing: This involves purchases based

on long-term contracts. Strategic purchases can be supported more
effectively and efficiently through direct buyer-seller online
negotiations, which can be done in private exchanges or private
trading rooms in public exchanges.

3) Types of Materials Traded:

a)Direct Materials: These materials are materials used in making the

products, Such as steel in a car or paper in a book. The characteristics
of direct materials are that their use is scheduled and planned for
improving business efficiency.

b) Indirect Materials: These are items, such as office supplies or

light bulbs that support production. They are usually used in
Maintenance, Repair, and Operation (MRO) activities. Collectively,
they are known as non-production materials.

4) Direction of Trade: B2B marketplaces may be classified as

vertical or horizontal
a) Vertical Marketplaces: A vertical marketplace is an online
platform that specializes in a specific industry, sector, or type of
product or service.

b) Horizontal Marketplaces: Horizontal marketplace facilitates the

need for a wide range of customers across a different sector of the
economy.

Models of B2B E-Commerce

There are four B2B Models are as follows
1. Seller-Oriented Marketplace
2. Buyer-Oriented Marketplace
3. Third-Party Exchange Marketplace
4. Trading Partners Agreements
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1. Seller-Oriented Marketplace:-
In the sell-side marketplace model, organisations attempt to sell their
products or services to other organisations electronically. This model
is similar to the B2C model in which the buyer is expected to come to
the seller's site (or to an electronic mall), view catalogues, and place
an order. In this case, however, the buyer is an organisation that may
be a regular customer of the seller. This marketplace is operated by a
large group of suppliers for establishing an efficient sales channel and
increases their visibility and get leads from a large number of
potential buyers. This type of Supplier-oriented e-marketplace is also
called as supplier directory and is usually searchable by the product or
the services being offered.

2) Buyer-Oriented Marketplace:-
This model is used by large companies with significant buying
power or a consortium of several large companies. This
marketplace is run by a body of buyers who want to establish an
efficient purchasing environment. This helps the buyers to lower
their administrative costs and get best prices from the suppliers. The
suppliers can also use the buyer oriented e market place to advertise
their product to the set of relevant customers

Using this model the buyers are looking to efficiently manage the
procurement process, lower administrative cost and exercise
uniform pricing. Companies are making investments in a buyer-
controlled marketplace with the goal of establishing new sales
channels that increase market presence and lower the cost of each
sale.

By participating in a buyer-Side marketplace a seller could perform

the following
1)Get better understanding of buying behaviours,
2) Carry out pre-sales marketing,
3) Carry out sales transactions,
4) Carry out post-sales analysis,
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3) Third-Party Exchanges Marketplace

A third-party-controlled marketplace model is controlled by a third
party not by sellers or buyers (figure 2.3). A third-party-controlled
marketplace model offers suppliers a direct channel of
communication to buyers through online storefronts.
The interactive procedures within the marketplace contain features
like product catalogues, Request for Information (RFD), rebates
and promotions, broker contacts and product sample requests.

4) Trading Partner Agreements:-

A trading partner agreement is an agreement drawn up by two parties
that have agreed to trade certain items or information. The agreement
outlines the terms of the trade or trading process, including
responsibilities, who's involved, how goods or information will be
delivered and received, and duties or fees.

Benefits of B2B E-Commerce

 REACH NEW CUSTOMERS AND MARKETS

B2B e-commerce allows companies to have an online sales portal and
a digital catalog with product descriptions and prices, which is
essential to reaching new markets and customers. Creating an SEO
optimized site will lead to improved brand awareness and help reach
potential clients.
 INCREASE BRAND AWARENESS
Having a B2B e-commerce platform automatically allows you to have
an online presence that can help grow your company's brand. One of
the most effective forms of marketing is creating SEO content to
increase your rank within search engines.
 INCREASED SALES
Everyone knows that increased sales lead to more revenue. In the
B2B e-commerce space, it can also help your e-commerce platform
become part of your sales team. A web store can actually increase
brand visibility and help to evaluate marketing campaigns to ensure
they are successful.
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 IMPROVE COSTS
Automated processes are here to stay, and are revolutionizing
business processes. Though the initial integration of automated
ordering and an e-commerce platform may bring about extra costs,
they will lower costs in the long run.
 BETTER CUSTOMER SERVICE
B2B e-commerce platforms have self-serve options available 24/7
that allow other businesses to track their contracts and orders without
ever having to talk to customer service teams.
 INCREASED PRODUCTIVITY AND EFFICIENCY
B2B e-commerce is amazing at improving productivity because it
helps to automate workflows, allowing companies to put their focus in
other areas
 DATA AND ANALYTICS
Data and analytics within B2B e-commerce is one of the key benefits
for marketing teams that enables them to track their marketing efforts.
 SCALABILITY
One of the greatest benefits of B2B e-commerce is the ability to scale
your company to meet market demands.

PROCUREMENT MANAGEMENT –
A Procurement Management Process is a method by which items are
purchased from external suppliers. The procurement management
process involves managing the ordering, Receipt, review and approval
of items from suppliers

E-Procurement Procurement refers the managerial activity that goes

beyond the simple act of buying and includes the planning and policy
activities, research and development, service selection, etc. Thus
procurement is buying material/service of the right quality, the right
quantity, at the right time, at the right price from the right source with
delivery at the right place
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E-procurement simply means buying products and services over the

internet. In this Sense, most companies are already using e-
procurement; however, the term is fast becoming the automation of
the whole purchasing process and requisition information available
along the entire length of the value chain via the internet.
E-procurement reduces the operational costs across the whole supply
chain and improves management control. A company needs a
financial solution first so that it can use e-procurement to leverage
advantages right through to Customers, suppliers, and other partners.
The objective is a true end-to-end solution that enables Companies to
enter into truly collaborative relationships with customers and
suppliers.
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1) Analyse: Conduct company-Wide spending analyses to identify

and prioritise savings opportunities, including supply base
rationalisation and purchase aggregation (buying in bulk).
2) Plan: Develop optional Sourcing and procurement strategies
based on existing and future purchase requirements across the
enterprise.
3) Source: Identify, evaluate, negotiate, and configure optional
trading relationships.
4) Buy: Communicate, execute and settle payment against
negotiated trade agreements and contracts.
5) Monitor:-Track and enforce internal content compliance and
external supplier performance.
6) Collaboration:-Engage in intra and inter enterprise collaboration
across all procurement processes.
7) Process Control:-Standardise and enforce common processes
across the enterprise and supply chain.
8) Procurement Intelligence:-Provide a single point of truth of all
procurement related information.

E-Procurement Cycle

The different steps associated with the overall procurement cycle,

from the order placement to the accounts payable, in steps through a
web based e-Commerce network. It includes customer’s inventory
and supplier information and is readily accessible at any time and
from everywhere.

E-procurement allows two-way communication of real-time financial

and purchasing information. Management at both the buying and
selling end can see what is happening at any given moment and
identify trends and problems. A shorter purchasing cycle enables
companies to maintain lower inventory levels and respond more
quickly to stock-outs.
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Types of E-Procurement
There are seven main types of e-procurement:
1) Web-based ERP Electronic Resource Planning): ERP software
packages from vendors such as SAP AG, Oracle are designed to
optimize the resource planning of an enterprise.

2) E-MRO (Maintenance, Repair and Overhaul): This is same as

web-based ERP except that the goods and services ordered are non-
product related MRO Supplies. ERP software can also generate and
send purchase orders for maintenance, repair and operating supplies
to enable the smooth running of the production process.

E-MRO orders are of greatest benefit to automated production lines

using numerical control machine tools. Many automated machine
tools can run set-diagnostic programs, notifying an operator by SMS
message to a cell phone in the event of components failure.

3) E-Sourcing: E-sourcing is the use of the Internet for the

identification of new Suppliers for a category of purchasing
requirements.
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The major benefit of e-sourcing is the competitive aspect by which

suppliers bid for projects. Suppliers submit bids along with various
details of the Service they promise to provide, and purchasers can
pick and choose from the offers.

4) E-Tendering: E-tendering is the use of sending requests for

information and prices to suppliers and receiving the responses of
suppliers using Internet technology.

5) E-Reverse Auctioning: E-reverse auctioning is the use of Internet

technology to buy goods and services from a number of known or
unknown suppliers.

6) E-Informing: Finally, e-Procurement can be used for the simple

job of exchanging purchasing information between buyers and
suppliers. Using Internet technology such as e-mail the process of
accumulating a database of supplier information can be made simpler.

7) E-Market sites: Buying communities can access preferred

suppliers products and services, add to shopping carts, create
requisition, Seek approval, receipt purchase orders and process
electronic invoices with integration to suppliers supply chains and
buyers financial systems.

Benefits of E-Procurement
1. Reduced purchasing cycle time and cost;
2. Enhanced budgetary control (achieved through rules to limit
spending and improved reporting facilities);
3. Elimination of administrative errors
4. Increasing buyers productivity
5. Lower Prices through product standardisation
6. Improve information management

Applications of E-Procurement
1) Requisitioning Applications: It simply the process of purchasing
by allowing authorized buyers employees to perform all purchasing
activities from their computer systems.
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2) Centralized Procurement Management Application: While

requisition applications facilitate the automation of various
purchasing functions, CPMAS enable procurement managers to
effectively manage the procurement process by analyzing vast
amounts of transactional data.

3) Supplier applications: Supplier applications or sell side

applications help manufacturers and distributors to sell their products
over the web. Using these applications, Firms can build storefronts
and online marketplaces on the Internet.

Procurement Management using Buyers Internal Market Place

One effective solution to the procurement problem in large
organisations is to aggregate the catalogues of all approved supplies,
combining them into a single internal electronic catalogue. Prices can
be negotiated in advance or determined by a tendering, so that the
buyers do not have to negotiate each time they place an Order.
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JUST-IN-TIME DELIVERY(JIT)

A just-in-time (JIT) inventory system is a management strategy that

has a company receives goods as close as possible to when they are
actually needed.

Just in time delivery means the process of creating goods in a ready

state, or completing their production, so that a minimal inventory can
satisfy demand and a delivery can take place with immediate effect in
order that consumers receive what they want precisely when they
want.

Restaurants are the perfect example of just in time delivery. A just in

time system for delivery will, therefore, shift inventory only at the
time that an order is made, and not before (this can prevent the issues
and costs surrounding excess inventory).

Just-in-time (JIT) delivery is an inventory and supply chain

management strategy aiming to minimize inventory and increase
efficiency.

Benefits of JIT

1) Reduced Setup Time: it saves time of customers and product

delivered on time as needed.

2) Flow of Goods from Warehouse to Shelves Improves: Small or

individual piece lot sizes reduce delay inventories, which simplifies
inventory flow and its management.

3) Employees with Multiple Skills are Used More Efficiently:

Having employees trained to work on different parts of the process
allows companies to move workers where they are needed,

4) Production Scheduling and Work Hour Consistency

Synchronized with Demand: If there is no demand for a product at
the time, it is not made. This saves the company money, either by not
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having to pay workers overtime or by having them focus on other

Work or participate in training.

5) Increased Emphasis on Supplier Relationships: A company

without inventory does not want a supply system problem that creates
a part shortage This makes supplier relationships extremely important.

6) Supplies come in at Regular Intervals throughout Production

Day: Supply is synchronized with production demand and the optimal
amount of inventory is on hand at any time. When parts move directly
from the truck to the point of assembly, the need for Storage facilities
are reduced.

AUCTIONS
An auction is usually a process of buying and selling goods or
services by offering them up for bid, taking bids, and then selling the
item to the highest bidder or buying the item from the lowest bidder.
An auction is a market mechanism by which sellers place offers and
buyers make sequential bids. The primary characteristic of auctions,
whether offline or Online, is that prices are determined dynamically
by competitive bidding,

Auctions have been an established method of commerce for

generations, and they are well-suited to deal with products and
services for which conventional marketing Channels are ineffective or
inefficient. Auctions can expedite the disposal of items that need
liquidation or a quick sale.

The internet provides an efficient infrastructure for executing

electronic auctions (auctions conducted online) at lower
administrative cost and with many more involved sellers and buyers.
Individual consumers and corporations alike can participate in this
rapidly growing form of e-commerce.
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Types of Auctions

There are several types of auctions, each with its motives and
procedures. The two major types of auctions:
1) Forward Auctions: The seller use as a selling channel to many
potential buyers. Usually, items are placed at sites tor auction, and
buyers will bid continuously for the items. The highest bidder wins
the items. Sellers and buyers can be individuals or businesses. For
example, the popular auction Site ebay.com is a forward auction.

2) Reverse Auctions: In reverse auctions, there is one buyer, usually

an organization, which wants to buy a product or a service. Suppliers
are invited to submit bids. Online bidding is much faster than
conventional bidding, and it usually attracts many more bidders.

The reverse auction is the most Common auction model for large
Purchases (in terms or either quantities or price). Governments and
large Corporations frequently mandate this approach, which may
provide considerable savings.
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Process of Auctions

In an Auction, sellers and buyers usually complete a four-phase

process
Phase l: Searching and comparing
Phase 2: Getting started at an auction.
Phase 3: Bidding.
Phase 4: Post auction activities.

Each phase has several support tools

Phase 1: Searching and Comparing: Auctions are conducted on

hundreds of sites worldwide. Therefore, sellers and buyers need to
execute extensive searches and comparisons to select desirable
auction locations.
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1) Finding when and where an item will be Auctioned: Many

websites offer links to hundreds of auction sites or provide search
tools (e.g. seebidfind.com) to locate specific sites. The searching
utility not only helps sellers find suitable locations to list their items,
but it also enables buyers to browse available auction sites efficiently.

2) Auction Aggregators and Notification: The search to find what is

being auctioned and where can be difficult; there are thousands of
auction sites, some of which are very specialized. Auction aggregators
are companies that use software agents to visit Web auction sites, find
information, and delver to users

At these aggregation sites, buyers fill-out electronic forms specifying

the item they want. Then the aggregators Keep tabs on various
auction sites and notify
buyers by e-mail when the items they wish to bid on appear. There are
two types of notification services; those that supply notification only-
for their own sites and those that report what is going on at many
Sites.

Phase 2: Getting Started at an Auction: To participate in a third-

party-managed auction, both the sellers and buyers need to register at
the selected site. After registration, sellers can list, feature, schedule
and price their items on the site. Buyers can check Sellers profiles and
other details, such as the minimum bid amount, the auction policy,
and the payment method allowed, and then place their bids.

Registration and Participants' Profiles

Sellers and buyers must usually register their names, user IDs, and
passwords before they can participate at a specific auction site. The
user's page header(heading at the top of the screen) and the auction
listing will display a basic description of sellers and their listings.
Before submitting a bid, buyers can check seller's profile, including
the seller's membership ID and previous transactions.
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Phase 3: Bidding: In the bidding phase, buyers can submit bids

themselves or can make use of software tools that place bids on their
behalf. They also can use software tools to view the bidding status
and to place bids across different sites in real time:

1) Bid Watching and Multiple Bids: Buyers can visit their

personalized page at an e-auction website at any time and keep track
of the status of active auctions. They can review bids and auctions
they are currently winning or losing or have recently won. Tools
provided in the United States by Bid Monitor enable bidders to view
their bids across different auction sites in an organized way. Bidders
also can use the tools to place bids at multiple auction sites using a
single Screen without switching from one window to another.

Post auction Follow-Up: Post auction activities take place once an

auction in completed. These activities include e-mail notification and
arrangements for payment and shipping.

Post auction Activities: Typical post auction activities include the

following: Bidding Notifications: Buyers receive e-mail, SMS
messages, Or beeper messages notifying them each time they are
outbid or when win an auction.

INTEGRATION WITH BACK END INFORMATION SYSTEM

In general, nearly all e-commerce systems can be represented by the

three-tier Integration means that information from both systems is
accessible from one location or database. Back office operations
include processes used by employees that help keep the business
running. Accounting, finance, inventory, order fulfilment,
distribution, and shipping are examples of back office systems.
This three-tier model has three main components, namely:
1) Client Side,
2) Server System, and
3) Backend System
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The service system and the backend system are often called server
side.

This three-tier model is a client server-based computing system. The client side
connects users to the system, the service system serves the users requests, and
the backend system supports the service system in fulfilling the users request
(eg by providing the required data). From the business perspective, the client
side provides the customer interface, the service system handles the business
logic, and the backend system provides the necessary information to complete
transaction.

It shows the typical architecture of a web-based e-commerce system in general.

Referring to the three-tier model, the web server and the application server
forms the service system, the web client or the web browser is client side, and
database is backend system.

The web server is responsible for interacting with the web client as well as
theapplication server and the backend system. The internet provides the
communication platform for transferring information between the web client
and-the web server. The information transfer is governed by an application
protocol called the Hypertext Transfer Protocol (HTTP). This is a simple
request/response protocol for the web client and the web server to talk to each
other. The web client issues a request to the web server and the web Server
returns a response to the web client.
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For example, if a Customer wants to search for some books, the web Server s
response Will depend on the search criteria. To create a dynamic web page, the
client s request. invokes a program in the web server. In conjunction With the
application server, the web server processes the client s request
according to the program logic. In some cases, this may involve data retrieval
from the database(s). After processing the client s request, the output will be
returned to the client in the HTTP response message. The programs on the
server Side can be written in many languages,

SOFTWARE AGENTS
Software agents are an effective tool for Virtual organisations because they
provide a mechanisms to automate several activities such as gathering and
filtering information, negotiating deals and synchronising business process and
workflows.
Software agents interacting with people (e.g. chatbots, human-robot
interaction environments) may possess human-like qualities such
as natural language understanding and speech, personality
Intelligent software agents can work on behalf of human knowledge workers
be supplier or buyers or both.
Software agents find applications in a variety of domains, including:
B2B ecommerce, Internet-based information systems. robotics.
smart systems, decision support systems, data mining and
knowledge discovery.
A software agent stays in the computer, can move in the networks,
can observe its environment and can take several actions to reach its
goals. It also has certain level of intelligence, can "think", can learn
from its environment and can make decision under uncertainty.

Need of software Agents

1) Managing the Information Overload: The growth of the internet has
led to an information overload, Today, a search for a tem or keyword, on
any of the search engines, results in thousands of websites. Agents are
required to filter and sort-out this information, into manageable volumes.
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2) Decision Support: Agents can provide increased support to knowledge

Workers n the sphere of decision-making, by generating an enormous
of options, pruning them internally, and prioritising them, using various
decision support methodologies.

3) Repetitive tasks; Agents can be used to automate several of the

repetitive, time consuming, and boring tasks. This would reduce costs and
increase productivity as for many actions user behaviour can be modelled
based upon past actions

4) Knowledge Base: Agents can be modelled to act as experts in specific

areas, where expertise is costly or rare, by building a knowledge base.

5) Improved efficiency: Software agent can increase the speed of work and
improves efficiency, productivity of work

6) Increased customer satisfaction: It measure of how well a company's

products, services and overall customer experience meet customer expectations

Feature of Software Agents

 Learning: They can learn and enhance their performance

through machine, deep, and reinforcement learning elements
and techniques.
 Communication: AI agents can communicate with other agents
or humans using different methods, like understanding and
responding to natural language, recognizing speech, and
exchanging messages through text.
 Goal-oriented: They are designed to achieve specific goals,
which can be pre-defined or learned through interactions with
the environment.
 Task Oriented: Software agents can do their task in few
seconds
 Interaction:- Social interaction with other software agents
and human.
 Security:- Safety of the information must be promised by the
agent.
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 Efficient use of Resources Effective usage of the existing

resources by software agent to perform any task.
 Personalization Software agents have the ability to
personalize.
 Proactive nature:- Software agents have the ability to be
adaptive and proactive

Classification of Software Agents

Buyer agents (shopping bots)

Buyer agents travel around a network (e.g. the internet) retrieving
information about goods and services. These agents, also known
as 'shopping bots', work very efficiently for commodity products
such as CDs, books, electronic components, and other one-size-
fits-all products. Buyer agents are typically optimized to allow for
digital payment services used in e-commerce and traditional
businesses

User agents (personal agents)

User agents, or personal agents, are intelligent agents that take
action on your behalf. In this category belong those intelligent
agents that already perform, or will shortly perform, the following
tasks:
Check your e-mail, sort it according to the user's order of
preference, and alert you when important emails arrive.
Play computer games as your opponent or patrol game areas for
you.

Monitoring-and-surveillance (predictive) agents

Monitoring and Surveillance Agents are used to observe and
report on equipment, usually computer systems. The agents may
keep track of company inventory levels, observe competitors'
prices and relay them back to the company, watch stock
manipulation by insider trading and rumors, etc.
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What is EDI?
Electronic Data Interchange (EDI) is the electronic interchange of
business information using a standardized format; a process which
allows one company to send information to another company
electronically rather than with paper. Business entities conducting
business electronically are called trading partners.

EDI NUTS and BOLTS

EDI model is required for sending or receiving EDI Messages.EDI is

defined by its technology. The technical
elements of EDI systems are:-
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1) EDI standards.
2) EDI software.
3) EDI networks.
4) EDI agreements.

1) EDI Standards
EDI standards are the requirements for the format and content
of EDI business documents. EDI standards determine the correct
order and location of the units of data in an EDI document.
All EDI transactions are defined by EDI standards. ... A transaction
set in the EDI Standard is comparable to a paragraph or a document.
Using an EDI, a business application on the computer of one
organization communicates directly with the business application on
the computer of another organization.

To ensure that this exchange of information is independent of

hardware, software or the nature of implementation at either of the
business application and to transform it to standard format is
acceptable.
The exchange of business documents is commonly agreed structured
format necessary for the development of EDI standards.
Need of EDI Standard
 EDI provide a linkage between two trading partners.
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 The computer exchange data need a common format.

 Two organization that exchange data must agree a format that
meets their needs.
 EDI standard provide a common language for interchanging of
standards transactions.
Categories of EDI Standards:-
 ANSI X12-The Accredited Standards Committee X12 is a
standards organization. Chartered by the American National
Standards Institute in 1979, it develops and maintains the X12
Electronic data interchange and Context Inspired Component
Architecture standards along with XML schemas which drive
business processes globally
 EDIFACT:- EDIFACT stands for Electronic Data Interchange
For Administration, Commerce and Transport. EDIFACT is
accepted as the international EDI standard that has been adopted
by organisations wishing to trade in a global context. A standard
set of syntax rules have been ratified by the United Nations.
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2) EDI SOFTWARE:-
EDI software consists of computer instructions that translate the
information from unstructured, company specific format to the
structured EDI format and then communicates the EDI messages from
sender to receiver.
Electronic Data Interchange (EDI) software is a robust technology
that facilitates the exchange of business documents from one
computer to another in a standard electronic format between trading
partners, allowing them to work together efficiently.

EDI software also receives the message and translates from standard
format to company specific format.
Thus the main function of the EDI software is conversion, data
formatting and message communication.

Layers in EDI Software:-

 EDI Business Application Layer:-It creates a document in a
software application .This software application sends the
document to EDI translator, which reformats the documents into
an agreed EDI standard.
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 EDI Translation Layer: -An EDI Translator provides a means

of transforming EDI data to and from formats suited for the
enterprise. In other words, an EDI Translator converts data
from irregular, enterprise-specific forms into an ordered and
standardized structure that is compliant with EDI standards.
 EDI Communication layer:-The communication layer –which
could be part of translation software or application, connect to
the value added network service provider.
 Value added network (VAN)-A VAN is private network hired to
company to facilitate EDI or provide network service. A value-
added network (VAN) is a hosted service offering that acts as
an intermediary between business partners sharing standards
based or proprietary data via shared business processes.

EDI software is available for mainframes, mini computer and micro

computers
The requirements of EDI are:-
1) Computer
2) Communication interface
3) Appropriate software.
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3) EDI Networks

EDI documents are electronically exchanged over communication

networks which connect trading partners to one another. These
documents are stored in mail boxes on the network EDI server from
where we can download / upload.
Value added Network (VAN) are the party communication networks
established for exchanging EDI traffic amongst partners.

EDI Communications Channels:-

 Direct link
 Private Network
 Value Added Network (mailing ,protocol conversion, reliability,
security)

4) EDI Agreements

Agreement is a document normally signed by both trading partners

before electronic trading.
EDI agreement is the abbreviation of Electronic Data Interchange
agreement. It is an agreement that regulates through computer the
transfer or exchange of data, such as purchase order between parties.
EDI consists of standard business message being transmitted from one
computer to another computer. It differs from the use of regular e-
mail in that it is based on the standard or code that is agreed upon by
two parties.
Since the parties to an EDI transaction must rely on using the same
EDI messaging standard, parties generally enter into a trading partner
agreement.
When both parties agree on the EDI standards then message being
exchanged.
The appropriate way to document the details of trading between
trading partners in an EDI interchange Agreement.
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Services for E-Marketplaces

There are six major parts:

1. E-Infrastructure
2. E-Process
3. E-Market
4. E-Content
5. E-Communities
6. E-Services.

E-Infrastructure
In today’s world, e-infrastructure is the key element for the
development of a society. E-infrastructure facilitates competent
equipment and favourable resources and opportunities that are
essentially needed to for the safety, security, and development of a
society.
Further, e-infrastructure helps to integrate various technologies
including different computer systems, internet broadband channels,
computing power, data storage, data sharing, and many more.
To meet the growing challenges of globalization and also cope-up
with the sustainable growth of information and communication
technology, it is essentially required to integrate these systems by
developing better e-infrastructure.
E-Processes
The essential e-commerce processes required for the successful
operation and management of e-commerce activities.
E-commerce processes must establish mutual trust and secure access
between the parties in an e-commerce transaction by authenticating
users, authorising access, and enforcing security features.

Companies engaged in B2B e-commerce may rely on secure industry

exchanges for procuring goods and services, or web trading portals
that allow only registered customer's access to trading information
and applications.
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Other security processes protect the resources of e-commerce sites

from threats such as hacker attacks, theft of passwords or credit card
numbers, and system failures.

E-Markets
A market is a medium or the exchange of goods, services, and
information between many potential buyers and many potential
sellers.

Electronic markets are markets in which the exchanges are conducted

electronically among buyers, sellers, market employees, and support
services, in an efficient and effective manner. E-markets are more
efficient because they increase the amount of information, the speed
at which it is Sent, and its accuracy. At the same time, they may
reduce the flow of physical goods.

E-Content

According to the business concept, "e-content is based on content

marketed on the business own platform within a network. Primarily,
the goal is to make the content available

E-Communities

B2B applications involve many participants like buyers and sellers,

service providers, industry associations, and others.
E-communities offer a powerful resource for e-businesses to leverage
online discussions and interaction in order to maximise innovation
and responsiveness. It is therefore beneficial to study the tools,
methods, and best practices of building and managing Communities.

E-Services

E-Service represents one prominent application of utilizing the use of

information Communication Technologies (ICTs) in different areas.
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E-services are services which use of information and communication

technologies. The three main components of e-services are- service
provider, service receiver and the channels of service delivery.
E-services (electronic services) are services which use of information
and communication technologies (ICTs). The three main components
of e-services are- service provider, service receiver and the channels
of service delivery (i.e., technology). For example, as concerned to
public e-service, public agencies are the service provider and citizens
as well as businesses are the service receiver.