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Introduction
Enterprise Resource Planning (ERP) programs: Core software used by companies to coordinate information in every area of business
Help manage companywide business processes Use common database and shared management reporting tools
Business process: Collection of activities that takes some input and creates an output that is of value to the customer
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Introduction
Effectively competing in high-volume ecommerce may be impossible without the infrastructure provided by Enterprise Resource Planning (ERP) Companies can integrate ERP systems with the Internet and rent ERP software from special-purpose software companies
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Introduction
XML is becoming the new markup language of the Internet Use of radio frequency identification (RFID) devices in managing movement of goods in the supply chain
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Business-to-Business ECommerce
Buying and selling between two companies over the Internet Companies might be manufacturers, suppliers, wholesalers, or retailers Transforming the way companies work with each other
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Business-to-Business ECommerce
Electronic Data Interchange (EDI)
Electronic computer-to-computer transfer of standard business documents Been used by companies since the 1960s Value-added network (VAN): intermediary Internet-based network run by an outside EDI service provider
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Business-to-Business ECommerce
Electronic data interchange (EDI) (contd.)
Benefits of EDI:
Costs of paper, printing, and postage have almost disappeared Errors have been minimized Ordering is fast and efficient Suppliers and buyers are locked into business relationships
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Business-to-Business ECommerce
Internet-based procurement
Use of Internet technologies for procurement activities Benefits:
Less expensive to use the Internet than private EDI networks Purchasing costs further reduced as suppliers compete for orders on buyers Web site
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Private exchange
One type of industry marketplace Membership is restricted to select participants
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Measures used by companies to protect their networks, Web sites, and privacy of customer data
Virus-scanning software, encryption, intrusion detection, etc.
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Integrating Internet front-office operation and ERP back-office operation is fundamental in todays business environment
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ASP owns the hardware and rights to the software ASP employs workers who run outsourced applications Users of the system are the companys employees
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SAP is offering an ASP version of its ERP product for midsized companies
Business ByDesign: delivered to customers over the Web
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Users and systems administrators find it much more efficient to access ERP systems through the browser
Avoids the time-consuming installation of the standard ERP GUI
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XML
Extensible Markup Language (XML)
New programming language of the Internet Uses tags that define the data contained within them
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XML
Internet pages written in Hypertext Markup Language (HTML)
HTML specifies only how your information will look when viewed through a browser
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XML
XML
ERP systems now accept data in XML format
Using XML, companies can transfer data from their Web sites directly into their ERP systems
Streamlines data entry, reduces errors, and reduces server loads
RFID technology has become inexpensive enough to be cost-effective Wal-Mart is in the process of implementing an RFID system for its supply chain
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Procter & Gamble is using RFID technology to collect information about the sales of its products SAPs ERP software is RFID-ready Through NetWeaver, SAP can integrate RFID data into both SAP and non-SAP applications
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