Virtual Marketplace on

the Internetby by

Zaharije Radivojevic, zaki@galeb.etf.bg.ac.yuZaharije Radivojevic, zaki@galeb.etf.bg.ac.yu Prof. Dr. Veljko Milutinovic, vm@etf.bg.ac.yu

by by

Zaharije Radivojevic, zaki@galeb.etf.bg.ac.yuZaharije Radivojevic, zaki@galeb.etf.bg.ac.yu Prof. Dr. Veljko Milutinovic, vm@etf.bg.ac.yu

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Definition:Definition:

It is an Internet based trading community

that makes it easier for several participants to:

Buy and sell products or services

Negotiate terms of agreements

Find relevant product information

Design product or service

Assemble product or service

It is an Internet based trading community

that makes it easier for several participants to:

Buy and sell products or services

Negotiate terms of agreements

Find relevant product information

Design product or service

Assemble product or service

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Bring buyers and sellers together using:

Electronic shopping malls

Shopping agents

Electronic auctions

Barter exchanges

Bring buyers and sellers together using:

Electronic shopping malls

Shopping agents

Electronic auctions

Barter exchanges

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Marketplace: EvolutionMarketplace: Evolution

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Marketplace: EvolutionMarketplace: Evolution

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Marketplace: EvolutionMarketplace: Evolution

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Marketplace: EvolutionMarketplace: Evolution

Part One:Major Issues

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Structure of Virtual MarketplaceStructure of Virtual Marketplace

marketplace

Buyers

Web Browser

&

Buy Side

App.

Sellers

Web Browser

&

Buy Side

App.

Transaction

-Administration

-Catalogs/RFE

-Dynamic Trade

Content mgmt.

-Loading

-Cleansing

-Updating

VAS

-Logistic

-Financial

Service

-Suppliers

Certification

SCC

-Design

Collaboration

-Collaborative

Planning

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Transaction

Content management

VAS-Value Added Services

SCC-Supply Chain Collaboration

Transaction

Content management

VAS-Value Added Services

SCC-Supply Chain Collaboration

Structure of Virtual MarketplaceStructure of Virtual Marketplace

Virtual MarketplaceBuyers Sellers

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Dynamics of a Virtual Marketplace Dynamics of a Virtual Marketplace

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Unpredictable Behavior of a Value Chain Unpredictable Behavior of a Value Chain

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Virtual Marketplace ModelsVirtual Marketplace Models

Industry-Sponsored (Consortium) Marketplaces

Independent Trading Exchange

Private exchange

Industry-Sponsored (Consortium) Marketplaces

Independent Trading Exchange

Private exchange

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Problems of Virtual MarketsProblems of Virtual Markets

Trust, Confidence, Security

Change in Market Power

Voluntary Participation

User Understanding

Design of Systems

Trust, Confidence, Security

Change in Market Power

Voluntary Participation

User Understanding

Design of Systems

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PromisesPromises

Quick and Reliable Integrating suppliers and customers Improved distribution visibility Increase interaction on

requirements/solutions Lower cost channel to broad market Up-to-the-minute Fast, efficient matching

Quick and Reliable Integrating suppliers and customers Improved distribution visibility Increase interaction on

requirements/solutions Lower cost channel to broad market Up-to-the-minute Fast, efficient matching

Part two:Internet-based Tools and

Techniques

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Technology Is Just the Visible PartTechnology Is Just the Visible Part

Technology

Organizational Structures

Culture •Processes Design

Securityand PrivacyUser Skills

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Electronic Currency: The Roots of Current InnovationsElectronic Currency: The Roots of Current Innovations

Consumer Transactions

Business Transactions

Smart Cards

Payments over the Internet

Consumer Transactions

Business Transactions

Smart Cards

Payments over the Internet

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Digital Signatures and Electronic Currency on the Internet Digital Signatures and Electronic Currency on the Internet

Public-Key Cryptography

Protecting the Security of Financial Transactions

Protecting the Authenticity of Financial Transactions

Public-Key Cryptography

Protecting the Security of Financial Transactions

Protecting the Authenticity of Financial Transactions

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Digital SignaturesDigital Signatures

Part Three: Examples

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Telcobuy.com, a specialized B2B electronic trading hub for networking solutions.

GM, Ford & Daimler/Chrysler collaborate to develop Covisint, estimated $ 300 Billion annual spend.

e-Steel established E-Marketplace for steel industry.

The SAP Service Marketplace is an online hub for professional solutions and services.

Telcobuy.com, a specialized B2B electronic trading hub for networking solutions.

GM, Ford & Daimler/Chrysler collaborate to develop Covisint, estimated $ 300 Billion annual spend.

e-Steel established E-Marketplace for steel industry.

The SAP Service Marketplace is an online hub for professional solutions and services.

Examples

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Telcobuy.com Telcobuy.com

Private B2B e-Marketplace

Telecommunications Infrastructure

Robust, e-Business Infrastructure

Electronic Procurement & Logistics

Private B2B e-Marketplace

Telecommunications Infrastructure

Robust, e-Business Infrastructure

Electronic Procurement & Logistics

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Telcobuy.com Telcobuy.com

Over 400 employees

$610 Million in 2000

Over $1 Billion in 2001

ISO9002 certified

TL9000 certified

Over 400 employees

$610 Million in 2000

Over $1 Billion in 2001

ISO9002 certified

TL9000 certified

Part Four:Case Study

Oracle Exchange

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Oracle ExchangeOracle Exchange

Oracle Exchange Marketplace

Oracle Product Development Exchange

Oracle Supply Chain Exchange

Oracle Transportation

Oracle Exchange Marketplace

Oracle Product Development Exchange

Oracle Supply Chain Exchange

Oracle Transportation

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Oracle Exchange Marketplace Oracle Exchange Marketplace

Product Development

Order Fulfillment

Manufacturing

Procurement

Planning

Product Development

Order Fulfillment

Manufacturing

Procurement

Planning

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Oracle Exchange MarketplaceOracle Exchange Marketplace

ByZaharije Radivojevic, zaki@galeb.etf.bg.ac.yuProf. Dr. Veljko Milutinovic, vm@etf.bg.ac.yu