Module 1: Introduction to B2B Integration

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Contents Overview 1 Lesson: Introduction to B2B E-Commerce 2 Lesson: Introduction to B2B Trading Partner Integration 11 Review 19 Module 1: Introduction to B2B Integration Information in this document, including URL and other Internet Web site references, is subject to change without notice. Unless otherwise noted, the example companies, organizations, products, domain names, e-mail addresses, logos, people, places, and events depicted herein are fictitious, and no association with any real company, organization, product, domain name, e-mail address, logo, person, place or event is intended or should be inferred. Complying with all applicable copyright laws is the responsibility of the user. Without limiting the rights under copyright, no part of this document may be reproduced, stored in or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording, or otherwise), or for any purpose, without the express written permission of Microsoft Corporation. Microsoft may have patents, patent applications, trademarks, copyrights, or other intellectual property rights covering subject matter in this document. Except as expressly provided in any written license agreement from Microsoft, the furnishing of this document does not give you any license to these patents, trademarks, copyrights, or other intellectual property.  2001 Microsoft Corporation. All rights reserved. Microsoft, Windows, BackOffice, BizTalk, FrontPage, Hotmail, PowerPoint, Visual Basic, Visual C++, Visual Studio, and Windows Media are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners. Module 1: Introduction to B2B Integration iii Instructor Notes This module introduces students to business-to business B2B e-commerce and the roles of different organizations as they buy and sell products in a B2B e-commerce scenario. The module also introduces the elements of a B2B integration solution. After completing this module, students will be able to: ! Describe B2B e-commerce and the types of relationships between suppliers, buyers, and marketplaces. ! Describe the process of selling products to trading partners over the Internet. To teach this module, you need the following materials: ! Microsoft ® PowerPoint ® file 2420A_01.ppt ! Module 1 animation, How Trading Partner Integration Works, 2420A_01d005.htm To prepare for this module: ! Read all of the materials for this module. ! Preview the animation. Presentation: 45 minutes Required materials Preparation tasks iv Module 1: Introduction to B2B Integration How to Teach This Module This section contains information that will help you teach this module. Lesson: Introduction to B2B E-Commerce This lesson introduces B2B e-commerce and the elements of B2B e-commerce that this course focuses on. When introducing B2B e-commerce, avoid lengthy discussions on elements that are outside the scope of this course, such as supply chain management. Ensure that students understand the difference between direct and indirect trading partner relationships. Play the How Trading Partner Integration Works multimedia file, and then discuss the animation with the students. The following information is specific to individual pages in this lesson. In this course, the term direct trading partner relationship describes relationships between buyers and suppliers. Students may also be familiar with the term peer-to-peer relationship. Ensure that students do not confuse direct and indirect trading partner relationships with the manufacturing terms direct and indirect materials. Also note that we start each module with the full term, B2B trading partner integration, and then use B2B integration thereafter. This slide briefly introduces the next slide: What Is B2B Trading Partner Integration? Define B2B e-commerce and then move to the next slide to emphasize the topics that are included in trading partner integration. Also discuss the topics that are not included in Course 2420A. Be sure to read the definition and example for supplier-buyer collaboration, because that term can cause confusion. When we mention the advantage of greater cost savings, we are referring to long-term savings. Significant start-up costs occur in both direct and indirect trading partner relationships. Although start-up costs may inspire interesting class discussions, limit your discussion about these costs. Lesson: Introduction to B2B Trading Partner Integration This lesson introduces the modules in the course, topic by topic. Use this lesson to provide students with an overview of the topics that they will learn in the class. Explain to students how each page in this lesson corresponds to a segment of the multimedia file in the previous lesson, and also to a subsequent module in the course. Although remote shopping provides enhanced information and functionality to buyers when they shop on marketplace Web sites, be sure to emphasize that remote shopping is an equally important value proposition for suppliers in direct trading partner relationships. Lesson: Introduction to B2B E-Commerce What is B2B E-Commerce? Direct Trading Partner Relationships Implementing Remote Shopping Module 1: Introduction to B2B Integration v Customization Information This section identifies the lab setup requirements for a module and the configuration changes that occur on student computers during the labs. This information is provided to assist you in replicating or customizing Microsoft Official Curriculum (MOC) courseware. There are no labs in this module, and as a result, there are no lab setup requirements or configuration changes that affect replication or customization. Module 1: Introduction to B2B Integration 1 Overview ! Introduction to B2B E-Commerce ! Introduction to B2B Trading Partner Integration ***************************** ILLEGAL FOR NON - TRAINER USE ****************************** In addition to conducting business with consumers, most organizations buy and sell products or services with vendors, distributors, and other organizations. Establishing effective business-to-business (B2B) relationships involves many challenges. For example, an organization may store its business data in formats that are different from those that its trading partners use. Incompatible business systems may lead to expensive and inefficient business processes. To remain competitive, organizations must conduct B2B transactions efficiently by minimizing procurement costs. The goal of trading partner integration is to help organizations establish and manage B2B relationships by automating the exchange of business documents. After completing this module, you will be able to: ! Describe B2B e-commerce and the types of relationships between suppliers, buyers, and marketplaces. ! Describe the process of selling products to trading partners over the Internet. Introduction Objectives 2 Module 1: Introduction to B2B Integration Lesson: Introduction to B2B E-Commerce ! What Is B2B E-Commerce? ! What Is B2B Trading Partner Integration? ! What Are Marketplaces? ! Types of Trading Partner Relationships ! Indirect Trading Partner Relationships ! Direct Trading Partner Relationships ! Multimedia: How Trading Partner Integration Works ***************************** ILLEGAL FOR NON - TRAINER USE ****************************** This lesson explores B2B trading partner integration from a supplier’s perspective. It describes the roles of suppliers, buyers, and marketplaces in B2B e-commerce relationships. By understanding each of these unique roles, you can define the business drivers that determine your design decisions. After completing this lesson, you will be able to describe: ! B2B e-commerce. ! B2B trading partner integration. ! The function and types of marketplaces. ! The two types of trading partner relationships in B2B e-commerce. ! The advantages and limitations of indirect trading partner relationships. ! The advantages and limitations of direct trading partner relationships. Introduction Lesson ob jectives Module 1: Introduction to B2B Integration 3 What Is B2B E-Commerce? B2B E-Commerce B2B E B2B E - - Commerce Commerce Supplier-buyer collaboration Supplier-buyer collaboration Supply chain management Supply chain management Infrastructure support and management Infrastructure support and management E-procurement and requisitioning E-procurement and requisitioning Formation of trading partner business relationships Formation of trading partner business relationships Electronic catalog design and exchange Electronic catalog design and exchange Order processing integration Order processing integration ***************************** ILLEGAL FOR NON - TRAINER USE ****************************** Business-to-business (B2B) e-commerce is the electronic exchange of products or services between businesses. B2B e-commerce follows the same basic principles of nonelectronic commerce. However, instead of using printed catalogs, paper purchase orders, and other printed business documents, buyers and suppliers perform business transactions through automated processes on networked computers. B2B e-commerce includes: ! Formation of trading partner business relationships. ! Electronic catalog design and exchange. ! Order processing integration. ! Supplier-buyer collaboration. ! E-procurement and requisitioning. ! Supply chain management. ! Infrastructure support and management. Definition Elements of B2B e-commerce 4 Module 1: Introduction to B2B Integration What Is B2B Trading Partner Integration? B2B E-Commerce Supply chain management Supply chain management Infrastructure support and management Infrastructure support and management E-procurement and requisitioning E-procurement and requisitioning B2B Trading Partner Integration B2B Trading Partner Integration B2B Trading Partner Integration Formation of trading partner business relationships Formation of trading partner business relationships Electronic catalog design and exchange Electronic catalog design and exchange Order processing integration Order processing integration Supplier-buyer collaboration Supplier-buyer collaboration ***************************** ILLEGAL FOR NON - TRAINER USE ****************************** B2B trading partner integration is a subset of B2B e-commerce that enables organizations to create strategic relationships with other suppliers and buyers by automating business transactions. Trading partner integration, or B2B integration, can increase the speed and efficiency of doing business, reduce transaction costs, and add value to the business relationship. The process of trading partner integration defines the scope of this course. B2B integration includes the following components: ! Formation of trading partner business relationships. One goal of trading partner integration is the rapid formation of business relationships between suppliers and buyers. Formation of these relationships includes discovering potential trading partners, gathering B2B integration information, and creating trading partner agreements. ! Electronic catalog design and exchange. Suppliers of products and services must publish electronic catalogs so that their buyers can make purchases. The level of sophistication of electronic catalogs varies, depending on the buyers’ needs and the catalog restrictions of the trading partners. ! Order processing integration. Suppliers and buyers can automate transactions by creating an infrastructure to transmit business documents securely. Trading partners can gain efficiencies and reduce costs by integrating other business systems, such as Enterprise Resource Planning (ERP) systems, in their automated document exchange. ! Supplier-buyer collaboration. Suppliers add value to their business relationships by providing their buyers with services, such as direct e-procurement integration or custom order status applications. B2B trading partner integration does not include e-procurement and requisitioning, supply chain management, or infrastructure support and management. Definition Elements of B2B integration [...]... application continues to process the order Module 1: Introduction to B2B Integration 19 Review ! Introduction to B2B E-Commerce ! Introduction to B2B Trading Partner Integration *****************************ILLEGAL FOR NON-TRAINER USE****************************** 1 Your organization is considering whether to create a direct or indirect trading partner relationship with a buyer that belongs to an existing... expertise Your B2B integration solution will be specific to your organization and your trading partner Developing your solution may require an experienced development team ! Increased time to market Because you must develop your own B2B integration solution, it may take longer to offer products or services to your buyers 10 Module 1: Introduction to B2B Integration Multimedia: How Trading Partner Integration. .. to publish B2B information about the organization and to gather information about current and potential trading partners 8 The suppler may also use XML Web services to offer customers added value and to provide critical data that is used in order processing Module 1: Introduction to B2B Integration 11 Lesson: Introduction to B2B Trading Partner Integration ! Managing Product Information ! Creating... internal marketplaces 6 Module 1: Introduction to B2B Integration ! Regional Specialize in a specific geographic region—for example, Latin America or Europe ! Aggregator Create one catalog from catalogs that they gather from multiple suppliers who sell similar products and services, such as products sold by lot at a fixed price or at an auction Module 1: Introduction to B2B Integration 7 Types of Trading... purchasing decision 14 Module 1: Introduction to B2B Integration Publishing Electronic Catalogs Supplier Transforms the catalog to the appropriate format Commerce Server Catalog Trading Trading Partner Partner Transports the catalog to the trading partner cXML Catalog Internet cXML cXML Catalog Catalog *****************************ILLEGAL FOR NON-TRAINER USE****************************** Introduction After... the supplier and buyer have a one -to- one integration whereby the buyer buys products or services directly from the supplier A supplier may have direct relationships with many different buyers Note In this course, the term trading partner refers to any organization, whether a buyer or a marketplace, that a supplier conducts business with 8 Module 1: Introduction to B2B Integration Indirect Trading Partner... USE****************************** Introduction To conduct business with trading partners, suppliers must be able to accept and fulfill orders for products or services A B2B integration solution solves this requirement by enabling suppliers to automate and manage their purchase order workflow Steps Purchase order processing consists of the following steps: 1 The supplier receives the purchase order The supplier’s goal is to receive... supplier must validate the format and content of the purchase order to ensure accurate and timely order processing 3 The supplier processes the purchase order The supplier fulfills the order, often by integrating its order processing system with inventory, financial management, and other business systems 16 Module 1: Introduction to B2B Integration Implementing Remote Shopping Trading Partner Supplier... PunchOut by Ariba Inc., and TapOut by Clarus, Inc Module 1: Introduction to B2B Integration 17 Establishing New Business Relationships Using UDDI Supplier registers business information in UDDI Supplier 1 Supplier 1 UDDI Adventure Works Adventure Works Phone: +1 (555) 555-1111 Phone: +1 (555) 555-1111 D-U-N-S: 013412 D-U-N-S: 013412 Protocol: xCBL Protocol: xCBL SIC: 3751 SIC: 3751 ? SIC:3751 ? SIC:3751... marketplaces often leaves suppliers with little control of those processes ! No guarantee of sales to buyers Participation in online marketplaces is just as competitive as traditional marketplaces No guarantee exists that buyers will buy from you more than from your competitors Module 1: Introduction to B2B Integration 9 Direct Trading Partner Relationships Supplier Supplier Marketplace Marketplace Advantages . or customization. Module 1: Introduction to B2B Integration 1 Overview ! Introduction to B2B E-Commerce ! Introduction to B2B Trading Partner Integration. 1 Lesson: Introduction to B2B E-Commerce 2 Lesson: Introduction to B2B Trading Partner Integration 11 Review 19 Module 1: Introduction to B2B Integration
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