Page 69 - DMGT505_MANAGEMENT_INFORMATION_SYSTEM

Management Information Systems

Notes 4.4.4 Examples for Online Business-to-Business (B2B) Model

Consider an automobile or home appliance spares manufacturing company having an online
store to cater the requirements of the retailers. Each of the following two examples implements
the concept of b2b business model.

Example: http://www.golna.com
Ningbo GOLNA PARTS Co., Ltd is a 10 year old manufacturers and exporters in the home
appliance components in Ningbo of China, which is the electric appliance producing base and
also 2nd biggest container port in China.
The products include washing machine spare parts, refrigerator spare parts, air conditioner
spare parts, vacuum cleaner spare parts, heater spare parts, etc. The company owns modern
production lines and Hi-tech quality control equipment. With scientific management,
professional engineers, highly trained technicians and skilled workers.

Example: http://www.hawtuoh.com
Auto spare parts company in Taiwan.
Self Assessment

Fill in the blanks:
8. The .................................. business model for business-to-business operations involves a
procurement staff that negotiates with various suppliers.
9. Business-to-business e-commerce is still in a state of flux as enterprises learn how to
.................................. information technology in general and the Internet in particular into
systems that help them more efficiently and effectively does business.

4.5 Electronic Data Interchange (EDI)

EDI was developed in early 60s as a means of accelerating the movement of documents related
to shipments and transportation. However, from the beginning of 80s it is now widely used in
various other sectors like automotives, retails, and international trade. Its relevance and usage
is growing at a very fast pace.
EDI is based on a set of standardized messages for the transfer of structured data between
computer applications. It may have many applications e.g., sending the test results from the
pathology laboratory to the hospital or dispatching exam results from exam boards/university
to school/college, but it is primarily used for the trade exchanges: order, invoice, payments and
many other transactions that can be used in national and international trade exchange.
Notable users of EDI are vehicle assemblers, ordering components for their production lines,
and supermarkets (and other multiple retailers), ordering the goods needed to restock their
shelves. EDI allow the stock control/material management system of the customer to interface
with the stock control/production systems of the suppliers without the use of paper documents
or the need of human intervention.
The EDI is used for regular repeat transactions. EDI is a formal system and it does not really have
a place in the search and negotiation phases. EDI, when initially introduced was seen by many
as a universal, or at least a generalized form of trading.

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