Notes

Outline

Topics in B2B Introducing B2B Models to the Ulaanbaatar Business and Government Community

Seminar Objectives Introduce topic of B2B Increase industry awareness in B2B Stimulate interest

B2B Defined

B2B Core Systems Glossary Application Service Providers (ASPs) Companies which can provide outsourcing of key corporate activities at a much lower cost in infrastructure and human resources Supply Chain Management systems (SCM) Primarily designed as automated decision support systems, incorporating corporate intelligence into automated purchasing and accounting process Enterprise Resource Planning (ERP) Primarily designed to support automation of corporate workflow processes and information flow E-Procurement systems Designed to automate internal purchasing approval and procurement processes using corporate information and communication systems

Why is this Important? Commerce is fragmented by geography Most transactions between businesses are complex, as well as labor and information intensive Supply chains are bloated with excess inventories due to lack of visibility from the manufacturing point to the point of retail sales

B2B @sia Survey

B2B @sia Survey

B2B @sia Survey

Evolution of IT Systems (1)  An automation tool to help Information entry Processing Storage Analysis (2)  An organizational communications tool Client – Server Wide and Local Area Networks Middleware Introduction of Intranet web sites (3)  Connected enterprise

B2B Enabling Software XML is the current accepted standard for B2B data interchange Most Asian countries are adopting: EAI ~ European Article Identification UCC ~ Uniform Code Council EA-UCC standards are adopted in 94 countries worldwide** Data element representation accomplished through use of industry standards UN/SPSC RosettaNet BizTalk ebXML

XML Planning

Business on the Web Web presence Establishing a “home page” “Flat” file information on business/products Online catalogs and ordering Basic database integration Credit card validation Inventory access and consumption Supply chain integration Inter-company inventory management Computer-computer ordering Billing and banks transactions

B2B Adoption Cycle

Extending the Organization

Inventory-less Commerce for Distributors or Retailers

Intersection of Supply and Demand Chains

Typical Supply Chain

Steps to Take Preparing for B2B Build IT systems with open interfaces When possible, develop data format compatible with industry standards Ensure architecture flexibility/agility Design business processes with long term automation objectives Always ask “will this process support automation or B2B?”

B2B Success Factors in Mongolia Government support of B2B initiatives through legislation Data Security/Encryption/Authentication Tax benefits/holidays for companies taking B2B risk Support network/communications in education system Leading by example <Government to Business (G2B) initiatives> Support development of high performance infrastructure Cable modems Wireless technology Developing urban infrastructure Reduction of distribution system “middlemen” Increased relationships with global B2B consortiums Participation of banks to bring payment systems to both consumers and business Introduction of Application Service Providers to bring additional process and workflow automation capability to the Mongolian business community

B2B Summary The Internet enables rapid development of new business relationship models Internet enabled standards will make participation easier Asian countries recognize, and are responding to the challenge of B2B integration in corporate and government planning The Internet and B2B are not going away – now is the time to learn and plan for Mongolia’s participation in the b2B community

Thanks for Your Interest