Actra Business Systems Mountain View, California Order Expert TM Business Models Understanding our Target Markets Version 2 NetBuy - NetSell - Merchant 2.0 Prepared by Actra Business Systems 7/28/2017 50 Table of Contents 1. BUSINESS MODELS................................................................................................................................ 4 1.1. COMMON CONCEPTS IN BUYER-SELLER BUSINESS MODELS ................................................................. 5 1.2. SIMPLE SELLER MODEL ......................................................................................................................... 5 1.3. BUSINESS TO CONSUMER MODEL .......................................................................................................... 8 1.4. SIMPLE BUYER MODEL.......................................................................................................................... 9 1.5. SELLER - BUYER MODELS ................................................................................................................... 10 1.6. AGENT MODEL .................................................................................................................................... 11 1.7. COMPLEX BUYER MODEL.................................................................................................................... 13 1.8. COMPLEX SELLER BUSINESS MODEL................................................................................................... 15 1.9. SUPPLY CHAIN BUSINESS MODEL ........................................................................................................ 16 1.9.1. Server-To-Server Pipeline ........................................................................................................... 17 3. ACTRA PRODUCT ORIENTATION - ORDER EXPERT ................................................................ 20 2.1.1. NetSell ......................................................................................................................................... 20 2.1.2. NetBuy ......................................................................................................................................... 20 2.1.3. Merchant 2.0 ............................................................................................................................... 20 2.1.4. Business Document Gateway ....................................................................................................... 21 2.1.5. Agent - Seller - Buyer Combinations ........................................................................................... 21 Actra Business Systems Inc. Business Models Page 3 This document contains Proprietary Information and is not to be distributed or copied without prior written consent of an officer of Actra Business Systems This Document was prepared by Rob Tribble on 7/28/2017 Actra Business Systems Inc. 1. Business Models Page 4 Business Models The Actra Purchasing Server is designed to provide support for both sides of the business transaction. The Product is designed for several different modes of operation: For Example: 1. 2. 3. 4. 5. 6. 7. A Customer/Browser based User interacting with a Purchase Server (Simple Seller Model) A Buyer/Browser based User interacting with a Purchase Server (Simple Buyer Model) A Distribution Company that is both a Seller and a Buyer (A Seller-Buyer Model) An Agent Company that is going to provide an Electronic Market for many buyers and sellers (Agent Model). A Purchasing Server interacting with a Purchasing Server (Complex Buyer/Seller Model) A Multi Divisional Company with many suppliers working with a common purchasing system (Complex Buyer Model). Two Companies in a supply chain relationship that both have Actra Servers (Supply Chain Model) Buyers Sellers N N Sales Agent Seller Model Customer Purchasing Server @ Seller Seller Model Application Software Integrated Product Catalog Buyer Purchasing Server @ Buyer N Supply Chain Model Buyer Model Application Software Complex Buyer or Seller Model Integrated Product Catalog S e r v i c e Supplier Specifc Actra Product Catalog Complex Buyer Model Non Actra Product Catalog Figure 1 Business Model Overview The business models are comprehensive and all have a different requirements for packaging of the functionality. The simple cases usually involve the interaction between a user with a browser, and a server. The more complex cases involve multiple browsers, or remote access to an electronic product catalog. This document contains Proprietary Information and is not to be distributed or copied without prior written consent of an officer of Actra Business Systems This Document was prepared by Rob Tribble on 7/28/2017 Actra Business Systems Inc. Business Models Page 5 Electronic Product Catalogs will be located locally or remotely. The term local or remote defines the ownership and editorial control of the catalog. The EPC API will be the same to the application engine whether an EPC is located on the same machine, a local LAN, or a WAN. The dotted lines in these diagrams represent different organizations. The design criteria is to “Build” a single software engine that will work in all business models, and will be configured, packaged, and delivered as different products for different markets. The possibility for a Two Purchasing Servers to interact, will enable a buyer at one company to processes a complete buying transaction. The presence of the purchasing server at any one site will allow the buying transaction to be managed within the context of the business model (i.e. Buyer, or Seller). The Purchasing Server will also have the ability to integrate with legacy systems, and integrate with the transfer of information on an EDI basis. Once the EDI transactions have been accepted by a Purchasing System they become part of the Purchasing Servers Information Data Base. 1.1. Common Concepts in Buyer-Seller Business Models There is a high degree of commonality between the two models, however they have differences in orientation and nomenclature. For example: Buyer Model Supplier, Vendor Purchase Orders Buyer Company Buyer Concept Bought From Orders Sold To Active User Role Seller Model Seller Sales Orders Customer Company Customer Buy-From, Bill-to, Ship-to Buyer Nomenclature Buying Company, Selling Company Names & Addresses Products Pay-To, Bill-To, Ship-To Seller Nomenclature Selling Company, Buying Company Authority & Control Loca / Remote EPC, & Foreign PC Catalog Local or Remote EPC Requisition Master Purchase Orders Repeat Requisitions Pre Commitment Document Master Agreements Repeats Sales Quotes Sales Agreements Repeat Sales Orders Inventory On Site Cost to Acquire In Bound Inventory Pricing Transportation Figure 2 Business Models & Nomenclature Inventory for Sale Price to Customer Out Bound The conceptual model treats Purchase Orders, Sales Orders, Requisitions, and Shipments as representations of a common business object - an Order. 1.2. Simple Seller Model This document contains Proprietary Information and is not to be distributed or copied without prior written consent of an officer of Actra Business Systems This Document was prepared by Rob Tribble on 7/28/2017 Actra Business Systems Inc. Business Models Page 6 The Purchasing Server is designed to support a Company that is a Seller that has one to many customers, which have one to many buyers (users). A simple Seller Model has multiple browser users (Buyers) using the purchase server to place orders. Seller Buyers Customer Company A N N Seller Admin N Optional Buyer Admin. Buyer Admin. Purchasing Server @ Seller N N Buyers Buyers Buyers Customer Company B N Application Software N Buyer Admin. N N Buyers Product Catalog N N Buyers Buyers Buyer Admin. Customer Company C N N Buyer LDAP Server Admin. Buyers N Buyers N Buyers Figure 3 Simple Seller Model The “Seller Model” has an orientation of being owned by a selling company, and may be operated by that company or another company in the Agent Model. The “Seller Model” is a Sales Order Processing System. The primary business roles are: Seller - the organization that is providing products or services, usually called the Pay-To. Customer/Buyer Company - the organization that is receiving the products or services usually called the Bill-To. Customer/Buyer (Member) - the individual, who represents the customer/buyer company, usually known as the Ship-To. Purchase Order - or Sales Order - that represents an agreement to transfer products and services from a seller to a buyer. Supplier - a third party organization that supplies products and services to the seller (“Seller Model”). The basic orientation of all of the business policies, privileges and rules are oriented around the Seller. In the “Seller Model” the seller (Seller Admin.) controls the granting or revoking of all privileges to the buyer This document contains Proprietary Information and is not to be distributed or copied without prior written consent of an officer of Actra Business Systems This Document was prepared by Rob Tribble on 7/28/2017 Actra Business Systems Inc. Business Models Page 7 company (Buyer Admin.), who in turn grants/revokes privileges to the individual Buyer (Member). The Three examples in this diagram show: 1. 2. 3. A Buying Company with a Single Buyer Admin. and multiple Buyers (Users). The Buyer Administration function can be performed by either a person working for the seller or a person working for the buying company. A Buying Company (probably a very large company) with Multiple Buyer Admin. (by organization), each with multiple buyers. A Buying Company with LDAP Services which allow the Buyer Administrator to better manage a large number of buyers. The LDAP capability will allow the individual buyer to use the system without using the User/password dialog to establish identity. The simple seller model is expected to be able to cover both the commercial and retail markets. This document contains Proprietary Information and is not to be distributed or copied without prior written consent of an officer of Actra Business Systems This Document was prepared by Rob Tribble on 7/28/2017 Actra Business Systems Inc. 1.3. Business Models Page 8 Business to Consumer Model The Business to Consumer Business Model makes the assumption that the seller will sell to almost anyone. This assumption also implies that the price, terms, and quality of service are consistently applied to a basically “Unknown” or “Casual” Shopper. In fact, it is expected that the consumer is unknown to the seller prior to concluding the order taking function. The specific details for this model need to be filled in, and will represent the needs and requirements of the existing Merchant X.X series of products. The primary differences will be: 1. The Consumer is “Transient” and only needs to identify themselves when they purchase something. 2. The Product Catalog is available to the “Public” 3. The T&C of doing business are standardized to a small set of choices 4. The ability to “customize” the StoreFront, and Catalogs is very important 5. Tracking of the activity, logging, and user preferences is important 6. Providing the ability to advertise, and influence buying behavior is important The ability to Up-sell, Cross-Sell, and promote products is important. Seller Buyers N N Buyers N Seller Admin N Buyer Admin. Purchasing Server @ Seller Buyers N W.W.W Buyers N Buyers Application Software N Buyers Product Catalog N Buyers N Buyers Figure 4 - Business to Consumer This document contains Proprietary Information and is not to be distributed or copied without prior written consent of an officer of Actra Business Systems This Document was prepared by Rob Tribble on 7/28/2017 Actra Business Systems Inc. 1.4. Business Models Page 9 Simple Buyer Model The Purchasing Server is also designed to support a Company that is a Buyer and has many suppliers (Sellers). This model supports many users (Buyers) placing orders against suppliers (Sellers). Sellers Buyer Seller Supplier Company A N Direct Administartion Seller Admin Purchasing Server @ Buyer Seller Supplier Company B Application Software N N Buyer Admin Seller Admin Integrated Product Catalog FTP Seller Specific Product Catalog N N N Buyers Buyers Buyers Seller Specific Product Catalog Seller Supplier Company C N Seller Admin Seller Specific Product Catalog FTP Figure 5 Simple Buyer Model The “Buyer Model” has an orientation that represents the needs of a buying organization dealing with a large number of parts and a large number of suppliers(sellers). The sellers to this organization may maintain their business relationship in several different manners. A buyer maintained catalog of parts and suppliers. This approach would be implemented in an environment where the suppliers do not have the ability or the desire to provide a prepared set of information to the buying company. The buying company maintains there own integrated product catalog with whatever information is provided. A seller maintained catalog of parts and suppliers, with each supplier having the ability to administer “their” products in a common catalog. A separate seller maintained catalog, that is transferred to the buying company as a single set of information. This product catalog is accessed and maintained by the seller and transferred to the buyer for access. This document contains Proprietary Information and is not to be distributed or copied without prior written consent of an officer of Actra Business Systems This Document was prepared by Rob Tribble on 7/28/2017 Actra Business Systems Inc. Business Models Page 10 Later in this document we will cover the “Complex Buyer Model” which may have a multiple step approval process (WorkFlow) where the original requirement is expressed as a purchasing requisition. The requisition may then go through an approval process, and be processed into a purchase order. Requisitions represent the needs of a specific buyer, which may be satisfied by multiple suppliers(sellers). Requisitions may map to Purchase Orders on a many-to-many basis. Each line item on a requisition may track to many other line items on purchase orders. Purchase Orders in the “Buyer Model” become Sales Orders in the “Seller Model”. 1.5. Seller - Buyer Models Many organization have a need to be both a seller (sales) and a buyer (purchasing). The Sales Processing Systems (Order, Ship, Bill) may include an ACTRA Seller System.. The Inventory Management Systems (Plan, Make, Buy) may include an ACTRA Purchasing System. These organizations are in business to “Distribute” product. These ACTRA Products are connected by internal legacy systems that process information from sales, purchasing, forecasting, and marketing systems. Suppliers My Distribution Company Purchasing Server @ Seller Supplier One N Supplier Admin Sales Management Staff "Seller Model" \ Sales Orders Application Software N Buyers / Customers Customer Company A Buyer Administrator N Customer s N N N SupplierTwo Integrated Product Catalog Seller Admin N Supplier Admin Buyer Administrator N N Purchasing Server @ Buyer Application Software N Supplier Admin N Buyer Administrator Purchase Orders Inventory Management Staff N Integrated Product Catalog N Customer Company C "Buyer Model" Supplier Four N Customer s Forecasting ERP, DRP, MRP Sales Supplier Three Supplier Admin Customer Company B N Customer s N N N Buyer Admin Figure 6 Buyer / Seller Model This document contains Proprietary Information and is not to be distributed or copied without prior written consent of an officer of Actra Business Systems This Document was prepared by Rob Tribble on 7/28/2017 Actra Business Systems Inc. Business Models Page 11 The distribution company can use the system in two different ways. First, using the “Seller Model” to manage their relationships with their customers. Second, using the “Buyer Model” to manage their relationship with their suppliers. This becomes a complex model with multiple servers playing different roles. The Inventory Management Function within a company then balances current sales orders with current inventory and determines the amount of new product to buy to put into inventory or ship to customers. 1.6. Agent Model The “Agent Business Model” sets up an electronic marketplace where a larger number of electronic sellers and electronic buyers may interact. The Agent would be a company that intends to provide a service to any number of buyers and sellers. The Agent would provide the capability for the buyers and sellers to conduct electronic commerce on an individual basis. This would follow a “Service Bureau” like approach. Both Models can be supported under an Agent Relationship, where the systems are setup, administered and supported by a third party (Like as Service Bureau). Both of these business models assume the use of browsers for access, and local ownership of product information. The product information in these simple configurations is expected to be maintained by the system owner. Sellers Buyers Agent Model Customer Company A Purchasing Server @ Agent Buyer Administrator N Buyers Seller Administrator Application Software N N N N Seller Administrator Product Catalog Seller A N Customer Company B Buyer Administrator N Buyers Product Catalog Seller B Seller Administrator N N N N Product Catalog Seller C Customer Company C Buyer Administrator N Seller Administrator N Agent Administrator N Buyers N N N Figure 7 Agent Model This document contains Proprietary Information and is not to be distributed or copied without prior written consent of an officer of Actra Business Systems This Document was prepared by Rob Tribble on 7/28/2017 Actra Business Systems Inc. Business Models Page 12 The Agent Model also supports the awareness of multiple suppliers and sellers into a single environment. In this environment the Buyers will have access to a Suppliers catalogs, and the privileges will be maintained by the agent in charge of that electronic marketplace. This document contains Proprietary Information and is not to be distributed or copied without prior written consent of an officer of Actra Business Systems This Document was prepared by Rob Tribble on 7/28/2017 Actra Business Systems Inc. 1.7. Business Models Page 13 Complex Buyer Model The next step in integration is the ability for multiple sellers, and buyers to maintain their own Product Catalogs, and share that information with many other Purchasing Servers. For example, a major manufacturer has many suppliers for MRO products (Buyer Model), there may have 5 major sources of supply. Each one of those suppliers may have their own electronic catalog, and is willing to share that catalog with any of their major customers. The Electronic Catalog for each one of the suppliers may be: 1. Maintained by the Buying Company, and combined into a single integrated product catalog at the buying companies site. (Buyer Model). Maintained by the Selling Company. But located at the buying company’s site as a separate electronic product catalog. Maintained by the Selling Company. But located at the Selling company’s site as a remote electronic product catalog. Maintained by the Selling Company, and is not an Actra Electronic Product Catalog. 2. 3. 4. Sellers Buyers Internal Departments N Purchasing Server @ Buyer Supplier A Admin. Buyer Administrator for Dpeartment 100 N Buyers N Products in the Integrated Catalog N N Application Software Internal Departments Buyer Administrator for Department 200 Product Catalog Supplier B Seperate Product Catalog N Supplier B Admin. N SupplierC Admin. Product Catalog Remote Product Catalog File Transfer Integrated Product Catalog N Buyers N N N Product Catalog Supplier B Product Administrator Users in Work Flow Roles Product Requistions IN Workflow Control Out N WorkFlow Role Product Catalog Product Purchase Orders Remote Forign Product Catalog Figure 8 Complex Buyer Model This document contains Proprietary Information and is not to be distributed or copied without prior written consent of an officer of Actra Business Systems This Document was prepared by Rob Tribble on 7/28/2017 Actra Business Systems Inc. Business Models Page 14 The product catalog used in any of these relationships must exist with the Purchasing Server, and may exist on another Purchasing Server that represents a supplier. Therefore, any one Purchasing Server may have one or more Local Product Catalogs, or None to many Remote Product Catalogs. The Purchasing Server will be able to search both local and remote product catalogs. The “Complex Buyer Model” which may have a multiple step approval process (WorkFlow) where the original requirement is expressed as a purchasing requisition. The requisition may then go through an approval process, and be processed into a purchase order. Requisitions represent the needs of a specific buyer, which may be satisfied by multiple suppliers(sellers). Requisitions may map to Purchase Orders on a many-to-many basis. Each line item on a requisition may track to many other line items on purchase orders. This document contains Proprietary Information and is not to be distributed or copied without prior written consent of an officer of Actra Business Systems This Document was prepared by Rob Tribble on 7/28/2017 Actra Business Systems Inc. 1.8. Business Models Page 15 Complex Seller Business Model The complex seller model is for a seller who has multiple customers in multiple markets. The seller maintains multiple sets of product catalogs, with each catalog having a different representation of the products the company has to sell. For Example: 1. 2. 3. A general commercial product catalog A GSA Catalog A Military “MilSpec” Catalog All of these catalogs may / may not have the same products. However, the products stored in these catalogs may have entirely different descriptions, categorization, and nomenclature. Buyers Seller Purchasing Server @ Seller N Seller Admin. Buyer Administrator for Company A N Buyers N N N Application Software Product Catalog Commercial Buyer Administrator Dept of Navy N Buyers N N N Product Catalog GSA Product Administrator Product Catalog Military Buyer Administrator GAO N Buyers N N N Figure 9 - Complex Seller This document contains Proprietary Information and is not to be distributed or copied without prior written consent of an officer of Actra Business Systems This Document was prepared by Rob Tribble on 7/28/2017 Actra Business Systems Inc. 1.9. Business Models Page 16 Supply Chain Business Model The ultimate extension of Electronic Commerce will be the extension of the Supply Chain from the consumer back to through the supplier chain.. The capability that Actra will add is the ability for each company in that supply chain to interact with every other company in the supply chain in a seamless manner. Supply Chain Model N Customer Requirement N N Sales Agent Purchasing Server @ Seller Sales Agent Paper to Paper (Old Way) Purchasing Server @ Seller Application Software Application Software Integrated Product Catalog Integrated Product Catalog N Buyer MRP / DRP / ERP / Legacy Purchasing Server @ Seller Application Software Integrated Product Catalog Legacy Shipping Billing Invoicing Local Inventory Local Inventory Sales Agent Server - to - Server (New Way) Legacy Shipping Billing Invoicing Legacy Shipping Billing Invoicing MRP / DRP / ERP / Legacy N Local Inventory N Buyer MRP / DRP / ERP / Legacy N Buyer Figure 10 Supply Chain Model The real benefit from electronic commerce will come when an entire “Supply Chain” can react to consumer demand in a seamless way. That all of the companies in the supply chain have setup information systems that participate in a integrated information and product flow model. The exchange of EDI information from server to server will happen on an interactive basis. This level of interaction will require a very effective definition of business rules, and workflow controls. This document contains Proprietary Information and is not to be distributed or copied without prior written consent of an officer of Actra Business Systems This Document was prepared by Rob Tribble on 7/28/2017 Actra Business Systems Inc. 1.9.1. Business Models Page 17 Server-To-Server Pipeline The Actra Product Line is being designed to reduce the overall overhead, and commitment of resources necessary to support an efficient supply chain. The use of Actra Products, or any interactive EDI products, will result in a cross - enterprise electronic commerce systems. Old Way Order / Ship / Bill Plan / Make / Buy Integrated Company Information Systems Purchasing Sales Company A Company B Company C N Order / Ship / Bill Order / Ship / Bill Order / Ship / Bill Customer Plan / Make / Buy Plan / Make / Buy Plan / Make / Buy Actra Actra EDI Actra EDI Integrated Supply Chain Information Systems The Server-To-Server Business Model is a special case of two ACTRA servers having a dialog to process an order. Conceptually, the both systems will be business “Stand-In’s” for their respective organizations. The capability then exists for an entire range of activities to occur without human intervention. For Example: A mechanic needs a electric switch, and fills out a material request. The material request is filled on the spot with inventory from the spares locker. The material request, and it’s fulfillment results in a Materials Management System recognizing the need to order more switches to maintain its normal supply level. This results in the creation of a resupply requisition. These are all features to be expected of a legacy system. The requisition from the legacy system is then imported into an ACTRA Purchasing Server System. Assuming that the resupply request, passes all of the normal tests, and business rules, the resupply request is processed into a purchase order. The Actra Purchasing Server will then have a dialog with the ACTRA Selling Server at a supplier’s organization. This dialog will have both servers playing the role of a “buyer” or of a “seller”. The business rules and data requirements will be enforced by both servers. Assuming that this purchase order conforms to all of the sellers rules, the purchase order is accepted as a sales order and a confirmation is sent back to the buyers purchasing server. This document contains Proprietary Information and is not to be distributed or copied without prior written consent of an officer of Actra Business Systems This Document was prepared by Rob Tribble on 7/28/2017 Actra Business Systems Inc. Business Models Page 18 The sellers selling server then communicates the sales order to it’s own legacy systems for shipment and billing. The end result is a $500 order has been fully processed by both companies without the absolute need for anyone to get involved in the process. This document contains Proprietary Information and is not to be distributed or copied without prior written consent of an officer of Actra Business Systems This Document was prepared by Rob Tribble on 7/28/2017 Actra Business Systems Inc. Business Models Page 19 This document contains Proprietary Information and is not to be distributed or copied without prior written consent of an officer of Actra Business Systems This Document was prepared by Rob Tribble on 7/28/2017 Actra Business Systems Inc. 2. Business Models Page 20 Actra Product Orientation - Order Expert The Order Expert Product line is designed to support three basic business channels. The overall product definition covers both Retail and Commercial channels : Order Expert TM N Retail N Int et ra n Tele Marketing Consumers Inte N rne e Int t Internet N In et Buyers & Requestors Merchant 2.0 t N Internet World Wide Web Field Support n tra rne Field Sales NetBuy NetSell Intr a ne t N EDI BDG EDI Inside Sales Commercial Figure 11 - Order Expert Family of Products 2.1.1. NetSell The NetSell Product is targeted at those companies that primarily sell to other commercial organizations. They may be manufacturers, distributors, or wholesalers. 2.1.2. NetBuy The NetBuy Product is targeted at those commercial organizations that want to organize their purchasing for direct and indirect products. 2.1.3. Merchant 2.0 The Merchant 2.0 Product is targeted at those sellers that are primarily selling to consumers of the end products. This document contains Proprietary Information and is not to be distributed or copied without prior written consent of an officer of Actra Business Systems This Document was prepared by Rob Tribble on 7/28/2017 Actra Business Systems Inc. 2.1.4. Business Models Page 21 Business Document Gateway The Business Document Gateway Product will be targeted to those organizations that would like to interact with EDI, through the Internet. 2.1.5. Agent - Seller - Buyer Combinations The combination of these products into the entire supply chain can be accomplished by combining multiple products. The following figure is an example of that process. Multi Tiered Business Model N Buyer / Consumer End User / Consumer / Customer NetSell Order Expert Software Integrated Product Catalog Legacy Systems Manufacturer / Distributor / Wholesale Legacy Systems Major Distributor / Manufacturer Products Legacy Systems Basic Materials Manufacturer / Importer NetBuy Catalog Information Purchase Orders, Sales Orders, Confirmations, Shipping Notices, Receipts, Claims, Invoices, Credits NetSell Order Expert Software Integrated Product Catalog NetBuy Catalog Information Purchase Orders, Sales Orders, Confirmations, Shipping Notices, Receipts, Claims, Invoices, Credits NetSell Integrated Product Catalog Order Expert Software Figure 12 - Multi Tiered Business Model The Multi Tiered Business Model opens up the information flow in the Supply Chain. Each Compnay in the chain becomes a component part of the overall process. The companies involved in this type of information sharing will have a competitive advantage over companies not in the process. This document contains Proprietary Information and is not to be distributed or copied without prior written consent of an officer of Actra Business Systems This Document was prepared by Rob Tribble on 7/28/2017
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