Class Assignment: E-Business Design

Answer the following short answer questions.
What is business process offshoring?

Business process outsourcing (BPO) is a method of subcontracting various business-related operations to third-party suppliers. Although BPO was originally only applicable to manufacturing entities, such as soft drink manufacturers that outsource most of the supply chain, BPO is now also applicable to service outsourcing. With today’s rapidly changing and highly competitive business environment, more and more new and innovative services are provided, and many companies, from small startups to large companies, choose to outsource processes. Broadly speaking, the company adopts BPO practices in the two main areas of back-office and front-office business. Back-office BPO refers to a company that outsources its core business (such as accounting, payment processing, IT services, human resources, regulatory compliance, and quality assurance) to external professionals who ensure the smooth operation of the business.
Briefly outline the differences between direct materials and indirect materials.

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Provide three specific examples of business support activities.

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 Briefly explain the differences between direct connection EDI and indirect connection EDI.

EDI, Electronic Data Interchange, is a system used to realize data exchange between enterprise business systems, thereby realizing “paperless transactions.” Direct EDI, also known as Direct EDI or Classic EDI, is a point-to-point docking method that requires both parties to the transaction to build their own EDI servers. Generally speaking, this method requires the enterprise to have certain IT capabilities to deal with the daily maintenance of the EDI system jobs. To establish a direct EDI connection, it will be determined in advance that the transmission protocols supported by both parties to the transaction include AS2/OFTP/SFTPFTP, etc., and transmit EDI messages that comply with international standards, including EDIFACT/X12/Odette/VDA, etc.

Indirect-EDI refers to a way to process EDI business by visiting the website of EDI service provider or trading partner through a browser. Web-EDI is a transitional solution of EDI. It mainly helps small and medium-sized enterprises with immature IT technology or imperfect equipment to quickly connect with trading partners. A third-party EDI supplier will open a dedicated WEB EDI account and conduct data interaction through the Web interface. However, because the business data passes through a third party, data security is low, and continuous traffic charges will be incurred. When an enterprise connects multiple upstream and downstream customers at the same time, the platforms are very different and difficult to manage. The only advantage of this approach may be that it requires less IT capabilities. The business scenario is as follows:

In about 100 words, explain how the Web can help build and maintain trust among
participants in a specific supply chain

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