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B2B Integration : A Practical Guide to Collaborative E-commerce

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382 <strong>B2B</strong> <strong>Integration</strong> — A <strong>Practical</strong> <strong>Guide</strong> <strong>to</strong> <strong>Collaborative</strong> E-<strong>commerce</strong><br />

13.1. Software Agents Enabling the Formation of<br />

Virtual Organizations<br />

<strong>B2B</strong>i requires companies <strong>to</strong> go through a big structural change, wherein<br />

the hierarchical, coordinated organization model is replaced by the<br />

decentralized business network, leading <strong>to</strong> virtual organizations.<br />

In order <strong>to</strong> have operational efficiency and productivity, virtual<br />

organizations should be able <strong>to</strong> communicate, cooperate and collaborate<br />

with each other in real-time. However, there is a need <strong>to</strong> ensure that the<br />

rise in productivity is not lowered or even over-compensated for by the<br />

overhead of coordination efforts required among cross-organization<br />

departments.<br />

The Solution:<br />

Software agents are an effective <strong>to</strong>ol for virtual organizations because<br />

they provide mechanisms <strong>to</strong> au<strong>to</strong>mate several activities, such as gathering<br />

and filtering information, negotiating deals and synchronizing business<br />

processes and workflows. Intelligent software agents can work on behalf<br />

of human knowledge workers, be it supplier or buyer or both.<br />

Software agents find applications in a variety of domains, including:<br />

<strong>B2B</strong> e-<strong>commerce</strong>, Internet-based information systems, robotics, smart<br />

systems, decision support systems, data mining and knowledge discovery.<br />

This chapter focuses on the role of software agents in <strong>B2B</strong> e-<strong>commerce</strong><br />

and <strong>B2B</strong> integration.<br />

The opportunities for using intelligent agents in <strong>B2B</strong> applications<br />

are enormous, mainly because the fundamental need of buyers over<br />

the Internet is <strong>to</strong> find the best price and that of sellers is <strong>to</strong> get an<br />

optimum price from buyers and multiply sales. These needs give rise <strong>to</strong><br />

a variety of intelligent agents working for <strong>B2B</strong> buyers and sellers.<br />

Agent technology can also be very useful in searching the Internet or<br />

an Intranet, negotiating deals and au<strong>to</strong>mating cus<strong>to</strong>mer relationship<br />

management, supply chain management and market pricing.<br />

13.2. What are Intelligent Software Agents<br />

An intelligent software agent is essentially a program that au<strong>to</strong>nomously<br />

senses the environment, acts upon it and adapts <strong>to</strong> the environment with

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