The Semantic Web and Alibaba.com

Previously, in my discussion regarding the Semantic web make changes on Yahoo!, talks about what are the impacts from the emergence of Semantic Web from the current web, and how it can provide an efficient and precise information to web users, and customers which they will be obtained from Yahoo! search engine.

However, for today's topic, I would like to discuss on what are impacts of Business-to-Business (B2B) E-commerce by adopting Semantic Web. A brief description of B2B, is the e-commerce between businesses which also known as e-biz. Just as B2C internet businesses, the main benefit is that it can reduce the transaction costs between sellers and buyers in external markets, and effort associated with business partnership's interaction and information searches, simultaneously it can increase growth as indicated in the figure below:

Source: http://www.altevie.net/mediagraphix/europeaninternetstats/

One of the world's premier e-commerce brands and the number one online marketplace for global and domestic China trade, is Alibaba.com

which the company:

• Provide an efficient, trusted platform connecting small and medium-sized buyers and suppliers from around the world.
  
• Their international marketplace focuses on global importers and exporters.
• Their China marketplace focuses on suppliers and buyers trading domestically in China.
• Together their marketplaces form a community of more than 24 million registered users from over 200 countries and regions.

On February 21st, 2008 this year, Alibaba.com was the only Chinese company in the top 10 and they were rank at no.8 and has been name one of the World's 50 most Innovative Companies by Fast Company magazine in March Issue. They receive the credit due for:

• their "easy-to-use business website connecting buyers and suppliers" globally.
• and the company opens new doors to global trade without regard to geography, distance or language and its point-and-click system is creating new opportunities for millions of small and medium businesses.

According to the source, in August 11th, 2005 Alibaba.com has "signed an agreement with Yahoo.Inc. to acquire Yahoo China" which according to Alibaba.com CEO, Ma Yun, "Alibaba and Yahoo will aim at creating search engines more powerful than Google's".

My point of the topic is that, Alibaba.com and Yahoo! will achieve their aim soon as Yahoo! would adapt the Semantic Web that will provide a well-define meaning, more accurate and precise information, etc in the future, and will increase their growth and customers, simultaneously collaborate with their customers better.

The reason is because of the limitations of B2B E-commerce now it relies mostly on Electronic Data Interchange (EDI) which is

• an isolated technology and understoods only by experts
• difficult to program and maintain
• each B2B communication requires separate programming
  

Thus, with the adaptation of Semantic Web and B2B E-commerce,

• The Semantic Web will allow businesses to enter partnership without much overhead such as Alibaba.com and Yahoo!
• Auctioning, negotiations, and drafting contracts can be carried out automatically (or semi-automatically) by software agents. Thus, in this case, it will improve and help Alibaba.com to operate their business and trades globally better.
  

Who knows that Yahoo! might replace Google's rank to be the 1st in World's most innovative company in future, so does Alibaba.com as a reason of their partnerships for their own company's strategy. Additonally, Alibaba.com would achieve their target audience which are the business traders faster, efficiently, and effectively.

Do share your thoughts and opinions with me.