WO2001073656A1

WO2001073656A1 - Method and system for conducting business-to-business transactions in an electronic network

Info

Publication number: WO2001073656A1
Application number: PCT/US2001/009515
Authority: WO
Inventors: Stephan Schambach
Original assignee: Intershop Softwareentwicklungs Gmbh
Priority date: 2000-03-27
Filing date: 2001-03-26
Publication date: 2001-10-04
Also published as: AU2001247761A1

Abstract

A computer-implemented method and system is provided for conducting business-to-business transactions in an electronic network. Transactive content including product information and business rules is distributed from a vendor to its subscribers through a syndicated electronic catalog in machine-readable and machine executable format. A distributed software application includes a vendor application (310) for preparing and distributing the transactive content and a subscriber application (320, 322, 324) for reading and processing this syndicated transactive content. The machine-readable transactive contents of the vendor catalog are automatically processed by the subscriber application (320, 322, 324) and seamlessly and automatically integrated with the current content in the subscriber's catalog, with modified content automatically replacing a previous entry. The transactive content is then provided on the subscriber's Web site as a part of the subscriber's displayed catalog. The subscriber application (320, 322, 324) can be configured to display the contents of the vendor catalog as an integral unit in the subscriber's catalog. Alternatively, the subscriber application (320, 322, 324) can be configured to automatically assign product content to specific sections of the subscriber's catalog. The subscriber catalog can thereby include integrated syndicated content from a plurality of vendor sources, displayed according to product type. A customer can then select and purchase displayed items from the subscriber's catalog. A source identification code particular to a subscriber is incorporated into the distributed transactive content for the respective subscriber. This source identification code is incorporated into an electronic order to permit the vendor to identify the source of a sale.

Description

METHOD AND SYSTEM FOR CONDUCTING BUSINESS-TO-BUSINESS TRANSACTIONS IN AN ELECTRONIC NETWORK

BACKGROUND OF THE INVENTION

1. Field of the Invention:

The present invention relates generally to a method and system for facilitating business-to-business ("B2B") transactions in an electronic network. More specifically, the present invention relates to a method and system for providing catalog syndication and subscription services to create a networked marketplace in which automated electronic commerce is facilitated.

2. Description of Related Art:

The number of Internet users continues to increase at an explosive rate. The World Wide Web ("Web") has therefore now become a significant source of information, as well as products and services. As sales volume grows, Internet commerce ("eCommerce") companies are increasingly searching for strategies to more economically and efficiently distribute products and services to customers.

In a typical distribution chain according to the prior art, supplies are stored in warehouses and distributed to wholesalers and then retailers in response to orders. In this prior art model, the wholesaler must maintain sufficient stock to quickly supply the retailer and the retailer must maintain sufficient stock to immediately sell to a customer. Therefore, both the wholesaler and the retailer must independently maintain catalogs of available merchandise. Wholesalers and retailers must expend considerable funds in maintaining their stocks, both in advanced purchase fees and in warehousing costs. In this traditional supply and distribution model, additional expenses can be incurred as a result of inventory, personnel, arid restocking costs that are associated with maintaining an adequate stock of goods. In addition, monies advanced to purchase stock are not available to invest in other areas of the business.

Any interruption in the supply chain or failure to maintain an adequate stock can result in lost sales. However, because the retailer frequently does not independently know exactly how much stock is available from the wholesaler, the retailer may commit to a sales contract that cannot be filled. Furthermore, a business can lose significant amounts of money when stock that is ordered and pre-purchased is not sold.

By contrast, the eCommerce business model does not require that a retailer stock goods for sale to a customer. Rather, many eCommerce businesses function, in essence, as brokers that receive orders from customers and then obtain goods from various sources to fill these orders. This has resulted in a re-shaping of the traditional prior art supply and distribution models.

For example, it can be advantageous for an eCommerce company to display an online catalog of available goods and services on the company's web site. A customer can then select and order items from this catalog listing. However, the eCommerce company must expend the time and costs necessary to continually update the information contained in the catalog. Because the goods listed in the catalog are often stored elsewhere, for example with a wholesaler, the eCommerce company does not independently possess the information necessary to update the catalog. Rather, the eCommerce company must continually query wholesalers and suppliers to obtain this information. The information provided by the wholesalers and suppliers can be in significantly different formats and languages from those used by the eCommerce company. To use this information in the catalog, the eCommerce company would then have to bear the additional costs associated with converting this information into a compatible format and/or inputting the information into the eCommerce company's catalog.

For example, prior art Web sites are frequently created using Hypertext Markup Language (HTML). HTML is not a machine-readable format. Rather, a HTML Web page is pre-formatted when received for display on a Web site. Thus, an HTML catalog cannot readily be reformatted for incorporation into another Web site. As a result, manual intervention is required to incorporate information from a vendor's distributed catalog into an eCommerce company's Web site. To overcome this problem, hyperlinks ("links") are frequently used to direct a customer from the distribution partner's Web site to the vendor's Web site. The eCommerce company must therefore provide and maintain multiple links to aggregate more than one vendor's goods in the same display on the eCommerce company's Web site. Because a link actually sends the customer to another Web site, the eCommerce company risks that the customer may not return to the eCommerce company's Web site to consummate the sale.

One of the fastest-growing sectors of eCommerce is business-to-business ("B2B") commerce. Vendors are increasingly distributing goods and services to their distribution partners through Web sites and electronic ordering systems. Once a vendor has established an eCommerce Web site, it becomes technologically feasible to also enter the retail market by selling goods directly to customers. However, where a vendor has previously relied on distribution partners for the bulk of the vendor's sales, the vendor risks alienating these partners by entering the eCommerce marketplace as a competitor. Because the distribution partners have typically expended significant effort to develop customer lists and to maintain customer relationships, the vendor can be at a significant disadvantage in marketing its goods.

Furthermore, many vendors specialize in a particular type of goods. However, customers frequently prefer purchasing goods from a seller who sells more than just this one type of goods because it can be more convenient and cost-effective. A distribution partner who assembles a useful product portfolio from different vendors can therefore enhance sales of a particular vendor's goods.

It would therefore be an advantage to provide a. method and system for conducting business-to-business transactions in which a vendor can profit from eCommerce while retaining its previous supply and distribution chain. It would be a further advantage if such method and system were available to facilitate the electronic distribution of commercial information from a vendor to the vendor's distribution partners. It would be yet another advantage if such distributed information could be automatically incorporated into the distribution partners' displayed catalog.

SUMMARY OF THE INVENTION

The present invention is a computer-implemented method and system for conducting business-to-business transactions in an electronic network such as the Internet and, more specifically, the World Wide Web. A syndicated electronic catalog is used to distribute transactive content such as product descriptions and images from a vendor to its subscribers, for example distribution partners. The syndicated catalog is provided in a machine readable and machine executable format so that the subscriber application can be used to display any or all ofthe transactive content ofthe vendor catalog on the subscriber's Web site with a minimum amount of manual intervention. A customer can then select and purchase these items from the subscriber's displayed catalog.

The transactive content can include not only product descriptions but also any business rules for a commercial transaction at the subscriber's Web site. Such business rules can include, for example, the source for filling the order. Thus, when a customer purchases a product using syndicated content displayed on the subscriber's Web site, the subscription system automatically determines from this information whether the product is to be shipped to the customer directly from the vendor, from the subscriber, or from some other source and, if necessary, automatically generates and sends an electronic order. .

A source identification code can be assigned to each subscriber ofthe vendor catalog. This source identification code can then be incorporated into the transactive content ofthe vendor catalog and distributed to the respective subscriber. When the vendor is to fill an order from a subscriber's catalog, the electronic order sent to the vendor can also include the source identification code for the particular subscriber through whose displayed catalog the product was ordered. The vendor can therefore easily identify the source ofthe sale and remit to the correct subscriberthe portion ofthe purchase price attributable to the subscriber's profit.

The invention includes a distributed software application, including a vendor application that is accessible to the vendor computer system for preparing and distributing the transactive content ofthe electronic catalog, preferably using the Internet. A subscriber application that is accessible to the subscriber computer system is used for reading and processing this syndicated transactive content. Because the transactive content is provided in a machine-readable format, preferably XML, the contents ofthe catalog can be easily re- formatted by the subscriber, stored in the subscriber's database, and displayed on the subscriber's Web site as a part ofthe subscriber's. catalog. Because the syndicated content is provided in a machine readable format, it is seamlessly integrated with the current content in the subscriber's catalog, with modified content automatically replacing a previous entry. In one embodiment, the subscriber can display the contents ofthe vendor catalog as an integral unit in the subscriber's catalog. Thus, the subscriber can receive electronic catalogs from a plurality of vendors and separately display these subscribed catalogs according to vendor. Alternatively, the subscriber can program the subscriber application to parse the contents of a vendor catalog according to category. Each product from the syndicated vendor catalog is assigned a classification code. The product classification codes are also assigned to the appropriate sections ofthe subscriber's catalog. The subscriber system can be configured to recognize these classification codes and to automatically direct the product content to the appropriate sections ofthe subscriber's catalog. The subscriber catalog can thereby include integrated syndicated content from a plurality of vendor sources, displayed according to product type.

In the preferred embodiment ofthe present invention, the catalog information is updated by the vendor on a regular basis, for example daily. The vendor can then either distribute the entire catalog to the subscriber, or can distribute only content that has changed since the distribution ofthe most recent update. Because the maintenance of individual products' contents is done by the vendor, the subscribers can concentrate their efforts and capital on other activities, for example, marketing or developing additional Web site content such as comparisons of different manufacturers' products.

BRIEF DESCRIPTION OF THE DRAWINGS

Figure 1 is a block diagram of a computer network system according to one embodiment of the present invention. Figure 2 is a system diagram illustrating catalog distribution according to the present invention.

Figure 3 is a system diagram ofthe system for conducting business-to-business transactions in an electronic network according to a preferred embodiment ofthe present invention. Figure 4 is a system diagram illustrating transactive content distribution and display according to the preferred embodiment ofthe present invention.

Figure 5 is a flow chart illustrating automated profit distribution according to the preferred embodiment ofthe present invention.

DETAILED DESCRIPTION OF THE INVENTION

The present invention is a computer-implemented method and system for conducting business-to-business transactions in an electronic network such as the Internet and, more specifically, the World Wide Web. The present invention provides a flexible and customizable solution that includes tools and interfaces for automated content distribution among the various systems that are used to conduct electronic commerce ("e-commerce"). In the preferred embodiment, a syndicated electronic catalog is used to seamlessly integrate the elements ofthe e-commerce network into an electronic virtual supply chain, thereby enhancing traditional web site store selling by facilitating machine-to-machine commerce and extending e-commerce to the supply and distribution chain. A vendor can thereby use the invention to take advantage of electronic commerce without losing the benefits arising from maintaining a network of affiliates and partners that may be responsible for most, if not all, of the vendor's sales. In the following description, for purposes of explanation, numerous specific details are set forth in order to provide a thorough understanding ofthe present invention. It will be evident, however, to one skilled in the art that the present invention may be practiced without the specific details. In other instances, well-known structures and devices are shown in block diagram form to facilitate explanation. The description of preferred embodiments is not intended to limit the scope ofthe claims appended hereto.

For purposes of this detailed description, the term "vendor" shall be used to refer to any manufacturer, wholesaler, marketer, distributor, or other entity that distributes the catalog according to the present invention. The term "subscriber" as used herein shall refer to one or more affiliates, subsidiaries, groups, partners, or other parties or entities that subscribe to syndicated content distributed by the vendor according to the present invention. The term "customer" refers herein to an individual or individuals who view a document served by the subscriber's document server and who are prospective and/or actual customers ofthe subscriber. A subscriber may be required to pay a fee to receive the syndicated information. The use ofthe terms "vendor," "subscriber," and "customer" is in no way intended to limit the scope ofthe present invention as claimed herein.

The preferred embodiment ofthe present invention comprises a distributed software application, with part residing at the vendor's site to prepare transactive content and other parts residing at the subscriber's site to read and process transactive content. The part ofthe distributed software application that resides at the vendor's site will be referred to herein as the "vendor application" and the part that is resident on the subscriber's computer will be referred to as the "subscriber application." The terms vendor application and subscriber application are used for descriptive purposes only to refer to any such applications or components thereof and are not intended in any way to limit the number of applications or the underlying structure thereof. Transactive content refers to information, such as product descriptions and images, that can be distributed from the vendor's system to the subscriber's system without any need for manual intervention and in a mutually readable and evaluable format. Such transactive content can, but is not required to, be related to a business transaction. Syndicated. content, as used herein, refers to content from another source that can be integrated into a subscriber's site for use by the subscriber, for example, in a subscriber catalog. This information can be distributed to the subscribers at different times or simultaneously Any or all ofthe hardware configurations ofthe present invention can be implemented by one skilled in the art using well known hardware components. In the presently preferred embodiment, the present invention is implemented using a computer. Such computer can include but is not limited to a personal computer, network computer, network server computer, dumb terminal, personal digital assistant, work station, minicomputer, a mobile component such as a cell phone, and a mainframe computer, as well as one or more computers that are linked together in a network such as a local area network, wide area network,. The identification, search and/or comparison features ofthe present invention can be implemented as one or more software applications, software modules, firmware such as a programmable ROM or EEPROM, hardware such as an application- specific integrated circuit ("ASIC"), or any combination ofthe above.

The present invention can include the vendor's computers and network system, as well as any software applications resident thereon or accessible thereto. For purposes of this application, these components will be collectively referred to as the "vendor system." The use ofthe term vendor system is in no way intended to limit the scope ofthe present invention as claimed herein. As described herein, the vendor system can include any suitable and well-known hardware and software components, and in any well-known configuration to enable the implementation ofthe present invention. The subscriber's computers and network system, as well as any software applications resident thereon or accessible thereto will be collectively referred to, for purposes of this application, as the "subscriber system." The term "displayed catalog" is used to represent the display viewed by a customer. In a Web-based embodiment, the document is a Web page. In an e-mail embodiment, the document can be an e-mail message or listing of messages, such as an in-box.

Figure 1 is a block diagram of a computer network system 100 according to one embodiment ofthe present invention. Any or all components ofthe vendor system, subscriber, or customer systems can be implemented using such a network system. In computer network system 100, at least one vendor computer 104 is connected to at least one subscriber's computer 102 and to at least customer's computer 1 12 through a network 110. The network interface between computers 102, 104, 112 can also include one or more routers, such as routers 106, 108, 1 14 that serve to buffer and route the data transmitted between the computers. Network 110 may be the Internet, a Wide Area Network (WAN), a Local Area Network (LAN), any network connecting mobile components (such as a cell phone), satellite networks (e.g. for connection to GPSM devices), or any combination thereof. In one embodiment ofthe present invention, the vendor computer 104 is a World- Wide Web ("Web") server that stores data in the form of 'Web pages' and transmits these pages as XML files or, alternatively in any other type of markup language, including but not limited to Hypertext Markup Language ("HTML"), DHTML, WML, and Java Applets, over the Internet network 110 to user computer 102. Similarly, the subscriber computer can also be a Web server. Communication among computers 102, 104, 112 can be implemented through Web-based communication. In some embodiments ofthe present invention, computers 102, 104, and 112 can also communicate by other means, including but not limited to message exchange, such as e-mail and sms. It should be noted that a network that implements embodiments ofthe present invention may include any number of computers and networks.

Any or all ofthe software applications ofthe present invention can be implemented by one skilled in the art using well known programming techniques and commercially- available or proprietary software applications. The software applications ofthe vendor and subscriber systems can be implemented in any appropriate programming language using modules and libraries based on that language, and can also include any combination of interrelated applications, separate applications, software modules, plug-in components, intelligent agents, cookies, JavaBeans™, and Java™ applets. (Java and all Java-based marks are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and other countries.) The software applications that comprise the present invention can be stored on any storage device accessible to the respective vendor or subscriber system, including but not limited to a hard drive, CD-ROM, DVD, magnetic tape, optical drive, programmable memory device, and Flash RAM. It will be readily apparent to one of skill in the art that the software applications can be stored on the same or different storage devices.

As used herein, the term "database" refers to a collection of information stored on one or more storage devices accessible to the vendor and/or subscriber systems and subscriber software application(s) associated therewith. The use ofthe term database is in no way intended to limit the scope ofthe present invention as claimed herein. The database according to the present invention can include one or more separate, interrelated, distributed, networked, hierarchical, relational and object-oriented databases. For example, in the presently preferred embodiment ofthe invention, the database comprises an Oracle™ 8.1.5 (81 ) server and the Oracle 8.0.4 client. The database can be created and addressed using any well-known software applications such as the Oracle 8™ database. The database according to the present invention can be stored on any appropriate read/writeable storage device, including but not limited to a hard drive, CD-ROM, DVD, magnetic tape, optical drive, programmable memory device, and Flash RAM.

Figure 2 is a system diagram illustrating catalog distribution according to the present invention. In the present invention, the vendor 202 circulates a syndicated catalog 204 containing information 206, 208, 210 relating to a product or products sold by the vendor to one or more subscribers 212, 214, 216 through the electronic network 218. In the preferred embodiment, this network is the Internet. However, the teachings ofthe present invention can also be applied to any other appropriate electronic network.

The catalog is provided to the subscriber in a machine-readable format that includes transactive content, such as product descriptions and images, that can be distributed from the vendor's system to the subscriber's system with minimal, if any, need for manual intervention. This content is expressed in a format such as XML that can be processed by both the vendor's system (creating the content), and subscriber's system (reading and evaluating the content). The preferred embodiment ofthe present invention uses transactive content expressed in XML format because in XML, every attribute (field) of a product, such as price, description, color, model number, is machine-readable. As a result, the contents of the catalog can be easily re-formatted by the subscriber, stored in the subscriber's database, and displayed on the subscriber's web site as a part ofthe subscriber's catalog. The syndicated transactive content is seamlessly integrated with the current content in the subscriber's catalog, with modified content automatically replacing a previous entry in . the appropriate portion ofthe subscriber's catalog. Thus, the vendor system and one or more subscriber systems can use different content structures, yet the catalog information and any resulting business transactions such as orders can be automatically distributed between vendor and subscribers) and mapped to the correct locations on the respective systems, including but not limited to databases, catalogs, and application servers.

The XML open interface therefore accommodates customizable machine-readable product descriptions and content. However, in alternative embodiments, the catalog can be provided in any other appropriate open, machine readable (and machine evaluable) format, protocol, or language, including but not limited to character-separated values format.

The preferred embodiment ofthe present invention includes at least one distributed software application. The vendor application is a part of this distributed software application that is resident on the vendor system and is operable to prepare and to distribute the transactive content to the subscriber. The subscriber application is a part ofthe distributed software application that is resident on the subscriber system and is operable to perform functions including but not limited to reading, processing, re-formatting, storing, and displaying any or all ofthe received transactive content.

The present invention can be included as an integrated part of, or as a complement to, another application. For example, in the preferred embodiment, the present invention is an integrated part of an eCommerce application such as Intershop's® enfinity application. In this embodiment, the present invention forms a part of a sell-side eCommerce solution governing transaction, catalog, merchandising, and other business-related features. In alternative embodiments, the present invention can be provided as a separate application that can cooperate with the enfinity application. Figure 3 is a system diagram ofthe system for conducting business-to-business transactions in an electronic network according to a preferred embodiment ofthe present invention. The vendor system 302 can include a plurality of application servers, including

IT but not limited to a catalog server 304 for processing information relating to the vendor's catalog and a transaction server 306 for processing eCommerce transactions. While the preferred embodiment ofthe present invention uses two application servers- the catalog and transaction servers, in alternative embodiments, only one application server is required to support business transactions as well as the presentation ofthe catalog.

Information stored in at least one database 308 is accessible to the catalog and transaction servers. The vendor application 310 communicates with the at least one vendor database to obtain the transactive content for the vendor catalog. This vendor catalog is then syndicated by the vendor application across the Internet 312 to one or more subscribers. Such subscribers can include a browser-based individual customer 314, a machine-based transaction partner 316, and a buy-side network 318. The subscribers receive and process the syndicated transactive content using respective subscriber applications 320, 322, 324.

The subscriber application is preferably a standalone application that can use and is operable with other applications on the subscriber system, including but not limited to a Web browser, database application, and operating system. In the preferred embodiment ofthe present invention, the subscriber application is provided to the subscriber by the vendor. Alternatively, because the catalog is distributed using the open standards XML format, a subscriber application capable of interacting with the vendor application can be developed by the subscriber itself. To communicate and transmit data between the vendor application and subscriber application, both applications must use the same or compatible protocols. For purposes of this description, the term "protocol" is used to describe a machine readable data format as well as a data record sequence for transmission and response by the vendor and subscriber systems.

The subscriber system can also include a plurality of application servers such as a subscriber transaction server 340, 350, 360, catalog server 342, 352, 362, as well as at least one database 344, 354, 364. Thus, for example, the vendor catalog can be transmitted from the vendor catalog server to the subscriber catalog server. When a customer purchases an item from the subscriber's catalog, the order is processed using the subscriber's transaction server. If the vendor is to fill the order, the subscriber's transaction server transmits the order with all ofthe information relating to the product, including but not limited to product description, customer's address, and subscriber's identification information, to the vendor's transaction server. If the subscriber is to fill the order, the order information can be stored in the subscriber's database for processing by the subscriber's transaction server. In an alternative embodiment, the subscriber system includes only one application server to support business transactions as well as the presentation ofthe catalog.

The catalog distributed by the vendor can be stored in one or more databases accessible to the subscriber's network or computer system. The syndicated information from the catalog can be stored entirely at the subscriber's web site or can alternatively be stored partly at the subscriber's web site and partly at the vendor site. The preferred embodiment also supports a broad range of third party applications that are operable to extend the system functionality to meet specialized business needs. For example, existing systems can be modified to provide catalog data in machine readable format to be transmitted directly to subscribers.

Different types of subscriber applications can be provided to the subscriber for example, to permit the subscriber to display (or store in a database) the entire catalog intact or, alternatively, to aggregate content from different vendor catalogs as well as from other sources into the subscriber's displayed catalog. For example, separate customized subscriber applications can be provided for transactive content received from one or more vendors. In yet another embodiment, separate subscriber applications are used to receive and to reformat the transactive content. However, in the preferred embodiment, a single application is used to perform all such subscriber application functions for any and all transactive content that is received. Thus, this single subscriber application can be used with transactive content from different vendors.

Because the contents ofthe catalog are readily reformatted, the subscriber can integrate the catalog with the subscriber's publishing system, for example a Web site, and present it in accordance with the subscriber's particular needs. In the preferred embodiment, the subscriber application is used to seamlessly integrate the transactive contents ofthe vendor catalog into the subscriber's web site such that the contents are displayed with the same look-and-feel as content generated by the subscriber. This allows the subscriber to "brand" its catalog; therefore, the subscriber does not have to forsake the advantages it obtains from maintaining a very attractive web site. Thus, a customer who orders goods from the displayed catalog may not be aware that the contents ofthe displayed catalog originated with the vendor. Because the vendor can profit from each sale ofthe vendor's products that is made through the subscriber's web site, this feature permits the vendor to take advantage of the subscriber's efforts to maintain an attractive web site.

In one embodiment, the subscriber can display the contents ofthe vendor catalog as an integral unit on the subscriber's web site. In this embodiment, the subscriber can display subscribed catalogs separately according to vendor. In an alternative embodiment, the contents of a vendor catalog are parsed by category and incorporated into different areas of the subscriber's web site. This permits the subscriber to maintain a subscriber catalog that includes integrated syndicated content from a plurality of vendor sources.

In this embodiment, the content information for specific products in the syndicated catalog must be "directed" to the proper area ofthe subscriber's displayed catalog. Each item from the syndicated vendor catalog is manually assigned to the appropriate part ofthe subscriber's displayed catalog. Alternatively, the products in the catalog can be classified according to well-known product characteristics. However, in the preferred embodiment, each product in the syndicated catalog is assigned an classification code according to a classification system. Any standardized classification system, such as that produced by Dun & Bradstreet, can be applied. These classification codes are also assigned to the appropriate sections ofthe subscriber's catalog either by the subscriber or by a service agency. The subscriber system can be configured to recognize these classification codes and to automatically direct the product content to the appropriate sections ofthe subscriber's catalog.

A vendor can syndicate the vendor catalog to any number of subscribers. Because the catalog is distributed in an open, machine-readable format such as XML, each subscriber can easily customize the contents ofthe vendor catalog according to the subscriber's particular requirements. Thus, a customer viewing displayed transactive content on different subscribers' Web sites may not be aware that the subscribers have each received the same catalog from the vendor. As a result, the present invention permits the advantages of a competitive marketplace to be applied to the eCommerce venue by permitting the customer to select the particular subscriber through which the purchase will be made. This feature encourages customers to make their purchases on-line rather than through a store because they are able to take advantages ofthe benefits offered by different subscribers, for example by comparing price and services, maintenance Contracts, shipping costs, and tax advantages. In the preferred embodiment ofthe present invention, the vendor determines the business rules. Thus, for each subscriber, the vendor can determine the type and amount of transactive content that is to be syndicated, the source for filling orders, and whether the subscriber can independently set prices. The vendor can determine these conditions for each individual product ofthe vendor's catalog. Alternatively, the subscriber can be provided with control over all or part ofthe determination ofthe business rules for content exchange. In this embodiment, an individual subscriber can determine which product information the subscriber wishes to receive, as well as the conditions associated with such products.

Figure 4 is a system diagram illustrating transactive content distribution and display according to the preferred embodiment ofthe present invention. The VendorA catalog 400 can include transactive information related to one or more services or products. In the example, these products include HammerA 402, NailA 404, and SawA 406. Similarly, the VendorB catalog 440 includes transactive information related to such products as HammerB 442, NailB 444, and AxB 446. The vendor application is used to syndicate the vendor catalogs 400, 440 to one or more subscribers using the XML format. SubscriberA can then make any or all ofthe transactive contents ofthe vendor catalog directly available to customers, for example by using their respective subscriber applications to display these transactive contents on the subscribers' web site as a part ofthe subscribers' catalogs 410, 420. For example, Subscriberl can display the content ofthe VendorA catalog as provided by the vendor, without any re-ordering or reformatting. In this example, the subscriber catalog display 410 is identical to the VendorA catalog 400.

An individual subscriber can subscribe to content from more than one vendor. Thus, the Subscribed and Subscriber3 catalogs 450, 460 include transactive content from Vendor A and from VendorB. In the Subscribed catalog, content is displayed according to vendor. Thus, one section 412 ofthe Subscribed catalog displays the VendorA catalog and another section 414 ofthe Subscribed catalog displays the VendorB catalog.

Alternatively, a subscriber can use the subscriber application to re-format or rearrange in any appropriate order any or all ofthe transactive content ofthe vendor catalog. Therefore, products can be grouped according to, for example, product type, rather than vendor. For example, in the Subscriber3 catalog 430, VendorA's products are grouped with VendorB's products. Thus, the hammers 402, 442 are displayed together in a hammer section 450, the nails 404, 424 are displayed in a nail section 434, and the saw 406 and ax 446 in respective saw and ax sections 426, 432.

In the preferred embodiment ofthe present invention, the catalog information is updated by the vendor according to a regular schedule, for example daily. The vendor can then either distribute the entire catalog to the subscriber, or can distribute only content that has changed since the distribution ofthe most recent update. Because the maintenance of . individual products' contents is done by the vendor, the subscribers can concentrate their efforts and capital on other activities on other activities, for example, marketing or developing additional web site content such as comparisons of different manufacturers' products.

Alternatively, the subscriber can update any portion ofthe catalog independent ofthe vendor. In yet another embodiment, any portion ofthe catalog contents can be updated at any time selected by the vendor or at the subscriber's request. Therefore, in an aggregated subscriber catalog, the subscriber can receive updated catalog information from certain vendors and the subscriber can itself update certain other catalog information.

In the distributed catalog, the vendor can provide the exact same content to all subscribers, or can provide different content to different subscribers. Thus, for example, a vendor of pharmaceutical and health care products can provide its entire catalog to subscribers that specialize in health care sales, can provide only portions related to vitamins and herbs to on-line pharmacy subscribers, and can provide only portions related to athletic support equipment to online sporting equipment subscribers.

The frequency and content ofthe vendor's updates can also be varied according to subscriber. As a result, no matter how complicated the supply and distribution chain, all subscribers can be provided with relevant up-to-date content and product distribution information. For example, the vendor can distribute the catalog to subscribers with a uniform set of product prices. In another embodiment, the vendor can distribute a different price list for some or all subscribers. The vendor can alternatively distribute a recommended price and permit a subscriber to modify this price such as by offering a discount.

A customer can then select and purchase products from these displayed catalog contents using any method supported by the subscriber's application. For example, the product can be ordered by being placed into a virtual shopping cart, by checklists, or by being listed in an order form: In an alternative embodiment ofthe invention, the customer can order the product by any other known method such as by telephone, fax or e-mail. The subscriber can then transmit the customer's order information to the vendor, as required, using electronic or non-electronic transmission. Such non-electronic ordering system can coexist with the eCommerce transactions described herein. In the preferred embodiment, the catalog content includes not only product descriptions but also any business rules for a commercial transaction at the subscriber's web site. Such business rules can include, for example, the source for filling the order, whether the subscriber will supply the product to the customer or whether the vendor will supply the product. These business rules are preferable determined by the vendor for each individual product in the vendor's catalog. Alternatively, the vendor can assign one or more sets of business rules to the entire vendor's catalog, to particular groups of products contained therein, or according to subscriber. In yet another embodiment ofthe invention, some or all of these business rules can be determined and/or modified by a subscriber. The source for filling the order can be predetermined by the vendor, can be negotiated in advance by vendor and subscriber, or can alternatively be selected by the subscriber as part of business rules that are set up for the subscriber's eCommerce web site. For example, the business rules can be configured to recognize whether a particular product that has been ordered is stocked by the subscriber, and if so, to designate the subscriber as the product source. If the product is not stocked, the business rules can designate the vendor as the product source, and the order is transmitted to the vendor. The subscriber or the vendor can decide on a per item basis whether to fill the order or whether to have the vendor fill it.

Thus, when a customer purchases a product using syndicated content displayed on the subscriber's web site, the subscription system automatically determines from this information whether the product is to be shipped to the customer directly from the vendor, from the subscriber, or from some other source. Therefore, if the business rules require that the vendor is to be the source ofthe product, an electronic channel is opened and the order information is automatically communicated to the vendor. This electronic order is preferably formatted in XML and includes all ofthe information necessary to identify the product, including but not limited to identification and SKU numbers, the purchaser's name, address and payment information, and the location to which the product is to be sent. If the subscriber itself is the designated source for the product, the order can be filled without any further communication with the vendor in accordance with the subscriber and vendor's standard business practices.

Figure 5 is a flow chart illustrating automated profit distribution according to the preferred embodiment ofthe present invention. In this embodiment, the vendor assigns a source identification code 500 ("source ID") to each subscriber ofthe vendor catalog. This source ID can include identifying information such as the subscriber's IP address and/or an . assigned identification number. The vendor system can store this source ID information in the vendor's database so that it is accessible to the transaction and catalog servers.

The vendor system preferably stores product information in the vendor database according to product identification number ("product ID"). Information relating to products including but not limited to description, price, shipping information, and the business rules associated with the product, are stored in the database under the respective product ID . numbers. When transactive content related to a particular product is to be syndicated to a subscriber, the vendor catalog server retrieves the information associated with the product ID number from the vendor's database. The vendor catalog server is then used to incorporate the source ID into the retrieved product information in the vendor's catalog 510. The vendor catalog server distributes the product information and product ID for each item that is to be distributed as a part ofthe catalog along with the source ID to the catalog server ofthe respective subscriber 520. All or part ofthe product information is incorporated, by the subscriber catalog server, into the subscriber's displayed catalog and stored in the subscriber's database. A customer can then order the product from the subscriber's displayed catalog 530. When the predetermined business rules require that the vendor is to fill the order, the electronic order sent to the vendor also includes the source ID for the particular subscriber 540 through whose displayed catalog the product was ordered. The vendor can therefore readily identify the source ofthe sale and remit to the correct subscriber the portion ofthe purchase price attributable to the subscriber's profit 550, while retaining the portion attributable to the vendor's costs for the product.

Thus, by automating not only the distribution of product information from the vendor to the subscriber, but also the distribution, storage, and implementation of business rules associated therewith, the present invention can dramatically reduce the time and effort it takes for the subscriber to engage in an automated business relationship with a vendor both in terms of their initial business engagement as well as with respect to maintenance ofthe relationship. In addition, the present invention is advantageous because while the subscriber can make the sale and keep the profit, the subscriber no longer has to maintain stock and pay the storage costs associated therewith. Rather, the commercial transaction between the subscriber and customer can be filled by the vendor in response to a machine-to-machine communication from the subscriber.

While the invention is described in conjunction with the preferred embodiments, this description is not intended in any way as a limitation to the scope ofthe invention. Modifications, changes, and variations which are apparent to those skilled in the art can be made in the arrangement, operation and details of construction ofthe invention disclosed herein without departing from the spirit and scope ofthe invention.

The teachings ofthe present invention can be applied to any length and configuration of supply and distribution chain. For example, the transactive content distributed by a vendor to a subscriber can be re-distributed by the subscriber to any number of other systems. This embodiment is of advantage when implemented with subscribing business networks and wholesale/retail networks. In this embodiment, the vendor can distribute one catalog to an individual subscriber that represents the other members ofthe network. This subscriber can then, in turn, re-distribute any or all ofthe catalog to other members ofthe business network. In one embodiment ofthe present invention, any subscriber to the catalog can add to, modify, or delete received transactive contents before re-distributing the catalog to another subscriber. For example, the subscriber can incorporate the vendor catalog into a subscriber catalog as discussed herein, for example with respect to Figure 4, and re-distribute this subscriber catalog in lieu of, or in addition to the vendor catalog. Thus, the subscriber can receive catalogs from more than one vendor and can aggregate some or all ofthe content of these catalogs into a subscriber catalog that is then re-distributed to other subscribers. A recipient of this redistributed catalog can, in turn, automatically re-format, display, and transmit the transactive content ofthe catalog as part ofthe recipient's catalog. In one embodiment, the business rules, product information, product ID, and source ID can be altered or deleted by any entity that receives and re-distributes the catalog information. Where a source ID according to the present invention is associated with such re-distributed transactive content, the vendor will be able to track the source ofthe sale and allocate the profit accordingly. In another embodiment, a vendor can use the present invention to facilitate obtaining supplies and inventory. For example, the present invention can be integrated with the vendor's supply procurement and/or inventory systems. The applicable business rules are used to determine the content ofthe supplier's catalog that is provided to the catalog ofthe vendor's procurement system or inventory system. Thus, the present invention can be used to permit the vendor to manually or automatically order supplies, including but not limited to . supplies required for the manufacture ofthe vendor's products. This embodiment can also be used in combination with any other embodiment ofthe present invention as previously described herein.

Claims

What is claimed is:

1. A computer-implemented method for business-to-business transfer of information in an electronic network, comprising the steps of: using a vendor application accessible to a vendor system to generate an electronic vendor catalog in a machine-readable format, the electronic vendor catalog comprising transactive content for at least one item; syndicating the electronic vendor catalog to at least one subscriber; and using a subscriber application to process the electronic vendor catalog; wherein transactive content from the electronic vendor catalog can be incorporated into a subscriber catalog.

2. The method of claim 1, further comprising the step of displaying the subscriber catalog on a Web site.

3. The method of claim 2, further comprising the step of ordering at least one item from the transactive content displayed in the subscriber catalog.

4. The method of claim 3, further comprising the step of generating an electronic order with the subscriber application to a supplier in response to the customer order.

5. The method of claim 5; further comprising the step of filling the customer order in response to receiving the electronic order.

6. The method of claim 1, further comprising the steps of: assigning a respective source identification code to each subscriber ofthe vendor catalog; incorporating the source identification code into the transactive content ofthe vendor catalog distributed to the respective subscriber; and including the source identification code in an electronic order from the subscriber to the vendor.

7. The method of claim 2, wherein the transactive contents ofthe electronic vendor catalog are displayed as an integral unit in the subscriber's catalog.

8. The method of claim 1, further comprising the steps of: assigning a respective product classification code to at least one product included in the transactive content ofthe electronic vendor catalog; assigning the at least one respective product classification code to at least one section ofthe subscriber catalog; and using the subscriber application to automatically direct the at least one product in the electronic vendor catalog to a section ofthe subscriber catalog having the same respective product classification code as the product.

9. The method of claim 1 further comprising the step of integrating a plurality of syndicated electronic vendor catalogs into the subscriber catalog.

10. The method of claim 1, further comprising the step of distributing updated transactive content to the subscriber catalog.

1 1. The method of claim 1, further comprising the step of distributing the same transactive content to all subscribers.

12. The method of claim 1, further comprising the step of distributing different transactive content to different subscribers.

13. The method of claim 1, further comprising the step of associating a business rule with the transferred information.

14. The method of claim 13, wherein the business rule is associated with the transferred information by the vendor.

15. The method of claim 13, wherein the business rule is associated with the transferred information by the subscriber.

16. A method for conducting transactions in an electronic network, comprising the steps of: using a first computer to: obtain product information for at least one product from a database; incorporate the product information into a machine-readable vendor catalog; syndicate the vendor catalog to at least a second computer; using the second computer to: read the syndicated vendor catalog; incorporate at least a portion ofthe syndicated vendor catalog into a subscriber catalog; and display the subscriber catalog on a Web site.

17. The method of claim 16, further comprising the step of using a third computer to order the at least one product from the displayed subscriber catalog.

18. The method of claim 17, further comprising the step of generating an electronic order to a supplier in response to the order from the displayed subscriber catalog.

19. The method of claim 16, further comprising the steps of: using the first computer to: assign a respective source identification code to each subscriber ofthe vendor catalog; incorporate the source identification code into the vendor catalog distributed to the respective subscriber; and using the second computer to: include the source identification code in the electronic order.

20. The method of claim 16, further comprising the steps of: using the first computer to assign a respective product classification code to the at least one product; using the second computer to assign the at least one respective product classification code to at least one section ofthe subscriber catalog; and using the second computer to automatically direct the at least one product in the electronic vendor catalog to the section ofthe subscriber catalog having the same respective product classification code as the product.

21. The method of claim 16, further comprising the step of using the first computer to distribute updated product information to the second computer.

22. A computer system comprising: a vendor system comprising: a vendor catalog server; a vendor transaction server; a vendor application accessible to the vendor system; and at least one vendor database accessible to the vendor catalog server, the vendor transaction server, and the vendor application; and a subscriber system comprising; a subscriber catalog server; a subscriber transaction server; a subscriber application accessible to the subscriber system; and at least one subscriber database accessible to the subscriber catalog server, the subscriber transaction server, and the subscriber application; wherein the vendor application is configured to prepare and distribute transactive content in machine-readable format to the subscriber system over an electronic network; and wherein the subscriber application is configured to process at least a portion ofthe transactive content for automatic incorporation into the subscriber catalog

23. The computer system of claim 22 wherein the machine-readable format is XML.

24. The computer system of claim 22 wherein the machine-readable format is selected from the group consisting of HTML, DHTML, WML, and Java Applets.

25. The computer system of claim 22 wherein the electronic network is the Internet.

26. A computer-implemented method for business-to-business transfer of information in an electronic network, comprising the steps of: transmitting at least a portion of one supplier catalog to a vendor system; using a vendor application to generate a vendor electronic supply procurement catalog in a machine-readable format; incorporating the at least a portion ofthe supplier catalog into the vendor electronic supply procurement catalog; using the vendor electronic supply procurement catalog to order at least one supply from the supplier catalog; wherein the transmitted portion ofthe electronic supplier catalog is determined by at least one business rule.