All about Business and management

May 30, 2007

VRM: a new prospective

Filed under: Emerging fields — Jagdish Hiray @ 9:22 pm

As time goes by Internet technology is maturing, online transactions have become part of day-to-day life. However, efforts have been underway to discover new ways, to make online shopping easy, comfortable and more pleasant. Efforts are to device methods and tools to give more control and option to online surfer and to build strong supply demand relationship. This new concept known as ‘Vendor Relation Management’ (VRM), will be the future of online shopping and going to change the way we do online transactions.

One of such efforts led by Doc Searls and his team from Harvard’s Berkman center, is to bring VRM in reality. They have put forward a project to support and implement VRM. Although it is early stage of development, there is lot of momentum towards VRM. They have identified six common characteristics of proposed VRM system: system should be user centric, able to reuse existing technology, create value for every one in chain, should be highly scalable, able to build strong relationship and should be able solve real word problems.

Today online user has to navigate from one site to other site in search of a product or service (eg airline ticket). In typical VRM system, user will have to establish online identity. This identity management system will have Identity provider who will create and authorize a user. There will be Servicing party who will accept user credentials from Identity provider and will provide service after authorization. For example, a shopper will be provided with virtual cart after authenticated by Identity provider, identity will be carry forward and authorize by sites during navigation. Shopper will get access to participating sites and its content. Shopper’s shopping experience will be made more easy and productive with advance search engines.

VRM concept is at early stages of development, however it has potential to change the way we do shopping on Internet.

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Jagdish Hiray


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