Method of transformational bidding with rebates and discounts

• US 20010032167A1
• Filed: 12/29/2000
• Published: 10/18/2001
• Est. Priority Date: 03/31/1999
• Status: Active Grant

• Current Assignee: Ariba Incorporated (SAP SE)
• Original Assignee: Ariba Incorporated (SAP SE)
• Inventors: Rupp, William D., Tulloch, Shane M., Valachovic, Timothy
• Granted Patent: US 7,283,979 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0234 Rebates after completed purchase
• CPC Class Codes: G06Q 30/0235 constrained by time limit or expiration date
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A method of transforming bidding with rebates and discounts in an electronic auction using a system and machine readable medium, the method including receiving a first bid from a first bidder and a second bid from a second bidder, wherein at least one of a rebate and discount is offered with at least one of the first and second bids, assigning a first value and a first unit of measurement for the first bid and a second value and second unit of measurement for the second bid, and transforming the first and second values to third and fourth values, respectively, having a standard unit of measurement. The system has a database for receiving and storing bid information, including rebates and discounts, from at least one bidder and software for transforming bid information into values having a standard unit of measure. The machine readable medium has a first machine readable code that receives bid information from a bidder, a second machine readable code that receives at least one of a rebate and discount from the bidder, a third machine readable code that generates a transformed bid using the bid information and the at least one of the rebate and discount, and a fourth readable code that transmits the transformed bid information to an auction server to generate a relative comparison of bids on a common competitive basis.

Claims

1. A method of transformational bidding with rebates and discounts in an electronic auction comprising:

receiving a first bid from a first bidder and a second bid from a second bidder, wherein at least one of a rebate and discount is offered with at least one of the first and second bids;

assigning a first value and a first unit of measurement for the first bid and a second value and second unit of measurement for the second bid; and

transforming the first and second values to third and fourth values, respectively, having a standard unit of measurement.

2. The method of

claim 1

wherein the transforming comprises:

determining a first transformation factor for the first value;

determining a second transformation factor for the second value; and

converting the first value using the first transformation factor and the second value using the second transformation factor.

3. The method of

claim 1

wherein the transforming comprises:

performing a linear transformation for the first and second values having at least one of a multiplicative adjustment and an additive adjustment.

4. The method of

claim 2

wherein the transforming comprises:

multiplying the first value by the first transformation factor and the second value by the second transformation factor.

5. The method of

claim 2

wherein the determining comprises:

searching on a look-up table for the first and second transformation factors; and

retrieving the first and second transformation factors in accordance with the search.

6. The method of

claim 2

wherein the determining comprises:

identifying a first set of transformation variables for the first value and a second set of transformation variables for the second value;

specifying a first transformation function to derive the standard unit of measurement using the first value and the first set of transformation variables and a second transformation function to derive the standard unit of measurement using the second value and the second set of transformation variables;

receiving a value for each of the first set of transformation variables and the second set of transformation variables; and

calculating the first transformation factor using the received values and the first transformation function and the second transformation factor using the received values and the second transformation function.

7. The method of

claim 1

wherein the receiving comprises:

electronically coupling the first and second bidders to an auction coordinator during the auction; and

submitting the first and second bids to the auction coordinator online during the auction.

8. The method of

claim 1

further comprising:

receiving at least one additional bid having an additional value from at least one additional bidder; and

transforming the additional value to a converted value having the standard unit of measurement.

9. The method of

claim 1

further comprising:

conducting the auction as a reverse auction.

10. The method of

claim 1

further comprising:

conducting the auction as a forward auction.

11. The method of

claim 1

further comprising:

soliciting potential bidders.

12. The method of

claim 11

wherein the soliciting comprises:

preparing a request for quotation;

providing the request for quotation to potential bidders; and

requesting the potential bidders to respond to the request for quotation.

13. The method of

claim 12

wherein the requesting comprises:

identifying goods to be purchased.

14. The method of

claim 13

wherein the requesting comprises:

identifying services to be purchased.

15. The method of

claim 1

wherein the transforming comprises:

determining the standard unit of measurement according to a buyer comparative bid parameter.

16. The method of

claim 1

further comprising:

detransforming the third value to a fifth value having the second unit of measurement;

detransforming the fourth value to a sixth value having the first unit of measurement; and

transmitting the fifth value to the second bidder and the sixth value to the first bidder.

17. The method of

claim 1

further comprising:

comparing the third and fourth values; and

ranking the third value with respect to the fourth value.

18. The method of

claim 17

further comprising:

displaying the ranking to a buyer.

19. A system for transformational bidding with rebates and discounts in an electronic auction comprising:

a database for receiving and storing bid information, including rebates and discounts, from at least one bidder; and

software for transforming the bid information into values having a standard unit of measure.

20. The system of

claim 19

further comprising:

a database for storing a lookup table of transformation factors that convert the bid information into the values having the standard unit of measurement.

21. The system of

claim 19

wherein the standard unit of measurement comprises a buyer comparative bid parameter.

22. The system of

claim 21

wherein the buyer comparative parameter comprises a net present value.

23. The system of

claim 19

wherein the auction comprises a reverse auction.

24. The system of

claim 19

wherein the auction comprises a forward auction.

25. A machine readable medium that transforms bids with rebates and discounts in an electronic auction comprising:

a first machine readable code that receives bid information from a bidder;

a second machine readable code that receives at least one of a rebate and discount from the bidder;

a third machine readable code that generates a transformed bid using the bid information and the at least one of the rebate and discount; and

a fourth readable code that transmits the transformed bid information to an auction server to generate a relative comparison of bids on a common competitive basis.