B2b E Commerce Business Model – Presentation on theme: “B2B Business Models. E-Commerce Business Models and Concepts B2B, C2C and M-Commerce E-Commerce Business Models.”- Presentation Transcript:
E-Distributor E-Procurement System Digital Exchange Industry Consortium Private Industrial Network Single Firm Private Industrial Network Industry-Wide Private Industrial Network
B2b E Commerce Business Model
Type of Purchase/Input Direct Inputs Indirect Inputs Spot Purchases Independent Exchanges E-Distributors Contractual Purchase Industry Consortia E-Procurement Market Type Vertical Markets Horizontal Markets A vertical market is a market in which sellers provide another service, that is, and the company provide other services to of clients with special needs. A horizontal market, in which sellers offer a wide range of goods and services to a large group of customers with broad needs, such as businesses as a whole, men, women, households, or, in the broadest horizontal market , everybody. A ‘spot’ purchase is a purchase for immediate delivery, as opposed to delivery over a three or six month period (contract purchase).
Electronic Commerce Development In Small And Medium Sized Enterprises: A Stage Model And Its Implications
Supplies products and services directly to individual businesses owned by a company seeking to serve many customers (businesses): sale of goods, advertising eg: tradekey.com.pk, Grainger.com, Cisco, Dell .inc, BestBuy.com, pakbiz.com, pakimpex.com Copyright © 2014 Pearson Education, Inc. Published as Prentice Hall
For example, the largest distributor of maintenance, repair and operations (MRO) supplies are treated as indirect inputs to the production process – as opposed to direct inputs. In the past, Granger relied on catalog sales and physical distribution centers in metropolitan areas. Its equipment catalog went online at Grainger.com in 1995, giving businesses access to more than items. Company buying agents can search by product type, such as motors, HVAC, or fluids, or by specific brand name. Copyright © 2010 Pearson Education, Inc.
EProcurement is a fully functional electronic web application for purchasing goods and services. eProcurement allows buyers to browse online catalogs, add items to shopping carts and submit requisitions electronically. E-procurement is the b2b buying and selling of supplies and services over the Internet. Implementing an e-procurement system allows your organization to reach and interact with global suppliers or providers. Generally, e-procurement web sites allow qualified and registered users to find buyers or sellers of goods and services. Depending on the approach, buyers or sellers may set prices or invite bids. Revenue Models: Transaction Fees, Usage Fees, Annual License Fees Examples Ariba – an Application Service Provider (ASPs) – a SAP company
8 Ariba creates custom integrated online catalogs (where supplier firms can list their offerings) for purchasing firms. On the sell side, Ariba helps sellers sell to larger buyers by providing software to handle catalog manufacturing, shipping, insurance, and financing. Copyright © 2010 Pearson Education, Inc.
B 2 B E Commerce Adoption
Better products One stop shop More product options Find products faster Reduces paper costs Purchases can be tracked and made to adhere to company guidelines. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
10 The B2B Model: Exchanges Digital exchanges are independently owned marketplaces that allow multiple suppliers and buyers to trade in real time. Usually owned by independent firms whose business is creating a market serving a single vertical industry typically in the IT, food and industrial equipment sectors for spot-buying by large companies. Revenue model: Transaction, commission fees Create intense competition between suppliers The number has dropped dramatically Many exchanges were launched in the dotcom boom, perhaps around 1,500, but failed because large buyers acquired a pool of suppliers through private industrial networks. Preferred to deal with selected list. . Digital exchanges may stabilize at a few 200 odd. Copyright © 2010 Pearson Education, Inc.
Industry-owned vertical marketplaces that serve specific industries (eg, automobiles, chemicals) reinforce traditional purchasing behavior more successfully than exchanges sponsored by powerful industry players Example: Exostar Exostar Founding Partners BAE Systems, including Rolls Royce, Boeing, Lockheed and Ra Martin. As of July 2010, Exostar was servicing the needs of more than 70,000 companies in 95 countries and doing a total of $35 billion in annual transactions. Copyright © 2010 Pearson Education, Inc.
Industrial Consortia Industry Exostar Aerospace Supply Automotive, Aerospace and Manufacturing Elemica Chemical Dairy. Com Dairy Products Global Healthcare Exchange Medical Services & Supplies Quadrem Metals, Minerals & Mining Ocean Connect Ship Owners & Food Owners & Food Owners & Food Owners, Merchants, Traders Risk Management Transplace Freight & Carrier Services Exostar Over 300 in 20 different countries Connects to procurement systems and has registered over 24,000 business partners worldwide. Most Fortune 500 and other large companies belong to industrial consortia, sometimes several. Copyright © 2010 Pearson Education, Inc.
B2b E Commerce Solutions
As the name suggests, private industrial networks are web-enabled networks that coordinate transactions between specific companies — in all aspects and across all sectors: suppliers, distributors, retail, procurement, delivery and more. Such systems are also called collaborative, as they facilitate efficiencies across the network. Many large companies (Wal-Mart, Agentrix, Coca-Cola, Nike, Hewlett-Packard, IBM, Microsoft, Cisco Systems, Dell and General Electric) operate private industrial networks, which are essentially B2B today. – They are the biggest part of commerce. Copyright © 2010 Pearson Education, Inc.
More efficient buying and selling in an industry. Resource planning on an enterprise- and industry-wide scale. Increased supply chain visibility for all interested parties, meaning inventory levels of buyers and suppliers can be monitored and kept at efficient levels. Closer relationships between buyers and suppliers, improving demand forecasting, communication and conflict resolution. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
Unlike industrial consortia, which are collectively owned by several large companies, private industry networks typically consist of a single, sponsoring company that sets and enforces the rules, only at will to other companies. Invites to participate. Copyright © 2010 Pearson Education, Inc.
18 Example: Ace Hardware Ace Hardware, a cooperative of 5,100 retail stores, employs a private industrial network to manage inventory levels and link to suppliers. Earlier, some 30 purchasing managers were employed and some required 7-10 days to process an order. These have been replaced with 14 Ace distribution centers and 9 key suppliers. And while suppliers previously didn’t have access to Ace inventory levels, they can now forecast demand with some accuracy. Manco, a supplier of 200 products, has been able to reduce distribution costs by 28% and freight costs by 18%. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
B2b Vs. B2c: The B2b Meaning, B2c Meaning, And Examples
Electronic data interchange (EDI) is designed to coordinate the flow of communication between firms engaged in business together Single firm network Most common form Example: Wal-Mart’s network for suppliers Industry-wide network often develops out of industry associations Example : Agentrix (initiated by Sears) Copyright © 2010 Pearson Education, Inc.
Why Industry Wide Private Industrial Network? (Response to a single firm industry network like Wal-Mart) Wal-Mart has refused to open up its highly successful network to other members of the retail industry, to actually become an industry standard, for fear that it would with others Will share technology secrets. Retailers like Sears. Sears and other retailers around the world have created their own set of organizations and networks that are open to everyone in the industry. Agentrics is an industry-wide private industry network for retailers and suppliers designed to facilitate and simplify business between retailers, suppliers, partners and distributors. Copyright © 2010 Pearson Education, Inc.
M-commerce: Mobile e-commerce (m-commerce) is a term that describes online sales transactions that use wireless electronic devices such as handheld computers, mobile phones or laptops. Wireless Technologies (2G EDGE, 3G, 4G and LTE) E-commerce models using 3G, 4G, and LTE represent the next generation of network technology. As technology platforms continue to change, the fundamental difference between them is network speed. Older models may not support newer data network technologies. iPhone 6 Plus, iPhone 6, iPhone 5S, and iPhone 5c. All these models support LTE. In Pakistan, digital content such as maps, e-commerce, social media and internet browsing are most in demand. Hence mobile companies continue to upgrade their networks for 3G, 4G and LTE technology. Copyright © 2010 Pearson Education, Inc.
To operate this website, we log user data and share it with processors. To use this website, you must agree to our Privacy Policy, including the Cookie Policy. Its much more glamorous and glitzy siblings — e-commerce and e-retailing — deal with business-to-business transactions behind the scenes. They are usually fully or semi-automated and are critical to the day-to-day operations and financial performance of businesses of all sizes.
B2b E Commerce: It’s A Journey, Not A Destination
The EMERGE app, a cloud based inventory management solution for small and medium sized businesses, helps businesses transact with each other using its built in B2B e-commerce cart.
Business customers simply log on to a website and see a personalized, customized price list for them. They complete their shopping with a shopping cart and are able to track their order until it is delivered.
For the seller, this means considerable efficiency, time-saving tasks, and a better buying experience for their regular business customers.
Here, we’ll talk about B2B e-commerce, how it differs from B2C, typical B2B models, and then address the trends and challenges ahead.
E Commerce Business Models In A Nutshell
B2B e-commerce is the selling, buying and trading of goods and services between businesses through an online sales portal. Since both parties involved are business entities, transactions are more rational than impulsive. In addition, the relationship between companies involves long-term interests.
There are many advantages of doing business online such as business expansion, increase in number of customers,
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