B2B E-Commerce: Selling and Buying in Private E-Markets
B2B E-Commerce: Selling and Buying in Private E-Markets
B2B E-Commerce: Selling and Buying in Private E-Markets
B2B E-Commerce:
Selling and Buying in Private E-
Markets
Mr. Erwin S. Sison
OSA Director
St. Nicolas College of Business and Technology
[email protected]
[email protected]
Consumers (CRM)
Businesses &
Businesses (SRM)
E-Portal Management
E-Business, E-Services
SCM/ERP/Legacy Appls
Integration
Internal/External
Collaborative
Business
e-Government Commerce
Process
Personalize Mobile Management
And Customize Commerce
Web
e-CRM Services
e-Marketplaces
Online Intelligent
Exchange e-Learning
Ordering Systems
Publish B2C, B2B
Business values Expert Sales
And Promote Actions Multichannel
System
1st 2nd 3rd
4th 5th (current)
Generation Generation Generation
Generation Generation
1998 1999 2000 2001 2002 and Beyond
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Concepts, Characteristics, and
Models of B2B EC (cont.)
• B2B characteristics
o Parties to the transaction
• Online intermediary: An online third party that brokers a transaction online
between a buyer and a seller; can be virtual or click-and-mortar
o Types of transactions
• Spot buying: The purchase of goods and services as they are needed, usually at
prevailing market prices
• Strategic (systematic) sourcing: Purchases involving long-term contracts that
are usually based on private negotiations between sellers and buyers
Horizontal
One seller
• Benefits
o Reduced operating costs for order taking
o Improved quality
o Reduced technical support staff cost
o Reduced software distribution costs
o Faster service
• Benefits
o Reduced operating costs for order taking
o Improved quality
o Reduced technical support staff cost
o Reduced software distribution costs
o Faster service
Catalog site
Best search
One of two levels
(a seller to tool sites
a buyer)
•Cost-effectiveness
•Selection of suppler •Market access •Buyer selection
•Threat of backward •Differentiation of •Switching costs
integration product or service •Differentiation
SUPPLIERS CUSTOMERS
Bargaining power
N
Pearson/Prentice Hall & Dr. Chen, Electronic Commerce
Porter’s Five Forces
Model and Value Chain
• The value chain model highlights specific
activities in the business where competitive
strategies can be best applied and where
information systems are most likely to have a
strategic impact.
• Therefore, the value chain model can be
employed to identify specific, critical leverage
points where a firm can use IT most effectively
to enhance its competitive position.
Make Payment
Make a Purchase
Approve payment
(Individual or committee)
Arrange money transfer.
Have a contract.
Arrange payment.