B2B Exchanges

Chapter 4
Business-to-Business E-Commerce
Learning Objectives
1. Describe the B2B field.
2. Describe the major types of B2B models.
3. Discuss the models and characteristics of the sellside marketplace, including auctions.
4. Describe sell-side intermediaries.
5. Describe the characteristics of the buy-side
marketplace and e-procurement.
6. Explain how reverse auctions work in B2B.
Learning Objectives
7. Describe B2B aggregation and group purchasing
8. Define exchanges and describe their major types.
9. Describe B2B portals.
10. Describe third-party exchanges.
11. Describe how B2B can benefit from social
networking and Web 2.0.
12. Provide an overview of the major B2B support
Concepts, Characteristics, and
Models of B2B E-Commerce
• Basic B2B Concepts and Process
o *Business-to-business e-commerce (B2B EC)
• The Basic Types of B2B Transactions and
1. Sell-side
2. Buy-side
3. Marketplaces or exchanges
4. Supply chain improvements
5. Collaborative commerce
Concepts, Characteristics, and
Models of B2B E-Commerce
• The Basic Types of B2B E-Marketplaces and
o One-to-Many and Many-to-One: Private E-Marketplaces
• *Company-centric EC
o Many-to-Many: Public Exchanges (or E-Marketplaces)
• Exchanges (trading communities or trading exchanges)
• Public e-marketplaces
o Supply Chain Improvers and Collaborative Commerce
• Collaboration
Five Types of B2B E-Commerce
Concepts, Characteristics, and
Models of B2B E-Commerce
• Market Size and Content of B2B
• B2B Components
o Parties to the Transaction: Sellers, Buyers, and
• *Online intermediary
o Types of Materials Traded: What Do Firms Buy?
• *Direct materials
• *Indirect materials
• *Maintenance, repair, and operation (MRO)
o B2B Marketplaces and Platforms
• *Vertical marketplaces
• *Horizontal marketplaces
Generations of B2B E-Commerce
The Components of B2B
Concepts, Characteristics, and
Models of B2B E-Commerce
• Service Industries Online in B2B
Travel and hospitality services
Real estate
Financial services
Banking and online financing
Other online services
• Partner and Supplier Relationship
o Partner relationship management (PRM)
• The Benefits and Limitations of B2B
One-to-Many: Sell-Side
• Sell-Side Models
o *Sell-side e-marketplace
o B2B Sellers
o Customer Service
• Sales from Catalogs: Webstore
o Distributors’ Catalogs
o Self Service Portals
o Benefits and Limitations of Online Sales from
• Comprehensive Sell-Side Systems
• Selling via Distributors and Other Intermediaries
Selling via E-Auctions
• The Benefits of Auctions on the Sell Side
Revenue generation
Cost savings
Increased “stickiness”
Member acquisition and retention
• Auctioning from the Company’s Own Site
• Using Intermediaries in Auctions
• Examples of B2B Forward Auctions
Traditional (Manual)
Procurement Process
One-From-Many: E-Procurement
at Buy-Side E-Marketplaces
• *Buy-side e-marketplaces
• Inefficiencies in Traditional Procurement
o *Procurement management
o *Maverick buying
• Procurement Methods
• E-Procurement Concepts
o *E-procurement (electronic procurement)
o The Goals and Process of E-Procurement
o Types of E-Procurement
One-From-Many: E-Procurement
at Buy-Side E-Marketplaces
• Types of E-Procurement
o The Benefits of E-Procurement
o The Limitations and Challenges of E-Procurement
o E-Procurement and Strategic Sourcing
E-Procurement Methods
Reverse Auctions at Buy-Side
E-Marketplaces (E-Tendering)
*Reverse auction
*Request for quote (RFQ)
The Major Benefits of Reverse Auctions
Conducting Reverse Auctions
o E-Tendering by Governments
• Group Reverse Auctions
The Reverse Auction Process
Other E-Procurement
• *Desktop Purchasing
• *Group Purchasing
o Internal Aggregation of Purchasing Orders
o External Aggregation for Group Purchasing
• Buying from Other Sources
• Acquisition via Electronic Bartering
o *Bartering exchange
• Selecting an Appropriate E-Procurement
The Group Purchasing Process
The Community of an Exchange:
Flow and Access to Information
B2B Exchanges (E-Marketplaces):
Definitions and Concepts
o Functions of and Services Provided by Exchanges
o Functions and Services of B2B Exchanges
Matching buyers and sellers
Facilitating transactions
Maintaining exchange policies and infrastructure
Services provided by an exchange
• Ownership of B2B Exchanges
o Third-Party Independent Exchanges
o *Consortium Trading Exchanges (CTE)
B2B Exchanges (E-Marketplaces):
Definitions and Concepts
• Dynamic Pricing in B2B Exchanges
o *Dynamic pricing
• Advantages, Limitations, and the Revenue
Model of Exchanges
o Revenue Models
B2B Portals and
• B2B Portals: An Overview
o *B2B portals
• Corporate (Enterprise) Portals
o *Corporate (enterprise) portal
o Types of Corporate Portals
Portals for Suppliers and Other Partners
Customer Portals
Employee Portals
Executive and Supervisor Portals
*Mobile Portals
o The Functionalities of Portals
• *Information portals
• *Collaborative portals
B2B Portals and
o Corporate Portal Applications and Issues
o The Functionalities of Portals
• *Information portals
• *Collaborative portals
o Corporate Portal Applications and Issues
• Directory Services and Search Engines
o International Trade Directories
B2B in Web 2.0 and
Social Networking
• E-Communities in B2B
• The Opportunities of Social Commerce in B2B
• The Use of Web 2.0 Tools in B2B
o B2B Games
• *Gamification
• Virtual Trade Shows and Trade Fairs
o *Virtual trade show
• Social Networking in B2B
o Using Twitter in B2B
B2B in Web 2.0 and
Social Networking
• Examples of Other Activities of B2B Social
o Location-based services
o Corporate profiles on social networks
o Success Stories
• Strategy for B2B Social Networking
• The Future of B2B Social Networking
Some B2B Support
• Organizational Buyer Behavior
o A Behavioral Model of Organizational Buyers
• The Marketing and Advertising Processes in
o *B2B marketing
• Methods for B2B Online Advertising and
o Targeting Customers
o Affiliate Programs
Some B2B Support
• B2B Market Research
• Other B2B Support Mechanisms
o Collaboration Networks and Supply Chain
o Payments
• The Future of B2B
A Model of Organizational Buyer ehavior
Managerial Issues
1. Which B2B model(s) should we use for eprocurement?
2. Which B2B model(s) should we use for online B2B
3. Which solutions and vendor(s) should we select?
4. What is the organizational impact of B2B?
5. What are some ethical issues in B2B?
6. Which type of social network should we use—
private (proprietary) or public?
7. Which business processes to automate?
1. The B2B field.
2. The major B2B models.
3. The characteristics and models of sellside marketplaces.
4. Sell-side intermediaries.
5. The characteristics of buy-side
marketplaces and e-procurement.
6. B2B reverse auctions.
7. B2B aggregation and group purchasing.
8. Exchanges defined and the major
types of exchanges.
9. B2B portals.
10.Third-party exchanges.
11.B2B in Web 2.0 and social networks.
12.B2B Internet marketing and other
support services.

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