Understanding The B2B Market

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A presentation in English explaining how 2 companies purchase goods and services

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Understanding The B2B Market

  1. 1. Understanding the B2B market Purchasing decision Christophe ARONOWICZ Leo BOUKOU-POBA Mathieu DEFARGE EMLV S7
  2. 2. SUMMARY Introduction Products and services purchased Selection of a suppliers Internal processes leading to purchase decisions Consequences on the organization Conclusion EMLV S8 – UNDERSTANDING THE B2B MARKET 16/01/2009
  3. 3. INTRODUCTION Focus on 2 different companies that operate on 2 different sectors : – Novacom Associés – Imnet Objective : – To determine how purchase decisions are made in companies – To determine who the decisive actors are in the purchasing decisions – To underline key elements of the purchasing decisions in companies EMLV S8 – UNDERSTANDING THE B2B MARKET 16/01/2009
  4. 4. PRESENTATION of NOVACOM Created in 1986 Provides internet, intranet & extranet services to corporations and non profit organizations Specialized in rich media services : – Rich media platforms – Rich media web sites – Immersive websites – Interactive websites EMLV S8 – UNDERSTANDING THE B2B MARKET 16/01/2009
  5. 5. PRESENTATION of IMNET Created in 1995 A company specialized in : – Consulting and advising activities – System integration Specialized in various sectors : – Health and social – Banks/insurance – Telecommunication – Automobile industry… EMLV S8 – UNDERSTANDING THE B2B MARKET 16/01/2009
  6. 6. PRODUCTS AND SERVICES PURCHASED Products purchased : – Hardware – Specific software – Furniture Services purchased or leased: – Uses the services of Akamai to host and manage created contents – Maintenance on specific software – Hire freelancers depending on the project – Hire actors EMLV S8 – UNDERSTANDING THE B2B MARKET 16/01/2009
  7. 7. PRODUCTS AND SERVICES PURCHASED Products purchased : – Hardware – Software – Furniture Services purchased or leased: – Maintenance on specific hardware – Additional services included with software – Hire people related to the consulting activity EMLV S8 – UNDERSTANDING THE B2B MARKET 16/01/2009
  8. 8. SELECTION OF SUPPLIERS  Concerning web services the company rely on various criteria : – Reliability of the product and supplier – Quality of additional services provided – Responsiveness – Reputation (determines the level of trustfulness)  Recruitment is done using the following criteria : – Skills, reliability, availability and price – Team work ability is also an important factor  Hardware and software providers are selected using the following criteria – Reliability, availability, delivery capability and price EMLV S8 – UNDERSTANDING THE B2B MARKET 16/01/2009
  9. 9. INTERNAL PROCESSES LEADING TO PURCHASE DECISIONS 3 actors involved in the processes – Technical & managerial team • Select and evaluate potential candidates and existing offers – Financial team • Evaluate the potential candidates and offers • Give its recommendation to the technical team and to the executive team – Executive team • Uses the recommendations from both technical and financial teams • Has the final decision since companies are dealing with merchandise that cost thousands of Euros EMLV S8 – UNDERSTANDING THE B2B MARKET 16/01/2009
  10. 10. CONSEQUENCES ON THE ORGANIZATION 3 tools to deal with supplier problems : – The SLA (Service Level Agreement) • part of a service contract where the level of service is formally defined – The SLM (Service Level Management) • To negotiate SLA with the customers and to design services in accordance with the agreed service level targets • To monitor and report on service levels – The SLOs (Service Level Objectives) • Are agreed as a means of measuring the performance of the service provider EMLV S8 – UNDERSTANDING THE B2B MARKET 16/01/2009
  11. 11. CONSEQUENCES ON THE ORGANIZATION Delays on delivery – Have impact on the company reliability – Can induce financial consequences/penalties Company evaluation & penalties – Occurs when SLA is not fully respected – Non payment for outsourcing work Supplier evaluation & penalties – Breach of contracts with its suppliers (in case of SLA non respected) – Financial penalties to the suppliers EMLV S8 – UNDERSTANDING THE B2B MARKET 16/01/2009
  12. 12. CONCLUSIONS & ANALYSIS Depending on the company, purchasing decisions involve different actors For service providers and outsourcers, supplier selection is decisive : – To respect SLA – To maintain a level of reliability and reputation – To be competitive Internal processes leading to purchase decision vary between companies EMLV S8 – UNDERSTANDING THE B2B MARKET 16/01/2009
  13. 13. BIBLIOGRAPHY & SOURCES Websites : http://www.novacom-groupe.net/ http://www.imnet.fr/ Additionnal sources : http://www.journaldunet.com/encyclopedie/definition/180/49/20/service_level_agreem ent.shtml http://www.journaldunet.com/encyclopedie/definition/181/49/20/service_level_manage ment.shtml http://www.journaldunet.com/encyclopedie/definition/182/49/20/garantie_de_temps_d e_retablissement.shtml http://wiki.en.it-processmaps.com/index.php/Service_Level_Management EMLV S8 – UNDERSTANDING THE B2B MARKET 16/01/2009
  14. 14. THANKS Special Thanks to : Novacom Associés Imnet EMLV S8 – UNDERSTANDING THE B2B MARKET 16/01/2009

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