Kaplan & Sawhney e-Hubs: The New B2B Marketplaces Harvard Business Review, May/June 2000 Prepared by Wesley Shu

Business-To-Business – B2B (Continued) Electronic Exchanges are E-marketplaces in which there are many sellers and many buyers.

Electronic Exchanges are E-marketplaces in which there are many sellers and many buyers.

Inputs – What businesses buy? Operating inputs maintenance, repair and operating (MRO) goods Manufacturing inputs raw materials and components that go directly into the products or process

Operating inputs

maintenance, repair and operating (MRO) goods

Manufacturing inputs

raw materials and components that go directly into the products or process

Sourcing – How they buy? Systematic sourcing Regular or recursive sourcing. Each cycle is similar in quantity, content, routing, etc. Spot sourcing One-shot sourcing. Irregular fulfill an immediate need at the lowest possible cost.

Systematic sourcing

Regular or recursive sourcing. Each cycle is similar in quantity, content, routing, etc.

Spot sourcing

One-shot sourcing. Irregular

fulfill an immediate need at the lowest possible cost.

MRO Hubs (systematic operating) MRO: maintenance, repair & operating concentrate on goods with low value. The transaction cost is relatively higher. Di-sintermediate - bypass existing middlemen in the channel E.g., mro.com (IBM subsidiary)

MRO: maintenance, repair & operating

concentrate on goods with low value.

The transaction cost is relatively higher.

Di-sintermediate - bypass existing middlemen in the channel

E.g., mro.com (IBM subsidiary)

Catalog Hubs Systematic, manufacturing Industry specific (manufacturing inputs are moer specific than operating ones.) – the only difference from MRO Hubs

Systematic, manufacturing

Industry specific (manufacturing inputs are moer specific than operating ones.) – the only difference from MRO Hubs

Yield Manager Spot, operating Good in the case of high price and demand volatility and Things not easy to liquidate or acquire, e.g., huge fixed asset, human resources .

Spot, operating

Good in the case of high price and demand volatility and

Things not easy to liquidate or acquire, e.g., huge fixed asset, human resources .

Exchanges Spot, manufacturing Exchange input parts to manage peaks and ebbs First, establish relationships among manufacturers Exchange parts, especially materials

Spot, manufacturing

Exchange input parts to manage peaks and ebbs

First, establish relationships among manufacturers

Exchange parts, especially materials