B2B-X is a cloud-based B2B portal that allows businesses to interact with suppliers and place orders in a secure environment. It offers subscription-based services including adding products/services, accessing customers, tracking orders, and maintaining supplier/customer histories. The portal aims to reduce the effort businesses spend on administration and communication with suppliers. It analyzes the size of potential markets in industries like metals and electronics that involve business transactions between companies. The technology is a web portal running on cloud infrastructure with modules for profiles, communications, transactions, and integration with other systems. It will generate revenue from transaction fees and subscriptions.
2. Introduction
B2B-X is a cloud based Web 2.0
compatible B2B portal allowing
businesses to interact with their
suppliers and also trade with them
in a secure and reliable
environment.
This product encapsulates a
standard order management
system which could be customized
per business and integrated with
their existing IT infrastructure.
3. Product Positioning
For : Businesses who employ suppliers. They could
be Manufacturers, retailers, distributors, resellers,
or service providers.
Who : intend to focus more on their business
rather than spending effort on the administration
and communication aspect of the order
management.
The b2bx web portal is a cloud based Web 2.0
compatible B2B portal allowing businesses to
interact with their suppliers and also trade with
them in a secure and reliable environment.
4. Value Propositions
To SUPPLIERS (distributors, resellers, service providers etc.)
Subscription based service that includes:
Adding products/services to the portal
Access to a worldwide customer base
Premium Suppliers can promote themselves over "non-premium"
suppliers in listings in addition to making their contact information
public for direct contact with Businesses
Receive Orders placed by businesses, track orders and payment
statuses
Interaction platform over chat styled interface / per order with
businesses
History & reports of past business dealings
5. Value Propositions contd…
To BUSINESSES (who engage with suppliers for their
business needs)
Subscription based service that includes:
Maintaining a list of all current suppliers for a business
Search new supplier in the market offering similar/parallel
services, enquiring about their cost
Comparison feature of current supplier for a given service/
product with similar competitors
Premium Businesses – can get to supplier information
directly and bypass portal for making orders as well as
receive discounts on other services
Place Orders to suppliers, communicate / follow up, make
payments with suppliers on the order status
History & reports of past business dealings
Maintain a list of preferred suppliers/potential suppliers so
as to be able to contact them in case of emergency, peak
times, or lack of supply
6. Offerings
B2B-X – a cloud based customizable web portal.
Integration features available with backend corporate applications.
Industry focussed implementation. Ready to use solution.
Primary features include: Order Management : Businesses
can directly place, manage & track orders through b2b-x
portal and Suppliers would be intimated and could put in
all communications around this order on the portal.
Supplier Management: One stop for managing the list
of current suppliers, their contact details etc.
7. Market size Analysis
Total Market Size (Universe of all the possible customers)
All businesses who deal with suppliers
Example:
Metals Industry worldwide : 400 Billion $ in 1997 (
reference: International Metal workers federation)
Electronics Industry world : 1.254 trillion Euros in
2008 (Reference:
Electronics market forecast and industry trends 2007-2012
)
Served Market Size (Customers reachable by channels identified)
• Metals - $11.0 billion USD (reference :
http://www.researchandmarkets.com/reportinfo.asp?report_id=471256&t=e
)
• Electronics - $5 Billion USD – India (
http://www.isaonline.org/microsites/visionsumit/12/Presentation/VS2012_PNDhoot.pdf
)
Target Market Size (Most potential customers who could buy this)
1% of the Served market size
8. Competitors
Alibaba.com
Manta.com
Made-in-China.com
IndiaMart.com
Etc.
Primary B2b-X differentiator :
Cloud based order Management system
More customer oriented implementation
9. Technology
Cloud based / Web portal –
http://www.b2b-x.com/
Manages businesses / suppliers profiles
Business specific - Suppliers list including
Current suppliers
Potential suppliers
Business specific - Suppliers list for business
specific products
Communicate with suppliers in / out of portal (chat,
emailing)
User specific - transactions / orders for every
customers
Standard implemented solution - customizable
based on per customer
Backend & Business modules
Database driven repository
EDI module
Flat file handling module
Web-services based integration API available to
enable integrated with other systems in
enterprise
Auditing and Archiving
10. Distribution Channels
• Primary channel is Web based portal.
• System Integrators aka SI’s / Value added
resellers
• OEM’s / Partners
Demand Creation
• Influencers – customer references
• Search engine marketing / optimization
• Partners / System Integrators
• Trade Association partnerships
• Blogs / Communities
• Trade fair representations
11. Cash Flow – Revenue
• As per one of the statistics:
• average B2B transaction value is $75,000 (
http://www.informit.com/articles/article.aspx?p=20999)
• Assuming 2400 Customers x 10 transactions per year x $
75000 x average 1.75% transaction fee = $ 31.5 Million
Transactions Value Commission rate Average Revenue
>20000 USD 0.50% 100.00
10000-20000 USD 1.00% 150.00
5000-10000 USD 1.50% 112.50
0-5000 USD 2.00% 50.00
• Supplier and Business Subscriptions:
@ $15/month and 2400 Subscriptions
= $36,000 year 1
12. What are we looking for ?
• Funding to get this project started, cover costs
on resourcing, product development, office,
legal costs and sales personnel.
• Guidance on Legal & compliance for this
undertaking.
Businesses might be using both Alibaba and a local Order management system for themselves with repetitive entries IT / Services team in the background to customize.
Trade Association partnerships – Electronic industry associations