B2B E-Commerce Models
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B2B E-commerce Models
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B2B E-Commerce Models
- 1. By Dr. H.S. ABZAL BASHA, M.B.A., Ph.D., L.L.B. Assistant Professor, Department of Management Studies, G. Pullaiah College of Engineering & Technology, Kurnool. B2B E-Commerce Models UNIT-2
- 2. Transactions between two or more businesses conducted electronically over a Computer Network rather than between a business and a customer What is ??? © drafzalma@gpcet.ac.in 2
- 3. The Basic Supply Chain Raw Materials © drafzalma@gpcet.ac.in 3 Manufacturing Wholesalers Retails Consumer Transportation & Logistics Transportation & Logistics Transportation & Logistics
- 4. B2B vs. B2C E-Commerce Raw Materials Manufacturing Wholesalers Retails Consumer Market Chains Government Transportation Communications Banks Intermediaries B2C E-commerce B2B E-commerce Business Business B2B Business Consumer B2C © drafzalma@gpcet.ac.in 4 Suppliers Buyers
- 5. Models of B2B EC Supplier oriented Customer oriented Intermediary oriented Virtual corporation Networking between HQ and Sub. Online services to business Depending on who control market place Other important business models © drafzalma@gpcet.ac.in 5
- 6. Supplier – Oriented Marketplace Individual consumers and business buyers use the same supplier-provided marketplace B2C E-commerce Consumers B2B E-Commerce Business Customers Supplier’s Products Catalog Customer’s OrderInformation Supplier’s Electronic Mall © drafzalma@gpcet.ac.in 6
- 7. Buyer 1 Buyer 3 Buyer 2 Supplier-oriented Marketplace Supplier © drafzalma@gpcet.ac.in 7
- 13. Buyer – Oriented Marketplace Buyer opens a market on its own server and invites potential suppliers to bid on RFQs Offer opportunity to committed suppliers BUT as the number of such sites increase, only very big buyers can afford to fully utilize this approach OVERCOME with the aid of software agents Business Suppliers Buyer’s Products Catalog, RFQ Suppliers’ Bids, Information Buyer’s Electronic Mall © drafzalma@gpcet.ac.in 13
- 14. Buyer-oriented Marketplace Supplier 1 Supplier 3 Supplier 2 Buyer © drafzalma@gpcet.ac.in 14
- 16. Intermediary – Oriented Marketplace Establish an electronic intermediary company, which is Similar to an intermediary-based B2C mall; bring buyers and suppliers (bidders) to one place The corporate information systems need tight coupling with the intermediary electronic mall Business Customers Business Suppliers Shared Products Catalogs Supplier’s Product Information Intermediary’s Electronic Mall Customer’s Order Information © drafzalma@gpcet.ac.in 16
- 17. Supplier 1 Supplier 3 Supplier 2 Buyer 1 Buyer 3 Buyer 2 Third Party Intermediary-oriented Marketplace © drafzalma@gpcet.ac.in 17
- 24. Supplier 1 Supplier 3 Supplier 2 Buyer-oriented Marketplace Buyer Buyer 1 Buyer 3 Buyer 2 Supplier-oriented Marketplace Supplier Supplier 1 Supplier 3 Supplier 2 Buyer 1 Buyer 3 Buyer 2 Intermediary-oriented Marketplace Third Party © drafzalma@gpcet.ac.in 24 Summary
- 25. Other Important Business Models © drafzalma@gpcet.ac.in 25
- 26. Virtual Corporation: Networking Between Business Partners A virtual corporation is an organization composed of several business partners sharing costs and resources for the purpose of producing a product or service. © drafzalma@gpcet.ac.in 26
- 27. The major goals that VCs pursue are: Excellence: Each partner brings its core competence,so an all-star winning teams is created. Utilization: Resources of the business partners are frequently underutilized.A VC can utilize them more profitably. Opportunism: A VC can find and meet market opportunity better than an individual company. © drafzalma@gpcet.ac.in 27
- 32. © drafzalma@gpcet.ac.in 32 Networking Between Headquaters and Subsidiaries The B2B EC platform can help the communication and collaboration between headquarters and susidiaries or franchiser and franchise by providing e-mail, message boards and chat rooms and online corporate data access around the globe no matter what the time zone is.
- 37. Online Services To Business © drafzalma@gpcet.ac.in 37
- 38. © drafzalma@gpcet.ac.in 38 Travel and tourism services Many large corporations have special discounts arranged with travel agents To further reduce costs, companies can make special arrangements that enable employees to plan and book their own trip online
- 41. © drafzalma@gpcet.ac.in 41 Real estate Since business real estate investment can be very critical, the Web site cannot replace the existing agents Instead, the Web site helps in finding the right agents
- 43. © drafzalma@gpcet.ac.in 43 Electronic payments Firm banking on the Internet is an economical way of making business payments The EFT using financial EDI on the Internet is the most popular method business uses. The payment transaction cost on the Internet is cheaper than that of any other alternatives.
- 45. Online stock trading Corporations are important stock investors. Online trading fees is very low and fixed, regardless of the trading amount, the online trading brokerage service is a very attractive option to business investors… © drafzalma@gpcet.ac.in 45
- 47. Electronic auction to business bidders Some electronic auctions are open only to dealers , for instance, used cars and foreclosed real estate sold by the government. The comprehensive list of auction sites is availabe at www.usaweb.com/auction.html. © drafzalma@gpcet.ac.in 47
- 49. © drafzalma@gpcet.ac.in 49 Online publishing and education Online publising is not the monopolistic asset of business. The on-demand electronic education program can provide a useful training opportunity for busy employees.
- 51. © drafzalma@gpcet.ac.in 51 Online loan and capital makers Business loans can be syndicated online from the lending companies. Moreover,some sites, like www.garage.com , provide information about venture capital.
- 53. © drafzalma@gpcet.ac.in 53 Other online services Business is the major user of online consulting, legal advice, health care, delivery requests, electronic stamping, escrowing and so forth.