This document discusses the rise of social purchasing and community-oriented buying decisions. It introduces community-oriented chief procurement officers (CPOs) and analyzes 56 existing B2B purchasing communities. These communities are classified using an eight-dimension "bike wheel model" and plotted on a matrix based on popularity/usage and openness. The document then outlines a five-step process for designing and developing a new CPO community, including defining strategic objectives, governance roles, community design, management, and assessment. The overall aim is to understand how social purchasing communities can provide benefits to buyers.

1. Group 15
Social Purchasing
Matteo Damiani
Massimo Fava
Paolo Ferrarini
Lorenzo Prati
Eleonora Rossi
Giuseppe Scirica

2. 2
Index
1. Introduction to Web 2.0 and communities
2. Classification process
3. Community design and development process
4. Conclusions
Purchasing Management CPO communities

3. 3
Introduction
Web 2.0 is changing buyers’ working methods
of B2B buyers cite online communities or
forums as influencers on their buying decisions
of B2B technology buyers consults
social media before making a decision
of B2B buyers engages social
channels while they’re working
(MarketSherpa)
«I’m not alone! There «For this big amount
are other buyers in of purchasing I need
the World!» interaction with other
people!»
«Facebook,
Linkedin, «Let me check
Twitter…this is a what other buyers
great job!» think...»
Purchasing Management CPO communities

4. 4
Introduction
100.0% 88.6%
90.0%
80.0% 74.3%
70.0%
65.7%
60.0% 48.6%
50.0%
40.0% 25.7%
30.0%
20.0%
Social media 10.0%
0.0%
play a critical role allowing
communities development
Community benefits and
disadvantages
“A buyer (or CPO) community is a virtual, complex, wise buying unit where buyers,
CPO or people interested in B2B purchasing activities are connected together
With a web-based connection in order to interact, discuss, learn or advise the
other members on a specific topic or on the purchasing process in general”
Purchasing Management CPO communities

5. 5
Classification Process: «The Bike Wheel Model»
professional
Generic
figure
8 dimensions:
Multichannel
Target members
Level of content
specificity
Contents availability
Specific
Generic contents contents Popularity
Usage level
Geographical
coverage
Language
professional
Specific
figure
Purchasing Management CPO communities

6. 6
Dimensions Evaluation
List of the 56 Dimension evaluation with
communities quantitative/qualitative criteria
analyzed
Purchasing Management CPO communities

7. 7
4 «wheel types» discovery
«Type1» «Type 2»
«Type 3» «Type 4»
Purchasing Management CPO communities

8. 8
«The Communities Matrix»
A combination of:
- popularity
High - usage level.
Utility for A combination of:
members - Integration with other platforms;
- (free) Content availability;
- Target members;
- Geographical coverage;
Low - Language
Low Opening level High
Purchasing Management CPO communities

9. 9
«The Communities Matrix»
High “Closed
“Communities
communities,
best of breed”
but succesful”
Utility for
members
“Good
“Communities potentialities, not
Low that do not popular
perform well”
and used yet”
Low High
Opening level
Purchasing Management CPO communities

10. 10
The strategic approches
High
Opinion
leaders
activity
Utility for
Web
members
Low
Low High
Opening level
Purchasing Management CPO communities

11. Community Design and Development process 12
- Design and Development -
Assessment
Community
management
Design
Governance
definition
Strategic
concept
Purchasing Management CPO communities

12. Community Design and Development process 13
- Design and Development -
1. Strategic concept
Objectives, needs, limits of the new community
Topic, interaction mode, members type
Understand users’ needs:
o Which are future members? (CPO, buyers, role, company,…);
o Create cluster of members and analyze characteristics;
o Describe person and behavior;
o Think about users’ needs;
o Define cluster’s behavior
Useful to setup best tools and characteristics of
the community
Purchasing Management CPO communities

13. Community Design and Development process 14
- Design and Development -
2. Governance definition
Roles and coordination mechanism
Regulations and behaviors in the community
Importance of sharing experience and contents (super-users)
3. Design
Design useful tools
Bottom-up strategy
4. Community management
Analyze trends and changes in the needs of users
Solve technical problems and manage the activity
5. Assessment
Track progress, results and feedback from users
Actions
Purchasing Management CPO communities

14. 15
Conclusions…so What?
Social Buyers
Purchasing
Benefits for Buyers
communities
Different types of communities
Roadmap to create a community
Purchasing Management CPO communities

15. 16
Q&A session
Thank you
Any questions?
Purchasing Management CPO communities