This document discusses business-to-business purchasing decisions. It examines the purchasing processes of two companies - Novacom Associates, which provides internet and media services, and Imnet, an IT consulting firm. It describes the key products and services purchased by each company, the factors considered in supplier selection such as reliability and cost, and the internal approval processes involving technical, financial, and executive teams. Consequences for both companies and their suppliers are discussed if service levels are not met.

1. Understanding the B2B
market
Purchasing decision
Christophe ARONOWICZ
Leo BOUKOU-POBA
Mathieu DEFARGE EMLV S7

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. THANKS
Special Thanks to :
Novacom Associés
Imnet
EMLV S8 – UNDERSTANDING THE B2B MARKET 16/01/2009