Chapter 6 Public B2B Exchanges and Support Services
Chapter 6 Public B2B Exchanges and Support Services
Learning objectives Define exchanges and describe their major types 2. Describe the various ownership and revenue models of exchanges 3. Describe B2B portals 4. Describe third-party exchanges 5. Distinguish between purchasing(procurement) and selling consortia Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 2 Learning Objectives 1. Define exchanges and describe their major types. 2. Describe the various ownership and revenue models of exchanges. 3. Describe B2B portals. 4. Describe third-party exchanges. 5. Distinguish between purchasing (procurement) and selling consortia
Learning objectives 6. Define dynamic trading and describe B2B auctions 7. Discuss integration issues of e-marketplaces and exchanges 8. Describe the major support services of B2B 9. Discuss b2B networks 10. Discuss issues in managing exchanges 11. Describe the critical success factors of exchanges Electronic Commerce Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 3 Learning Objectives 6. Define dynamic trading and describe B2B auctions. 7. Discuss integration issues of e-marketplaces and exchanges. 8. Describe the major support services of B2B. 9. Discuss B2B networks. 10. Discuss issues in managing exchanges. 11. Describe the critical success factors of exchanges
B2B Electronic Exchanges An overview public e-marketplaces (public exchanges) Trading venues open to all interested parties(sellers and buyers); usually run by third parties exchange A many-to-many e-marketplace. Also known as e marketplaces, e-markets, or trading exchanges market maker The third-party that operates an exchange(and in many cases, also owns the exchange) Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 4 B2B Electronic Exchanges: An Overview public e-marketplaces (public exchanges) Trading venues open to all interested parties (sellers and buyers); usually run by third parties exchange A many-to-many e-marketplace. Also known as emarketplaces, e-markets, or trading exchanges market maker The third-party that operates an exchange (and in many cases, also owns the exchange)
Exhibit 6.1 Trading Communities Government Professional Universities Association Research Institutions Manufacturers Dealers Contractors Trading Community Customers Suppliers (An Exchange) Retailers Subsuppliers Content Banks Logistics IT Providers Other Providers Financial Services Exchanges Institutions Electronic Commerc Prentice Hall 2006 5
Electronic Commerce Prentice Hall © 2006 5 Exhibit 6.1 Trading Communities
B2B Electronic Exchanges An Overview Classification Of EXchanges vertical exchange An exchange whose members are in one industry or industry segment horizontal exchange An exchange that handles materials used by companies in different industries Dynamic Pricing dynamic pricing A rapid movement of prices over time, and possibly across customers, as a result of supply and demand Electronic Commerc Prentice Hall 2006 6
Electronic Commerce Prentice Hall © 2006 6 B2B Electronic Exchanges: An Overview • Classification Of Exchanges vertical exchange An exchange whose members are in one industry or industry segment horizontal exchange An exchange that handles materials used by companies in different industries • Dynamic Pricing dynamic pricing A rapid movement of prices over time, and possibly across customers, as a result of supply and demand
Exhibit 6.2 Classification of B2B Exchanges Direct Indirect(MRO) (2) Vertical Horizontal Distributors E-Distributors Systematicplastics.com mro. com Sourcing epapertrade. com grainger. com Methods:aggregation,iFindmro.com fixed/negotiated prices Methods: Aggregation fixed/negotiated prices (3) (4) Vertical Horizontal Exchanges EXchanges Spot isteelasia. com employease. com Sourcing chemconnect. com aribasn Methods: Matching, Methods: Matching dynamic pricing dynamic pricing Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 7 Exhibit 6.2 Classification of B2B Exchanges
B2B Electronic Exchanges An Overview Functions of Exchanges 1. Matching buyers and sellers 2. Facilitating transactions 3. Maintaining exchange policies and infrastructure Ownership of EXchanges An industry giant A neutral entrepreneur The consortium(or co-op) Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 8 B2B Electronic Exchanges: An Overview • Functions of Exchanges 1. Matching buyers and sellers 2. Facilitating transactions 3. Maintaining exchange policies and infrastructure • Ownership of Exchanges – An industry giant – A neutral entrepreneur – The consortium (or co-op)
B2B Electronic Exchanges An Overview Revenue models Transaction fees Fee for service Membership fees Advertising fees Other revenue sources Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 9 B2B Electronic Exchanges: An Overview • Revenue Models – Transaction fees – Fee for service – Membership fees – Advertising fees – Other revenue sources
B2B Electronic Exchanges An Overview Governance and organization Membership Site Access and Security Services Provided by exchanges Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 10 B2B Electronic Exchanges: An Overview • Governance and Organization – Membership – Site Access and Security – Services Provided by Exchanges