Chapter 5 B2B E-Commerce Selling and Buying in Private E-markets
Chapter 5 B2B E-Commerce: Selling and Buying in Private E-Markets
Learning objectives 1. Describe the b2b field 2. Describe the major types of B2B models 3. Discuss the characteristics of the sell-side marketplace, including auctions 4. Describe the sell-side intermediary models 5. Describe the characteristics of the buy-side marketplace and e-procurement 6. Explain how reverse auctions work in B2B Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 2 Learning Objectives 1. Describe the B2B field. 2. Describe the major types of B2B models. 3. Discuss the characteristics of the sell-side marketplace, including auctions. 4. Describe the sell-side intermediary models. 5. Describe the characteristics of the buy-side marketplace and e-procurement. 6. Explain how reverse auctions work in B2B
Learning objectives 7. Describe B2B aggregation and group purchasing models 8. Describe other procurement methods 9. Explain how B2B administrative tasks can be automated 10. Describe infrastructure and standards requirements for B2B 11 Describe Web edl xml and Web services Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 3 Learning Objectives 7. Describe B2B aggregation and group purchasing models. 8. Describe other procurement methods. 9. Explain how B2B administrative tasks can be automated. 10. Describe infrastructure and standards requirements for B2B. 11. Describe Web EDI, XML, and Web Services
Concepts, Characteristics and models of b2b ec Basic B2B Concepts business-to-business e-commerce(B2B EC) Transactions between businesses conducted electronically over the Internet, extranets, intranets, or private networks also known as eB2B (electronic B2B)or just B2B Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 4 Concepts, Characteristics, and Models of B2B EC • Basic B2B Concepts business-to-business e-commerce (B2B EC) Transactions between businesses conducted electronically over the Internet, extranets, intranets, or private networks; also known as eB2B (electronic B2B) or just B2B
Concepts, Characteristics and models of b2b ec Key business drivers for B2B The availability of a secure broadband Internet platform and private and public B2B e-marketplaces The need for collaborations between suppliers and buyers The ability to save money, reduce delays, and improve collaboration; and The emergence of effective technologies for intra- and interorganizational integration Electronic Commerc Prentice Hall 2006 5
Electronic Commerce Prentice Hall © 2006 5 Concepts, Characteristics, and Models of B2B EC • Key business drivers for B2B: – The availability of a secure broadband Internet platform and private and public B2B e-marketplaces; – The need for collaborations between suppliers and buyers; – The ability to save money, reduce delays, and improve collaboration; and – The emergence of effective technologies for intra- and interorganizational integration
Exhibit 5.2 Types of B2E EC Buvers Sellers Company A Company A ompany B Company B Company C Company C Company D Company D (a)Sell-Side B2B (b)Buy-Side B2B Services Others Governmet Sellers ers Hub Sellers Community An exchange Industry Universities associations (c)Electronic Exchange (d)collaborative Commerce Electronic Commerce Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 6 Exhibit 5.2 Types of B2E EC
Concepts, Characteristics and models of b2b ec Basic Types of B2B E-Marketplaces One-to-Many and Many-to-One: Private E-Marketplaces company-centric EC E-commerce that focuses on a single company's buying needs(many-to-one, or buy-side)or selling needs(one-to- many, or sell-side) private e-marketplaces Markets in which the individual sell-side or buy-side company has complete control over participation in the selling or buying transaction Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 7 Concepts, Characteristics, and Models of B2B EC • Basic Types of B2B E-Marketplaces – One-to-Many and Many-to-One: Private E-Marketplaces company-centric EC E-commerce that focuses on a single company’s buying needs (many-to-one, or buy-side) or selling needs (one-tomany, or sell-side) private e-marketplaces Markets in which the individual sell-side or buy-side company has complete control over participation in the selling or buying transaction
Concepts, Characteristics and models of b2b ec Intermediaries are frequently used Conducting auctions Aggregating buyers Complex transactions Many-to-Many: EXchanges exchanges (trading communities or trading exchanges) Many-to-many e-marketplaces, usually owned and run by a third party or a consortium, in which many buyers and many sellers meet electronically to trade with each other; also called trading communities or trading exchanges Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 8 Concepts, Characteristics, and Models of B2B EC – Intermediaries are frequently used • Conducting auctions • Aggregating buyers • Complex transactions – Many-to-Many: Exchanges exchanges (trading communities or trading exchanges) Many-to-many e-marketplaces, usually owned and run by a third party or a consortium, in which many buyers and many sellers meet electronically to trade with each other; also called trading communities or trading exchanges
Concepts, Characteristics and models of b2b ec Many-to-Many: EXchanges public e-marketplaces Third-party exchanges that are open to all interested parties(sellers and buyers) B2B2C a business sells to a business but delivers small quantities to individuals or business customers online intermediary An online third party that brokers a transaction online between a buyer and a seller; may be virtual or click and-mortar Electronic Commerce Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 9 Concepts, Characteristics, and Models of B2B EC – Many-to-Many: Exchanges public e-marketplaces Third-party exchanges that are open to all interested parties (sellers and buyers) B2B2C A business sells to a business, but delivers small quantities to individuals or business customers online intermediary An online third party that brokers a transaction online between a buyer and a seller; may be virtual or clickand-mortar
Concepts, Characteristics and models of b2b ec Types of Transactions spot buying The purchase of goods and services as they are needed, usually at prevailing market prices strategic systematic sourcing Purchases involving long-term contracts that usually are based on private negotiations between sellers and buyers Electronic Commerc Prentice Hall 2006
Electronic Commerce Prentice Hall © 2006 10 Concepts, Characteristics, and Models of B2B EC – Types of Transactions spot buying The purchase of goods and services as they are needed, usually at prevailing market prices strategic systematic sourcing Purchases involving long-term contracts that usually are based on private negotiations between sellers and buyers