b2b models by satya
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Models of Business to Business
-Presentation by Uday Satya
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Transactions between two or more businesses conducted electronically over a Computer Network
rather than between a business and a customer
What is ???
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The Basic Supply Chain
Raw Materials Manufacturing Wholesalers Retails ConsumerTransportation
& Logistics
Transportation
& Logistics
Transportation
& Logistics
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B2B vs. B2C E-Commerce
Raw Materials Manufacturing Wholesalers Retails
Consumer
Market Chains
Government Transportation Communications BanksIntermediaries
B2C E-commerce
B2B E-commerce
Business BusinessB2B
Business ConsumerB2C
Suppliers Buyers
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Models of B2B EC
Supplieroriented
Customeroriented
Intermediaryoriented
Virtual corporation
Networking between HQ
and Sub.
Online services to business
Depending on who control market place
Other important business models
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Supplier – Oriented Marketplace
Individual consumers and business buyers use the same supplier-provided marketplace
B2C E-commerce
Consumers
B2B E-Commerce
BusinessCustomers
Supplier’sProducts Catalog
Customer’sOrder Information
Supplier’sElectronic Mall
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Buyer 1
Buyer 3
Buyer 2
Supplier-oriented Marketplace
Supplier
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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
BusinessSuppliers
Buyer’sProducts
Catalog, RFQ
Suppliers’Bids, Information
Buyer’sElectronic Mall
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Buyer-oriented Marketplace
Supplier 1
Supplier 3
Supplier 2Buyer
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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
BusinessCustomers
BusinessSuppliers
SharedProducts Catalogs
Supplier’sProduct Information
Intermediary’sElectronic Mall
Customer’sOrder Information
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Supplier 1
Supplier 3
Supplier 2
Buyer 1
Buyer 3
Buyer 2 Third Party
Intermediary-oriented Marketplace
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Buyer-oriented Marketplace
Supplier 1
Supplier 3
Supplier 2
Buyer 1
Buyer 3
Buyer 2
Supplier-oriented Marketplace
Supplier 1
Supplier 3
Supplier 2
Buyer 1
Buyer 3
Buyer 2
Intermediary-oriented Marketplace
Buyer
Third Party
Supplier
Summary
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Other Important Business Models
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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.
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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.
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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.
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Online Services To Business
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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
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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
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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.
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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…
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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.
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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.
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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.
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Other online services
Business is the major user of online consulting, legal advice, health care, delivery requests, electronic stamping, escrowing and so forth.
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