b2b models by satya

Models of Business to Business

-Presentation by Uday Satya

Transactions between two or more businesses conducted electronically over a Computer Network

rather than between a business and a customer

What is ???

The Basic Supply Chain

Raw Materials Manufacturing Wholesalers Retails ConsumerTransportation

& Logistics

Transportation

& Logistics

Transportation

& Logistics

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

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

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

Buyer 1

Buyer 3

Buyer 2

Supplier-oriented Marketplace

Supplier

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

Buyer-oriented Marketplace

Supplier 1

Supplier 3

Supplier 2Buyer

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

Supplier 1

Supplier 3

Supplier 2

Buyer 1

Buyer 3

Buyer 2 Third Party

Intermediary-oriented Marketplace

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

Third Party

Supplier

Summary

Other Important Business Models

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.

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.

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.

Online Services To Business

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

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

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.

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…

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.

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.

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.

Other online services

Business is the major user of online consulting, legal advice, health care, delivery requests, electronic stamping, escrowing and so forth.

b2b models by satya

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