A presentation in English explaining how 2 companies purchase goods and services

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