1. Business-to-Business Electronic Commerce

4. B2B vs . B2C E-Commerce R aw M aterials M anufacturing W holesalers R etails C onsumer Market Chains Government Transportation Communications Banks Intermediaries B2C E-commerce B2B E-commerce Business Business B2B Business Consumer B2C Suppliers Buyers

10. Type of Electronic Markets Industry Focus Database Magt. MRO Shipping Steel Food Auto Mining Mega-Exchange Vertical Market Horizontal Market

20. Kaplan & Sawhney’s B2B Matrix What businesses buy Operating Supplies Manufacturing Inputs Systematic Sourcing Spot Sourcing How businesses buy? B2B e-hub can be classified into four categories Type of Product Type of Transaction Exchanges E-steel PaperExchange ChemConnect Yield Managers Employease.com iMark.com NTE Catalogue Hubs Chemdex.com SciQuest.com ElectricalWeb.com MRO Hubs Ariba MRO.com NetBuy.com

31. Many Choices

32. Strategic design factors for B2B There are several issues a firm must consider before implementing an e-marketplace How is price determined for items being bought and sold? Price Mechanism How does the marketplace owner capture value form the marketplace? And from whom? Revenue Source How much is the initial investment? What are the recurring costs? Cost/Investment Who has strategic and tactical control over the rules and regulations of the marketplace? Control What marketplace access restrictions are in place? Access What form should the B2B market take? Market Mechanisms What does the marketplace offer those players Offering Who are the players in the marketplace? Audience

33. What it takes to win Relevant, value-added information. Content Superior GUI, searchability, configuration and transaction services. Ease of use Time, speed, security, etc. Other factors Open platform for easy participation and integration of all parties. Architecture Mission-critical solutions. Management Greater marketing, distribution & logistics. Partnership Achieve critical mass of buyers, suppliers, partners & distributors. First Mover Advantage Apply B2B model to specific industries and markets. Domain Expertise