Consider a company is planning to establish a B2B e-commerce system. Now describe in detail the possible types of B2B Business Models the company can adapt.

The major business models used to date in the B2B arena include:

 i) Net marketplaces

  •  E-distributors
  •  E-procurement
  •  Exchange
  • Industry Consortium

ii) Private Industrial Network

  • Single Firm Private Industrial 
  • Network Industry-wide Private Network

 i) Net marketplaces

    a)  E-distributor: 

    E-distributors is a company that supplies products and services directly to individual businesses. E-distributors are owned by one company seeking to serve many customers. In E-distributors the more products and services a company makes available on its sites, the more attractive that site is to potential customers. The revenue model of e-distributors is Sales of goods, Advertisements. Example: Grainger.com is are owned e-distributors with online catalogs used to access and provide information on over 1 million items.

      b) E-procurement: 

    These firms create and sell access to digital markets. The Revenue model of E-procurement is fees for market-making services, supply chain management, and fulfillment. They make profits by transaction commissions, payments based on the number of computers using the service, or annual licensing payments and are usually named as application service providers.

    c) Exchange:

    An exchange is an independent digital electronic marketplace where hundreds of suppliers meet a smaller number of very large commercial purchasers. Exchanges are owned by independent, usually entrepreneurial start-up firms whose business is making a market, and they generate revenue by charging a commission or fee based on the size of the transactions conducted among trading parties. For buyers, B2B exchanges make it possible to gather information, check out suppliers, collect prices, and keep up to date on the latest happenings. Sellers, on the other hand, benefit from expanded access to buyers. The greater the number of sellers and buyers, the lower the sales cost and the higher the chances of making a sale.

     d) Industry consortium:

    Industry consortia are industry-owned vertical marketplaces that serve specific industries, such as the automobile, aerospace, chemical, floral, or logging industries. Industry consortia have tended to be more successful than independent exchanges in part because they are sponsored by powerful, deep-pocketed industry players, and also because they strengthen traditional purchasing behavior rather than seek to transform it.


    ii) Private Industrial Network

    Private industrial networks constitute about 75% of all B2B expenditures by large firms and far exceed the expenditures for all forms of Net marketplaces. A private industrial network is a digital network designed to coordinate the flow of communications among firms engaged in business together.

     There are two types of private industrial networks:


    a) Single Firm Private Industrial Network 
    b) Industry-wide Private Network

    a) Single Firm Private Industrial Network: 

    This network is owned by a single large purchasing firm. These networks typically evolve out of a firm's own enterprise resource planning (ERP) system and are an effort to include key suppliers in the firm's own business decision-making.


    b) Industry-wide Private Network: 

    This network is owned by a large firm in an industry and its goals are:
    • To provide a neutral set of standards for commercial communication
    •  To collaborate activities
    • To share and open technology platforms for solving industry problems.


    Comments

    Popular posts from this blog

    Suppose that a data warehouse for Big-University consists of the following four dimensions: student, course, semester, and instructor, and two measures count and avg_grade. When at the lowest conceptual level (e.g., for a given student, course, semester, and instructor combination), the avg_grade measure stores the actual course grade of the student. At higher conceptual levels, avg_grade stores the average grade for the given combination. a) Draw a snowflake schema diagram for the data warehouse. b) Starting with the base cuboid [student, course, semester, instructor], what specific OLAP operations (e.g., roll-up from semester to year) should one perform in order to list the average grade of CS courses for each BigUniversity student. c) If each dimension has five levels (including all), such as “student < major < status < university < all”, how many cuboids will this cube contain (including the base and apex cuboids)?

    Suppose that a data warehouse consists of the four dimensions; date, spectator, location, and game, and the two measures, count and charge, where charge is the fee that a spectator pays when watching a game on a given date. Spectators may be students, adults, or seniors, with each category having its own charge rate. a) Draw a star schema diagram for the data b) Starting with the base cuboid [date; spectator; location; game], what specific OLAP operations should perform in order to list the total charge paid by student spectators at GM Place in 2004?

    Explain market-Oriented Cloud computing architecture.