BUSINESS-TO-BUSINESS EXCHANGES
1
Presented by:
Anna Gochkova
Amy An
Gregg Diepenbrock
Florian Diekmann
B2B Exchanges
2

Overview

Case Studies

Conclusion
What are Business-to-Business
Exchanges?

Business-to-Business is a transaction that occurs
between a company and another company

B2B is an electronic commerce between businesses

Business-to-business exchanges are electronic
marketplaces in which multiple buyers and multiple
suppliers come together to exchange goods and
services
3
Source: Reference 1
What are Business-to-Business
Exchanges?
4
Source: Reference 2
Types of eCommerce exchanges
eCommerce means doing business on the Internet
There are three main types of eCommerce:
 Business-to-Consumer:
5

Business-to-Business

Business-to-Administration
Types of Business-to-Business Exchanges
6
Source: Reference 3
Types of Business-to-Business
Exchanges: Vertical Exchanges
Vertical B2Bs:
 Offer more specialized Web page content
 Make their money from advertising
 Try to reduce the cost of buying raw
materials, components, and equipment
 Need to assemble as many buyers and
sellers as possible
7
Types of Business-to-Business
Exchanges: Horizontal Exchanges
8
Horizontal B2Bs:
 Operate at different levels across numerous different
verticals
 Make their money by selling software and related
services
 Attempt to provide generic services, such as credit risk
management, bill payment and presentation, or secure
communications
 They are forms of ASPs offering mediated services that
all companies might need
 Need to have a large number of suppliers participating
Business-to-Business Models


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The Buy-Side Model: E-Procurement
Many to One
The Sell-Side Model: Supply Commerce
One to Many
The E-Marketplace: Exchange
Many to Many
S
S
B
S
S
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Source: Reference 4
B
S
B
B
S
B
B
S
B
B2B Models: The Buy-Side Model
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One Buyer-to-Many Sellers
Includes workflow for the procurement approval process
and is connected only to pre-approved sellers and their
e-catalogs
Combines multiple sellers’ catalogs and provides
different views to different buyers within an organization
Sellers provide special pre-negotiated (contract) prices
to buyers
Benefits: to lower overall cost for suppliers and to
reduce transaction cost
Goal: to prevent “maverick” buying
B2B Models: The Sell-Side Model
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Many Buyers-to-One Seller
The buyers are not end consumers, but
distributors buying from manufacturers
The seller provides a “shopping” Web site with
an e-catalog
Buyers shop directly on the seller’s site
Benefits: reduced expenses and increased
accuracy in processing orders
B2B Models: The E-Marketplace Model

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Many-to-Many; Online Marketplaces; Meta
Makers
Hubs and Spokes
Matches buyers with sellers in a virtual
marketplace called an exchange
Benefits: greater liquidity of suppliers, lower
supplier purchase cost, and improved
purchasing efficiencies
B2B Prospects for 2003-2005
13

Business-to-business eCommerce will rise to
$6.3 trillion in 2005 from $336 billion in
2000, reports Jupiter Research

Boston Consulting Group’s projection: U.S.
B2B eCommerce will grow from $1.2 trillion
in 2000 to $4.8 trillion by 2004.
Source: Reference 5
B2B Prospects for 2003-2005
14

According to Gartner, B2B eCommerce
reached $145 billion worldwide in 1999 and
is projected to surpass $7.29 trillion by
2004.

According to Forrester Research $6.8 trillion
will be spent on global eCommerce by 2004.
Source: Reference 6, 7
B2B Prospects for 2003-2005
15
B2B Prospects for 2003-2005
16
Benefits of Business-to-Business
Exchanges
17

Reduced purchasing cost: searching for products online requires
much less time and electronically processing an order streamlines
the ordering procedure

Increased market efficiency: using the Internet, companies can
easily get price quotes from numerous suppliers

Greater market intelligence: B2B hosts give producers a better
insight into the demand levels in any given market

Decreased inventory levels

Also, B2B exchanges remove costly inefficiencies and deliver
bottom-line savings to all participants
Benefits of Business-to-Business
Exchanges
Business-to-Business Exchanges help companies to
improve their overall performance of the
manufacturing and procurement processes,
returning 15-27% back to the business in reduced
costs:
 5-10% in costs of materials
 80% of current purchase order costs
 25-50$ on inventory costs
 Up to 70% reduction in order fulfillment time
 25% reduction in purchasing department staffing
18
Source: Reference 8
Gains and Risks of B2B Exchange
Participation
As a buyer, you gain:
19

One-stop shopping

Comparison shopping

Volume discounts

24/7 ordering

Access to new
suppliers
Gains and Risks of B2B Exchange
Participation
As a buyer, you risk:
 Replacing trusted vendors with unreliable new
sources
 Loss in customer service quality
20
Gains and Risks of B2B Exchange
Participation
As a supplier, you gain:
 An online channel
 A way to reach new customers
As a supplier, you risk:
 Loss of direct customer relationships
 Competition for value-added services
 Imposition of transaction fees
 Loss of customers
21
How Do B2B Make Profit
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Licensing their software to participants and integrating it with
the participants’ back-end systems (for example, inventory and
accounting programs)
Charging a per-transaction fee (usually only to sellers), typically
ranging from 1% to 10% of the purchase price
Hosting targeted advertising on the exchange
Selling data about the purchase patterns of participants on the
exchange
Charging subscription fees to buyers and sellers who use the
exchange
Source: Reference 9
Why Have So Many B2Bs Failed?
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In 2001, there were approximately 1,500 B2B
exchanges. As of July 2002, there were
fewer than 700 left. If the trend continues,
fewer than 200 will survive by mid-2003.
More than 80% of B2B exchange players
have exited via failure or acquisition
Source: Reference 10
Why Have So Many B2Bs Failed?
“Our study of 8 industries
found only 43% of
independent B2B exchanges
survived between April 2000
and July 2002”,
says Pembroke Consulting
president Adam Fein, who
conducted the study with
Professor George Day of the
Wharton School of the
University of Pennsylvania.

24
Source: Reference 10
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
The study examined
exchanges in the
electronics, food service,
healthcare, paper,
construction, automotive,
industrial and grocery
industries.
The grocery industry had the
lowest survival rate, with just
41% of independent
exchanges surviving
Why Have So Many B2Bs Failed?
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Companies were not able to attract paying suppliers
and customers
Companies did not have the required minimum of
liquidity
Suppliers resisted joining the exchanges because
they feared direct comparison with competitors
would erode their margins
And buyers as well as sellers were loath to pay
transaction fees for what they felt was a simple
matchmaking function
Building a Successful B2B eCommerce
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Building a Successful B2B eCommerce
Five factors which influence the success in B2B exchanges:
 Early liquidity: the more buyers trade on a marketplace, the more
suppliers will be attracted to join them
27

The right owners: marketplaces established by companies that
can readily generate liquidity are likely to thrive

The right governance: good governance is needed to ensure that
buyers agree on the terms of their involvement

Openness: marketplace must operate under open standards

A full range of services: fulfillment logistics, management of
customer relations, and tracking the performance of suppliers
Case Study
Covisint
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Case Study: Covisint

How long does it take to get a customconfigured car built and delivered to it’s
customer?

How many days are spent on assembly?
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Case Study: Covisint
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It takes an average of 53 days to get a
car built and delivered to its customer,
while only one or two of those days are
actually spent on assembly.

A full of 36 days go on
creating a schedule for
production, processing
orders for material and
purchasing for supplies.
Source: Challenges of an Industry led global electronic marketplace
30
Case Study: Covisint
Source: http://europe.autonews.com/files/supplierstoclk.pdf
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Case Study: Covisint
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A Car Is Not A Computer
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PC
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50 components
8-10 key parts
47 key suppliers
100 design variations
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Car
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4000 components
100 key parts
300 key suppliers
> 1,000,000 variations
Source: The internet Motor Vehicle Program MacDuffie, Susan Helper, Mari Sako
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Case Study: Covisint
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Characteristics of Auto Industry
Few industries are as tied to the supply
chain as the automotive sector.
 Disruption in parts shipments can create
shortages that hamper production and
increase costs
 Auto manufactures constantly strive to
obtain best-possible pricing to stay
competitive and hold the line on costs

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Case Study: Covisint
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Problems In Auto Industry
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Inefficiencies in Supply Chain
Processing time for Procurement
Cycle time to design a car
Problems?
Business opportunity
34
Case Study: Covisint
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Covisint
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Founded officially in Dec. 2000 as a
multi-member joint venture
Founders:

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Ford, GM, Daimler-Chrysler ( Big Three)
Nissan and Renault
Technology partner (members also)
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Commerce One
Oracle
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Case Study: Covisint
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Co – Communicate, Collaborate, Connect
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Vis – Visibility, vision
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Int – Integrated, International
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Buy-side exchange
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Intends to offer IPO (Initial Public Offering)
Vertical trading exchange
36
Case Study: Covisint
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Estimate of how automakers
might distribute the costs of
producing a typical $25,000
vehicle. Covisint is expected
to cut the total cost per car by
at least 10%.

* Includes dealer profit, whitecollar wages, purchase of nonautomotive parts and services
such as printer paper and
janitorial services, all national,
state and local taxes and
operating profit.
Source: http://news.com.com/2009-1017-248162.html?legacy=cnet
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Case Study: Covisint
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Promises of Covisint
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Improve auto industry’s procurement process

Improve auto industry’s supply chain
processes
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Improve the product development process of
the auto industry
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Case Study: Covisint
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If Covisint lives up to its promise, consumers
will eventually be able to custom-configure a
car – from engine size to upholstery color –
and drive it home a week after placing their
order
a week later
custom-configured car
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Case Study: Covisint
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Major products of exchange
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Covisint Procurement Solution
 Provides increased efficiency and cost saving
throughout the procurement process
Covisint Virtual Workspace
 Provides an information management and
communication site for multi-enterprise product
development teams.
Covisint Catalog
 Provides for catalog-based procurement of goods and
services in an online shopping environment
Source: https://processcertify.ey.com/Covisint/Covisint_System_Description.htm
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Case Study: Covisint
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Covisint Auctions
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Covisint Quote Manager
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Provides marketplace for sellers and buyers to
originate online auction events for products or services
Seller Auctions
Buyer Auctions
Provides a collaborative environment to enhance the
communication among teams, resulting in higher
quality and lower cost products and services
Covisint SupplyConnect

Communication hub that enables trading partners with
such varied format as EDI, XML, flat files and
spreadsheets to send and receive documents.
Source: https://processcertify.ey.com/Covisint/Covisint_System_Description.htm
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Case Study: Covisint
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Promised value to supplier
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A new marketing and distribution channel
Provide better customer service through online
interaction
Decrease transaction costs
Operational costs associated with sales and
process costs of order management can be
reduced as well
Eliminating the cost of on-going software
upgrades and maintenance.
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Case Study: Covisint
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Promised value to buyer:
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Benefit by reducing waste and making
operation more efficient
Benefit from eliminating the cost of on-going
software upgrades and maintenance
Reduce procurement process and inventory
costs
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Case Study: Covisint
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Revenue Model
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Membership fees
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Transaction fees
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Fees for auctions
and catalogs
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Case Study: Covisint
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In 2001
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1,400+ online bidding events
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Transactions worth $51 billion
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Catalog offering conducted more than
95,000 transactions
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Over 5,000 companies registered with the
exchange
Customer Successes: Covisint , Jeffrey Peter, Director of Quality Assurance, Covisint
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Case Study: Covisint
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Challenges
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Automakers beginning to construct their own
exchange system
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Distrust between the automakers and the
suppliers
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Case Study: Covisint
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Conclusion
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Hits
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Advanced Quality Planning
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Collaboration Manager & Virtual Workspace
Misses
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Portal
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Procurement
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Supply Chain Collaboration
Source: http://www.cio.com/archive/120102/ecomm_sidebar_1.html
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Case Study
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Helping Companies Manage and
Synchronize Inter-Company
Processes, Systems and People
across the Value Chain.
http://www.e2open.com
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History
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July 2000: Founded by 10 high powered electronic
companies (IBM, Hitachi, Nortel, etc.) and privately
backed by investors (Morgan Stanley, Crosspoint)
E-marketplace combining communications,
computer and consumer electronics industries
which account for over $1 Trillion in spending
Aspired to be nothing less that “one of the largest
enterprises of the 21st century”
Karpinski,Richard, “E2open makes grand entrance”, B to B Chiacago, September
11, 2000
History

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Allowed all customers (both suppliers and buyers) to
interact together without having to establish
connections one at a time
Not buyer-centric: the idea was to get everyone
involved so no companies would be left behind
Participants account for $700 billion in goods and
services bought and sold in the worldwide
electronics industry’s supply chain
Karpinski,Richard, “E2open makes grand entrance”, B to B Chiacago, September 11, 2000
http://www.ebizchronicle.com/spl_reports/wharton/09_exchange_is_born.htm
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History
52
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2002: Changed from an on-line auction site
to a software integration company

Companies were not able to interact with
each other as well as they needed, e2open
hoped to bridge the gap between users
Baljko Shah, Jennifer, “E2open to shift to software integration—Following in footsteps of
others moving beyond auction site model” EBN, July 22, 2002
Today
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Solutions specifically designed, built and
operated to fully address the need to
manage inter-company processes across
multiple tiers of an extended supply chain
1,500 companies worldwide use the software
Largest customers include Hitachi, IBM, LG,
Seagate and Solectron
http://www.e2open.com
Traditional B2B
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Too costly and too complex for most companies to
implement
Required set-up and management of many point to
point exchange protocols
Require months of integration testing with each partner
Lack capabilities to simplify on-going maintenance,
increasing the total cost of operating the B2B solution
http://www.e2open.com
B2B Integration Solution
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Fully-managed set of integration capabilities
Includes all of the necessary software, hardware,
hosting operations, services and support for intercompany process integration
Simplifies the installation, management and ongoing
operation of a B2B solution
Reduces the total cost of ownership and makes B2B
integration possible for all companies regardless of
size and IT capability
http://www.e2open.com
Solution Components

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Process Managers: highly flexible, customizable
inter-company workflows to support key direct
materials processes in supply chain management,
channel management and product lifecycle
management across multiple customer sites and
trading partners
Collaboration Manager: helps teams of users
across multiple companies track, monitor escalate
and resolve exceptions that occur as part of intercompany processes
PR Newswire, Inc. July 16, 2003
Solution Components

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Information Manager: stores and
normalizes data flowing through the e2open
solution. Provides decision support and
reporting capabilities for business users to
track and monitor key performance indicators
Integration Platform: delivers any-to-any
and many-to-many translation and
transformation and flexible process
integration
PR Newswire, Inc July 16,2003
Licensing & Pricing

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Offers a licensing model aligned with customer cash flow
requirements that include two components: a one-time
activation license and a one-year term production
license. Allows unlimited transaction volume and size
Prices vary depending on the number of areas supported
(i.e. inventory, order, forecast), the number of process
models implemented and the number and type of
technologies used for trading partner development
Web browser interface ($660), B2B Integration ($2,50012,000), Integration Platform ($17,000 and up), Supply
Chain Process Manager ($283,000 and up)
PR Newswire, Inc July 16, 2003
Business, IT Value
E2open's solutions deliver demonstrated, best-in-class
business and IT value. Business process changes
supported by E2open software have demonstrated the
following results:
 20% reduction in inventory stock (100% increase in
inventory turns)
 50% decrease in replenishment cycles
 Reduced inventory by 2 days of stock across categories
 80% increase in supplier response rates to orders and
order changes
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http://www.e2open.com
Solution Benefits

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Reduced Operational and Maintenance Costs: low
lifecycle costs, reduces hardware and software
maintenance
Reduced Testing and Activation Costs: self-service
connectivity and testing via Test Manager
Reduced Mapping and B2B process development
costs: no impact from partners incremental format and
data changes
Reduced Implementation Cost and Time: end-to-end
solution saves installation and configuration labor costs
Provides up to a 75% lower total cost of ownership
http://www.e2open.com
IBM
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Challenge: customers demanded flexibility and speed
when integrating their e-procurement systems. Process
has become increasingly complex and cost prohibitive
due to diverse platforms and transaction formats.
Solution: e2open will accelerate B2B expansion, support
a broader range of customer requirements and speed
response times for its global customers.
Results: IBM expects to save an estimated 50% of the
current cost required to deploy and operate its own B2B
function.
http://www.e2open.com
Excelight
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Challenge: Integrate with the supply chain hub of one of
its largest customers using industry standards in an
affordable, flexible manner.
Solution: e2open provides a RosettaNet gateway for
Excelight to integrate with customers supply chain hub.
Transforms the ERP information into the RosettaNet
formats.
Results: B2B Integration Solution enabled Excelight to
integrate with a key customer at a 75% lower total cost of
ownership than comparable solutions.
http://www.e2open.com
Best Practices
63

Is a critical differentiator: customers use a
completely managed, basic design to help
utilize their strengths and weaknesses without
having to change their entire platforms.

Buyers and Suppliers mutually benefit from
e2open software by helping to eliminate costs
and increase sales.
Business-to-Business (B2B)
E-Commerce in Agriculture
64
Benefits from E-Commerce
in Agriculture
 Creation of economies of scale through online markets
 Promotion of information flow, market transparency, price discovery (Poole, 2001)
 Facilitation of industry coordination (Nicolaisen, 2001)
 Reduction or elimination of transaction costs, Development of improved risk
management products (Porter, 2001)
 Supporting of tracking in the supply chain: e.g. identity preservation (IP)
Reference: Poole, B., 2001, How will Agricultural E-Markets Evolve?, Paper presented at the USDA Outlook Forum,
Washington, D.C. Porter, B., 2001, Strategy and the Internet, Harvard Business Review, 79 (2): 63-78
65
Percentage of E-Commerce Transactions via
Dynamic Pricing1
60
Percent
50
40
30
Total
Food & Ag
20
10
0
2000
2001
2002
2003
2004
1Auctions, Bids and Exchanges
Reference: Forrester, 2000, cited in www.vTraction.com
66
E-Commerce in Agriculture
We find that computers scare most producers, except the
younger ones. They don’t want to use computers to do
business. They want to have a one-to-one relationship, which is
a big thing. They want to put a name and a face together. 
Greg Lore, CEO, AgriPlace.com, Inc.
Reference: King, J., 2000, How to Do B2B, Computerworld, 02/28
67
E-Commerce in Agriculture
 If you buy on the internet, where are you going to be on your
local dealer’s priority list when you need services? You’ll be
way down the list. And in agriculture, doing the right thing at
the right time make you way more money than saving 5% or
10% on a purchase, vs. the guy down the road. 
Roger Faivre, Farmer, De Kalb, IL
Reference: Peterson, T., 2000, E-Revolution on the Farm, Businessweek Online, 04/11/2000
68
High-Touch Nature of Transactions
Agriculture is fundamentaly driven by personal relationships (Moss, 2001),
e.g.:
 Agricultural land leases sealed by handshake (Allen and Lueck,
1992)
 Personal relationships have impact on land prices (Perry and
Robinson, 1999)
 Farm operator evaluation by farm managers relies more on trust and
recommendation than production factors (Barry et al., 1998)
Physical connectedness is a valued component of agricultural transactions
Reference: Moss, L.A., 2001, Wo Wins and Loses and How Will E-Markets Affect Rural America?, Paper Presented at the USDA Outlook Forum, Washington, D.C. Allan, D.W. and D. Lueck, 1992, The “Black Forty” on a Handshake: Specific, Reputation and the Structure of
Farmland Contracts, Journal of Law, Economics and Organization, 8 (2): 366-376. Perry, G. and L. Robinson, 1999, Personal Relationships: Do They Influence the Sale Price of Lands?, Paper presented at the Western Agricultural Economics Association Annual Meeting, Fargo,
ND. Barry, P. J., Sotomayor, N. and L.A. Moss, 1998, Professional Farms Manager’s Views on Leasing Contracts and Land Control: An Illinois Perspective, Journal of the American Society of Farm Managers and Rural Appraisers, 1998-99: 15-19.
69
High-Touch Transactions creates barrier to ECommerce Adoption
 Majority of agribusiness firms perceive that personal relationships are
difficult to develop over the Internet (Boehlje, 2000)
 Internet strategies are less likely to be developed, if perceived that
farmers don‘t trust making Internet purchases (Henderson et al., 2000)
 However, farmers use of the Internet varies with age and education level
(Gloy and Akridge, 2000)
Reference: Boehlje, M., Dooley, F, Akridge, J. and J. Henderson, 2000, E-Commerce and Evolving Distribution Channels in the Food and Agribusiness
Industries, Paper presented at the International Agribusiness Management Association World Food and Agribusiness Forum, Chicago. Henderson, J.,
Dooley, F. and J. Akridge, 2000, Adoption of E-Commerce Strategies for Agribusiness Firms, American Agricultural Economics Association Annual
Meeting, Tampa, FL. Gloy, B. and J. Akridge, 2000, Drivers of Internet Adoption on Large US Farms and Implications for Agribusiness, Paper presented
at the International Agribusiness Management Association World Food and Agribusiness Forum, Chicago.
70
Only Half of U.S. Farms
Have Internet Access (2003)
Computer
Access
1997
1999
2001
2003
Use for
Farm
Business
Internet
Access
0
20
40
60
80
100
Percent
Reference: NASS. 2003, Farm Computer and Usage and Ownership
71
Internet Access by Economic Class1 and Type of
Farm
$1,000-9,999
$10,000-99,999
1997
1999
2001
2003
$100,000-249,999
$250,000 & Over
Crop Farms
Livestock Farms
0
20
40
60
80
100
Percent
1Economic Class refers to sales and government payments recieved during the previous year
Reference: NASS, 2003, Farm Computer and Usage and Ownership
72
Concentration in US Agribusiness
Consolidation
Meat Packing
Crop Germplasm
Crop Input Distribution, Grain Handling
Crop Protection, Food Service
Seed Production and Sale, Food Wholesaling
Food Retail
Crop Input Retailing, Grain Country Elevators
Livestock and Poultry Production
Fragmentation
Crop Production
Reference: Leroux, N., Wortman Jr., M.S. and E. Mathias, 2001, Dominant Factors Impacting the Development of Business-to-Business
(B2B) E-Commerce in Agriculture, Paper for the 2001International Food and Agribusiness Management Associations’s World Food and
Agribusiness Symposium, Sydney, Australia
73
Expected Savings from E-Business
Segment
Savings
Coal
2%
Food
3-5%
Health care
5%
Segment
Steel
Savings
11%
Media and advertising
10-15%
Computers
11-20%
Communication
5-15%
Biological science
12-19%
Oil and gas
5-15%
Transport
15-20%
15-25%
Chemical industry
10%
Foristy
Paper
10%
Machines (steel)
Airlines
11%
Electronic components
Reference: Goldman Sachs and Morgan (1999)
22%
29-39%
74
B2B-Model in Agriculture
FACTORS
STRATEGIC OPTIONS
Consolidation
of Industry
Industry Structure
Third Party Marketplaces
Strategic Alliances
Niche Players
Virtual Supply Channels
Market & Product
Expertise
Product
Complexity
Market Knowledge
POTENTIAL
SCENARIOS
Scenario 1
Scenario 1
Product Expertise
Risk Profile
High-Touch
Transaction
Scenario 1
Organizational
Development
Learning & Training
Human Touch
Knowledge Acquisition
Reference: Leroux, N., Wortman Jr., M.S. and E. Mathias, 2001, Dominant Factors Impacting the Development of Business-to-Business
(B2B) E-Commerce in Agriculture, Paper for the 2001 International Food and Agribusiness Management Associations’s World Food and
Agribusiness Symposium, Sydney, Australia
75
What is
?
 „Farms.com e-commerce hub has been designed to help producers and ranchers
solve problems and improve their business“ (Farms.com)
 Provides wide range of innovative knowledge products and services: independent
decision support information, software tools, and marketing services to help
producers make sound decisions and improve profitability
 Ownership: vTraction (Rabobank) and Sparks Companies
 Employees: 60
Reference: www.farms.com
76
Products and Services
 www.farms.com Information Portal Website





AgCareers.com: Human Ressource services (www.agcareer.com)
eHARVEST consulting service
PigChamp, Inc. Knowledge Software (www.pigchamp.com)
M&F Trading Marketing Service
Farms Technology Inc. (www.farmstech.com)
Reference: www.farms.com
77
Personalization
Confirmation
Market information
Community
Commerce
News
Carreers
Newsletter
78
BidAsk Marketplace
Reference: www.farmstech.com
79
80
81
Facts and Figures
 3-times „Best of the Web“ by Forbes Magazine for b2b websites
 1.2 million hits per month from 110,000 different users
 Career section: 2,000+ visitors/day; 200 posted jobs/month
 Reaches 75% of North American pork producers
 20,000+ feeder pigs traded/week; value: $42 million /year
 2002: $20 million sales in cattle completed
 2003: $16 million sales in cattle in 11 actions until August
Reference: www.farms.com/pr. www.forbes.com/bow/b2b/review.jhtml?id=4898
82
Best Practices
 Building strategic alliances and partnerships allows to offer
complimentary, coordinated and cooperative service delivery (eHarvest,
PigChamp, VeriPrime, Doane, AgVision TV etc.)
 Third party marketplace model allows to offer independent, unbiased
content for livestock and crop producer
Reference: www.farms.com Johnston, D. and W. Truelove, 2000, Case Study: Farms.com – Agribiz.net, Canada, Agribusiness
Association of Australia, Australian Agri-Food Congress, Melbourne
83
Best Practices
 Drawing upon broad knowledge base: agriculture, web technology, rural
telecommunications, innovative ideas
 Adoption of an integrated approach: phased and transitional
implementation
Reference: www.farms.com. Johnston, D. and W. Truelove, 2000, Case Study: Farms.com – Agribiz.net, Canada, Agribusiness
Association of Australia, Australian Agri-Food Congress, Melbourne
84
Best Practices
 Selection of appropriate technologies (i.g. BidAsk marketplace)
 Exploitation of competitive advantage: Internet service provider, web
enabler, demand aggregator, data owner (transition from transaction
model to information model)
Reference: www.farms.com. Johnston, D. and W. Truelove, 2000, Case Study: Farms.com – Agribiz.net, Canada, Agribusiness
Association of Australia, Australian Agri-Food Congress, Melbourne
85
Conclusion
 Success of Farms.com is linked to timely merging of two companies with
complementary services.
 Strategic Combination of content, community and commerce allows
Farms.com to be a one-stop-shop and global marketplace for producers.
86
Business to Business Exchanges
CONCLUSION
87
Conclusion:
B2B Exchanges: Will They Survive?
What is the future of Business-to-Business Exchanges?
“In the next five years we wouldn’t be using the term ebusiness because all business will be e-business”,
Jack Welch
“I believe that every manufacturer and wholesaler will
have a B2B eCommerce Web site. If they don’t, I just
think it’s a matter of time before they’ll be out of
business”, Dan Watson, President of eOne Group
88
Conclusion: Best Practices
How can suppliers construct B2B sales strategies
•
•
89
To Offer Value-Added Services by providing
analysis of price risk and of forecasted and
historically supply trends
To Help Buyers Manage Costs by better
managing joint operating costs in areas as
order fulfillment and product design
Conclusion: Success in B2B eCommerce



90
Information Management: make careful
investments in products and services, that can
help you track and coordinate the e-business
environment
Focus on Communications
Automate everything in sight
Conclusion
COVISINT
e2Open
Farms.com
INDUSTRY
Auto
Electronics
Agriculture
Public or
Private
Private
Private
Private
Type of B2B
Vertical
Vertical
Vertical
Successful
Successful
Successful or Successful
not
91
Conclusion
The future of B2B eCommerce lies not in
exchanges but in software and solutions that
bring real efficiencies to specific business
processes.
92
QUESTIONS?
93
References
1.
www.gcis.ca/b-to-b.html viewed on 10/20/03
2.
www.stratvantage.com/news/041601.htm viewed on
10/31/03
3.
www.ncc.co.uk/ncc/myitadviser viewed on 11/1/03
4.
www.databul.com.tr/eBusiness/simplyB2BModels.asp
viewed on 10/23/03
5.
www.ecomlink.org viewed on 10/20/03
References
6.
7.
8.
“eB2B: Analysis of business-to-business ecommerce
and how research can adapt to meet future
challenges” by Darren Noyce, International Journal of
Market Research, First Quarter 2002, Vol.44, Iss.1,
p.71
“B2B Exchanges: Hoe to Move Forward From Here”
by Ken Kemjale, Arnie Phatak, World Trade. Troy:
June 2003. Vol.16, Iss.6, p.26
www.domainsehub.com/indexold.html viewed on
10/22/03
References
9.
10.
www.workz.com viewed on 10/22/03
“The Shakeout in B2B exchanges” by Barbara
Jorgansen, Electronic Business, Jan 2003, Vol.29,
Iss.1, p.30