While business-to-business
activity exists both online and offline, the acronym B2B has
primarily been used to describe the online variety. (B2B)
Electronic commerce between businesses, as opposed to between
a consumer and a business (B2C). While derived from "business
to business", "B2B" is narrower in meaning
Business to business businesses may use supplier chain
networks, VPN, Extranets, portals and other B2B tools to help
them reduce operating costs, and streamline operations.
On the Internet, B2B (business-to-business), is the exchange
of products, services, or information between businesses
rather than between businesses and consumers.
Technology challenges for B2B Businesses -
Technology OEM's will ultimately need to curb their
proprietary tendencies and make the standards that may be
embraced by all platforms. XML is one of those technologies
capable of being used in mission-critical business-to-business
transactions.
The Internet plays a critical role in most B2B businesses at
least for connectivity's sake - even more, B2B businesses have
multiple Web site interfaces to address all of their
enterprise needs.
B2B Web sites can be sorted into:
Company Web sites, since the target audience
for many company Web sites is other companies and their
employees. Company sites can be thought of as round-the-clock
mini-trade exhibits. Sometimes a company Web site serves as
the entrance to an exclusive extranet available only to
customers or registered site users. Some company Web sites
sell directly from the site, effectively e-tailing to other
businesses. |
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Product supply and
procurement exchanges, where a company purchasing
agent can shop for supplies from vendors, request proposals,
and, in some cases, bid to make a purchase at a desired price.
Sometimes referred to as e-procurement sites, some serve a
range of industries and others focus on a niche market.
Specialized or vertical industry portals
which provide a "subWeb" of information, product listings,
discussion groups, and other features. These vertical portal
sites have a broader purpose than the procurement sites
(although they may also support buying and selling).
Brokering sites that act as an intermediary between someone
wanting a product or service and potential providers.
Equipment leasing is an example. Information sites (sometimes
known as infomediary), which provide information about a
particular industry for its companies and their employees.
These include specialized search sites and trade and industry
standards organization sites.
Outlook - Although early interest centered on
the growth of retailing on the Internet (sometimes called
e-tailing), forecasts are that B2B revenue will far exceed
business-to-consumers (B2C) revenue in the near future.
According to studies published in early 2000, the money volume
of B2B exceeds that of e-tailing by 10 to 1. There has been a
significant amount of hype given to the potential size of B2B
markets--and how much bigger B2B will be than B2C. Over the
next five years, B2B is expected to have a compound annual
growth of 41%. The Gartner Group estimates B2B revenue
worldwide to be $7.29 trillion dollars by 2004. In early 2000,
the volume of investment in B2B by venture capitalists was
reported to be accelerating sharply although profitable B2B
sites were not yet easy to find.
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