B2B, B2C, B2E andE-Commerce Intranet

Erin Whitney

MBA 624

06/09/2004

E-Commerce Definition

Technology- mediated exchanges between parties, individuals, or organizations as well as the electronically based intra or inter organizational activities that facilitate such exchanges. Jaworski & Rayport

E-Commerce Subdivisions

B2B (Business-to-Business) B2C (Business-to-Consumer) C2C (Consumer-to-Consumer) B2E (Business-to-Employee)

B2B Definition

Companies buying from and selling to each other online

While B2B exists both online and offline, the acronym is used to describe the online variety

B2B has evolved to encompass supply chain management as many companies outsource parts of their supply chain to their trading partners

B2B Requirements

Negotiation – Buyer and seller must negotiate price, delivery, and product specifications.

Integration – A company’s system must be able to communicate with the system of their customer without human interaction.

B2B Exchange

A website where many companies can buy and sell to each other using a common technology platform.

Many exchanges also offer additional services such as payment or logistics to help members complete a transaction

Exchanges can be public or private Public – owned by industry organization or independent

investors and have their own board of directors Private – run by a single company for doing business

exclusively with established suppliers and customers

Collaborative B2B

A business and its trading partners give each other real time access to ERP systems, product design, inventory, and other systems

Integrating the supply chain

Benefits of B2B E-commerce

Manage inventory more efficiently Adjust more quickly to customer

demand Get products to market faster Cut the cost of paperwork Obtain lower prices on some supplies

B2B Growth

B2B market is expected to experience significant growth

B2B E-commerce is expected to reach $207 trillion in 2004, up from $406.2 billion in 2000. (Forrester Research, Inc.)

B2C Definition

Business that sells its products or services to consumers over the Internet for their own use. Online Retailers (Amazon.com) Online Banking Travel Services Health Information Real Estate

Difference between B2B and B2C

The customer (business vs. individual) B2B transactions are more complex B2C does not require:

Negotiation for price, delivery, and product specifications

Integration with other systems

Challenges of B2C E-commerce

Getting browsers to buy things Building Customer Loyalty Order Fulfillment Security Privacy

Addressing these Challenges

Getting Browsers to Buy Things Improve navigation Simplify the checkout process Send e-mails with special offers

Building Customer Loyalty Focus on personalization Create an easy-to-use customer service

application Focus on making your site easy to use

Addressing Challenges (cont.)

Fulfillment Increase focus and investment on logistical

systems and supply chain technologies Security

SSL Technology Digital Signatures

Privacy Make privacy statements readily available to

consumers Opt-out policy for collecting personal information

B2C Growth

B2C E-commerce is expected to grow from $38.8 billion in 2000 to $184.5 billion in 2004 (Forrester Research, Inc.)

C2C

A consumer sells products or services to another consumer via the Internet.

B2E Definition

An intrabusiness network which allows companies to provide products and/or services to their employees.

Companies generally use B2E networks to automate employee-related corporate processes.

B2E portal is a customized home page or desktop for everyone within an organization One URL for everyone in the organization A mixture of organization-specific and employee-defined

components The potential to be customized and altered to suit the

needs of a particular employee

Examples of B2E applications

Online insurance policy management Corporate announcements Online supply requests Special employee offers Maintain employee resume Update employee records

E-Commerce Intranet

3 distinct Web-based technologies Internet Intranet Extranet

Internet

Global computer network Everyone has access

Intranet

A private network that is open only to employees of a single organization.

Internal communication vehicles and knowledge bases that serve as a company-wide information system.

Intranets can improve information flow and keep costs down within a company.

3 Key Elements for Intranets

Intranets must be relevant and useful. Find a balance between what executives want the

employees to know and what the employees are interested in

Intranets must be updated frequently. Employees should get the news first Intranet should be more dynamic than the external site

Intranets must be backed by strong internal communication programs. Must have support from top-level management Training

Extranets

A mechanism based on Internet and Web technology for communicating both privately and selectively with customers and business partners.

Extranet extends a company’s network beyond its boundaries to predetermined business partners, customers, suppliers, and others.

Extranets provide a safe way to allow transactional business-to-business activities and can save time and money.

References

Aber, Robyn. “Internet, Intranet, Extranets: What’s What?” January 13, 2003. www.entrepreneur.com

Jaworski, Rayport. Introduction to E-Commerce. McGraw-Hill Company. New York, NY. 2004

Kirsner, Scott. “Intranet Marketing 101.” CIO Magazine. Dec. 1, 1999.

Patton, Susannah. “The ABCs of B2C.” www.cio.com

Varon, Elana. “The ABCs of B2B.” www.cio.com

Wailgum, Tom. “What are Extraverts.” CIO Magazine. March 15, 1998

Questions