B 2 B Exchanges

 www.webtomorrow.com/ites.htm B2B exchanges master list
 

B2B Exchanges Chpt 7

Ownership of Exchanges discussed in Second Edition, Chapter 7 - beginning on page 268 Three Basic Ownership Models for Internet Exchanges An industry Giant - like IBM A Neutral Entrepreneur A consortia, or co-op Gains and Risks of B2B Exchange Participation, Chapter 7 - beginning on page 269 Advantages and Disadvantages for buyers for sellers Organization of Exchanges , Chapter 7 - beginning on page 270 "Regardless of their structure, exchanges include the following elements: Membership Site Access and Security Services

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B2B Exchanges Chpt 7

Critical Success Factors, Chapter 7 - beginning on page 288   . The Turban textbook, and other sources all talk about the fantastic growth rate of exchanges in 2000 and 2001 but by 2002 it appears many have done poorly. The Turban text notes that "... maybe 90% will fail" - therefore studying B2B exchanges in GREAT detail would not be critical to this course - it is better to wait a while and see how this plays out in practice in 2003 and 2004 - in the meantime,  1. there are some situations we can be alert to - as notes in the following list. 2. we can review some specific exchanges, as listed below, and learn from some actual workig examples WTGR . Things which will effect B2B exchanges - Chapter 7 - beginning on page 288-289 Early Liquidity The right owners the right governance openess a full range of services importance of domain expertise targeting inefficient industry processes targeting the right industries brand building exploiting economies of scope

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B2B Exchanges by Sector

B2B E-Market Places and Exchanges discussed in Second Edition, Chapter 7 - beginning on page 266  "Exchanges appear in several forms and are expected to account for over 50% of all B2B activities by 2004..."  "According to Forrester Research, there were 2,500 exchanges worldwide in the spring of 2001" B2B cannot be studied in theoretical ways without relating the activities to specific industry sectors. B2B exchanges, which build on offline exchanges developed in the 1970's and 1980's, are found in most manufacturing and resource processing industries around the world. With the advent of online technologies facilitating instant sharing of product descriptions and pricing information, B2B exchanges have developed in many sectors - some of the more notable ones have been chemical industry automotive parts industry metals, ores and metallic components textiles travel and accomodation bookings industry medical equipment agriculture and semi-processed food products to name a few WTGR   By Paul A. Greenberg E-Commerce Times May 17,  2000  Greenberg wrote an article in May of 2000 about the development of a large B2B Exchange in the chemical industry. "Chemical Suppliers Form Online  Marketplace"  www.ecommercetimes.com/news/articles2000/000517-7.shtml Greenberg notes that "The main thrust of the new concern will be streamlining supply chain operations and combining services for buying and selling basic, intermediate, specialty and fine chemicals." prior to the particular exchange announced in May 2000, " ChemConnect, an online   www.chemconnect.com/wce/overview.html exchange that has operated since last July [1999], already has more than 4,000 companies buying and selling products online, with the average transaction size reported to be about $300,000." Will this work in the long term? " Many smaller suppliers are reluctant to participate in B2B exchanges, over concern that the major players will use their combined industrial muscle to drop prices, forcing them to  reduce already-tight profit margins."

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B2B Exchanges by Sector - forest products

self-described as " the most frequented and independent b2b-portal for timber and forestry  worldwide."  www.timber-exchange.com Global, site in 7 languages, 1300 members, 2750 buyers www.paperexchange.com in their own words " the company provides a 24-hour-a-day e-commerce environment to more than 4,800 corporate members and 7,000 individual members in 105 countries" US$500 billion of sales globally How does it work - "Paper Exchange.com enables buyers and sellers to negotiate pricing and directly transact with one another through its marketplace. PaperExchange.com charges its seller members a commission based on the total notional value of any successful transaction conducted through the site"

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B2B Exchanges by Sector - metal products

www.e-steel.com "Offers a marketplace for the exchange of steel. Also has  industry news, including a calendar, legislation, stock prices and more. Conducts transactions.exchange that has 985 members with  multiple users for each company. Each member company is pre-qualified as a steel buyer, seller or both" On e-steel.com's site theyhave a nice section that explains the advantages of the relationships they are building. Some of the points they emphasize are:  www.e-steel.com/aboutus.shtml "E-commerce enables steel buyers and sellers to:  Streamline operations and reduce costs;  Connect with existing customers in new ways;  Extend market reach;  Increase convenience and choice;  Generate new opportunities for business;  Create new market efficiencies."

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B2B Exchanges by Sector - mining

On Oracle.com's website there is a press release noting   http://www.oracle.com/corporate/press/index.html?348494.html "The MiningXchange will enable real-time transactions between buyers and suppliers, better prices  and faster delivery." "The MiningXchange is an independent business-to-business (B2B)  exchange developed by Unifize, the e-business venture of Asian  entrepreneur Lucio Tan Jr. The MiningXchange will be an open, neutral marketplace powered by  Oracle's leading B2B exchange technology, the Oracle Exchange. The  MiningXchange will provide participants online auctioning, reverse  auctioning, contract and spot buying capabilities, as well as collaborative supply chain planning functionality that facilitates accurate capacity and  demand planning for members". Check the MiningXchange FAQs, they have some interesting and helpful answers to  http://www.MiningXchange.com/FAQs.html What is exchange?  What are the benefits in joining an exchange?  How is the exchange business model different from the traditional business model?  The MiningXchange runs on Oracle software

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B2B Exchanges by Sector - textiles

www.Tradetextile.com 40,000 international corporate members, 5,000 kinds of products of textile raw materials, yarns, fabric, garments and home textile and hundreds of current request orders online, members are buyers, sellers, importers, exporters, manufacturers and distributors. Launched Feb2000, 50 employees, based in HongKong, Shanghai.

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Key Points ORACLE

It is not the intention of this course to cover the technical aspects of B2B  Exchanges, but in discussing the business aspects we would be remiss if we did not mention the signicant role that the software company Oracle plays in B2B. Oracle is the largest supplier of software for the e-commerce community today. When we say e-commerce we are referring to those companies that have an e-business solution that includes transactions on their web site where product or service is bought and paid for. Oracle's software is used for creating databases of inventory which can be searched, then once the product is found, a selection and payment can take place. Companies can buy modules of various software packages, depending on what features they want on the site. WTGR

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B2B Oracle

One of the helpful ways to understand what Oracle does in the context of B2B exchanges is to glance at a September 2000 press release on their web site which announces their teaming up with GE Capital Commercial  http://www.oracle.com.. "GE Capital Commercial Services, a global provider of working capital and accounts receivable services, will offer payment protection and billing services to suppliers on Oracle(r) powered industry and private exchanges to streamline the payment and collection process. GE Capital's international Exchange Payment Facility will help manage the financial risks of suppliers on  OracleExchange.com, an open, horizontal marketplace, and other affiliated exchanges, built  on the Oracle Exchange Platform, by assuring that sellers will receive timely payments  consistent with the terms of each invoice." "The Oracle Exchange Platform provides built-in billing and revenue collection functionality for flexible pricing, invoicing, payment options and settlement."     Oracle has a great section on their site that gives background information on what B2B Exchanges are - then continues to explain what Oracle can do if you have a zillion dollars to buy their solution and install it Oracle, in the process of marketing their solution, explains in a helpful way that there are   Three Key B2B Exchanges Marketplace Exchange allows companies to buy or sell any product or service Product Development Exchange provides a collaboration hub for secure access to project and product information. see  http://www.oracle.com/appsnet/products/exchanges/collateral/pa_pdx.html  Supply Chain Exchange provides advanced capabilities for communication, collaboration, and ptimization of supply and  demand among all trading partners across all  tiers of a supply chain.  Three types of Oracle exchanges Industry Exchanges Branded Exchanges Oracle Exchange Industry Exchanges "Exchange sites such as GlobalNetXchange and RetailersMarketXchange provide a central meeting place for companies from the same  industry with similar interests and business goals. These exchanges support entire industries and their supply chains." Branded Exchanges "Oracle provides market leaders the  technology, functionality and hosting platform  to be live on their own, private exchange with their unique trading and supply chain partners within weeks."   "allows companies to buy and sell goods and services over the Internet using any purchasing method, including spot buying, reverse auctioning, and company-specific catalog purchases. Open to organizations of all sizes and industries, OracleExchange.com does not require any software to participate other than a standard web-browser and connection to the Internet...no license or membership fee is required. Companies pay on individual transactions and can gain immediate returns by running auctions and spot buys on the open market within minutes of joining."    Business Week magazine's online edition contained a story in April 2000 on Oracle's role in B2B The story in Business Week says that Oracle "...has reinvented itself as the biggest B2B player in the software business..., moreover, Oracle has plenty of  "The most ambitious B2B project to date, the recently announced auto-parts exchange that is a joint project of Ford (F), DaimlerChrysler (DCX), and General Motors (GM), will be built on Oracle's software"   "GE Capital Commercial Services is a leading global provider of  working capital financing, accounts receivable risk management, and related back office services to clients in both electronic and conventional business-to-business supply chains." from GE's web site

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