E-Commerce Times Talkback
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There is life after the bubble for technology and portal providers that serve the B2B sector of e-commerce. But vendors must adjust to a new landscape in which spending and cost-cutting priorities have shifted dramatically in response to tough economic times. According to Gartner research director Judith Rasell, companies now tackle technology improvements in much smaller increments than in bygone days. This means big-ticket contracts are few and far between; instead, companies must win one project at a time.
odd story and very accurate...
Unfortunately, there are many major drawbacks in implementing the primary B2B exchanges with the leading ERPs. I think you should run a story regarding the negative aspects of E-commerce as well.
We are in the field with the suppliers on a daily basis implementing e-commerce technologies. The current e-commerce technologies mentioned in this article have had mostly negative results, rather than positive results, for the average supplier, when integrated with the leading ERPs, such as SAP, JD Edwards, Mims and PeopleSoft.
A good example is the mining portal, Quadrem.com. Quadrem raised nearly US$200 million through the primary international mining companies to develop and implement e-commerce.
Quadrem is currently using Commerce One, Requisite and Quest technologies. The mining companies that pertain to the marketplace obligate their active suppliers to implement the marketplace technology or be left out of future purchases.
Unfortunately, the integrated solution with the commerce one platform does not integrate properly. Suppliers complain that they receive between 50 and 200 RFQs weekly for products they do not provide, thus they spend more time filtering RFQs than making sales. The standardized UNSPSC Tree Catalog definitions cannot be accurately integrated with any ERP, without associating the product definition to the supplier's precise product codes. In addition to this technological blunder, the business model for most marketplaces is focused on sales commissions derived from transactions with the large suppliers. The small and medium-size companies (particularly in Latin America and other developing countries) must invest in systems training, subscription fees, quoting fees, catalog hosting fees and pay sales commissions to be able to onboard onto these marketplaces. Most of these suppliers do not generate big sales or large commissions for the marketplace. Thus, the small and medium suppliers are systematically being replaced by large suppliers that can afford to implement the e-commerce technology.
Directory Systems, Inc.
As far as I am concerned there is no "resurgence" because some marketplaces and b2b/b2g websites have been building critical mass quietly for the last several years. Perhaps in the area of b2b/b2g software for development of marketplaces there may be some small resurgence. But, by and large, only the largest organizations will participate in building these "integrated" marketplaces. And, I don't believe that they will ultimately be very successful. Too expensive. Too-high barriers to entry for participants. Too controlled by a single buyer/seller or consortium of buyers/sellers. The internet is about FREEDOM. About using the ubiquitous nature of the Net to be in as many places as one can possibly be in, given dollar and human resources. Ultimately, it is a numbers game, with unlimited interactions possible. So, that says that organizations should participate in as many sources as possible--not limited themselves to one marketplace--but use many marketplaces, to drive more eyes to their websites.
excellent perspective. Vertically aligned providers are shortening the ROI curve and succeeding for many of the reasons stated.