Describe different types of B2B business model.

-

 B2B – Business to business.

  • In a B2B business model, a business sells its product or service to another business. Sometimes the buyer is the end-user, but often the buyer resells to the consumer.
  • B2B transactions generally have a longer sales cycle, but higher-order value and more recurring purchases.
  • Recent B2B innovators have made a place for themselves by replacing catalogs and order sheets with e-commerce storefronts and improved targeting in niche markets. 
  • In 2020, close to half of B2B buyers are millennials — nearly double the amount from 2012. As younger generations enter the age of making business transactions, B2B selling in the online space is becoming more important.


                                                                 OR,


  • The B2B e-commerce business model is the buying, selling, and exchanging of products between companies via online sales channels. It centers on supplying goods and services from one enterprise to another. Since the parties are both business entities, B2B e-commerce transactions are more logical, need-based, and thoroughly considered than impulsive. They typically entail longer-term interests.
  • With the B2B business model, product prices are more flexible, order volumes are larger, and delivery is more complex. Often included in this niche is a software as a service (SaaS) companies, document-hosting businesses, office supply, and furniture enterprises, etc.
  • Examples of B2B companies are General Electric (GE), Salesforce, Chevron Corporation, Assurant, Dupont, and Boeing.

 Advantages of the B2B model

  •  It can efficiently maintain the movement of the supply chain and the manufacturing and procuring processes.
  •  It can automate corporate processes to deliver the right products and services quickly and cost-effectively. 
  • The B2B model is predicted to become the largest value sector of the industry within a few years.
  • This is said to be the fastest-growing sector of e-commerce.





E-distributor 
  • A company that supplies products and services directly to individual businesses 
  • Owned by one company seeking to serve many customers
  • Examples: • Grainger.com • GE Electric Aircraft Engines (geae.com)

E-procurement Companies 
  • Create and sell access to digital electronic markets
  • B2B service provider is one type – offer purchasing firms sophisticated set of sourcing and supply chain management tools 
  • Application service providers are a subset of B2B service providers
  • Examples: • Ariba • CommerceOne

Exchanges (B2B Hubs) 
  • An electronic digital marketplace where suppliers and commercial purchasers can conduct transactions 
  • Usually owned by independent firms whose business is making a market 
  • Generate revenue by charging transaction fees
  •  Usually serve a single vertical industry
  •  The number of exchanges has fallen to around 700 in 2003

Industry Consortia 
  • Industry-owned vertical marketplaces that serve specific industries
  •  Horizontal marketplaces, in contrast, sell specific products and services to a wide range of industries 
  • Leading example: Covisint

Private Industrial Networks 
  • Digital networks (usually, but not always Internet-based) are designed to coordinate the flow of communications among firms engaged in business together 
  • Single firm network: the most common form (example – Walmart) 
  • Industry-wide networks: often evolve out of industry associations (example – WWRE)

                                        OR,


MAJOR BUSINESS-TO-BUSINESS (B2B) BUSINESS MODELS



 E-Distributor
  •  Companies that supply products and services directly to individual businesses. E-distributors are owned by one company seeking to serve many customers. 
  • The more products and services a company makes available on its site, the more attractive that site is to potential customers. 
  • W.W. Grainger, for example, is the largest distributor of maintenance, repair, and operations (MRO) supplies. 
  • Business model: sale of goods Grainger.com, Partstore.com

 E-Procurement 
  • Just as e-distributors provide products to other companies, e-procurement firms create and sell access to digital electronic markets. 
  • Procurement is the act of buying goods, services, or works from an external source.  
  • E-procurement is the business-to-business purchase and sale of services through the Internet as well as other information and networking systems, such as electronic data interchange. 
  • Firms such as Ariba (ariba.com) have created software (eg: Procurement Software Solutions) that helps large firms organize their procumbent process by creating mini- digital markets for a single firm. It creates custom-integrated online catalogs (where suppliers firms can list their offerings) for purchasing firms. 
  • Revenue is for market-making services, supply chain management 


 Exchanges 
  • An independent digital electronic marketplace where hundreds of suppliers meet a smaller number of very large commercial purchasers. 
  • They serve single vertical industries such as steel, polymers, etc. 
  • For buyers, B2B exchanges make it possible to gather information, check out suppliers, collect prices, and keep up to date on the latest happenings all in one place. 
  • Sellers benefit from expanded access to buyers.
  • Revenue model: Transaction fees
  •  Business model: fees and commissions on transactions. 

Industry Consortia 
  • Industry-owned vertical marketplaces that serve specific industries such as automobile, aerospace, chemical, etc. 
  • Supply a smaller number of companies with products and services relevant to the industry
  • Sponsored by powerful industry players
  • Business model: Fees and commissions on transactions Elemica.com, Exostar.com 


 Private Industrial Network
  • It is also referred to as a Private Trading Exchange is a digital network designed to coordinate the flow of communications among firms engaged in business together. 
  • The network is owned by a single large purchasing firm. Participation is by invitation only to trusted long-term suppliers of direct inputs. 
  • Eg: Walmart operates one of the largest industrial networks in the world for its suppliers, who daily use Walmart’s network to monitor the sales of their goods, the status of shipments, and the actual inventory level of their goods. 
  • Business Model: cost is absorbed by the network owner and recovered through production and distribution efficiencies.


Business to business (business model) e-commerce
 Business-to-business (B 2 B) e-commerce, in which businesses sell to other businesses, is more than ten times the size of B 2 C e-commerce, even though most of the public attention has focused on B 2 C.

E-DISTRIBUTOR
  •  Companies that supply products and services directly to individual businesses are e-distributors. 
  •  E-distributors are owned by one company seeking to serve many customers 
  •  With e-distributors, the more products and services a company makes available on its site, the more attractive that site is to potential customers. 


E-PROCUREMENT
  •  Just as e-distributors provide products to other companies, e-procurement firms create and sell access to digital electronic markets.
  •  B2B service providers make money through transaction fees, fees based on the number of workstations using the service, or annual licensing fees. 
  • They offer purchasing firms a sophisticated set of sourcing and supply chain management tools that permit firms to reduce supply chain costs. 


EXCHANGES
  •  an independent digital electronic marketplace where suppliers and commercial purchasers can conduct transactions 
  • Exchanges are owned by independent, usually entrepreneurial startup firms whose business is making a market, and they generate revenue by charging a commission or fee based on the size of the transactions conducted among trading parties. 

INDUSTRY CONSORTIA 
  • Industry consortia are industry-owned vertical marketplaces that serve specific industries, such as the automobile, aerospace, chemical, floral, or logging industries. 
  • In contrast, horizontal marketplaces sell specific products and services to a wide range of companies. 
  • Vertical marketplaces supply a smaller number of companies with products and services of specific interest to their industry. 

Comments

Post a Comment

Popular posts from this blog

Suppose that a data warehouse for Big-University consists of the following four dimensions: student, course, semester, and instructor, and two measures count and avg_grade. When at the lowest conceptual level (e.g., for a given student, course, semester, and instructor combination), the avg_grade measure stores the actual course grade of the student. At higher conceptual levels, avg_grade stores the average grade for the given combination. a) Draw a snowflake schema diagram for the data warehouse. b) Starting with the base cuboid [student, course, semester, instructor], what specific OLAP operations (e.g., roll-up from semester to year) should one perform in order to list the average grade of CS courses for each BigUniversity student. c) If each dimension has five levels (including all), such as “student < major < status < university < all”, how many cuboids will this cube contain (including the base and apex cuboids)?

-
Image
a) A Snowflake Shema is shown in figure below: b) The specific OLAP operations to be performed: 1. Roll-up on course from course_id to department. 2. Roll-up on a student from student_id to university. 3. Dice on course, student with department ="CS" and university = "biguniversity" 4. Drill-down on a student from the university to student_name. c) N = 4 dimensions The cube will contain 54 = 625 cuboids.
Read more

Explain market-Oriented Cloud computing architecture.

-
Image
  Market Oriented Cloud Computing (Mocc) As customers rely on Cloud providers to cover all of their computing needs, they will expect certain Qe from their providers to fulfill their objectives and continue their operations. Cloud providers must examine and satisfy the various QoS standards of each unique consumer as stipulated in unique SLAs. To do this, cloud providers cannot continue to install traditional system-centric resource management architectures that do not give incentives for them to share their resources while still treating all service requests as equal insignificance. Instead, market-oriented resource management is required to maintain the supply and demand for Cloud resources at market equilibrium, provide feedback in the form of economic incentives for both Cloud consumers and providers, and promote QoS-based resource allocation mechanisms that differentiate service requests based on their utility. The diagram depicts a high-level architecture for enabling market-orie
Read more

Describe how cloud computing technology can be applied to support remote ECG monitoring.

-
Image
  Healthcare: ECG (Electrocardiogram) Analysis in cloud computing Healthcare is a field, subject, sector, or territory in which information technology has several uses. These apps are being used to aid businesses in supporting scientists in developing disease prevention solutions. Cloud computing has emerged as an appealing alternative for constructing health monitoring systems as a result of the development of the Internet or to put it another way, as a result of the availability of the internet. The ECG machine, for example, is a health monitoring device that measures the human body's heartbeat and prints the results on graph paper. The electrocardiogram (ECG) measures the electrical activity of the heart's Cardium. A waveform is created as a result of this action, which is repeated throughout time and symbolizes the heartbeat.  The analysis of the shape is used to identify arrhythmias, and it is the most common way of detecting heart diseases. Here the meaning of arrhythmias
Read more