Company-centric b2b business models refer to situations where a single
company is the focus of the trading network, either as a buyer or a
seller (a many to one relationship). Typically the single company is
a large, dominant company in its industry, such as Wal-Mart with its
"Retail Link" system. The "Retail Link" system allows its suppliers
to provide Wal-Mart with information about product pricing and
availability, while at the same time allowing the suppliers to learn
about Wal-Mart's sales of their products.
The Internet facilitates company-centric b2b business models by making
it easier and cheaper for a single company to create information links
to its suppliers and/or customers. Historically, a standard called
Electronic Data Interchange (EDI) was used to pass data between
companies. Since the Internet as we know it did not exist, private
data networks, called Value Added Networks (VANS), were used. These
were quite expensive since they charged per character transmitted.
Furthermore, there was a lot of room for variation in an individual
company's implementation of EDI, and special software was required for
both companies taking part in the transaction, which also added
additional cost and complication.
The Internet makes it much easier and cheaper for companies to
communicate by first eliminating the need to use private data networks
and paying their high fees. EDI transactions can simply be sent over
the Internet, assuming the parties are satisfied with whatever
security arrangements they make in terms of encryption to send their
data over a public network. However, the Internet also allows other
types of communication other than EDI. In the simplest case, a
company can create a web page for its suppliers or customers to log
into in order to pass data back and forth. This is particularly
useful for smaller companies who are unable to afford the special
software required for EDI and lack the expertise to configure it.
I hope you find the following links helpful.
Wonko
http://myphliputil.pearsoncmg.com/student/bp_turban_ec_2/chapter_06_ec2e12-10.ppt
a lecture presentation for Chapter six: Company-centric
business-to-business from the book "Electronic Commerce 2002, second
edition" by Efraim Turban, David King, Jae Lee, Merrill Warkentin, and
H. Michael Chung, Pearson Prentice-Hall, publisher
The PowerPoint presentation has a variety of information you may find
useful regarding business-to-business communication and collaboration.
If you don't have PowerPoint, you can download a viewer from
http://www.Microsoft.com/PowerPoint for free.
Company-centric business-to-business has two forms:
Buy side, wherein a single company (the buyer) is linked to a
multitude of sellers; and
Sell side, wherein a single company (the seller) is linked to a
multitude of buyers.
These contrast with an exchange, which is a many to many relationship
between buyers and sellers.
http://216.239.39.100/search?q=cache:gz3_DNil5A0J:www.mercermc.com/Perspectives/Specialty/Media_pdfs/Apr00.pdf+b2b+company-centric&hl=en&ie=UTF-8
"Media strategy and trends" Mercer Management Consulting
"The first exchanges to emerge in the mid-1990s were very much
'company-centric,' established by dominant buyers in specific sectors
with the explicit enough cutting their own procurement cost. For US
giants such as General Electric and Wal-Mart, which deal with
literally thousands of suppliers, being able to bring all those
partners together in one place, in order both to communicate and to
trade with them electronically, held out the prospect of enormous cost
reductions. Indeed, both of these companies have stuck rigidly to the
company-centric model, while they appears in other sectors have
adopted more broadly based trading structures that seek to aggregate
multiple buyers. These are generally established either by
independent third parties...or, increasingly, by a consortium of
buyers themselves."
"Wal-Mart can afford to shun broader sector marketplaces, such as the
WorldWide Retail Exchange...precisely because its level of dominance
requires suppliers to hook into its own Web-based system. In the
same, of course, can be said of General Electric."
This is a perfect example of how the Internet has allowed a single
company (Wal-Mart) to create a company-centric business-to-business
marketplace. |
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