Page 142 - DCAP307_PLANNING_AND_MANAGING_IT_INFRASTRUCTURE

Planning and Managing IT Infrastructure

Notes 8.1.2 Business-to-Business (B2B)

On the Internet, B2B (business-to-business), also known as e-biz, is the exchange of products,
services, or information between businesses rather than between businesses and consumers.
The business-to-business (B2B) group includes all applications intended to enable or improve
relationships within firms and between two or more companies. In the past, this has largely
been based on the use of private networks and Electronic Data Interchange (EDI). Although
early interest centred on the growth of retailing on the Internet (sometimes called e-tailing),
forecasts are that B2B revenue will far exceed business-to-consumers (B2C) revenue in the near
future.

Example: The business-business category are the use of the Internet for searching product
catalogues, ordering from suppliers, receiving invoices and making electronic payments. This
category also includes collaborative design and engineering, and managing the logistics of
supply and delivery.
B2B Web sites can be sorted into:
Company Web sites, since the target audience for many company Web sites is other
companies and their employees. Company sites can be thought of as round-the-clock
mini-trade exhibits. Sometimes a company Web site serves as the entrance to an
exclusive extranet available only to customers or registered site users. Some company
Web sites sell directly from the site, effectively e-tailing to other businesses.

Product supply and procurement exchanges, where a company purchasing agent can shop
for supplies from vendors, request proposals, and, in some cases, bid to make a purchase
at a desired price. Sometimes referred to as e-procurement sites, some serve a range of
industries and others focus on a niche market.
Specialised or vertical industry portals which provide a “subWeb” of information, product
listings, discussion groups, and other features. These vertical portal sites have a broader
purpose than the procurement sites (although they may also support buying and selling).

Brokering sites that act as an intermediary between someone wanting a product or service
and potential providers.

Example: Equipment leasing
Information sites (sometimes known as info-mediary), which provide information about
a particular industry for its companies and their employees. These include specialised
search sites and trade and industry standards organisation sites.
Many B2B sites may seem to fall into more than one of these groups. Models for B2B sites are still
evolving.
Another type of B2B enterprise is software for building B2B Web sites, including site building
tools and templates, database, and methodologies as well as transaction software.

B2B is e-commerce between businesses.

Did u know? An earlier and much more limited kind of online B2B prior to the Internet was
Electronic Data Interchange (EDI), which is still widely used.

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