B2B, B2C, B2E and

E-Commerce Intranet

Erin Whitney
MBA 624
06/09/2004
E-Commerce Definition
 Technology- mediated exchanges
between parties, individuals, or
organizations as well as the
electronically based intra or inter
organizational activities that facilitate
such exchanges.
Jaworski & Rayport
E-Commerce Subdivisions
 B2B (Business-to-Business)
 B2C (Business-to-Consumer)
 C2C (Consumer-to-Consumer)
 B2E (Business-to-Employee)
B2B Definition
 Companies buying from and selling to each
other online
 While B2B exists both online and offline, the
acronym is used to describe the online
variety
 B2B has evolved to encompass supply
chain management as many companies
outsource parts of their supply chain to their
trading partners
B2B Requirements
 Negotiation – Buyer and seller must
negotiate price, delivery, and product
specifications.
 Integration – A company’s system
must be able to communicate with the
system of their customer without
human interaction.
B2B Exchange
 A website where many companies can buy and sell
to each other using a common technology platform.
 Many exchanges also offer additional services such
as payment or logistics to help members complete a
transaction
 Exchanges can be public or private
 Public – owned by industry organization or independent
investors and have their own board of directors
 Private – run by a single company for doing business
exclusively with established suppliers and customers
Collaborative B2B
 A business and its trading partners
give each other real time access to
ERP systems, product design,
inventory, and other systems
 Integrating the supply chain
Benefits of B2B E-commerce
 Manage inventory more efficiently
 Adjust more quickly to customer
demand
 Get products to market faster
 Cut the cost of paperwork
 Obtain lower prices on some supplies
B2B Growth
 B2B market is expected to experience
significant growth
 B2B E-commerce is expected to reach
$207 trillion in 2004, up from $406.2
billion in 2000. (Forrester Research, Inc.)
B2C Definition
 Business that sells its products or
services to consumers over the
Internet for their own use.
 Online Retailers (Amazon.com)
 Online Banking
 Travel Services
 Health Information
 Real Estate
Difference between B2B and
B2C
 The customer (business vs. individual)
 B2B transactions are more complex
 B2C does not require:
 Negotiation for price, delivery, and
product specifications
 Integration with other systems
Challenges of B2C
E-commerce
 Getting browsers to buy things
 Building Customer Loyalty
 Order Fulfillment
 Security
 Privacy
Addressing these Challenges
 Getting Browsers to Buy Things
 Improve navigation
 Simplify the checkout process
 Send e-mails with special offers
 Building Customer Loyalty
 Focus on personalization
 Create an easy-to-use customer service
application
 Focus on making your site easy to use
Addressing Challenges (cont.)
 Fulfillment
 Increase focus and investment on logistical
systems and supply chain technologies
 Security
 SSL Technology
 Digital Signatures
 Privacy
 Make privacy statements readily available to
consumers
 Opt-out policy for collecting personal information
B2C Growth
 B2C E-commerce is expected to grow
from $38.8 billion in 2000 to $184.5
billion in 2004 (Forrester Research, Inc.)
C2C
 A consumer sells products or services
to another consumer via the Internet.
B2E Definition
 An intrabusiness network which allows companies
to provide products and/or services to their
employees.
 Companies generally use B2E networks to
automate employee-related corporate processes.
 B2E portal is a customized home page or desktop
for everyone within an organization
 One URL for everyone in the organization
 A mixture of organization-specific and employee-defined
components
 The potential to be customized and altered to suit the
needs of a particular employee
Examples of B2E applications
 Online insurance policy management
 Corporate announcements
 Online supply requests
 Special employee offers
 Maintain employee resume
 Update employee records
E-Commerce Intranet
 3 distinct Web-based technologies
 Internet
 Intranet
 Extranet
Internet
 Global computer network
 Everyone has access
Intranet
 A private network that is open only to
employees of a single organization.
 Internal communication vehicles and
knowledge bases that serve as a
company-wide information system.
 Intranets can improve information flow
and keep costs down within a
company.
3 Key Elements for Intranets
 Intranets must be relevant and useful.
 Find a balance between what executives want the
employees to know and what the employees are
interested in
 Intranets must be updated frequently.
 Employees should get the news first
 Intranet should be more dynamic than the external site
 Intranets must be backed by strong internal
communication programs.
 Must have support from top-level management
 Training
Extranets
 A mechanism based on Internet and Web
technology for communicating both privately
and selectively with customers and business
partners.
 Extranet extends a company’s network
beyond its boundaries to predetermined
business partners, customers, suppliers,
and others.
 Extranets provide a safe way to allow
transactional business-to-business activities
and can save time and money.
References
Aber, Robyn. “Internet, Intranet, Extranets: What’s What?” January 13,
2003. www.entrepreneur.com

Jaworski, Rayport. Introduction to E-Commerce. McGraw-Hill Company.

Kirsner, Scott. “Intranet Marketing 101.” CIO Magazine. Dec. 1, 1999.

Patton, Susannah. “The ABCs of B2C.” www.cio.com

Varon, Elana. “The ABCs of B2B.” www.cio.com

Wailgum, Tom. “What are Extraverts.” CIO Magazine. March 15, 1998
Questions