Citation
(2001), "Tough times for B2B", Work Study, Vol. 50 No. 6. https://doi.org/10.1108/ws.2001.07950fab.006
Publisher
:Emerald Group Publishing Limited
Copyright © 2001, MCB UP Limited
Tough times for B2B
Tough times for B2B
Tom Siebel, chief executive of customer relationship management (CRM) software vendor Siebel, recently suggested that online business-to-business (B2B) exchanges will collapse over the next year, raining concerns among firms that belong to or are thinking of joining such exchanges.
"I don't think any (B2B exchanges) will survive", said Siebel. "They're all gone. If you can't generate profits, significant market share and customer satisfaction, you are out of business."
Most analysts think that this view is overly pessimistic, although they do predict a continued shakeout of exchanges over the coming year. Many believe a handful of big exchanges will dominate each sector – Covisint, the US automotive exchange, is often presented as an example of a large exchange that is achieving success.
Most analysts agree that specialist exchanges can succeed – but many current exchanges need to mature. They need to understand the nature of "exchange" and pay more attention to the suppliers as well as the buyers.
David Furniss, vice-president of products and marketing at BT Ignite, BT's online marketplace division, says that by the end of 2001 most exchange operators will have transformed themselves into what some call collaborative marketplace service providers, working closely with firms and causing significant change. "We will see numerous smaller e-marketplaces emerging".
For further information see www.siebel.com or www.ignite.com