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Making Money in B2B -- Vendors
Making Money in B2B -- Vendors
Selling software and services to create
Selling software and services to create
the e-marketplace technology
the e-marketplace technology
foundation
foundation
Fees based on the the complexity and
Fees based on the the complexity and
volume of transactions
volume of transactions
what counts as a transaction?
what counts as a transaction?
who pays the fees -- buyers or suppliers?
who pays the fees -- buyers or suppliers?
fees for exchange-to-exchange
fees for exchange-to-exchange transactions and syndicated services
transactions and syndicated services
Ongoing sales of licenses, services, and
Ongoing sales of licenses, services, and
transaction fees associated with
transaction fees associated with
technical and functional improvements
technical and functional improvements
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Making Money in B2B --
Making Money in B2B --
Vendors and Customers
Vendors and Customers
Equity
Equity
owning a share of the new company
owning a share of the new company created to run an e-marketplace
created to run an e-marketplace
only valuable if the company can go public
only valuable if the company can go public
not going to happen anytime soon
not going to happen anytime soon
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Maximize The Network Effect by
Maximize The Network Effect by
Interconnecting the Marketplaces
Interconnecting the Marketplaces
Connect once, trade anywhere
Connect once, trade anywhere
-- drives the “network effect”
-- drives the “network effect” and value increases
and value increases exponentially for everyone in
exponentially for everyone in the trading community:
the trading community:
Buyers
Buyers
Suppliers
Suppliers
Net Market Makers
Net Market Makers
Mega Exchanges
Mega Exchanges
Business Service Providers
Business Service Providers
Number of UsersNumber of Users
Economic ValueEconomic Value
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The Global Trading Web
The Global Trading Web
The Global Trading Web is the world’s
The Global Trading Web is the world’s
largest business-to-business Internet
largest business-to-business Internet
trading community, comprised of
trading community, comprised of
many open e-marketplaces,
many open e-marketplaces,
accelerating the movement of global
accelerating the movement of global
trade onto the web.
trade onto the web.
enhanced for business.” “The Global Trading Web is the Internet
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E-Marketplaces -- Industry Consortia
E-Marketplaces -- Industry Consortia
TelecommunicationTelecommunication
Automotive
Automotive
N. America
N. America
Utilities
Utilities
(5 Companies)(5 Companies)
AerospaceAerospace
EnergyEnergy
Global UtilitiesGlobal Utilities
(15 Companies)
(15 Companies)
Film and TelevisionFilm and Television
Forest ProductsForest Products
“MMProcurement”“MMProcurement”
Metals & Mining
Metals & Mining
16 Equity
16 Equity
PartnersPartners
Electronics
Electronics
Outdoor Products
Outdoor Products
and Services
and Services
Metals & MiningMetals & Mining (16 Companies)(16 Companies)
Japanese Gas,
Japanese Gas,
Chemicals &Chemicals &
UtilitiesUtilities
e-Procuremente-Procurement
ConsortiumConsortium
(14 Companies)(14 Companies)
Document Exchange
Document Exchange
Architecture for Electronic
Architecture for Electronic
Marketplaces and
Marketplaces and
Marketplace Networks
Marketplace Networks
If you send me a
catalog
request
, I will send
you a
catalog
If you send me a
purchase order
and I can
fulfil it, I will send you a
purchase order
response
Integrated Business Services
Integrated Business Services
are XML Document Exchanges
are XML Document Exchanges
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XML Document Exchange
XML Document Exchange
Architecture
Architecture
Document exchange is a more natural way
Document exchange is a more natural way to think about doing business
to think about doing business
Less brittle than APIs (how enterprise
Less brittle than APIs (how enterprise sw
sw
vendors think)
vendors think)
More consistent with legacy EDI
More consistent with legacy EDI
XML is application and vendor neutral,
XML is application and vendor neutral, making it easy to provide “open”
making it easy to provide “open” marketplace with 3rd party buying and
marketplace with 3rd party buying and selling apps and other marketplace services
selling apps and other marketplace services like payment, taxation, logistics…
like payment, taxation, logistics…
Document exchange between marketplaces is
Document exchange between marketplaces is fundamentally the same as within a
fundamentally the same as within a marketplace -> Global Trading Web
marketplace -> Global Trading Web
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Company
1
There are many different
There are many different
“standard” document formats
“standard” document formats
Company
2
Company
3
Company
4
Company
5
Company
nnn
PO 1
PO 3PO 2
PO 4
PO NNN
Problem:
Individual
every other company’scompanies mapping to
document formats
doesn’t scale
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XML and Metcalfe’s Law
XML and Metcalfe’s Law
The value of a language
The value of a language
depends on how many
depends on how many
people (or computers)
people (or computers)
understand it
understand it
How do you encourage and
How do you encourage and
enable others to
enable others to
understand your language?
understand your language?
