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The exchange of goods, services,
information or money between businesses, which in online jargon
becomes b2b. Although media attention on e-commerce has been focused on
consumer and retailing venture, most analysts predict that most money
(perhaps more than 90% of all online business) will be spent (and earned) in
the business-to-business sector. Research firms have in the past made many
wild predictions about the level of b2b e-commerce, but its online
importance is undeniable. In 2002 the US Census Bureau reported that b2b
e-commerce in 2000 accounted for $777 billion of online sales, compared with
$29 billon for sales to consumers. Forrester Research predicated that
online trade in Europe alone would reach 2.2 trillion in 2006, with much
of the growth being stimulated by the petrochemicals and logistics
industries.
For many companies, it is the saving in time and money
that make the b2b sector so appealing. The internet allows firms to buy
goods more cheaply, process invoices more efficiently and deal with
customers more effectively. A1999 report by the Giga information Group
estimated that doing business online would save companies around the world
an estimated $1.25 trillion by 2002, and other studies showed that average
delivery times for goods and services could be reduced by up to 95%. Despite
these predictions, many suppliers of b2b technology have found the going
hard since the dotcom bubble burst, and some of its biggest players have
faded from view. Newish technologies such as web services promise to
contribute greatly to the b2b economy. |
