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Summary
Business-to-business (B2B) e-commerce value will shift from exchanges to specialists. Expect consolidation into mega-exchanges, with originators and e-speculators playing key roles in market evolution.
Area of Science:
- Business Strategy
- Information Systems
- Market Economics
Background:
- The internet offers significant benefits for business-to-business (B2B) e-commerce, including cost reduction and expanded market access.
- The evolutionary path of B2B e-commerce remains largely unknown, necessitating analysis of related industries.
Purpose of the Study:
- To forecast the evolution of B2B e-commerce markets.
- To identify key value drivers and market structures in information-intensive online commerce.
Main Methods:
- Analysis of financial services industry evolution over two decades.
- Theoretical modeling of market dynamics, value accumulation, and trading structures.
Main Results:
- Value in information-intensive markets accumulates with specialists (packaging, standards, arbitrage, information management), not solely exchanges.
- Market consolidation will lead to a few dominant mega-exchanges.
- Originators will aggregate complex transactions before execution on mega-exchanges.
- E-speculators will concentrate on markets with standardized products and high liquidity.
- Independent solution providers will coexist with mega-exchanges.
- Sell-side asset exchanges will facilitate supplier-to-supplier trading.
Conclusions:
- Traditional skills in product development, manufacturing, and marketing may decrease in relative importance for companies.
- Understanding and leveraging market dynamics will become a critical success factor in B2B e-commerce.
- The structure of B2B e-commerce will involve a complex interplay between mega-exchanges, specialized intermediaries, and solution providers.
