Tuesday, March 13, 2007

Jewelry Party Invites Wording

B2B Portals: an example of the use of ICT in the traditional economy

Portals " business to business" have been very successful and have diffused rapidly in the last years of last century, particularly for supplies made by large enterprises or enterprise networks. A representative example is the agreement between Ford, Daimler-Chrysler and GM (General Motors) made some years ago a common portal that would provide the entire market supply of the 3 companies. There are many examples, but what I think is important to note is the innovation of online relations with suppliers: in fact allowed to facilitate the changes, which are electronic and do not need the many bureaucratic papers, before the prolonged time of action . The main economic advantages are as follows: first there is just the transaction costs in the implementation of changes (for the communication between suppliers and customers more quickly and easily done), secondly the portals are made through collaboration between different suppliers, thereby creating economies of scale in supply (eg as more transport providers caring together), and third and last, the increase of potential competition (also because the gates are open networks). In addition, these portals have some limits as the need for complementary investments and reorganizations in logistics. Besides, in cases of products with specific design or features, websites can be inconvenient. At the end can be inconvenient for some providers because it allows a direct comparison between many companies and has been proven that traditional methods of competition reaches half discounts 15% of the price, compared to 25% discount online markets characterized (data sought on the website of the Financial Times and caring in 2000)

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