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Most of the focus of the investor community during the early 2000s was on the business-toconsumer
(B2C) space, with millions of dollars made and lost as a result of people not understanding
the business model. Most of the money raised in venture capital was used for advertising to gain brand
recognition, while very little was invested in infrastructure. As a result, the B2C landscape is littered
with the corpses of failed ventures—the dot-com bubble. Those that have survived are spending
money on the traditional back-office functions that bricks-and-mortar retailers have developed over
the years.
Business-to-Business E-Commerce
Although most consumers think just about business-to-consumer (B2C) e-commerce, the greatest
potential lies in business-to-business (B2B) e-commerce. In a typical supply chain there are many
B2B transactions involving raw materials or subcomponents. For example, a desktop computer
manufacturer makes several B2B transactions to buy components for the tower—cords, monitor,
keyboards, and mice.
Companies of every shape and size are realizing the opportunities for both ordering and selling their
products over the Internet. Some companies are using their Internet sites to process orders, create and
price custom configurations (similar to what Dell does on its site), track orders, and assist with
customer service. Some industries are creating their own marketplaces for the cooperative purchase of
goods and services. There are multitudes of B2B marketplaces and exchanges. Some are vertical,
servicing specific industries. Others are horizontal marketplaces.
Procurement software is now being offered that automates the purchasing function of a firm. The
software can approve and issue purchasing orders, receive and match an invoice with its order, and
electronically pay the bill. This frees up the procurement department to work with suppliers to get
better prices, and analyze the process itself. Current vendors of procurement software include SAP and
Sage.
Organizational Productivity
Today‟s organizations have to understand their performance in real time and be able to communicate
with all constituents (workers, vendors, customers, and investors). They need to manage their
technology resources (hardware, software, network, and data) so that they support the productivity of
their constituents and are still cost effective.
Business Intelligence and Business Analytics
Decision support systems, business intelligence, business analytics—the same or different? Business
intelligence is the firm‟s understanding of the market behavior and its impact on the business. To get
there, a firm uses tools to access, manipulate, and display data. It could be as simple as running user-