B2B

About the Author

Michael J. Cunningham is the founder and CEO of the Massachusetts-based Harvard Computing Group, an international business and technology consulting firm. His clients include major organizations such as NYNEX, Hitachi, Vignette, the American Cancer Society, and AT&T. Cunningham's expertise in business and technology strategy has culminated in his book "B2B: How to Build a Profitable E-Commerce Strategy," where he shares insights on developing successful B2B e-commerce models.

Main Idea

The main idea of "B2B: How to Build a Profitable E-Commerce Strategy" is to provide a comprehensive guide for businesses looking to build a successful e-commerce strategy. Cunningham emphasizes the importance of understanding the fundamentals of B2B e-commerce, leveraging relationships, adopting best practices, and utilizing essential technologies. The book offers practical advice for both brick-and-mortar businesses transitioning to e-commerce and new enterprises starting from scratch.

Table of Contents

1. Fundamentals of B2B E-Commerce
2. Relationships Are the New Focus
3. Innovation in Action: B2B Best Practices
4. Building Alliances
5. Selecting B2B Applications, Services, and Software
6. Essential E-Commerce Technologies
7. Architecture and Infrastructure: Designing a B2B Business
8. Changing an Organization in Real Time

Fundamentals of B2B E-Commerce

In the rapidly evolving business landscape, B2B e-commerce has become a cornerstone of corporate strategy. E-commerce replaces traditional supply chains and distribution networks, necessitating a strategic approach to secure a position in this new world. Most companies already have the skeletal beginnings of an e-commerce system, typically in the form of internal networks such as Intranets and Extranets. These networks serve as the foundation for more advanced e-commerce operations, including portals, digital markets, and B2B exchanges.

"The amount of business being done on the Internet is big and getting bigger. With the Web as the foundation, businesses are finding new ways to forge partnerships and make a profit." – Michael J. Cunningham

fundamental components include:

• Intranets: Internal proprietary sites for collaboration and information sharing among employees.
• Extranets: Sections of the network accessible to external partners or vendors.
• Portals: Gateways for industry-specific information, facilitating repeated engagement from participants.
• Digital Markets: Online platforms for procurement, significantly reducing costs and increasing efficiency.
• B2B Exchanges: Automated business exchanges where suppliers, buyers, and intermediaries interact under predetermined rules.

Relationships Are the New Focus

Cunningham highlights that relationships are at the heart of any B2B e-commerce strategy. In this digital age, forming fluid partnerships is essential for entering the marketplace quickly and maintaining a competitive edge. Trust, value, and performance remain crucial elements, and branding continues to play a significant role in building these relationships. Marketing strategies such as affiliate programs and customization of customer information further enhance the B2B experience.

"Trust, value, and performance still count. Branding is another crucial aspect of any e-commerce relationship." – Michael J. Cunningham

• Affiliate Programs: Paying commissions to websites that refer buying customers to the B2B platform.
• Customization: Tailoring the information presented to customers based on their specific needs and preferences.

Innovation in Action: B2B Best Practices

The B2B market offers numerous opportunities for innovation. Brick-and-mortar companies are increasingly moving online, while new entrants are creating entirely new business models. Cunningham provides several best practices for success in B2B e-commerce: