Electronic Commerce: Strategies and Models for Business‐to‐Business Trading

This book was published at a time when the hype of the Internet‐related business, particularly the “pure play” B2C (business to consumer) e‐commerce, was still peaking. As such, it provides a thoughtful analysis of this emergent phenomenon, underpinned by in‐depth analysis of numerous case studies. It is one of the first publications of its kind to draw attention to the possibilities of B2B (business to business) e‐commerce, at the time a much more significant but relatively neglected aspect of e‐commerce. The book, which is intended as a practical guide for business‐to‐business trading, seeks to classify the emerging B2B e‐commerce models and to identify successful business strategies that are relevant for Internet trading. The author gained much of his knowledge and experience while in charge of the e‐commerce section of the European Union’s research and technology development and business pilot programme (European Commission Information Society Directorate General). His involvement in e‐commerce development at European Commission level has endowed this book with a unique perspective, in particular in the way in which it draws upon the author’s experience while at the forefront of e‐commerce development in Europe. It usefully summarises the ongoing debate on this topic, and provides a thorough examination of the pioneering developmental work on e‐commerce in the USA.

This book consists of seven chapters. After a short but informative introduction, the next two chapters provide an overview of the specific characteristics of the Internet and its relevance to B2B e‐commerce as well as a classification of the business models that are emerging in this area. The next three chapters form the core of the book and, through the use of illustrative case studies, the author defines the salient features of respective business models at both macro‐ and micro‐economic levels. The final chapter provides stimulating insights into the prospect of B2B e‐commerce and presents some interesting scenarios of possible future developments.

The late 1990s were exciting times, when information and communication technologies (ICTs) and e‐commerce began to change our ways of thinking as well as providing new venues for doing business. New opportunities of Internet trading were constantly exploited, new dot.com companies mushroomed, and vast fortunes were made seemingly overnight. As a consequence, it looked as though there was not a day that passed without reports of a new venture creation and claims of new business models. During the “dot.com fever”, the author took a critical perspective at the chaotic scenario of e‐commerce trading and provided the readers with some thought provoking insights. From a value chain perspective, this book provides an excellent classification of e‐commerce business models and systematically defines and categorises innovations in each of the respective business models, in terms of value chain deconstruction and reconstruction. The classification has thus far gone through the test of more recent developments in e‐commerce and remains a useful tool for improving our understanding in relation to the distinct characteristics of B2B e‐commerce.

Another important strength of this book is its application of the strategic marketing approach to B2B e‐commerce. By showing that ICTs can open many new and exciting opportunities, it presents a convincing case for emergent issues, such as “disintermediation” and “reintermediation”. The emphasis, throughout the book, on the core concept of “value network” and integration appears to have its origin in works by Michael Porter (1980, 1985), and Don Tapscott (1996).

The final chapter makes interesting reading and the author boldly offers a number of possible scenarios for the future of B2B e‐commerce. These include the intensifying competition and collaboration in value networks and dynamic markets, the rapid development of digital information business, and the convergence between B2B and B2C e‐commerce. The development of B2B e‐commerce in the past two years has provided a great deal of evidence to support these projections. Equally interesting, the analysis in the final chapter also presents a paradox regarding new developments in terms of value network integration. While ICTs are giving businesses the opportunity to deal more efficiently and profitably with customers, these have also given rise to serious difficulties in relation to customisation, risks exposure (particularly financial risk), and increased trading complexity. According to Timmers, these are the critical challenges facing businesses in their ongoing transformation “from place to space”.

This book makes a valuable contribution to the topic of B2B e‐commerce. Academics, students and managers who are interested in the challenges and opportunities offered by the e‐commerce environment will find this text helpful in terms of its examination of relevant critical success factors as well as the “roadmap” to successful adoption of e‐commerce suggested by the author. Business consultants and students at both undergraduate and postgraduate levels would also benefit from the excellent discussion of business models and strategic consideration. For established researchers, this book poses some challenging issues for further investigation.