Gartner Says Three e-Marketplace Models Will Control the B2B Market by 2005.
BOSTON--(BUSINESS WIRE)--Nov. 6, 2000
Analysts Examine the Future of Online Marketplaces
and Exchanges During Gartner's B2B eMarketplaces Conference
Business-to-business (B2B) e-marketplace functionality and participation are currently limited, but by 2005, more than 500,000 companies will be participating in e-marketplaces as buyers and/or sellers, according to Gartner Group, Inc. (NYSE:IT)(NYSE:ITB). These findings were presented today during Gartner's B2B eMarketplaces conference, which is taking place through November 8th in Boston, Massachusetts.
The developers and managers of B2B marketplaces, called e-market makers, have begun to attract large numbers of buyers and have begun to use the buyers' market power to attract sellers. The long-term effects of these new entrants in markets are yet unproven, but it is expected that benefits from their presence will far outweigh the costs.
"Independent e-market makers will help sellers increase the size of their markets by investing heavily in branding, as well as helping buyers meet their needs by attracting large numbers of sellers," said Barbara Reilly, vice-president and research director for Gartner. "Most importantly, independent e-market makers will manage massive quantities of supply and demand data and help foster the distribution of near-perfect information to buyers and sellers."
e-marketplaces are generally limited to spot buys, excess product sales and indirect procurement. As marketplaces mature, they will begin to mediate larger sets of buyer supplier relationships. Marketplaces will be forced to constrain their focus, producing an environment populated by three unique varieties of marketplaces:
The commodity marketplace - This marketplace will support high-volume trade of products and services of commodity or near-commodity status, as well as financial instruments such as futures contracts.
Business service marketplaces - These marketplaces will be focused on supporting specific inter-enterprise processes, such as those related to logistics, financial services, and maintenance, repair and operations (MRO) procurement.
Integration service marketplaces - This market will emerge with a focus on linkages and process definitions between trading partners to facilitate process-to-process integration.
"Individual marketplaces will find it increasingly difficult to support broad sets of commerce capabilities required to sustain relationships of differing intensity and duration," Ms. Reilly said. "Marketplaces will have to align themselves strategically with business services partners as well as technology partners."
Marketplaces will find themselves taking on the role of the traditional distributor as well as an application service provider (ASP). With business process efficiency comes added value and traditional customer responsibility. Marketplaces must take on the customer relationship management (CRM) initiatives that traditional brick-and-mortar organizations struggle with today through other channels outside of their internet initiatives.
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