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Situation
The sales and distribution process for companies such as manufacturers, financial service providers, utilities, etc., to reach their business customers (B-to-B commerce) is in an unprecedented state of confusion.
First, there is continuing long-term change in the role and value provided by intermediaries such as wholesalers and distributors. Second, the emergence of eCommerce created the hope for entirely new sales and
distribution channel options that radically improved levels of customer support at much lower costs. However, very few of the initial eCommerce efforts have come close to reaching this promised potential. The future
of eCommerce is further clouded by investor unease from the meteoric rise and fall of eCommerce stocks.
Despite this confusion, all parties need to set strategies and create viable business models. Doing nothing is not a realistic option. One fact is certain – old patterns and approaches will not work well in the
future. Even the original eCommerce models (perhaps 6 months old) are now proving to be ineffective and obsolete. Operating companies still must grapple with the high cost and declining perceived customer value
provided by current sales and distribution approaches. Both new ventures and existing companies must find a path to success through eCommerce. Investors need to recognize viable opportunities in a large and
important space. All parties need assistance in finding profitable business models amidst the confusion and complexity.
Why the Small e?
The recent discussions of eCommerce have focused on the electronic issues and the notion that “the Web changes everything”. The reality is that the “commerce” side of the equation is equally or more important. What
do customers value? What activities need to be performed? What is the available economic margin? Who can win? Future strategies need to balance the continuing realities of “commerce” with the new capabilities of “e”.
What Do We Do?
We can help both current and potential participants develop strategies and business models for B-to-B commerce based on a realistic understanding of the customer requirements, economics, and supporting technologies
in B-to-B sales and distribution channels. The opportunities to create value remain enticing but the risks continue to grow. We can be credible and effective because we understand the intersection of B-to-B commerce
topics:
- Business to business customer and channel issues
- eCommerce and web technical capabilities and limitations
- Venture financing
We understand these issues from our traditional practices in:
- Assisting operating companies on strategic issues regarding sales and distribution channels
- Advising wholesalers/distributors on how to understand activity costs and how to capture value
- Developing business plans for new eCommerce ventures
- Assessing growth and business potential for venture capital companies and other financial institutions
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