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CISCO B2B E-Commerce - Business to Business

By Nick Roy, published Dec 14, 2005
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Introduction

Business to business (B2B) e-commerce can be defined as an enabling service or services that assist business to consumer (B2C) e-commerce transactions. However, this definition is not confined to the supply chain. In addition, B2B does not include buying to resale. Moreover, this action must be customer initiated. For example, a person would like to purchase more checks. If this person goes to their bank to purchase more checks, depending how the bank gets their checks, this service could be a business to business transaction. Once the customer puts in their check order to the bank, the bank then goes to a check printing company to make the check. The printed check will then be directly sent to the customer from the check printing company without going through the bank. Therefore, B2B transaction is the transaction between the bank and the printing check company to the customers. 

In this case study, the role of the bank can be thought of as the intermediary, the customer as the client and the check printing company as the supplier. Figure 1 illustrates the transactions visually. Furthermore, the transaction must be client initiated and the transacted path must occur in the same path as the arrows. With this in mind, Cisco has a role as all three positions in business-to-business e-commerce transactions. 

As the Internet and Intranet continues to grow exponentially, the impact increases and organizations all over the world are using e-commerce solutions in an increasing rate. Organizations used Internet and Intranet for cost savings, efficiencies, budgeting, resources research, and customer service and sales staff and others. B2B processes such as purchasing, supply chain management, manufacturing, human resources, sales and contact management are really uncommon right now among the growing companies as both the buyers and sellers can reap the advantages of the effect of the Internet and Intranet. 

Takeaways
  • Good background and theory into B2B e-commerce
  • The impact increases and organizations all over the world are using e-commerce solutions
  • Improve ability to attract and retain customers, reduce expenses, & reinforce their brand
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