The key to be a winner in business-to-business is "low cost continuous information sharing", according to James Abraham, director of Boston Consulting Group.
Speaking on the B2B segment at the Confederation of Indian Industry's associations council meeting here yesterday, Abraham said the key to low cost continuous information sharing is implementation of systems that simplify communication between different business, thus enabling expeditious delivery of goods and services.
The B2B segment, according to him, is about "brokering information _ creatively". In this context, the role of an "information broker" becomes relevant.
In the case of the automobile industry, an information broker could link car manufacturers and independent test centres to customers, and also provide network support in order to link dealerships and banks with customers.
He said the implementation of e-business strategies was an important reason for the phenomenal growth being witnessed by the Indian automobile market, expected to grow to Rs 50 crore this year, up from about Rs 8-10 crore last year.
Pointing to the various ways to generate revenue down the e-commerce value chain, both on the Net and off it, he said there is a large amount of economic value created in the process of e-business transactions.
At the most basic link, the consumers, services could be provided with regards to demographic and psychographic information. In case of access provision, there are opportunities with regards to devices, browsers and search engines; in the case of data transport, there are opportunities for Internet Service Providers and Proprietary Service Providers; in case of content creation, there is huge scope for value creation.
At the product and service designing link, Abraham said value is created by information products, high ticket items and low ticket items and the last link in the chain, which is fulfillment of orders throws up opportunities for third party logistics providers.
Referring to the companies rushing to the Net, he warned that the companies would have to work very hard and be truly original in order to stand out. He added that the unique feature of the Net is that it breaks the compromise between "richness" i.e. interactivity and customisation and "reach" i.e. connectivity and mass access.
