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From the picture bank
eMarketplaces Still Very Promising
2001-03-28 admin
Research points towards increased benefits and growth of B2B solutions. The more participants use it, the more value it delivers,
says Mike Hogan
29 March 2001, 2pm GMT
Despite a near-term shakeout, the emarketplace services industry faces several more years of remarkable growth, says IDC, who calculate that worldwide emarketplace services spending will increase at a compound annual growth rate (CAGR) of 27%, from $5.2
billion in 2000 to $17 billion in 2005.
In a brief published this week Aberdeen Group states that e-Procurement reduces purchasing costs and time by more than 70%. Companies who move their purchasing online dramatically reduce costs, shorten purchasing cycles, and drive improvements to the bottom line. In addition, Aberdeen finds new service-based hosted offerings extend the benefits of e-Procurement to the broadest audiences.
"Although executives and investors have soured on the promise of other business-to-business technologies, Aberdeen end-user research demonstrates that e-Procurement delivers rapid and quantifiable results" says Christa Degnan, research analyst. "Aberdeen expects these benefits will translate into considerable e-Procurement market growth, representing more than $9 billion in sales by 2003."
Mike Hogan, VP of Poet Software , comments:
"The fact that B2B is moving into the mid market is very important" he says "B2B like many other innovations (e.g. the phone, fax, Napster, etc.) benefits from the network effect. The more participants you have
using it, the more value it delivers. As a result, it is critical to extend the technology into as many market strata as possible. Of
course, the big difference between B2B and the other network examples above is that one solution does not solve the needs of both sender and recipient. In other words if you have a phone you can send AND receive calls. But in B2B you need distinct solutions to sell and to buy. And at this point there is an imbalance caused by an overabundance of buyers, or a shortage of suppliers, depending on your perspective. B2B places a significant burden on the supplier side of the equation and yet the benefit to the supplier is not well
understood or explained yet. However, the growth of the participants on the buy-side of the equation will continue to build value for the participants on the sell-side of the equation"
www.aberdeen.com
www.idc.com
www.poet.com
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