WEEK 11

 

Business-to-Business (B2B)

 

Synopsis

This week’s readings cover the history of B2B e-service business models, B2B service technologies, and the future of B2B service business models.

 

Readings

 

Way back when everyone was focusing on the glory of B2C e-services, a call cried out from the wilderness about the importance of B2B.

 

(Required) Sawhney, M., and S. Kaplan, “Let’s Get Vertical,” Business 2.0, September 1, 1999.

http://www.business2.com/content/magazine/indepth/1999/09/01/16856

 

Then, once people had shifted their focus onto B2B e-services, yet another call cried out about the importance of B2B technology providers.

 

(Required) Davis, J., and M. Sawhney, “How it Works,” Business 2.0, February 1, 2000.

http://www.business2.com/content/magazine/indepth/2000/02/01/20635

 

The following articles are additional articles that originally were published as extensions of the “How it Works” article, explaining the technologies in this area. If you are interested in these technologies, you might want to browse or read one or more of these additional articles – but it is too much to assign, so it is not required reading.

“The Informant” – web content management –  http://www.business2.com/content/magazine/indepth/2000/02/01/20622

”The Configurator” – build to order product configurators – http://www.business2.com/content/magazine/indepth/2000/02/01/20623

“The Market Maker” – electronic spaces for trading - http://www.business2.com/content/magazine/indepth/2000/02/01/20624

”The Production Manager” – supply chain management – http://www.business2.com/content/magazine/indepth/2000/02/01/20626

“The Profiler” – data mining software and analysis – http://www.business2.com/content/magazine/indepth/2000/02/01/20628

“The Partner” – alliances – http://www.business2.com/content/magazine/indepth/2000/02/01/20629

 

Now, another call cries out from the wilderness, yelling not to believe those other voices.

 

(Required) Wise, R., and D. Morrison, “Beyond the Exchange: The Future of B2B,” Harvard Business Review, November-December 2000, p. 87-96.

http://www.hbsp.harvard.edu/hbsp/prod_detail.asp?R00614

 

Case

Technology for Transportation Bidding at The Home Depot - HomeDepot.pdf

The Home Depot was founded in 1978 in Atlanta, GA, and is currently the world’s largest home improvement retailer. In June, 1999, Home Depot launched its expanded Website (www.homedepot.com) which includes more than 150 interactive how-to projects, personalized customer home pages, and interactive features such as project calculators. Managing the logistics of this retailer giant is no easy task. In the mid-1990s, Home Depot semi-computerized its transportation bidding process for carriers, but it was found to still have many shortcomings. Thus, they more recently partnered with i2 Technologies to develop a flexible, Internet-based bidding mechanism for truckload shipments, which went live for the first time in January 2000.

 

Questions

  1. Home Depot incorporated several non-price criteria when determining the optimal lane assignment – for example, carrier reliability, load balancing among carriers, and giving preference to incumbent carriers, when determining the optimal lane assignments. However, carriers were not made aware of Home Depot’s preferences nor of how these factors will influence the selection of the awarded bids. Discuss the consequences of keeping the carriers uninformed in this dimension. In particular, how would this affect the carriers’ bidding decisions?
  2. When searching for the best lane assignment, Home Depot actively eliminated from consideration several types of assignments. Discuss why the following assignments could be considered undesirable by Home Depot.
    1. A single carrier is assigned all of Home Depot’s business in a particular region.
    2. Home Depot comprised the bulk of a carrier’s business.