B2B Exchanges : The Killer Application in the Business-to-Business Internet Revolution

Rating:
Summary: Value-added Evolution, Not Disruptive Revolution
Review: Although Arthur Sculley and William Woods give a good theoretical introduction to the universe of B2B exchanges, they do not live up to reader's expectations. Sculley and Woods seem to share the idea that a B2B exchange first needs to concentrate on building liquidity by matching orders, and then on increasing value. On page 123, they write: "Liquidity is king for exchanges, so it is essential to build trading volume as quickly as possible." Although increased pricing transparency that trading volume fosters, can be attractive to buyers and/or sellers, the ability to improve transparency and efficiency all along the value chain is the ultimate key to a massive buy-in from the industry. Therefore, the B2B exchange must work on reaching both goals in parallel. Otherwise, the B2B exchange will develop a value proposition and subsequently a pricing strategy that are unattractive to buyers and/or sellers. Unsurprisingly, sub-optimal relationships with buyers and/or sellers lead directly to low transaction volume, an unattractive services bundle and ultimately an under-performing B2B exchange. Furthermore, Sculley and Woods stress very little the inertia of many suppliers and their customers, without mentioning the intermediaries whose job is eventually on the line... Evolution is usually better than revolution to build an industry solution, by industry experts, that benefits all of the industry. In addition, Sculley and Woods also overemphasize the importance of the first mover advantage. On page 121, they write: "In true Internet pioneering fashion, the founders of a new exchange must plant their flag, declare victory and then run like hell." The debacle of many independent exchanges facing the competition of both private exchanges and industry-led consortia is a clear reminder that the first mover advantage is of relative, not absolute importance in many situations. Finally, Sculley and Woods are almost completely silent on the impact of legal regulations on the birth, development and death of B2B exchanges. For example, on page 9, they write: "One market space is likely to dominate for each product." Sculley and Woods seem to forget that Microsoft had drawn the attention of both the Department of Justice and FTC for years, precisely because of the overwhelming dominance of its operating system and its perceived "bullying" tactics in pursuing market domination.

Rating:
Summary: a MUST read.
Review: B2B Exchanges is one of the BEST books ever written on the topic of B2B, this book is not a hype B2B book, the book offers real value and insight into the role, the future and the features of B2B exchanges on the Internet. The book covers a vital emerging industry, for those of you who are interested in business, business methods, exchanges, B2B models or simply the future of the business Internet I strongly recommend this book. It is an easy read, but fully packed with useful information, we have actually adapted some of the points in the book as the core of our business plan.
The authors background in the financial markets offers a rare combination and an excellent ability to link and apply proven financial market models to the growing B2B space, it is worth noting as well that B2B is not the only topic covered, but the whole concept of exchanges and their application on the internet is explained and analyzed. ...

Rating:
Summary: Sorry but there really isn't anything in this book.
Review: Beginners in B2B, read it now, before it is too late! This book is published at the right time - as B2B takes centre stage in the new economy (previously dominated by B2C or C2C). BUT THIS BOOK HAS A SHELF LIFE! Since the world is moving so fast. It is a good book for beginners (which explains why so many I know who bought this book are consultants and students trying to learn about B2B exchanges): 1. Business models in B2B world outlined 2. Critical success factors 3. Formula for creating a B2B

However, for those already in this line of business, you might find this book: 1. poorly written (errors, ideas begun but not developed) 2. too focused on trading exchanges which does not handle physical goods (e.g. equities, insurance, credit)

It would be a FANTASTIC book (perhaps in 2nd edition) if the authors could delve into the difficult ares of a B2B: 1. fulfillment of goods and services 2. settlement of payments through different financial instruments (e.g for bulk trades of paper/chemicals...) 3. PROVIDE non-US examples or case studies, especially for Asia

Caution: some of the internet terms/definitions used do not seem consistent with others I have read elsewhere. Just stick to the authors definitions to get thru the book.

Rating:
Summary: There are better books to read......
Review: If you are somewhat famailiar with B2B, this book will not tell you anything you do not already know. If you know nothing about B2B, this book will not give you enough solid info to fix that problem. This book was recommended to me as a good basic text on B2B. I read it and several others and I was very dissapointed in this book. The writing is clear enough, but the content is completely superficial. It is a retrospective look at what has already happened in B2B and offers the reader no intellectual model or frame of reference to understand why B2B has evolved the way it has, or how it might evolve in the future. It is written from the perspective of some gentlemen who set up the Bermuda stock exchange, relaized that they had just just set up a B2B net marketplace, and wrote a book about their exchange and some other people's exchanges. Frankly, you can learn a lot more about B2B eCommerce by reading the web sites of Ariba, Commerce One, and an article called "How It Works" that appeared in the Feb 2000 edition of Business 2.0. (available on their web site in the archives). After visiting these sites, you'll have more up-to-date, real-world information than you will get from the book

If after reading these sites, you want to get a more intellectual understanding of B2B, the best book that I have read is Digital Capital by Tapscott, et. al. It provides an excellent frame of reference for understanding what is going on in B2B, and gives you enough of a balanced understanding that you can discuss the subject intelligently. It also avoids the use of exclamation points, hyperbole, breathless prose and hand-waving that I have found in far too many books on this subject.

Again, if you're going to read only one book on B2B eCommerce, DON'T MAKE THIS IT! This advice also applies if you're going to read only 8 or 10 books on eCommerce. ;)

Rating:
Summary: Below Average book
Review: It is an ok book for B2B introduction. That is all it is worthwhile reading. Also, some of these information are somewhat outdated. Financial market is very different than electronics market for example. Sure some of the market fundamentals are similar (such as liquidity, and transaction level....), but the nature of the underlying assets is very different. Get an used one or borrow from someone for a quick reading.... I bought it brand new while visiting Hong Kong..

Rating:
Summary: Below Average book
Review: It is an ok book for B2B introduction. That is all it is worthwhile reading. Also, some of these information are somewhat outdated. Financial market is very different than electronics market for example. Sure some of the market fundamentals are similar (such as liquidity, and transaction level....), but the nature of the underlying assets is very different. Get an used one or borrow from someone for a quick reading.... I bought it brand new while visiting Hong Kong..

Rating:
Summary: Quick Read but not enough meat
Review: The dust jacket has a picture of the New York Stock Exchange on it. I should have realized that the book is written from a financial market perspective (Both authors are from the securities industry). Their knowledge of business backend systems seems to be limited. One quote: "All enterprise resource planning systems are now designed to be fully EDI compliant and XML capable." If only that were true. I would recommend the book to people who are thinking about starting a b2b exchange (although you will be a little late to the party). Otherwise, there is a good article in the March 13, 2000 issue of The Industry Standard that will probably give you all the informaiton you need.

Rating:
Summary: Solid Content; Excellent Overview
Review: To say the area of B2B is white hot seems like an understatement. The authors, both involved in creating the fully-electronic Bermuda stock exchange, give a clear overview of this evolving field. This is not a technology book, as B2B is not really about IT (see Knowledge Management as a parallel example). As the authors submit, building successful B2B marketplaces depends on deep vertical knowledge, industry credibility, and growing liquidity. They are fundamentally business applications, not IT apps.

The authors start their book by discussing what B2B exchanges are, and how they differ (e.g., some are the post & browse type; some are actual dynamic auctions, etc.). What struck a chord with me is the idea of dynamic price setting v. static price setting. The former is a real-time manifestation of the free market at work, and a radical departure from the Industrial Age. In addition, both buyers and sellers can benefit in a B2B exchange.

As the authors outline, buyers have increased selection, more convenience, and the opportunity to pay less, while sellers have greater reach and the opportunity to charge more. Other defining areas the authors touch upon include: trading models (e.g., seller or buyer driven); revenue models (e.g., complementary and value-added services along with transaction and/or membership fees); and partnership models (e.g., getting buy-in from the gorillas).

Lastly, the authors end their book with seven secrets of success for B2B exchanges. The secrets revolve around targeting a vertical, maintaining neutrality, value-added services, and transaction integrity and complete price disclosure. All told, this book is written in a no-nonsense, straightforward manner. It provides a good framework in which to evaluate this rapidly growing area. The authors do linger of stock exchange examples (not surprising in light of their experiences), but not in a way that is diminishing to their cogent message or thesis.