These new attributes lead to new customer consequences. Customers can more easily compare prices and product offerings; search costs are lower, and they have a wealth of information at their fingertips. These customer consequences can be used either in favor of or against the organization. The lower search costs and the ability to easily compare prices and product offerings can lead to more competition for the firm, and the large amount of information available can be overwhelming to the customer, along with the possibility of a large amount of alternatives to consider.
Companies can turn these consequences around, however, by providing customers with decision-making aids and by making all the information that a customer may need available on the website. They can also customize the website for individual customers, so that they only see products and services that are of interest to them, thus cutting down on the overload of information and alternatives.
E-Business Models
The literature available on the subject of B2B e-commerce business models varies greatly. According to the article, Examining E-Business Models: Applying a Holistic Approach in the Mobile Environment, the business literature defines business models from different viewpoints, each focusing on different components. This leads to a fragmented and confusing picture regarding the shape and role of e-business models and the factors that distinguish successful business models. Based on the e-business models found in literature, taxonomy was developed containing the following seven categories:
1. Sourcing models,
2. Ownership models,
3. Service-based models,
4. Customer relationship management models,
5. Supply chain models
6. Interaction models, and
7. Revenue models.
It is important to note, however, that many companies will have e-business solutions that fall into more than one of these categories.
E-business Models and Textiles
As in most other industries, the textile industry uses a combination of the e-business models discussed above. This section discusses some of the textile companies whose e-business ventures have been discussed in the literature, and relates them to the categories of e-business models discussed in Part II of this paper. In addition to the companies covered in the literature, companies listed as textile companies in the Thomas Register were visited and categorized. First, the companies written about in the literature will be discussed.
BASF was one of the first firms to offer an e-commerce option to the textile industry, specifically carpet manufacturers and designers, in 2001. Their site offers sales, customer support, and technical support. The web application gives customers accurate and secure order placement and information 24 hours a day. It also offers order tracking, including manufacturing status, shipping status, shipping carrier and expected arrival date. Information services are also available on any BASF carpet product, including material safety data sheets.
The BASF website fits into several of the e-business categories, including the ownership model, the service-based model, the customer relationship management model and the interaction model.
Risks in B2B E-Model
Enterprise risk management has moved to the forefront of corporate concerns amidst regulatory requirements within the United States and increased pressure from boards of directors, stockholders, and the general public. At the same time, internal auditors have assumed the responsibility of ensuring adequate internal controls are in place across the enterprise.
One reality confronting many corporate executives is that enterprise risk is not enterprise-centric but emanates from an extended enterprise and includes relationships with vendors, customers, and outsourcing providers. Indeed, in todays environment, internal auditors can no longer simply compete in an organization versus organization environment, but rather survival is dictated through successful supply chain competitiveness. Inevitably, these extended-enterprise relationships are heavily dependent on information technology-based systems linked through increasingly tight business-to-business (B2B) e-commerce linkages.
Conclusion
Revelation is not stable; it will change by the time, but its impacts shown in history, as like this B2B concept for textile also notable one.
About the Author:
The author is a Research Scholar in Department of Commerce at Bharathiar University, Coimbatore. He can be contacted at vku_mphil@rediffmail.com
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