B2B Models for DoD Acquisition
NAVAL POSTGRADUATE SCHOOL MONTEREY CA DEPT OF INFORMATION SCIENCES
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Business-to-business B2B e-commerce refers to transactions between businesses conducted electronically over the Internet, intranets, extranets, or private networks. Such transactions may be conducted between a business and its suppliers or between a business and any other business. It is estimated that in 2003, B2B e-commerce in the United States was a 1.5 trillion business. This represents about 11 of the total B2B trade estimated at 13.5 trillion Laudon Traver, 2004. Gartner group predicts this percentage to grow steadily to reach over 40 in 2010. Forresters research predicts a higher percentage of 53. There are many potential benefits of B2B e-commerce. These benefits depend on the model used, but are thought to include the following significant cuts in acquisition cost, expediting cycle-time, reducing errors and improving quality of service, seamless integration with suppliers, ability to have purchasing data instantly, reducing inventory levels and costs, immediate response to changes in customer purchasing patterns, facilitating mass customization, and increasing opportunities of collaboration between buyers and sellers. In this report, the author examines models for classifying and differentiating the business functionality provided by B2B e-commerce and the impact of the various models on government and DoD acquisition. The models will consider such variables as types of goods and services purchased, how these goods and services are purchased, pricing mechanisms, the characteristics of the markets, and ownership of the marketplace. The report includes 38 briefing charts that summarize the contents.
- Economics and Cost Analysis
- Government and Political Science
- Military Forces and Organizations