| Selecting the right emarketplace | | | | catalogof the emarketplace, which could be a very |
| Although, IT spending has been staying flat for the | | | | complex task, you shouldmake sure that the |
| last severalyears, corporate spending in e-business is | | | | classification system that they have is widelyused |
| gaining significantground and at present surpasses 20 | | | | online; and if necessary you can use same product |
| percent of overall IT budget. | | | | content withother emarketplaces or e-procurement |
| This means, more and more businesses are | | | | applications. |
| undertaking ecommerceinitiatives, and as a result | | | | The best option, as I believe, is based on The |
| increasing sales, streamliningbusiness processes and | | | | Universal Standard |
| dramatically boosting productivity. | | | | Products and Services Classification (UNSPSC), which |
| Most experts agree that average business, which is | | | | is a globalcoding system that classifies products and |
| slow inadopting e-business applications, risks loosing its | | | | services. Thiscategorization scheme covers the |
| competitiveedge to their more progressive rivals. | | | | broadest collection of industriesand commodities |
| Emarketplaces provide with a great opportunity for | | | | available today, and designed to facilitatee-commerce |
| small tomedium size companies to test online business | | | | transactions by providing geography-independent |
| for a minimal risk. | | | | commonnomenclature system. |
| This is due to the factor that the e-business | | | | Product search capability within the marketplace and |
| applications thatcome along with an emarketplace | | | | e-catalog |
| membership package areprohibitively expensive to | | | | Members of the emarketplace should be able to |
| develop in-house by most companies,and require | | | | locate any productor service, whether in the |
| large professional workforce to operate. As | | | | auctions, marketplaces, or in the catalogwith ease. |
| anexample: product content development with | | | | Advanced search function should allow finding |
| required attributes,suitable for e-business, itself might | | | | requireditems using precise query. |
| feel like a daunting taskfor most offline companies. | | | | Supply chain process, i.e. request for quote, |
| So, as a company, what should be your first step in | | | | quotation, purchaseorder, billing system, etc. |
| startinge-business through emarketplaces? | | | | Efficient supply chain management is the number one |
| Naturally, out of hundreds of emarketplaces available | | | | strategic priorityfor many businesses. In 2001, Cisco |
| today,you have to find one that matches all your | | | | System alone had to write off |
| requirements. | | | | US $2.5 billion in excess inventories due to poor |
| Choosing right kind of emarketplace | | | | management of itsnumerous outsourcing contractors. |
| In best case scenario, if yours is a large enough | | | | E-marketplaces can help streamlining your supply |
| company,you should build your private emarketplace | | | | chain process ifthe required features are embedded |
| with all thenecessary features specific to your | | | | in their system. |
| business. The potentialof having your own | | | | Directory of members |
| emarketplace is amazing! | | | | Usually most emarketplaces incorporate a searchable |
| - Ecommerce will add value to your existing business | | | | directory oftheir members. The members get an |
| transactions | | | | added opportunity of creatingnew business relations |
| - Your present suppliers will be able to post most | | | | and increasing sales thanks to this feature. |
| updated information on their products via e-catalog | | | | Product content adding and editing interface |
| and their storefront | | | | In order to make product content adding and |
| - You can build community from your present buyers | | | | maintaining easierfor sellers, the marketplace must |
| and supplier, or invite members on the Internet | | | | have an uncomplicated tool. |
| - Real time marketplace will allow you to take quick | | | | The tool could be a wizard-based combination of |
| buying and selling decision | | | | simple forms. |
| - Both buyers and sellers can contact you through | | | | To integrate larger catalogs speedily and efficiently |
| Instant Messaging System | | | | theemarketplace should have XML based interface. |
| - Your entire supply chain process can be managed | | | | Ability to promote products and services |
| from one place | | | | The process of posting an offer for sale of a |
| - You can issue real time purchase tenders with | | | | product or a serviceon the marketplace should be |
| either limited access only to your community | | | | simple and easy but sophisticatedenough to create |
| members or open to public | | | | dynamic offer, offer with time limit, variablepricing |
| - Sell your stock lots through online auction | | | | based on quantity, etc. |
| - Brand you emarketplace and establish your | | | | Apart from the above mentioned functionalities that |
| company as a serious online player within your | | | | facilitateconducting e-business, other key |
| Industry | | | | characteristics of a qualitye-marketplace should |
| However, as I mentioned earlier, if you are not a | | | | include: |
| very big company,you will probably be better off | | | | Simplicity - An emarketplace should be easy to learn |
| with a membership in an establishedemarketplace. | | | | and use. |
| If you are a manufacturer, wholesaler or a buyer of | | | | Large Community - The quantity of members should |
| certainindustry specific products or services, your | | | | be big enough,so that new participants can expand |
| best choice would bea vertical emarketplace that | | | | their business. |
| caters specially your industry. Forexample: if you buy | | | | Flexibility - Emarketplace functions should be flexible |
| or sell fish, you should look for an emarketplacethat | | | | enoughto modify or add with new features when |
| deals with this product only. Another thing that you | | | | necessary. |
| shouldkeep in mind is how geographically limited your | | | | Neutrality - The emarketplace should be an unbiased |
| business is. If youbuy and sell fish within the locality | | | | venue forboth sellers and buyers. No member should |
| of your state or region, ifavailable, get an | | | | have any privilegeat the expense of others. Providing |
| emarketplace that works in your region. | | | | an open and transparentmarket for all the participants |
| Totally different story, if you carry large number of | | | | is an important constituentof the value proposition of |
| productsfrom different industries; for you a horizontal | | | | an emarketplace. |
| marketplace thatcater a range of industries is a | | | | Cost of doing business through e-marketplace |
| better choice. If you are aninternational trader | | | | In general, thanks to the large member base, |
| involved in import or export, you should selecta global | | | | e-marketplacescharge a reasonable subscription fee if |
| emarketplace, which has members from the | | | | you would like toparticipate in it. Many emarketplaces |
| countries youdeal with. | | | | also charge a nominalfee for each trade made using |
| Features that are must | | | | their facilities. Other costsinvolved, that you should |
| A good emarketplace amasses various features in | | | | consider, are internal workforceneeded to handle |
| order to facilitatesmooth transactions of business | | | | business via emarketplace, catalogintegration and |
| deals. However, there are some keyattributes that | | | | maintaining, etc. In any case, the cost ofdoing |
| are absolutely necessary for any emarketplace | | | | business through emarketplaces is negligible for |
| tobecome successful; and as a prospective member | | | | mostbusinesses compare to the gains they make. |
| you should look forthese features and characteristics | | | | Get your partners involved |
| while choosing an emarketplacefor yourself. | | | | If you just build a corporate website and don't |
| Product catalog based on an industry-standard | | | | spendrequired time and money to promote, it won't |
| classification system | | | | bring anybusiness. Same goes for emarketplace! Mere |
| While it might not look so important from the | | | | participation inan emarketplace also will not produce |
| surface; to haveaccurate, well-defined and | | | | any significantbenefit if you don't convince your |
| timely-updated product content isextremely crucial | | | | existing buyers andsuppliers to work with you |
| for any online business. Since you have tointegrate | | | | through your chosen emarketplace. |
| your product catalog to the aggregated electronic | | | | |