Business-to-business (B2B) e-commerce will grow at aggressive rates through 2004, causing fundamental changes to the way businesses do business with each other, according to GartnerGroup, a leading IT advisory firm.According to Gartner, the worldwide B2B market is forecast to grow from $145 billion in 1999 to $7.29 trillion in 2004. By 2004, B2B e-commerce will represent 7 percent of the forecasted $105 trillion total global sales transaction. (See Figure 1, Worldwide Business-to-Business Market Forecast, 1999-2004.) The catalyst for B2B e-commerce will be the activities of so-called "e-market makers". According to Gartner, an "e-market maker" is an organization that develops a B2B, Internet-based, e-marketplace of buyers and sellers within a particular industry, geographic region, or affinity group. Among the best-known e-market makers today are Chemdex, VerticalNet, Altra Energy Technologies, Paper Exchange, Instill, PlasticsNet, and Commerce One's Marketsite.net.
GartnerGroup analysts add that e-market makers will have a critical but subtle impact on transactions that flow through brick-and-mortars' sell-side initiatives. These sell-side initiatives are defined as including extranets, B2B Web storefronts, Electronic Data Interchange (EDI), and flat file transfer over the Internet, as well as related e-commerce activity that allows a seller to leverage the IP network as a channel to its buyers.The impact of e-market makers and the evolving business models surrounding the multitrillion dollar B2B e-commerce market will be explored in GartnerGroup's soon-to-be-released suite of B2B e-Market Makers advisory services. For more information on these services, contact the GartnerGroup at http://www.gartnergroup.com.
Going global pays offAnnual WEF, Deloitte Touche Tohmatsu study says globalization helps companies beat S&P500. Want your company's financial performance to outpace the S&P 500? Well, then, going global may be the answer. A new study shows that going global can have big payoffs. The study, released from the World Economic Forum (WEF) and Deloitte Touche Tohmatsu, measures the impact that going global has on corporate enterprise values. It shows a distinct correlation between going global and successful financial performance. This year's findings from the WEF/Deloitte Touche Tohmatsu "Innovative Leaders in Globalization" multiyear study show that 84% of companies that ranked highly, according to a proprietary Globalization Index, have outperformed the S & P 500 over the last five years. The Globalization Index was derived from results of a diagnostic survey completed by 25 of the world's leading companies. It is designed to help companies gauge how global they are in relation to their peers. The index ranks six organizational capabilities: governance and responsibility; strategy and finance; marketing, sales and service; operations and technology; research and development; and human resources management. The framework categories were selected based on their respective role in affecting ultimate shareholder value. Other key findings from this year's "Innovative Leaders in Globalization" study were:
- Global leadership is key to global success: Senior executives and board members must have global business experience to succeed at globalization in the long run
- The marketing and R & D functions are the least global functions at most of the companies surveyed
- The Internet is fundamentally realigning perceptions about markets and customers, as business opportunities that were once considered too remote due to distance and language are now prime targets for doing business