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| GartnerGroup's Dataquest Says E-Market Makers to Revolutionize Business-to-Business Commerce | |||
| New Report Examines these Trading Hubs that Enhance Business-to-Business Commerce | |||
| Lake Buena Vista, Fla., October 12, 1999-Business-to-business commerce marketplace is being transformed by the emergence of e-market makers that facilitate online transactions, according to Dataquest Inc., a unit of Gartner Group, Inc. (NYSE: IT). Dataquest analysts estimate e-market makers generated approximately $12 billion in 1998, and this excludes e-marketplaces focused on financial products (mortgages, bonds securities, and so on), where volumes exceeded $100 billion. | |||
| Dataquest defines e-market makers as business-to-business reintermediaries. They enter supply chains in vertical industries and horizontal business functions, introducing new efficiencies and new ways of selling and purchasing products and services. An e-market maker is an organization that develops a business-to-business, Internet Protocol (IP) network-based, e-marketplace of buyers and sellers within a particular industry, geographic region, or affinity group. | |||
| "E-market makers will revolutionize trading relationships and business-to-business e-commerce, diverting a significant percentage of transactions from extranets, electronic data interchange (EDI), and Web storefronts while creating opportunity for a new breed of e-commerce transactions," said Leah Knight, senior industry analyst for Dataquest's e-Commerce Worldwide program. "E-market makers will change the way organizations purchase and sell strategic and nonstrategic products, the way they purchase and deploy software, and the way they evaluate professional services companies, financial institutions, and Internet service providers (ISPs)." | |||
| Dataquest segments e-market makers into four categories: | |||
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Content and Community Portals. These portals provide value-added content, such as specification sheets and part descriptions for design engineers, buyer's guides for small companies, and hosted software. They may also provide bulletin board functionality for sellers and buyers to post information about products and services for sale or sought. These portals earn revenue by posting advertisements or collecting subscription fees. They may also charge sellers a finder's fee for sales leads. |
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Channel Enablers. The e-marketers sell a commerce software and hosting solution to help the channel to participate in e-commerce. They are common in industries in which suppliers have ceded so much supply chain power to channels of distributors, brokers, and agents, that suppliers may now be hesitant to initiate direct sales. |
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Efficient Commerce Networks. These organizations manage a trading network that generally maintains existing supply chain relationships and pricing models, but it attacks industry inefficiencies. Efficient commerce networks often aggregate suppliers' catalogs; they may compete with brick-and-mortar distributors. |
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Dynamic Marketplaces. These marketplaces employ a commerce model, whereby product pricing is negotiated within the marketplace through auctions, request for proposal/request for quote processes, or bid-ask matching exchanges. These dynamic marketplaces can represent seller advocates, buyer advocates, or be neutral online exchanges. The neutral online exchanges manage purchases and sales among multiple buyers and sellers. These exchanges work best for commodity and near-commodity products, for which descriptive information facilitates reasonable price/quality comparisons. |
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| "Initially the e-market makers will drive adoption of catalog software, search engine software, and buy-side software. Over time, the e-market makers will either compete with software providers or will provide a channel," Ms. Knight said. "E-commerce software vendors that do not have a strategy for partnering with and in the long term potentially competing with e-market makers need to develop a strategy. Developing an e-market maker strategy is critical for buy-side software vendors as enterprise procurement evolves to the extended enterprise and trading communities." | |||
| Additional information on this market is available in the Dataquest Perspective "The E-Market Maker Revolution." The Perspective examines some of the leading e-market makers. The report provides examples of how these companies are succeeding in the marketplace. This report is the first in a series of GartnerE research publications to explore e-market makers' business models and supply chain dynamics and their impact on e-business and e-commerce-enabling technologies. | |||
| This report is produced by Dataquest's e-Commerce Worldwide program. This program is designed to help executives, product marketers, strategic planners, and investors capitalize on emerging opportunities by providing research and analysis on the electronic commerce marketplace. Additional information on this program is available on Dataquest's Web site www.dataquest.com/public/static/home/n04dcomww.html.. | |||
| To purchase this report or subscribe to this program please call 800-419-DATA, or 408-468-8009. More information about Dataquest's programs, descriptions of recent research reports, and full text of press releases can be found on the Internet at http://www.dataquest.com. | |||
| The e-business market is also being discussed at the world's leading IT conference, GartnerGroup Symposium/ITxpo 99, running now through October 15 in Lake Buena Vista, Florida. This conference presents leading-edge IT news, solutions, and developments essential to effective IT planning. The U.S. Symposium/ITxpo is sold out, but keynotes and many analyst sessions are being Webcast on GartnerGroup's Web site at www.gartner.com/symposium/static/99/us/intro.html. | |||
| GartnerGroup's Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the global information technology industry. | |||
| As the world's leading authority on IT, GartnerGroup provides clients with a wide range of products and services in the areas of IT advisory services, measurement, research, decision support, analysis, and consulting. Founded in 1979, with headquarters in Stamford, Conn., GartnerGroup is at the center of a global community serving Fortune 1000 clients from 80 locations worldwide. Additional information about the company is available on the Internet at www.gartner.com. | |||
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