B2B Exchanges Book

Much of the philosophical underpinning of the modern business world is based on the claimed superiority of the free market and its supposed ability to provide the best solutions. It in turn is based on the purely theoretical economic concept of "perfect competition". The trouble is that the idea of perfect competition translates poorly into reality because it makes implausible assumptions like perfect knowledge and information and zero transaction costs. All of which was wishful thinking--until the Internet.This the starting point of Arthur Sculley and W William A Woods' B2B Exchanges. B2B, if you have been in a coma for the past two years, means "business to business". And the thesis of the book is that the Internet is revolutionising the business of "business to business" more than any other sector of human endeavour. The sale of products and services by business to business over the Internet will be worth $1.5 trillion within four years according to estimates and the principal fora in which this will occur will be B2B exchanges. "The unique feature of the B2B exchange is that it brings multiple buyers and sellers together (in a virtual sense) in one central market space and enables them to buy and sell from each other at a dynamic price which is determined in accordance with the rules of the exchange", write Sculley and Woods.The book analyses the key issues in building a successful and effective exchange and lists seven secrets for success with B2B exchanges: stay specialised; dominate swiftly; maintain commercial neutrality; ensure transparency and integrity; add value by building a virtual community; make the right strategic partnerships and operate as a virtual corporation.Sculley spent 25 years with JP Morgan before branching out into e-commerce. He has been chairman of the Bermuda Stock Exchange since 1996. Woods is a lawyer and consultant on the design and development of securities exchanges around the world. Their book makes an exciting read for those interested in business to business, and is a must read for CEOs and anyone concerned with the realities of doing business online. --Alex BenadyRead More