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Business to Business – B2B | Part 2

Business to Business – B2B | Part 2

Systems Integration

Most organizations run a multitude of incompatible systems and data communications standards. The organization must integrate its disparate systems to consolidate information and thus increase their power. The communication gap between systems disintegrated and isolates can not only lead to an increase in inventory and purchases, but also lead to a critical shortage of equipment and disruption of business processes.

Integrating e-Market platforms and implement new protocols and new procedures require more difficult steps for developing a B2B program. This process is complex and difficult not only because there are many points of integration within the enterprise, but also because the technology continues to change and maintain new markets.

Companies can follow a series of strategies to create an integrated organization. Three of these strategies are:

  • Ad-hoc interconnection strategy: a strategy for rapid application. Connects internal systems with external systems”’B2B”’ required.
  • Integration hub: It is a strategy dedicated to the company’s internal applications and external B2B commerce. The integration hub is used in connection custom interfaces on key points of the company. This is a form of strategy more flexible and less costly. The company may maintain connections to B2B through a centralized hub, using direct connections with individual B2B integration hub or external third parties in a single interface.
  • Hub common: To gain maximum benefit from the integration of the companies must carefully define the connectivity and the demands of each market and set priorities for integration between B2B efforts. The alternative to this approach is to implement common systems, systems such that the number of integration of this strategy should reduce the efforts on the common organization of the implemented systems. However, upgrading to common systems is expensive and time consuming.

Before choosing any linkage strategy, the company must weigh the time and cost required to implement these strategies, as the advantages offered by different options.

Networking capabilities

Organizations should not only have networks applied within the four walls of the organization but should also extend to external entities. Companies should have a wide area network. Technology as a virtual private network (VPN) can help organizations meet this challenge.

Content management

The ability to maintain and provide reliable information in real time, is another challenge faced by companies in implementing B2B applications. The web content should be accurate and current. Companies that have good management of internal operations are not able to realize all the benefits of e-Business. Whether the company to sell or buy, it is necessary to establish effective operations in-house.

For example, if the company is selling part of the e-Business needs to deliver personalized dynamic content, such as product information, pricing, availability of products and information. If the organization does not have systems in place will not be able to provide this information timely and accurate. Similarly, when buying organization can consolidate purchases of similar goods across divisions and thus achieve greater efficiency. However, if such management is not properly implemented, companies will not know what they are buying and why they are buying or if they are getting the best price. If this system is properly implemented and integrated ERP systems across the enterprise can play a positive role

Recovery backups

Organizations must be proactive in their approach. It should be set up adequate systems backup and disaster recovery to allow companies to return to activity with minimal loss of time and data in case of any eventuality.

Challenges in business

The main challenges in business are:

Change Management

Among the challenges facing businesses, the management of change is a big challenge, it is crucial to know whether an organization is implementing a new system or develop new ideas. Companies have spent a considerable amount of energy and resources to manage this change.

Resistance to change can come from within an organization or from external partners in a company. In the case of the supply chain can break the resistance on the part of buyers, sellers or (B2B e-Markets).

Resistance may be against the new process or procedures to follow, to new systems or even to increased responsibilities. For example, B2B will become so ubiquitous that it is necessary to acquire new operators / employees with new skills to meet the new needs of the company. Thus, they must respond to dynamic pricing, have an availability of 24 X 7 X 365, have a faster response to questions from customers. The implementation of new systems of information technology requires extra coordination between more than one function of processing and trade. The employees need to acquire new skills, such as risk management, to understand concepts such as control.

These challenges can not undermine the importance of B2B. Training and education of the parties to the transaction (B2B e-market) can help organizations overcome the change. Although in some cases, the best to solve these problems is to hire new talent.

Often companies fail to understand the potential of electronic commerce, with lack of determination and lack of enthusiasm in implementing such requests. This factor may play an important role in the overall success or failure of the entire company.

Business Models

There are no successful business models to try and follow as an example to opt for this strategy. The lack of knowledge and understanding of the B2B environment increases the risk of such initiatives. However, as more and more companies take the initiative in seeking knowledge, this ceases to be a challenge. Many consultancies have developed a knowledge of these changes on business as a result of being part of such initiatives. When hiring consultants, these companies may indeed be a source of guidance.

Channels conflict

Organizations need to look at how the role of the traditional functions of sales is changing. They need to assess the role of all parties – customers, distributors, dealers, sales representatives and company involved in the sale. Traditional sales channel by itself is not a viable option and does not give a full value. Companies need to evaluate Web channels that run sales, perceptual as these can provide a valuation for the company. The roles of entities have to be evaluated and redesigned to make it adjust to this new paradigm.

Legal challenges and regulatory

There are many legal and regulatory issues involved: Copyright electronic-money policy, tariffs and privacy. Because e-business is a new phenomenon, there is still lack of consistent rules and procedures. There are issues related to taxes that must be carefully considered by companies.

Companies that buy and sell on the Internet, often conduct business across national borders of a country. This gives rise to another important question about the role of government and the laws of other nations.

Behavioral Challenges

Another barrier that can be difficult to overcome is related to consumer attitude. It is difficult for companies to encourage customers to change their habits and starting to shop online. Moreover, companies have an enormous task that is to win the trust and confidence of customers, providing assurance to trading partners and customers that their private information is secure and will not be compromised. Initiatives such as TRUSTe Electronic Frontier Foundation led by can contribute in helping companies overcome this challenge.

Companies also must provide training to their employees and business partners to adapt to the new business model and become familiar with these new technologies. Employees may not always be willing to learn new changes and learn new ways of doing the same thing. Education and change management methods can be effective in combating this challenge.

Study: From Wikipedia, the free encyclopedia. The text is available under the Creative Commons.

Santosh

Santosh is an experienced content writer with good search engine optimisation skills. Santosh works with our marketing department in the creation of articles and how-to guides for our company blog and knowledgebase.

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