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B2B Marketplaces Must Add Value, Increase Usage To Survive

Jan. 13, 2005

Estimates are there will be 100,000 business-to-business online marketplaces by 2001, and El Segundo, Calif.-based Computer Sciences Corp. (CSC) says such exchanges must do five things to survive: Integrate systems with their member companies. ...

Estimates are there will be 100,000 business-to-business online marketplaces by 2001, and El Segundo, Calif.-based Computer Sciences Corp. (CSC) says such exchanges must do five things to survive:

Integrate systems with their member companies.

Increase usage of such marketplaces within the industries they serve.

Move from the innovation stage to a sustainable business model.

Provide value-added services such as financing and logistics.

Establish partnerships or seek investments from large, global companies that spin-off to invest in Internet markets. "'Net markets are an incredible concept, but they are highly complex ventures," says Rosie Hartman, 'Net markets director for CSC's Consulting Group. "This year will be a make-or-break year for many 'Net markets as they are forced to develop a large critical mass of users or risk failure. It's been reported that there's only enough demand to support a handful of significant marketplaces in each industry."