E-markets Value creation in e-markets Value creation in e-markets

HEC MONTRÉAL – MBA E-Commerce Jacques Robert & Jean Talbot, HEC Montréal E-market places ERP CRM buy others Firm ERP CRM buy others Firm C C C C B2B E-market Portal and B2C Market C2C E-market

HEC MONTRÉAL – MBA E-Commerce Jacques Robert & Jean Talbot, HEC Montréal Questions What are the roles of a marketplace ?What are the roles of a marketplace ?roles How marketplaces create value ?How marketplaces create value ?value Successes and failures.Successes and failures.SuccessesfailuresSuccessesfailures

HEC MONTRÉAL – MBA E-Commerce Jacques Robert & Jean Talbot, HEC Montréal Marketplaces The village marketplaceThe village marketplace – Physical cluster regrouping merchants in one place at a given time. – Focal point for buyers. Creates an exchange network with the proper critical mass. – Merchants cluster attracts buyers, which reduce transaction costs.. Reduce logistic problems – The market manager selects sellers and enhance trust. – The cluster of sellers allows buyers to compare prices, this permits equilibrium prices to emerge. In e-markets

HEC MONTRÉAL – MBA E-Commerce Jacques Robert & Jean Talbot, HEC Montréal Roles of markets Provides to participating seller facilities to display their products.Provides to participating seller facilities to display their products. Creates an exchange network with the proper critical mass.Creates an exchange network with the proper critical mass. Provide logistic tools and services to facilitate trades.Provide logistic tools and services to facilitate trades. Provide market governance rules to insure trust and market participation.Provide market governance rules to insure trust and market participation. Provide (formal or informal) price discovery mechanisms to set equilibrium prices.Provide (formal or informal) price discovery mechanisms to set equilibrium prices.

HEC MONTRÉAL – MBA E-Commerce Jacques Robert & Jean Talbot, HEC Montréal Value creation in e-markets Discovery of rare or specialized goodsDiscovery of rare or specialized goods Price discoveryPrice discovery Trust managementTrust management Community network of information sharing and referencingCommunity network of information sharing and referencing Collaborative workCollaborative work Transaction cost reductionTransaction cost reduction

HEC MONTRÉAL – MBA E-Commerce Jacques Robert & Jean Talbot, HEC Montréal E-market places ERP CRM buy others Firm ERP CRM buy others Firm C C C C B2B E-market Portal and B2C Market C2C E-market

HEC MONTRÉAL – MBA E-Commerce Jacques Robert & Jean Talbot, HEC Montréal Value creation in C2C markets Discovery of rare or specialized goodsDiscovery of rare or specialized goods Price discoveryPrice discovery Trust managementTrust management Community network of information sharing and referencingCommunity network of information sharing and referencing Collaborative workCollaborative work Transaction cost reductionTransaction cost reduction

HEC MONTRÉAL – MBA E-Commerce Jacques Robert & Jean Talbot, HEC Montréal Value creation in B2C-markets Discovery of rare or specialized goodsDiscovery of rare or specialized goods Price discoveryPrice discovery Trust managementTrust management Community network of information sharing and referencingCommunity network of information sharing and referencing Collaborative workCollaborative work Transaction cost reductionTransaction cost reduction

HEC MONTRÉAL – MBA E-Commerce Jacques Robert & Jean Talbot, HEC Montréal Value creation in B2B-markets Discovery of rare or specialized goodsDiscovery of rare or specialized goods Price discoveryPrice discovery Trust managementTrust management Community network of information sharing and referencingCommunity network of information sharing and referencing Collaborative workCollaborative work Transaction cost reductionTransaction cost reduction

HEC MONTRÉAL – MBA E-Commerce Jacques Robert & Jean Talbot, HEC Montréal Success stories C2C: ex. E-BAYC2C: ex. E-BAY – Critical mass of buyers and sellers exchanging second- hand goods, collectibles, etc. – Negotiation tools (auction) for price discovery. – Trust management through information B2C: ex BabyCenterB2C: ex BabyCenter – Community sharing a specialized interest, information and referencing. B2B: ex. CovisintB2B: ex. Covisint – Business Club – Collaborative work

HEC MONTRÉAL – MBA E-Commerce Jacques Robert & Jean Talbot, HEC Montréal Failures C2C:C2C: – Auction environment without a trust management system. – Or critical mass B2C: ex Virtual shopping mallB2C: ex Virtual shopping mall – Cluster of stores selling diverse products B2B: ex. Ventro ChemdexB2B: ex. Ventro Chemdex – Product discovery and matching – Open markets