COMMERCIAL EXCHANGES IN B2B MARKETSadoption of the Internet expanded it emerged that informationwas at the heart of value cre-
ation and competitive advantage. Evans and Wurster (2000) suggested the reason for this is
that the majority of traditional principles of business strategy continued to apply in elec-
tronic markets but the objectsof strategy such as business units, industrial supply chains,
customer relationships, organisational structure, etc., were held together by a glue and this
glue is information. They continued, stating that this glue gets dissolved by new technologies
and as a result formalised and well-established business structures and supply chains are
changed and begin to fragment. It soon became apparent that the online trading environ-
ment was much more than an innovative retail format and that all types of organisations
would be affected to some extent by the new technologies. A recent benchmarking study by
the DTI (2004) found that in the UK approximately 90% of businesses have access to the
Internet (in companies with over 50 employees the percentage is approaching 100%). The
report concluded that the key measure of ITC adoption is no longer about connectivity and
access to the Internet, but rather the degree to which technology is being used to deliver real
value for businesses. Many UK organisations are focusing on how to reduce operating costs
and develop more integrated supply-side systems both internally and with partners. See Case
Study 11 for further discussion of growth, volumeand dispersionwithin electronic markets.
How organisations are using Internet technologies
There are many examples of how companies operating in B2B markets have utilised the
Internet at different stages in the supply chain (see Figure 11.3). Typically, an organisa-
tion will begin by establishing its intention to use Internet technologies, then there will
be an initial developmental period, prior to implementation. Implementation can
Figure 11.3Solar Turbines – a Caterpillar company
Source: Screenshot from Solar Turbines web site http://mysolar.cat.com/cda/layout?m=6637&x = 7.Copyright 2005,
Caterpillar Inc. All rights reserved.