How Business-to-Business Internet Transactions and ... - Angelfire


Nov 5, 2013 (4 years and 5 months ago)


How Business
Business Internet
Transactions and
Relationships Change

Created By:

Brandon D. Smith

Management Information Systems

Professor Sistrunk MWF 11:00

Table of Contents

1st Fact

slide 3

Benefits of B2B Internet Transactions

slide 5

2nd Fact

slide 6

Examples of B2B Transactions via Internet

Slide 7

Table of Contents cont.

Interview with Stephen D. Smith

Slide 26

3rd Fact

Slide 30

The future of Internet in dealings with

Slide 31

U.S. Internet Revenue Totaled
$301 Billion in 1998

(Source Univ. of Texas Study/Washington Post 6/10/99)

Business to Business

Internet related transactions
are focused on selling within a business contract

or business
partner relationship, which entails delivering agreed upon products
and prices to each buyer within specified buying companies.
Because users and their requirements are already known, the
emphasis is on getting the businesses to manage contracts, users,
orders and more; and to allow the system to tailor customer
interactions based on contractual or other business relationship

Benefits of B2B Internet

Cost reduction;

Increased transaction volume;

Increased transaction revenue;

Opportunities for new products
and services

Opportunities for increasing
revenues through cross selling

Commercial customer retention

Electronic Commerce

brings many
benefits and in a recent study of U.S.
companies offering product purchases over
the Internet

63% of those interviewed
reported cost savings, 31% saw revenue
increases, and 47% noted a cycle time
reduction in delivery of goods or services. It is
clear that Business to Business electronic
commerce represents by far the most
compelling business case for virtual trading
and will dominate the business opportunity for

Examples of Business to
Business Internet Transactions


Buying and selling of goods/services

Electronic Mail (E

Advertisement of Goods/Services

Making and Receiving Payments

Creating Awareness of your company

Business to Business Internet


One example of this would be a company who owns
the building they operate out of. The companies
upper management decides that the entire building
needs to be re
painted. As a result of this the
company hosts an online bid for various painters to
offer their prices for the job. After finding a painter
with a desired price, the company draws up a
contract and e
mails it to him. He in returns places
an electronic signature on the contract and forwards
it back to the company.

Benefits Internet Contracting

Saved the time and money of hosting the job bidding in
person and vice versa.

Saved time and manual labor of by emailing the
contracts, instead of mailing it through the post office.

Business to Business Buying
and Selling of Goods/Services
via Internet.


An example of this would be Office
Max. Office Max Online sells office
supplies to many businesses across the
globe. But they also buy their products
from wholesalers electronically through
the web in order to sell on their web
site for a maximized profit.

Benefits of Buying and Selling
Goods/Services via Internet.

Reduced the manual labor and stress of
placing these multitudes of orders

Saved the time of the person who
would be in charge of submitting these
orders manually.

Created organization (No need for
excessive paper work.

Business to
Business E


An example of B2B Emailing would be
an employee sending a letter via
internet to an employee at another
company, discussing price rate

Benefits of E

Saves time, by not having to go
through the manual preparation and the
number of days it actually takes for it to
go through the postal system.

Saves money by not using excess paper
or ink, and by not using postage.

Business to Business
Advertising of
Products/Services via


The shoe company Nike uses their
websites to display as well as promote
their shoes and apparel to retailers
(such as Foot Locker). In return the
retailers may purchase the advertised
products in mass online.

Benefits of Advertising of
Products/Services via Internet

Able to reach a more broad range of

Saves money

Reduces manual labor

Making and
Payments via


When a business orders supplies online,
more than likely they will also make an
online payment. This process usually
involves the buyer inputting their credit
card information.

Benefits of Making and
Receiving Payments via

Fast and Accurate

Accessible from home or office

Easily tracked or traced

Creating Awareness of Your

When a company does business
through the internet, it gives other
businesses and customers the idea that
the company is cutting edge and on top
of the game. This perception in returns
creates interest, which in returns
attracts business.

My Interview with
a Professional in
the Field

Stephen D. Smith


Davis Smith & Co. CPA

Reference in Bibliography



Q: What percent of your business transactions done through the web?

A: Estimated 60%

Q: What transactions do you actually make through the web?

A: I bill clients, send and receive bank statements, communicate with clients, I
also use email to send updates to my staff.

Q: How has the web process benefited you and your business?

A: It saves me time, money, and reduces stress levels within the company.

Q: What new and upcoming technologies are you looking forward to working

A: I am looking forward to work with web conferencing. My clients and I will
be able to have conferences from different cities and states face to face.

Interview Cont.


How do you think web technology will play a factor in business to
business relationships in 5 years?

A: I believe that in 5 years any business who is not up on the new
technology and information will be

In the USA, 78% of the small to medium
size firms are online, and more than a quarter
of those attribute an increase in revenue to
the application of Internet technologies. By
2003, business to business revenue is
expected to top $1.3 trillion. For the business
business marketplace that's a 3400%
increase from the $43 Billion in purchases



The future of Internet in
dealings with businesses.

Internet usage in businesses will
become a necessity not an option

Technology will keep improving and

“Businesses who do not keep up with
the new technologies will become
(Stephen Smith interviewee)


As times move forward so will technology. Businesses
will be forced to keep up with the technology. When
one company advances their technology, their
position in the playing field advances separating
themselves from the competition. If competing
companies do not also keep up they will be left
behind. Business to Business endeavors are greatly
affected by this technology movement. Companies
have saved billions of dollars from the reduction of
time and labor. The web allows businesses to move
more smoothly with less convenience. The future of
business is within cyber space.


Bibliography cont.


Stephen Smith of Davis Smith & Co.

(214) 951

Dallas, Tx