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Chapter V. The Potential of B2B Commerce... > Barriers to Achieving the Potential ...

Barriers to Achieving the Potential of B2B Commerce

However, there are considerable barriers to B2B commerce achieving its full strategic potential as outlined below.

Seamless Integration?

Much of the evidence presented has shown how companies can exploit the open standards technology of the Internet to link up with suppliers that they have traditionally traded with manually or to access new suppliers. The Internet has made a communication medium similar to EDI available universally, so that adding or deleting trading partners is a much more straightforward process (Tyler, 1999). With better linkages, transaction costs will be reduced, and the relationship between the buyer and supplier will be more efficient and effective. Tapscott, Ticoll, and Lowy (2000) argue that “pervasive, elegant, and cheap Internet technologies enable true end-to-end integration, fusing enterprises with one another and bringing the customer inside the value chain.” However, there is still the significant problem of incompatibility of the systems of the trading partners. There is evidence to suggest that closed network problems can also affect the Internet with business-to-business electronic commerce running up against application interfaces that inhibit the operation of a fully transparent environment between trading partners. For example, with an e-procurement system, it is important to ensure consistency of purchase, and that the purchasing professional has control of the system with the necessary authorization procedures established. The system should have to be integrated with the internal systems of the customer organization. Also, externally, order information from this system should be easily transferable to the systems of suppliers. Therefore, standards would have to be agreed on so that the systems of the customer and suppliers would be directly interfacing with each other.


  

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