1 of 1 people found the following review helpful:
5.0 out of 5 stars
Clear introduction into electronic marketplaces/e-hubs, November 19, 2001
This review is from: E-Hubs: The New B2B Marketplaces (HBR OnPoint Enhanced Edition) (Digital)
Steven Kaplan is Professor of Entrepreneurship and Finance at the University Of Chicago Graduate School of Business, and Mohanbir Sawhney is Professor of Electronic Commerce and Technology at Northwestern University's J.L. Kellogg Graduate School of Management. This article was published in the May-June 2000 issue of Harvard Business Review.
In this article the authors introduce a classification scheme for the new business-to-business (B2B) marketplaces, which they call electronic hubs (e-hubs). For this four-way classification scheme the authors introduce a B2B matrix split up by two distinctions: operating inputs vs. manufacturing inputs, systematic sourcing vs. spot sourcing. This results in four categories: (1) MRO hubs are horizontal markets that enable systematic sourcing of operating inputs; (2) yield managers are vertical markets that enable spot sourcing of operating inputs; (3) exchanges are vertical markets that enable spot sourcing of manufacturing inputs; (4) catalog hubs are vertical markets that enable systematic sourcing of manufacturing inputs. For each of these categories the authors introduce the more famous examples. The authors then discuss the market-matching mechanism of the different e-hubs: "E-hubs create value by two fundamentally different mechanisms: aggregation and matching. E-hubs that use the aggregation mechanism bring together a large number of buyers and sellers under one virtual roof. The matching mechanism brings buyers and sellers together to negotiate prices on a dynamic and real-time basis." The authors also discuss another important characteristic of an e-hub, its bias. Some e-hubs are neutral and operated by third parties, but e-hubs can also be biased and favor either buyers or sellers. These are called either "reverse" or "forward" aggregators respectively. There is an additional discussion on the effect of e-hubs on workflows and processes, which are in some cases made more efficient.
Yes, I did like this article very much. Perhaps this article does not provide great new insights for professionals and specialists, but for non-IT specialists (like myself) the authors' classification scheme provides a great introduction into the different types of B2B marketplaces/electronic hubs. The article is written in understandable US-English.
Help other customers find the most helpful reviews
Was this review helpful to you? Yes
No
