B2B' Watch your Mouth!

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There was a precious time then business-to-business (B2B) ecommerce was the
sweet darling of Internet-based business. Sure, Amazon.com has a great brand
name, but B2B was going to change the very nature of how business would be
conducted in the future. Proponents scoffed at consumer e-tailers while
pointing to the auto-exchange, Covisint, which is projected to handle some
$750 billion in goods annually at some not-to-distant point in the future.
And if Covisint saves automakers just 10 percent on procurement, well
goodness, that adds up.

Yet the promise of B2B ecommerce is now considered bogus in many business
circles, actually in most business circles. B2B has been called a false

Marketing Market Segmentation
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economy, the heart of irrational exuberance, a fool's gold that leads to
broken dreams and crushed dreamers. A surprising number of seemingly bright
and sincere executives hold B2B ecommerce responsible for the very downturn
itself.

Oddly, there is considerably less contempt for the area of ecommerce that

really has shown consistent signs of weakness, mass-market e-tailing. These

Market Value
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executives don't scoff at Expedia, eBay or Amazon.com with the same venom
they bring to online exchanges or supply chain management solutions. Yet if
you examine the list of 600 or so failed dot coms this year, the greater
number come from the world of consumer-based ecommerce.

The quiet secret not often discussed is that B2B ecommerce continues to show
remarkable signs of both present and future success far beyond consumer Net
sales. Consumer e-tailing has some success stories, but most fall into the
area of specialty sites that sell to consumer segments with intense special
interests such as hot foods, fly fishing, heirloom gardening or extreme
sports. These sites live stealth-like below the contempt radar. Most of these
special sites, when noticed, elicit admiration.

The bile of contempt is saved for B2B, the area of ecommerce that will almost
inevitably live up to its transformative promise - in time. And the very
executives who look on B2B with such disdain are actively in the process of
implementing e-business systems in their companies to assist with logistics,
supply chain analytics, inventory management, design collaboration, Web-based
conferencing, reverse auctions, customer relationship management, indirect
procurement and spot purchases.

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So why the heartfelt disdain' Part of the negativity is simply the result of
the audacity and arrogance of the young Internet entrepreneurs. The dot coms
showed up in virtually every business sector, announcing they had arrived to
turn the industry on its head, all without any depth of experience in the
industry. For all their audacity, they were rewarded with sky-high IPO
results after just a few quick months. Suddenly these interlopers were valued
higher than the decades-old ......