19/07/2000
Beijing

Content

Global B2B market overview
Evolution and stages
Investment and market size
Classifications
Benefits from B2B
Domestic B2B market overview
Evolution and stages
Investment and market size
Classifications
Analysis
Maturity
Legislation & policy
Infrastructure
On-line payment
CA
Security
Logistics
Involvement
Professionals
Revenue
Revenue sources
Revenue structure
Services
Rules and regulations
Conclusion
Future B2B patterns
Combination with traditional industries
Strategic alliances
Problems
Profiles for major websites surveyed
Appendix
Appendix 1About this survey
Appendix 2References

Global B2B market overview
Evolution and stages
Prior to 1995, B2B took the form of EDI networks, when e-commerce was initiated. Then it evolved into basic e-commerce by 1999, a period when USA e-commerce was booming. Now, e-commerce in USA is at the stages of stable growth with B2B E-commerce being the mainstream. In terms of patterns, e-commerce started with many-to-one relations between suppliers and buyers. However, because EDI systems are closed, expensive and non-scalable, such many-to-one pattern prevented more SMEs from entering into e-commerce. With easier and cheaper access to Internet afterwards, many-to-one pattern was replaced with a one-to-many pattern due to the market efficiency when Internet became more and more public and secure. During this period, suppliers were playing the major roles. After 1999，a many-to-many model is believed to be more efficient and effective with deep penetration of Internet into enterprises.

Chart 1

Investment and market size
The powerfulness of Internet lies in that it dissolves countless transaction costs and explores borderless market space over limitations of locations. Driven by the great opportunities brought about by Internet, a pool of resources, especially capitals, are diverted to this new economy in a hope to reap much greater benefit which would otherwise be sunk costs if operated in traditional way. Below are two facts that consolidate this trend.

Table 1(in billions of Dollars)
Capital investments on internet-oriented companies

Business model
Ceiling
Numbers of companies
The most valuable company

Portal
326American online

ISP
243
64
exodus

Infrastructure
186
25
juniper

B2b software
182
50
ariba

e-commerce
95
47
ebay

ASP
64
45
scient

Comprehensive service provider
61cmgi

Internet market and advertisements
50
24
doubleclick

e-financing
49
22
intuit

Vertical
39
44
tmp

b2b
30verticalnet

Total：1326 353

Source: Morgan Stanley Dean Witter

Table 2(in million of Dollars)
Values of b2b companies in the capital market

Company
Stock Price
The highest market cap

verticalnet
184
6547

freemarkets
184
6529

ventro
109
4859

purchasepro
120
3740

onvia
31
2459

neoforma
29
1698

emerge
47
1248

fairmarket1036

sciquest
40
966

iprint497

rowecom
21
214

partsbase197

b2bstores92

Total number：13
Total value：$30082

Source: Nasdaq