 |
 |
|
|
|
 |
The Future of Information Delivery | ||
|
|
|
|
|
|
By Leo Schlinkert CEO Communicator Inc Bricks and mortar companies are in a better position than ever to move into the B2B e-commerce arena because the threat from New Economy companies has subsided as it has become harder for them to access additional capital. The Old Economy companies, which have shown staying power, can successfully launch their business onto the Net, provided they offer solutions that benefit the marketplace. A prime example is the institutional securities industry, which has, for the most part, been years and several iterations ahead of other domestic industries in the development of B2B e-commerce markets and services. This lead time has given e-commerce professionals in the institutional securities industry the luxury to formulate proven solutions in e-commerce. The lessons learned in this industry can now be applied in the Old Economy vertical industries-in insurance, money management, professional services, specialty publishing, health care, chemicals, energy-which have been seeking, with mixed results, the correct formula to achieve efficiency from e-commerce while maintaining control of their core business interests. Over the last 10 years, communications in the financial services industry has progressed from the telephone and teletype to mail to Fed-Ex and fax and finally to e-mail and instant messaging over the Internet, all of which contribute to excessive clutter for the receivers of the information. Any professional involved with buying or selling is inundated with content. We have come so far over the last 18 months that Web site owners make more information available electronically than they ever had on paper. The amount of information has increased 10-fold while the cost has decreased 20-fold. The glut of information persists, while companies have fewer employees dealing with more information. Thus they need the information process simplified-and the information aggregated and personalized. In recent years, institutional investors have been bombarded with proprietary Web sites from broker-dealers in addition to third-party research providers. Navigating the increasingly numerous and disparate Web sites consumes an inordinate amount of time. Customers need a commingled site where they can quickly access information that is accurate, integrated, customized and updated, and where they can communicate with the author of that information. Dealers need a way to extend their brand names and commingle their proprietary content and services without compromising their existing Web platforms. Out of this necessity came "Bond.Hub," which was launched in December 1999 for Goldman Sachs, Morgan Stanley Dean Witter and Salomon Smith Barney and since expanded to include J.P. Morgan, Lehman Brothers and Merrill Lynch. Bond.Hub was the first industry portal to bring together all of the participating dealers' key information while maintaining control of the dealers' content, branding and customer relationships. Communicator will be launching a second portal covering new issue bond information and pricing for these six Wall Street Firms called "Syndicate.Hub." This business model has succeeded because it offers value to both sides, it aggregates the right information to the buyer without the need for a third party and it protects the seller's brand, content and customer relationship. Your top customers will demand aggregation of information and if you do not satisfy that demand a third party aggregator will. The volume and richness of information supporting sales, marketing and service functions is exploding, yet businesses still want a simple solution and they need easy access to multiple providers of information. The Internet provides a huge opportunity to increase the efficiency of these processes by aggregating the right information to the right professional at the right time. The next evolution will be instant messaging for business-to-business-wrapping immediate communications around the information. Although the focus in the marketplace today is on exchanges, improving the business practices before and after the negotiation of price is more valuable. To ensure the success of your B2B initiative, rely on a solid, proven business model and a technology partner that has implementation experience. Bricks and mortars of today will become bricks and clicks of the future provided they develop a strategy that benefits the marketplace. Leo Schlinkert is president and CEO of Communicator Inc., a business-to-business electronic commerce company founded in 1999 to create industry Hubs. as printed in Futures Industry Magazine - December / January 2001 |
|
|
|
|
|