Sales & Marketing Institute of New Zealand
Friday 21 November 2008

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B2B e-Commerce: The Impact on Brands and Distribution »

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Speaker Nigel Varcoe, General Manager, Genie Systems Ltd
 
The internet is dramatically affecting the way we deal with our business customers. Customers expect to buy over the internet, simpler ordering processes, more information and reporting, faster delivery, fewer errors, and fewer out-of-stocks. And, they expect all of this at lower cost than before!

The way we sell and service our customers is changing radically. And, as marketers and sales people, B2B e-Commerce is encroaching on our territory.

So what is B2B e-Commerce? What relevance does it have to your customers? How will it affect your brand and your business?

Nigel Varcoe has worked with B2C and B2B, developing partnerships with ASB Bank, Telecom Directories (Internet Yellow Pagesâ and Internet White PagesÔ), Blue Star Business Supplies Group, many Fletcher Challenge companies, Farmers Trading Company, Fisher & Paykel, and Southern Cross Healthcare. His experience at WebMasters, Advantage e-Commerce and now at Genie Systems gives him superb insight into these questions. He'll use case studies and examples to show why B2B e-Commerce matters to you.

Genie Systems is the award winning developer of the OrderWare e-Commerce product. Nigel has recently joined the company to lead it in Australia and New Zealand. He combines real experience in e-Business with a broad business background and a pragmatic view of internet technology.

What Members Had To Say ...

Rather than B2C (business to consumer), the real business opportunities are B2B (business to business) according to Nigel Varcoe, General Manager, Genie Systems Ltd.

B2B means larger order sizes, dealing with multiple companies and employees, long term contracts, 'value' partnerships or equity driven relationships (ie not just price driven) and complex or multi payment methods, including supplier credit lines. The web has created more transparency, more uniform pricing and more knowledgeable buyers who can measure performance against other suppliers on the web. The focus on transactions can undermine the brand and the underlying customer relationship is becoming more important.

On the other hand, there are opportunities to build your brand through collaborations (eg sharing central business processes that facilitate business), improving or restructuring business processes between you and your partners, adding 'service' that goes beyond commodity focus, automating relationships, and reintermediations (bringing back the intermediaries) by offering more of your business to your partners.

Collaborating with anyone involved in your business process is a key strategy as we move towards an 'exchange' environment rather than a 'market' environment . And we need to always be aware of the degree of value we are creating for our partners when transacting with them. Finally, the strategy for us all is to attempt to automate as many transactions as possible.

- Phil Neilson, General Manager, Salaried Adviser Network, Colonial