Thursday, February 19

The fall of B2B e-commerce

Rich Smith on The Motley Fool reports about the failures of B2B business-to-business e-commerce. B2B e-commerce was supposed to be a revolution in the marketplace, a new way of doing business that would slash the costs of how businesses bought and sold products to each other.He sights the example of CommerceOne, the rise and decline of it.

"One more telling point: the company's description of its business (you can see it here) no longer even refers to business-to-business as Commerce One's primary focus. Today, it focuses on "Composite Process Management". And while its B2B software still apparently has some ability to generate revenues -- the company has licensed its Commerce One Auction, Auction Services, Buysite, Catalog, and Marketsite packages to Mitsubishi Corporation -- those revenues have fallen by roughly half between 2002 and 2003."