A01 chaf6542 06 se fm indd

Market adoption/propensity for online purchase

Information services

Chemical manufacturer

Professional services

(consultancy)

Engineering company

(high-cost, low-volume)

Traditional books/CDs

Digibooks

Air tickets

Grocery retailer

Magazine publisher

Engineering company

(low-cost, high-volume)

Drug retailer

Low

Low

High

High

Product suitability = opportunity = risk

Table 5.7

Vision of online revenue contribution for a B2B company

Products/services

Now

2 years

5 years

10 years

Example: Cars, US

  5%

10%

25%

50%

Direct online sales

50%

70%

90%

95%

Indirect online sales

Financial services

Direct online sales

Indirect online sales

Clothing

Direct online sales

Indirect online sales

Business office supplies

Direct online sales

Indirect online sales

M05_CHAF6542_06_SE_C05.indd   215

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Part 2  Strategy and applications

An equivalent  buy-  side measure to the online revenue contribution is the proportion of 

procurement that is achieved online. This can be broken down into the proportions of elec-

tronic transactions for ordering, invoicing, delivery and payment (as described in Chapter 7). 

Deise et al. (2000) note that the three business objectives for procuring materials and services 

should be improving supplier performance, reducing cycle time and cost for indirect pro-

curement, and reducing total acquisition costs. Metrics can be developed for each of these.