It describes commerce transactions between businesses, such as between aÂ manufacturerÂ and aÂ wholesaler, or between a wholesaler and a retailer. Other terms used areÂ business-to-consumer andÂ business-to-government.
Business Models for Conducting B2B E-Commerce (fig 1.2)
There are various different business models available for electronic businesses. In general, a business model is an organization's approach to doing business. Although there are many different business models available, most have several common core concepts.
Even for the most primary business model, a company must have something of value to offer to the market, it can be either products, or services.
Gaining and maintaining the trust of the customers is the company's most important function
Any organisation requires the necessary infrastructure to provide their services to the customers.
The business model also needs to include consideration of the company's income and cash flow as well as its cost structure.
Advantages of E-Commerce for B2B Businesses
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As shown in Fig 1.1, the traditional business model for business-to-business operations involves procurement staffs that negotiate with various suppliers. For example, a electronics store may procure televisions from several distributors and office supplies from one or more other suppliers. In the e-commerce business model, a procurement staff (typically smaller than the staff necessary in the traditional business-to-business model) shops online for supplies and other items necessary to the business. Just as it does for the consumer in the business-to-consumer business model, the Internet allows businesses to comparison shop online in order to find the most appropriate product at the best price. This reduces many of the front-end costs for finding goods and products that are incurred in the traditional model.
Accenture is a globalÂ Management and technological consultancy and technological outsourcing company. Its global headquarters is situated in Chicago.Â It is said to be the largestÂ consulting firmÂ in the world, as well as being a global player within the technology consulting industry.Â Accenture is aÂ Fortune Global 500Â company.Â As of 2010, the company has over 190,000 employees in 200 locations in over 120 countries. Accenture's current clients include 96 of theÂ FortuneÂ Global 100 and more than three quarters of theÂ FortuneÂ Global 500.
Accenture and E-Commerce-
Accenture provides its consultancy services to around 31 types of industries all around the globe. They currently have a staff of 190,000 employees working from 200 offices in 120 countries. To achieve this success they have to depend extensively on technology.
Whenever a new consultant is appointed, Accenture systems automatically set up an email account and instructions on where to pick a laptop. Managers rely heavily on telephone and email to keep up with their staff, and many of them are constantly in motion. Every-day, Accenture employees log on to the company's internal website, which they can access from anywhere in the world. They use this system to record where they are working and to access email, phone messages and their files. The system enables them to share documents and data with their colleagues and to conduct videoconferences whenever a more face-to-face interaction is necessary.
From finding meeting destinations, to getting documents, to keeping track of employee locations, everything is done via e-business model.
Business model for Accenture
AÂ business modelÂ describes the rationale of how an organisation creates, delivers, and captures valueÂ - economic, social, or other forms of value. The process of business model design is part of business strategy.
Fig 1.3 shows the various components of a business model required in any company. While forming model for Accenture, the following components will have to be considered-
Mission Statement- To become one of the world's leading companies, bringing innovations to improve the way the world works and lives.Â
Core Values- Since its inception, Accenture has been governed by its core values. They shape the culture and define the character of our company. They guide how we behave and make decisions.
Client Value Creation
One Global Network
Respect for the Individual
Inclusion and diversity-
Finding right people for the right job
Grooming them for global careers and exceeding their expectations though our visionary culture.
Always on Time
Marked to Standard
Accenture taps into new ideas and creativity that benefit our people and the communities in which we live and work, and that, ultimately, helps our clients achieve high performance.
Key activities- being a consultancy firm, the major activities which is required to execute the business model of Accenture are as follows:
Regular communication between the consultants and the company via intranet.
Managers extensively use email and phone to keep track of their subordinates since Accenture.
Key partners all over the world so as to provide meeting locations and other facilities whenever required.
A team of consultants or experts to divert the request of a particular customer to the right consultant within the promised time.
Video conferencing facilities have to be provided if a face-to face interaction is necessary with both colleagues and clients since Accenture has lesser number of offices.
In Accenture the important resource are the employees themselves.
Being a consultancy firm, employees need to be available to cater to the customers at all times.
Partner Network- Accenture has various partners pertaining to the variety of products that it offers, some of the alliances that Accenture has made are with the following companies-
Customers- since Accenture is a b2b company, it caters to only other businesses and industries.
Industry segments- some of the industried which Accenture offers its services to are:
Aerospace and defence
Consumer goods and services
Electronics and high tech
Freight and logistics
Health and public services
Media and entertainment
Channels- to subscribe to the consultancy services of Accenture, one of the following is possible:
A company could state its problem in detail and send it directly through the official Accenture website.
Contacting via email and phone is also one of the methods of reaching Accenture.
Companies can then expect a return call from Accenture within 2-3 business days.
Else, if Accenture finds a suitable proposition for a company, they contact them directly with a proposal.
Accenture also believes in after sales support service. They keep regular tabs on how the services provided are benefiting the organisation and tend to have a long term relationship with the customers.
Customer relationship- Accenture helps to solve the following problems for their clients.
By offering a series of various services Accenture helps a company to become more efficient in every aspect both within and outside the organisation
It helps in making the organisation structure lean.
Helps in implementing ERP systems in a company thereby reducing the communication barriers
It also advices company on how it can become a global enterprise.
From within the organisation, it helps in improving the organisation culture to suit the requirements of the company.
It also offers services in customer relationship management.
Value Proposition- organisation culture, infrastructure and customer relationship eventually contribute to the value of the company. Accenture, as an end product provides three different types of consultancy services, the products for the same are as follows
Customer relationship management
Enterprise performance management
Finance and performance management
Human resource management
Leadership and talent management
Process and innovation performance
Supply chain management
Talent and organisation performance
Workforce performance management
Accenture and cicco business group
Application portfolio optimisation
Data centre technology and operations
Data management and architecture
Global delivery and sourcing
Human capital management solutions
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Revenue Model- A copy of the balance sheet for the year 2009 has been attached (fig 1.4). Net revenues by operating group for the full fiscal year were as follows:
Communications & High Tech: $4,831 million, compared with $5,450 million for fiscal 2008, a decrease of 11% in U.S dollars.
Financial Services: $4,323 million, compared with $5,005 million for fiscal 2008, a decrease of 14% in U.S dollars.
Products: $5,530 million, compared with $6,069 million for fiscal 2008, a decrease of 9% in U.S. dollars.
Public Service: $2,984 million, compared with $2,871 million for fiscal 2008, an increase of 4% in U.S. dollars.
Resources: $3,880 million, compared with $3,963 million for fiscal 2008, a decrease of 2% in U.S. dollars.
Net Revenues by Geographic Region- Net revenues by geographic region for the full fiscal year were as follows:
Americas: $9,403 million, compared with $9,726 million for fiscal 2008, a decrease of 3% in U.S. dollars.
Europe, Middle East and Africa (EMEA): $9,904 million, compared with $11,546 million for fiscal 2008, a decrease of 14% in U.S. dollars.
Asia Pacific: $2,270 million, compared with $2,115 million for fiscal 2008, an increase of 7% in U.S. dollars.
Organisation Structure & Management
Organisation structure- a layout of the structure at Accenture has been given in fig 1.5 in appendix. Accenture delivers its services and solutions through 17 focused industry groups in five operating groups: Communications & High Tech, Financial Services, Products, Resources, and Government. Accenture's organisational structure also includes employee workforces: Consulting, Services, Enterprise, and Solutions. Accenture is a publicly traded company governed by a board of directors which has four standing committees: Audit, Compensation, Nominating & Governance, and Finance.
Board of Directors-
William D. Green- Chairman & CEO
Jo Deblaere- Chief Operating Officer
Pamela J. Craig- Chief Financial Officer
Kevin M. Campbell- Group Chief Executive-Technology
Gianfranco Casati- Group Chief Executive-Products
Martin I. Cole- Group Chief Executive-Communications & High Tech
Shawn Collinson- Managing Director-Industries & Market Innovation
Karl-Heinz Floether- Chief Strategy & Corporate Development Officer
Mark Foster- Group Chief Executive-Global Markets and Management Consulting
Robert N. Frerichs- Group Chief Executive-North America
Chikatomo Hodo- Country Managing Director and Geographic Unit Lead -Japan
Roger Ingold- Country Managing Director-Brazil
Adrian Lajtha- Chief Leadership Officer
Gong Li- Chairman-Greater China
Lori L. Lovelace- Executive Director-Office of the CEO
Harsh Manglik- Chairman & Geography Managing Director-India
Vicente Moreno- Country Managing Director-Spain
Pierre Nanterme- Group Chief Executive-Financial Services
Jeffrey Osborne- Chief Performance Officer
Donald J. Rippert- Chief Technology Officer and Managing Director-Technology
Stephen J. Rohleder- Group Chief Executive-Health & Public Service
David P. Rowland- Senior Vice President-Finance
Michael J. Salvino- Group Chief Executive-Business Process Outsourcing
Douglas G. Scrivner
Julie Spellman Sweet- General Counsel, Secretary & Chief Compliance Officer
Jill B. Smart- Chief Human Resources Officer
Sander van 't Noordende- Group Chief Executive-Resources
Roxanne Taylor- Chief Marketing & Communications Officer
David C. Thomlinson- Senior Managing Director-Geographic Strategy & Operations
Diego Visconti- International Chairman-Strategic Countries