http://www.massin.eu/2006/12/sourcing-and-procurement-market-overview-forrester-view-2006/ An European weblog for Purchasing professionals : eSourcing, eProcurement, eMarketplaces, KPIs, tools and methodology, market information... Tue, 27 Jul 2010 05:42:09 -0500 http://wordpress.org/?v=2.8.4 hourly 1 http://www.massin.eu/2006/12/sourcing-and-procurement-market-overview-forrester-view-2006/comment-page-1/#comment-69 What future for e-Marketplaces? - Strategic Sourcing | Europe Tue, 09 Jan 2007 15:22:12 +0000 http://www.massin.eu/2006/12/14/sourcing-and-procurement-market-overview-forrester-view-2006/#comment-69 [...] Early majority? 34 per cent of adopters? …how can it be! If we do speak about usage of online-trading e-Marketplaces (vertical, public or private portals enabling to buy products or services online) I would myself personally say that we are still in the innovator stage with no more than 2,5 per cent of adopters. Argument: If you add up all buy-side customers from all major vendors (read my learnings from a 2006 Forrester research) representing, according to 20/80 Pareto ruling, 80 per cent of the sector revenue and 20 per cent of total e-Marketplace clients, you end-up with ~1000 buy-side companies. So current market is involving more or less 10.000 enterprises total and… worldwide! Compared to the - few - 2M companies referenced in Kompass, this is less than 1 per cent. Ok, I could admit the early adopters stage has be reached within the fortune 1000 companies group, but that’s it. Right, so what are you thinking. Well, I mean that B2B applications didn’t pick-up yet; that they are not mature yet. Something key is missing (easiness of use and implementation, immediat benefit and return on investment) and have still to be invented. Coming years will be really interesting from this perspective. Acknowledging we are still in a very early stage of adoption after 7 years of experience is key for a proper understanding of what to do in the future in the B2B arena. As you probably understood, I am convinced the adoption level is still much too low; because of the cost and leadtime of deployment of an eProcurement solution; because of the lack of interoperability of current marketplaces; because of the lack of reliability of ASP providers (read the nice post from Jason Busch about Perfect Commerce); because of the too long ROI of such solutions…but most of all - I believe - because of the lack of speed and real-time benefits that anyone is expecting from web-based applicationa and can find elsewhere in competitive B2B or C2C e-Marketplaces like e-Bay or Alibaba somehow. Future applications have to be user-centric and not process-centric. This is where critical progress have to be made, I believe, to initiate the snow-ball effect expected in the Y2K; and this will most probably happen in B2B supplier networks. Let’s wait and see. Technorati Tag(s)  alain andreoli, B2B Marketplaces, b2b supplier, early adopter, eprocurement solution, everett rogers, e marketplace, fortune 1000, innovator, innovators, purchasing, supplier networks [...] [...] Early majority? 34 per cent of adopters? …how can it be! If we do speak about usage of online-trading e-Marketplaces (vertical, public or private portals enabling to buy products or services online) I would myself personally say that we are still in the innovator stage with no more than 2,5 per cent of adopters. Argument: If you add up all buy-side customers from all major vendors (read my learnings from a 2006 Forrester research) representing, according to 20/80 Pareto ruling, 80 per cent of the sector revenue and 20 per cent of total e-Marketplace clients, you end-up with ~1000 buy-side companies. So current market is involving more or less 10.000 enterprises total and… worldwide! Compared to the – few – 2M companies referenced in Kompass, this is less than 1 per cent. Ok, I could admit the early adopters stage has be reached within the fortune 1000 companies group, but that’s it. Right, so what are you thinking. Well, I mean that B2B applications didn’t pick-up yet; that they are not mature yet. Something key is missing (easiness of use and implementation, immediat benefit and return on investment) and have still to be invented. Coming years will be really interesting from this perspective. Acknowledging we are still in a very early stage of adoption after 7 years of experience is key for a proper understanding of what to do in the future in the B2B arena. As you probably understood, I am convinced the adoption level is still much too low; because of the cost and leadtime of deployment of an eProcurement solution; because of the lack of interoperability of current marketplaces; because of the lack of reliability of ASP providers (read the nice post from Jason Busch about Perfect Commerce); because of the too long ROI of such solutions…but most of all – I believe – because of the lack of speed and real-time benefits that anyone is expecting from web-based applicationa and can find elsewhere in competitive B2B or C2C e-Marketplaces like e-Bay or Alibaba somehow. Future applications have to be user-centric and not process-centric. This is where critical progress have to be made, I believe, to initiate the snow-ball effect expected in the Y2K; and this will most probably happen in B2B supplier networks. Let’s wait and see. Technorati Tag(s)  alain andreoli, B2B Marketplaces, b2b supplier, early adopter, eprocurement solution, everett rogers, e marketplace, fortune 1000, innovator, innovators, purchasing, supplier networks [...]

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