Electronic markets

Electronic markets (or electronic marketplaces) are information systems (IS) qui are used by multiple separate organizational entities Within one third gold in multiple Among economic value chains . In analogy to the market concept qui peut être viewed from a macroeconomic (Describing Relationships among actors in year economic systems, eg a monopoly ) as well as from a microeconomic (Describing different allocation Mechanisms, public eg auctions of phone frequencies) perspective, electronic markets Denote networked forms of business with many possible configurations:

First, the topology of electronic markets may be centralized or decentralized in nature. Centralized electronic markets are hubs that often provide services to their participants. ( Electronic data interchange , EDI). In this paper, we describe the use of electronic data interchange (EDI).

Second, the services provided by electronic markets may serve as infrastructure or allocation purposes. Among the infrastructure services are routing, messaging, identification and partnering services. Typical implementations are catalogs, exchanges and auctions.

Third, the relationships of actors involved in electronic markets may be stable or atomistic in nature. The former usually refers to classical supply chains where business collaborates during a period of time. In the last case, the transaction partners are only stable for a single transaction. This is usually found in auction and other exchange settings.

In this paper, we describe the relationship between the two main features of the market. Popular examples from the financial and energy industries. In a broader sense, price discovery is not critical for electronic markets. This covers all forms of electronic collaboration between organizations and consumers.

Examples

  • Company websites that serve communication and transaction purposes
  • Electronic purchasing systems on EDI-based
  • Systems that support the configuration of products, such as car configurators
  • Automated download of product information on the scan of an article numbervn
  • Activation of an emergency chain based on the monitoring of heart frequency
  • Social networks that link consumers, such as recommendation communities

Impacts on business efficiencies

Electronic markets are attributed important impacts on business efficiencies. From an industry perspective, transaction cost economics were used to illustrate the relationship between electronic markets and electronic hierarchies. While the training is in line with the narrow electronic markets definition, the latter are also included in the broader definition. This may be explained by the fact that it is possible to combine several modes of governance or types of coordination mechanisms. These “all-in-one-markets” link the possibility of competitive bidding for price discovery with the advantages of a predictable relationship to non-contractible issues and functionalities for closer collaboration.

References

  • Alt, R. and S. Klein (2011). “Twenty Years of Electronic Markets Research – Looking Backwards to the Future.” Electronic Markets 21 (1): 41-51.
  • Kaplan, S. and M. Sawhney (2000). “E-Hubs: The New B2B Marketplaces.” Harvard Business Review 78 (3): 97-103.
  • Malone, TW, J. Yates, et al. (1987). “Electronic Markets and Electronic Hierarchies.” Communications of the ACM 30 (6): 484-497.
  • Österle, H. and B. Schmid (2008). “Quo Vadis Electronic Markets?” Electronic Markets 18 (3): 206-210.
  • Standing, S., C. Standing, et al. (2010). “A Review of Research on E-Marketplaces 1997-2008.” Decision Support Systems 49 (1): 41-51.

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