The critical success factors for the implementation of b2b exchanges are early liquidity, the right owners, the right governance, openness and a full range of services.
Liquidity meant the number of participants and the transaction volume. Early liquidity meant the earlier a business achieves the necessary liquidity level, the better its chances for survival. When they have more buyers to trade, more suppliers will come which will increase liquidity.
Having the right owners are also one of the ways to increase liquidity as they will partner up with companies that can bring liquidity to the exchange.
The right governance is also important as good management, effective operations and rules are critical to success. It provides the rules for the exchange, minimize conflicts, and supports decision making. It also reduces conflicts between owners and participants.
The factor of openness must be implemented as exchanges must be open to all, from both organizational and technological perspectives. Using the wrong standards may hurt the exchange.
Lastly, a success factor for exchanges is to have a full range of services. Buyers and sellers are interested in cutting their total costs. Therefore, exchanges that help cut inventory costs, spoilage, maverick buying, and so on, will attract participants. Many exchanges team up with banks, logistics services and IT companies to provide support services.
2. Define m-commerce & discuss at least six drivers of m-commerce
Mobile commerce or M-commerce that’s also known as m-business is defined as ‘any e-commerce done in a wireless environment, especially through the internet’. It is a natural extension to the e-business and it gives mobile devices an opportunity to create and deliver new services to existing customers plus attracting new ones. The six drivers of m-commerce are the widespread of availability of devices, no need for a pc, the handset culture, vendors push, declining prices and improvement of bandwidth.
The availability of devices is a driver as there are now significantly more cell phone users than internet users in most countries of the world. In several countries, 80 percent of the population has a cellphone.
There is also no need for a pc as nowadays the internet are accessible through smartphone or any other internet enabled wireless device.
The handset culture is the widespread use of cell phones that are becoming a social phenomenon, especially among the 15 to 5 year old age group.
Vendors push is when both mobile communication network operators and manufacturers of mobile devices are advertising its potential mcommerce applications so they can push new technologies, products and services to buyers.
The price of wireless devices are reducing which meant prices are declining for the per-minute pricing of mobile services.
Lastly, the improvement of bandwidth is also a driver. To properly conduct m-commerce, it is a must to have enough bandwidth for transmitting text and for voice, video plus multimedia components.
3. Discuss at least five characteristics of successful e-payment methods.
The five characteristics of successful e-payment methods are independence, interoperability and portability, security, anonymity and divisibility.
Independence is needed as some forms of epayments require specialized software or hardware to make the payment. Those epayment methods that require the payer to install specialized components are less likely to succeed.
Other characteristics of successful e-payment methods are interoperability and portability. An e-payment method must mesh with these existing systems and applications and supported by standard computing platforms.
Next, security is needed because customer doesn’t want the transfer to be compromised. If the risk of the...