Value in AgriFood B2B EC

1
Value in AgriFood B2B EC

• February 28, 2000

2
www.e-markets.com
3
The things that matter are the things that do
not exist
4
How does e-commerce create value?

• Market access increases
• Business scalability
• Virtual integration
• New liquidity created

• Decreased transaction costs
• Disintermediation
• Spatial fragmentation reduced
• Deadweight loss eliminated

5
Where does e-commerce create value?

• Supply/sales chain discrimination
• New pricing/risk mgt mechanisms
• Consumer touch

• Automates paper/labor (order mgt)
• Remakes brokerage function
• Asset leverage increases

6
How are new markets made?

• Where practical methods of value capture are
  created
• Information and/or execution vacuum exists and is
  eliminated
• Liquidity is created
• Expand your definition of market

7
Take-Away Thoughts

• The things that matter are the things
• that do not exist
• value, assets, markets, brands
• B2B is not trivial
• Create and capture value on information assets
• Meaning of control in agrifood industry changes
• e-commerce that makes a difference to consumers
  will impact significantly
• 41526