Instead of merely taking an existing business to the Internet, companies should use e-commerce as a sounding board that goads them to rethink their offerings. They should strive to create value by exploiting not only Internet’s vast reach but also its potential to expand the richness of products and services through enhanced information content and greater degree of customisation.

Certainly, existing businessmen can succeed in this new medium. Thanks to the fact that they have been in business for a long time, they possess critical assets that can give them an edge over start-up competitors. Their domain knowledge would be an important factor for success here.

Currently, B2B e-commerce accounts for large volumes of Internet trading which has been catalysed by suppliers to large companies such as General Electric. Several technology companies have transferred almost all their purchasing to the Web. One estimate is that B2B transactions account for as much as 80 per cent of all transactions on the web. Only the balance 20 per cent transactions emanate from the B2C segment.

While the B2C segment involves deeper understanding of customers, B2B e-commerce requires specific domain knowledge about a particular business.

Businessmen have to realise that B2B e-commerce is more than merely creating an on-line presence. It is not only about creating a website and matching buyers and sellers. It is also about concluding transactions successfully.

The Internet does away with much of this privileged access to information, shifting the competitive emphasis away from secrecy and move it towards transparency and absolute comparative value of the offerings.