Surviving business-to-business B2B companies have to change business models to incorporate more value-added services in order to survive, according to Richard Demoll, vice-president of Cap Gemini Ernst Young.
I think there has been a resistance in the market place to paying a very high transaction price. Some marketplaces were looking at taking a percentage of dollars that would go through the marketplace. Other sites looked at the transactional unit pricing model.
Under both forms, there has been pressure to lower the cost of bringing the transaction to the marketplace for customers, explains Demoll. Therefore, you have to find other services you can take to the marketplace to generate revenue, and frankly, more reason...
