The Dynamics of eCommerce Networks

eCommerce networks, or groups of companies collaborating over the Internet, have the potential to revolutionize the efficiency and responsiveness of business. These networks are still far from mature, but they will ultimately transform every major business process—from logistics to R&D to financing to customer service. Drawing from a recently completed, exhaustive study of over 160 organizations, we explore the potential of eCommerce networks as well as the obstacles they must overcome. The paper outlines four basic types of eCommerce networks, and focuses on the most rapidly evolving type, the eMarket. The paper concludes with practical advice for companies seeking to benefit from participating in eCommerce networks.