As the IBM’s e-procurement service was introduced, the pay back of this strategy is obvious. Many suppliers of IBM say it is easier to do business with IBM by using the e-procurement. The transaction is much faster, the respond time is more efficient, and the documentations exchange is faster and more secured. IBM’s e-procurement is open globally so once the supplier is register with IBM’s official website, that will be recognized almost every country in this world. Because of the speed of transaction, supplier will receive more efficient business messages and offers which increase supplier’s customer experiences.
IBM’s transformation results Pre-E (1995) After E (2001)
Purchase Order processing time 30 (days) 1 (day)
E-procurement spend $0 $40.3 billion
Off-contract spend 45% Less than 0.5%
Supplier Survey rating 5 1
Contract cycle time 6-12 (months) 30 (days)
Contract Size (per page) 40+ (pages) 6 (pages)
1.How e-business strategy does affect the business model?
2.How does organisation take best advantage of these changes, how do they retain the advantage?
3.What kind of risk metrics is IBM going to use to handle the risk to reduce costs?