E hub

From CEOpedia | Management online

E - hub is Internet based platform for B2B. It is e-market, business-to-business toll which provides conducting businesses beetwen buyers and sellers in online way (L. Li 2007, p. 297).

"The e-HUB software architecture design strategy, from a business perspective, was to lower the costs related to its implementation in order to provide a reasonable price for the e-services to the SMEs. This goal was reached thanks to an intelligent combination of open source technologies that made possible designing an affordable software architecture by integrating the following technologies: corporate portals, Enterprise Architecture Integration (EAI) and Service Oriented Architecture (SOA), Workflows andBusiness Process Management (BPM)."(D. Concha, J. Espadas., D. Romero, A. Molina 2010, p.2)

E-hub categories

From point of view of Steven Kaplan and Mohambir Sawhney there are four categories of e-hubs (2000, p. 98):

  • MRO hubs - horizontal market within systematic sourcing of operating inputs is included
  • Yield managers - horizontal markets in which spot sourcing of operating inputs is included
  • Exchanges - vertical markets that include spot sourcing of operating inputs
  • Catalog hubs - vertical markets in which systematic sourcing of operating inputs is included

Advantages of e-hubs

According to R. Corchuelo e - hub has flexible both usage and pricing features. Capability of instant access provides for company ways to connect and take advantages of outsourced appications in case they need them. Companies pay for what they use; it is called pay-as-you-go pricing model (2003, p.36).

There is also one more advantages of using e - hubs. "...e - Hub is shared, standarised, scalable infrastructure so that a virtual or private e-hub can be bulit on the managed infrastured e hub infrastructure fondation. These virtual hubs can share the horizontal services and virtual industry application, and even value-added services hosted by the e - Hub" (R. Corchuelo 2003 p. 36).

From the buyer's side there is also big advantege: participating in e - hub may reduce costs of transaction, icrease spirit of competitiveness inside e-hub (results: lower prices) and reduce cost of purchasing search (W. L. Wallace, Y. Xia, 2015, p.154).

According to C.C. Lu, K.M. Tsai, J.H. Chen and W.T. Lee "E-Hub interfaces with (…) Enterprise Information Systems (ERP) and Customer Relationship Management (CRM), through a database management system (DBMS), which ensures data format compatibility between the EISs and the E-Hub and extracts the latest data (e.g., inventory and forecasts) from the EISs. The hub regularly talks to the DBMS, to ensure information consistency between internal (at A-KH) and externaldatabases (at E-Hub)."( 2013, p. 205)

Examples of E hub

  • Alibaba Group: Alibaba Group is a Chinese e-commerce and internet company founded in 1999. The company provides an online trading platform which allows buyers and sellers to conduct B2B transactions. Alibaba Group offers services such as e-commerce, artificial intelligence, cloud computing, and digital media.
  • Amazon Business: Amazon Business is an online marketplace for businesses to buy and sell products. The platform provides access to millions of products from hundreds of suppliers, including both large and small businesses. Amazon Business offers customers a wide range of features, such as bulk discounts, free shipping, and a personalized shopping experience.
  • TradeKey: TradeKey is an online B2B marketplace which connects buyers and sellers from around the world. It provides an online platform for companies to showcase their products and services and facilitates transactions between buyers and sellers. TradeKey also offers a range of services, such as digital marketing, logistics, and business consulting.

Limitations of E hub

E-hub is an internet based platform for B2B that provides an online way for conducting businesses between buyers and sellers. However, there are several limitations to using this platform for businesses. These include:

  • Security: E-hub does not offer much security for businesses when it comes to conducting transactions. There is a risk of data being compromised or stolen, and businesses need to take extra precautions to protect themselves.
  • Reliability: The reliability of E-hub can be uncertain as the platform is not always reliable and could be prone to outages. This could leave businesses unable to conduct their transactions, resulting in a loss of time or money.
  • Limited Functionality: E-hub is limited in terms of the functions it can provide. This can make it difficult for businesses to perform certain tasks, such as creating invoices or tracking shipments.
  • Cost: E-hub can be expensive for businesses to use, as there is usually a subscription fee or transaction fee associated with the platform.
  • Complicated Setup: The setup process for E-hub can be complicated, as businesses need to configure their accounts and connect with other businesses in order to use the platform. This can be time consuming and take away from the time spent focusing on other aspects of the business.

Other approaches related to E hub

To complement the usage of E-hub, there are several other approaches to facilitate B2B transactions. These include:

  • Electronic Data Interchange (EDI) - EDI is an electronic way of exchanging data between businesses. It allows businesses to transact online without the need to manually input data.
  • Online Marketplaces - Online marketplaces are web-based platforms where buyers and sellers can meet, interact, and do business. They provide an easy and efficient way to search for products and services, compare prices, and make purchases.
  • Supply Chain Management (SCM) - SCM is a system that helps manage the flow of goods and services, from procurement to delivery. It allows businesses to better manage their inventory and improve their efficiency.
  • Collaborative Commerce (C2) - C2 is a type of business model that focuses on collaboration between businesses to improve efficiency and cost savings. It involves sharing information and resources, and working together to improve processes and optimize operations.

In summary, E-hub is one of the most effective ways to facilitate B2B transactions. Other approaches, such as EDI, online marketplaces, SCM, and C2 can also be used to improve the efficiency and effectiveness of business-to-business transactions.


E hub — recommended articles
Reintermediation — Bricks and clicks model — Extended enterprise — Service delivery architecture — Centralized purchasing — EDI systems — Distribution channel strategy — Hybrid business — E-commerce

References

Author: Dominika Kuraś

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