Electronic markets (or electronic marketplaces) are information systems (IS) which are used by multiple separate organizational entities within one or among multiple tiers in economic value chains. In analogy to the market concept which can be viewed from a macroeconomic (describing relationships among actors in an economic systems, e.g. a monopoly) as well as from a microeconomics (describing different allocation mechanisms, e.g. public auctions of telephone frequencies) perspective, electronic markets denote networked forms of business with many possible configurations:
First, the topology of electronic markets may be centralized or decentralized in nature. Centralized electronic markets are hubs which often provide services to their participants. Decentralized settings involve sequential relationships within value chains which often are found when electronic messages are exchanged directly between businesses (electronic data interchange, EDI).
Second, the services provided by electronic markets may serve infrastructural or allocation purposes. Among the infrastructure services are routing, messaging, identification and partner directories whereas allocation services enable pricing process which in turn may be static or dynamic in nature. Typical implementations are catalogs, exchanges and auctions.
Third, the relationships of actors involved in electronic markets may be stable or atomistic in nature. The former usually refers to classical supply chains where business collaborate during a longer period of time. In the latter case, the transaction partners are only stable for a single transaction. This is usually to be found in auction and other exchange settings.
This leads to two definitions: In a narrow sense Electronic Markets are mainly conceived as allocation platforms with dynamic price discovery mechanisms involving atomistic relationships. Popular examples originate from the financial and energy industries. In a broader sense, price discovery is not critical for electronic markets. This covers all forms of electronic collaboration between organizations and consumer as well as vice versa.
Smart Life through E-MARKET
To be the most innovative and best e-market solutions provider of the customers of the dynamic changing world
- Innovation and creativity
- Emotional, Honesty, Loyalty, Respect and Patriotism
- Open Mindedness
- Employee Position Descriptions – Define the role of every employee, including their level of responsibility, amount of authority for decision-making, overarching goals and specific tasks. Also create methods for monitoring performance and developing employees through training.
- Disciplinary Action – Address issues of honesty, performance, safety and misconduct, and determine what constitutes a violation of company policy, as well as how employees will be disciplined if they violate certain rules.
- Privacy – Protect employees, the company and your customers by establishing a policy that encourages transparency and trust with your customers.
- Credit – Determine the terms of opening an account and building good credit with your company. Set an acceptable amount of time for payment, and establish consequences when payment is overdue or not received.
- Confidentiality – Protect sensitive information, and be sure to cover relationships with vendors, customers and other suppliers.