Hub Classification and Taxonomy
           
          Definition of an eHub
          An eHub is defined as neutral Internet based intermediaries that focus on
          specific industry verticals or business processes, host electronic marketplaces,
          and use various market making mechanisms to mediate any-to-any transactions
          among businesses.

          B2B E-Commerce Hubs: Towards a Taxonomy of Business Models - Steven Kaplan, Mohanbir
          Sawhney

          IT Services Hub Classification
          The two intermediaries that we have looked at; It Square.com and It-radar.com, follow a value creation mechanism (matching). These hubs are functional hubs and are horizontal in nature. They are not industry specific.

          Horizontal marketplaces cut across industries and automate functional processes, such as maintenance, repair, and operations procurement, project management, human resource services, advertising, IT services and so on.

          Horizontal marketplaces seek to make the process more efficient; often these horizontal marketplaces are an extension of enterprise software or services (such as buy-side software or IT outsourcing services).

          Steven Kaplan and Mohanbir Sawhney classify B2B hubs based on Purchase situations. The two-way classification -manufacturing input versus operating input (the "what"); and systematic sourcing versus spot sourcing (the "how") allow us to categorize the IT services portals to the MRO hub (operating supplies, systematic sourcing).

               Operating Supplies                        Manufacturing inputs
          MRO Hub
          ITSquare.com
          IT Radar.com
           (systematic sourcing)
          Catalogs Hub
          (systematic sourcing)
          Yield Managers
          (transaction sourcing)
          Exchanges
          (transaction sourcing)
           Classifying IT Services B2B Hubs

           
           

          Value Adding Mechanism
          Fundamentally, hubs create value by two different mechanism - aggregation and matching.
          IT Sqaure.com and It radar.com follow the matching mechanism. The matching mechanism is a trade mechanism that creates value by bringing buyers and sellers together to negotiate prices on a dynamic and rea-time basis. The source of value creation in the matching mechanism is improved matching due to improved liquidity.

          These hubs are neutral hubs, those that do not favor buyers over sellers or vice versa. Neutral hubs, by definition are faced with a "chicken-and-egg" problem, in that they need to get buyers as well as suppliers into their system, without compromising neutrality. The benefit that neutral hubs have, is that they are true "market-makers", because they bring both buyers and sellers.
           


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