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Transaction automation on the internet: open electronic markets, private electronic markets and supply network solutions
by Matteo Di Biagi
International Journal of Electronic Business (IJEB), Vol. 2, No. 6, 2004
Abstract: The automation of economic transaction is considered one of the major advantages of IT development. EDI networks have managed to reach this objective in certain sectors and for a restricted number of firms due to the use of private networks (VAN) and by defining language standards. The new challenge that has been introduced with the internet is the transaction automation amongst multiple economic parties. In this paper, we will identify the conditions that allow electronic markets (EMs) – with indefinite number of parties participating in the transaction – to emerge. These same conditions can also be viewed as barriers to the diffusion of EMs by favouring other solutions for internet connection. Some empirical evidences from the steel industry will help reinforce the connection between these conditions and the solution for transaction automation, whether open EMs, supply network solutions (SNS) using closed internet systems, or intermediate models such as personalised or private EMs.
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