Original Date: 06/02/2003
Revision Date: 01/18/2007
Information : Business-to-Business Interfacing
ABC Virtual Communications, Inc. takes a unique approach to offsetting the costs associated with initial software development by seeking to partner with vendors to offset these costs.
Most businesses seek ways to reduce initial development costs. ABC Virtual Communications, Inc.’s (ABCV’s) approach to this challenge resulted in the development of a unique decision-based process. Some companies absorb the initial costs in hopes that the return on investment will compensate for the work effort. This, however, can result in a high risk to the company based on uncertainties, such as the economy. Since this risk was too high for ABCV, the company found another process to support its initial development costs.
ABCV implemented a cost-sharing process to develop an interface with each business partner, which has resulted in an increase in revenue. By negotiating a lower-per-transaction cost for each new business partner, ABCV realized an improvement of its return on investment as well as greater customer satisfaction.
ABCV’s Business-to-Business (B2B) process continues to improve, while the company’s initial development costs are being reduced. This is a win-win situation for ABCV and its clients.
For more information see the
Point of Contact for this survey.