When the Internet boom started, people thought that since you can sell on the Internet, market will increase. So people concentrated more on the selling side of the value chain. But market is still the same, Internet is just another channel. It is not creating market. So many dotcoms could not do well.
Internet is very powerful on procurement side, which can bring down cost drastically.
It gives wider choice reduces transaction time, cycle time and helps in making knowledge based decisions. This brings down purchase cost and improves procurement efficiency. Now lots of firms have realized this, which has resulted in lots of B2B exchanges coming up. As I said on procurement side Internet is going to be a big efficiency enabler. Trade exchanges are going to be next big thing.