The advent of the Internet, the rise of cybermediaries, and the reintermediation
of supply chains, all leave in question the future of traditional intermediaries.
Strategies in Business-to-Business Electronic Commerce," International Journal of Electronic Commerce 4, No.
When Internet-based sales first started to take off, there was much talk about the issue of "disintermediation" and "reintermediation
." In constructing new supply chain solutions, buyers and sellers need to ensure that they provide for all the intermediary (channel) functions required to transact business.
Today, we are seeing "reintermediation
," or the reintroduction of people to online interaction to link sources and services.
Companies that use a "reintermediation
" online model--one that supports existing sales channels such as agents--to distribute financial-services products are more likely to achieve near-term success than companies that approach distribution by "disintermediating" their existing sales channels--that is, bypassing existing sales channels with an online sales effort--or by Web-enabling traditional bricks-and-mortar institutions, according to a report from investment bankers Stephens Inc., Little Rock, Ark.
E-commerce is built on both disintermediation and reintermediation
. The disintermediation part is more intuitive: online marketplaces can cut out middlemen like distributors and bring buyers and sellers together directly.
There is at the same time pervasive disintermediation of conventional functions and practices within the property markets, and the reintermediation
of new functions.
: Previously "ousted" distributors or new players take on a new, customer-relevant role, capturing profit and value in the process.
commercial banks in 1998: Growth in bank assets was boosted by the financial reintermediation
process that characterized much of the second half of last year, with holdings of both loans and securities posting sizable gains.
" opportunities are greater than the disintermediation perils.
According to Grimes, the reason for departing from monetarist orthodoxy was that reintermediation
following financial deregulation cased large changes in the monetary aggregates.
The PBC expected that the reintermediation
of funds would ease the shortage of working capital and increase the excess reserves held by the specialized banks.