Published 06 Oct 2021
Business Models Part II: What are G2B, B2G, G2C, C2G, G2G and G2E?
In our blog last week, we focused on the most commonly used B2B, B2C, C2B and B2C business models. Our plan was to switch to government-related business models in the next post, but we had to take a very short break from business models by prioritizing the fuel crisis in the UK, which is on the agenda around the world. Let's continue to explore business models together today!
Why E-Commerce? Why E-Government?
E-commerce has revolutionised the way businesses operate. Businesses now have the capacity to run their operations around the clock, and give consumers relevant and the latest updates regarding their products.
Especially because of the COVID-19 pandemic, the online shopping market grow since billion individuals all around the world opting to purchase goods and services online.
For business owners, this represents both a need and opportunity to develop e-commerce capabilities. Read on to find out more about the different types of Government-eCommerce business models for different types of industries as well as examples of how these models work.
What Is Needed For E-Government?
E-government can only be possible if the government is ready for it. It is not a one day task, and so the government has to make plans and implement them before switching to it. Some of the measures include investment in telecommunication infrastructure, budget resources, ensure security, monitor assessment, internet connectivity speed, promote awareness among public regarding the importance, support from all government departments and so forth.
B2G stands for business-to-government, implying the relationship between a business to government agencies and government institutions. In this sales model companies sell products, services and information to governments or government agencies.
It should be noted that the B2G e-commerce model has the same definition as B2A (business-to-administration). Both the abbreviations refer to the enterprise specializing in distributing products and services to the state.
Unlike other sales models, the B2G e-commerce model is complex and requires strict compliance with business laws and conditions due to government agencies’ supervision and intervention.
In most cases, the state agencies will prepare pre-negotiated contracts, put out tenders, and ask businesses to participate in bidding.
Businesses that meet the government’s strict requirements calculate the fee and make the project’s pricing submission. Then, the government review and select the most suitable enterprise and decide to sign a B2G contract with them.
Examples: The majority of B2G businesses are private companies in various fields ranging from machinery, electronic equipment, telecommunications, infrastructure to weapon trading or military defense systems development.
G2B e-commerce is a business model were all the information and services are provided by the government to the business organizations. The information is shared through a vast network of different government websites.
The business Organization use that information to apply for various permission needed for starting a new business, and other specifications. A Business Organization can also download the different forms and submit it online or offline to the related office.
The target audience in the trade carried out within the scope of this model is businesses. The initiative is in the government agency. It is the opposite of the B2G e-commerce model. Government loans and supports are examples of the G2B business model.
C2G is a business model where citizens transact with the government. It encompasses electronic transactions online between the individuals and the public administration.
Citizens-to-government e-commerce model enables the consumers (citizens) to post feedback or request information regarding public sectors directly to the government administration or authorities. These transactions are either requesting information that concerns the public sector or payments to the government.
For example, when you pay electricity bill, tuition fee loans, health insurance or taxes through the government website this is C2G.
G2C is defined as government-to-citizense (consumer). It is e-commerce between the government and the public. The products and services provided by the government to citizens online are within the scope of this business model. Through these platforms, the government avails essential services to its citizens efficiently. Information that should be in the public domain is conveyed with minimal cost through these platforms.
E-government applications can be given as an example for this business model. Consumers can access their personal information and perform many transactions through this system. The electronic commerce activities performed between the government and its citizens or consumers, including paying taxes, registering land and vehicles, and providing information and services, registration for birth, marriage or death certificates, acquistion passport are included in the G2C model.
G2C also refers to the interactions between the government and its consumers in offering support either through responses to consumer concerns or government services and products. Such services include land searches, confirmation of genuine licenses and vehicle ownership searches. Disputes such as nonpayment of tax or tax refunds are resolved through online support on the government platforms.
G2G is any e-commerce transaction of data and/or information systems happening between two or more government agencies, departments or organizations.
A successful G2G has the necessary resources for collaboration and communication between government agencies with the aim of better serving citizens. The goal of G2G is to support e-government initiatives by improving communication, data access and data sharing.
The relationship may refer to the information and data exchange, business relationship or it can describe the ICT solution that helps in communication between two federal organizations (e.g. document exchange, sharing public administration registers, cadastral system, etc.). For example, transactions between the local Central Bank and the European Central Bank are covered by G2G business model.
G2E is the online interactions through instantaneous communication tools between government units and their employees. It is one out of the four primary delivery models of e-government.
Government-to-employees is an effective way to keep employees informed on the important materials they need to know through the use of visuals, animation, videos, etc. It is also a way for employees to learn at their own pace (distance learning). It is usually a computer-based learning tool, although not always and bring them together and to promote knowledge sharing among them. It also gives employees the possibility of accessing information in regard to compensation and benefit policies as well as civil rights laws.
E-government makes it possible for employees to become paperless and makes it easy for employees to send important documents back and forth to colleagues all over the world instead of having to print out these records or fax.
G2E services also includes software for maintaining personnel information and records of employees.