matkailunu s osaamiskesk
-Centre of Expertise for Tourism Business Webs in the Tourism Industry
Teemu Hakolahti 20.1.2006
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The Structure of Presentation
1. 2. 3. 4.
Research Problem Business Webs B-web’s influence on Business Model Conclusions
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1. Research Problem
• The rapid growth of e-commerce in tourism has made it increasingly important to examine business models and business networks • The adoption of new ICTs supports innovative ways to create cooperative alliances which interact with each other. • The analysis and implementation of new business models in tourism must go hand in hand with the adoption of new technologies • The aim of this paper to provide a discussion of the influence and potential of emerging business webs in tourism
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2. Business Webs
• Tapscott: “Business web (b-web) is a distinct system of suppliers, distributors, commerce service providers, infrastructure providers and customers that use internet for their primary business communications and transactions.” • Business webs as networks of relationships, link business, customers and suppliers to create unique business organisms
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www.travelocity.com (17.1.2006)
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3. B-web’s influence on Business Model
• With improved service chain management the industry will we able to face “low-price phenomenon”. The price sensitivity can actually decrease when quality information increases
• A balance between cooperation and competition is sought in order to build win-win partnerships (Coopetition) • Coopetition means that companies have to allow limited access by third parties in the business web to their information systems
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Value Proposition
• Possibility to serve multiple customer segments multiple value propositions, unique to each segment • By finding the most appropriate range of value propositions the company maximises its revenue
• Large existing market segments are still served, while attractive end customer partnerships are developed
• How to manage individual propositions inside the business web? B-web needs a leader who chooses focal benefits which are delivered to the target segments
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Online Offering
• Category-specific dominance vs. cross-category dominance? • Customers naturally group together products and services based upon the customer needs and demand driven by lifestyle, social and personal needs • Companies, that offer products that naturally group together, can dominate the markets and defeat companies competing with low prices
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Resource System
• Interoperability between actors enables to accumulate products and services from multiple sources and serve them to customers • Each partner of b-web can offer a different key resource for exploitation for adding value to the customer • Typically, competitiveness is determined by strong brand name, large base of products and services, large customer base, and reliable technologies • In sophisticated b-webs, specialisation increases efficiency when each participant focuses on a limited set of core competencies
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Sources of Revenue
• Analysis of tourism websites in Finland has shown that a simple revenue model cannot in the Finnish context provide sufficient revenue base • A composite revenue model exploits a combination of revenue sources to maximise profitability • The revenue model consists of transactions from B2B and B2C income flows • Generally, a complex revenue model requires a welldefined value cluster, a broad online offering, and adequate resource system with sustainable partnerships
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4. Conclusions
• The emergence of business webs in tourism has also been marked by the introduction of new players to the market and increased competition from outside the industry proper • Tourism, as an information intensive industry, must proceed to model and better identify key partnerships and core business processes and functions • The versatile network ensures broad online offering and scalable resource system which can satisfy customer’s needs
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