Business Models for Electronic Commerce by wxh11165


									 Business Models for
Electronic Commerce
Qualitative Mapping
   An electronic version of an “existing world”
    business model
   Business Model – The organization (or
    „architecture‟) of product, service, and
    information flows, and sources of revenues
    and benefits for suppliers and customers.
   Marketing Model –
       A business model and
       The marketing strategy of the business actor
        under consideration
Why Both a Business Model &
Marketing Model?
   Need to know:
       Assess commercial viability of the business
       How competitive advantage is being built
       What the positioning is
       What is the marketing mix
       Which product-market strategy is being followed
Identifying the Architecture of
a Business
   Based on value chain deconstruction and
       Identify value chain elements
       Identify possible ways of integrating information
        along the chain
   Think – possible creation of electronic
       Fully open (unlimited number of buyers and
        sellers) or
       semi-open – one buyer, multiple sellers
   Information and communication technology
    enables a wide range of business models
   The capability of the state-of-the-art
    technology is just one criterion in model
   Guidance to technology development can
    come from the definition of the new models
   Many of the conceivable models have not yet
    been experimented with commercially
Current Business Models
   E-shops –
       Promotes the company and its goods and
       Sells its goods and services
       Combined with traditional marketing channels
           Benefits sought
               Increased demand
               Low cost route to global presence
               Cost reduction in promotion and sales
   Benefits to customers
       Lower prices compared to traditional offerings
       Wider choice
       Better information
       Convenience of selecting, buying and delivering
       24 hour availability
       Repeat visits can increase one-to-one marketing
   Used by large companies or public
       Benefits for buyers
           Wider choice of suppliers
           Leads to lower cost
           Improved quality
           Improved delivery
           Reduces costs of procurement (example –
            downloading files instead of mail or Fedex, etc.)
   Benefits for suppliers
       More tendering opportunities (possibly on a global
       Lower cost of submitting a tender
       Main source of income is reduction of cost
   Basic form is collection of e-shops that have
    similarities (brand name, product range)
    enhanced by a guaranteed payment method
   Can be an industry marketplace
   Outsourcing Web operations may reflect a shift of
    early adopters to mass-market use of the Internet
    among businesses
   Bidding mechanism                   Benefits for suppliers
    that can include:                    and buyers
       Multimedia presentations            Increased effeciency and
       Integration of the bidding           time savings
        process with contracting,           No need for physical
        payment, and delivery                transport until the deal
   Source of income from                    has been established
    the provider:                           Global sourcing
       Selling technology                  Appeal -small quantities
        platform                             at low value
       Transaction fees                 
       Advertising                      
Virtual Communities
   Value is derived by added information
       Membership fees and advertising generate
   Virtual communities are becoming an
    additional function to enhance the
    attractiveness and opportunities for new
    services of previous business models
Collaboration Platforms
   Provides tools and information for collaboration
    between enterprises
       Design and engineering
       Project support and management
   Revenue derived form membership and user fees
   Selling the specialist tool
       Design
       Workflow
       Document management
       Experimental projects for 3D design and simulation
Third party Marketplaces
   Suitable if companies want to leave
    marketing to a third party
   Additional channel
   User interface to the supplier‟s product
   Revenues
       Membership fee
       Service fee
       Percentage of transaction value
Value Chain Integrators
   Integrating multiple steps in the value chain
   Revenue
       Consultant fees
       Transaction fees
Value Chain Service Providers
   Specialize in areas such as:
       Electronic payment
       Logistics
Information Brokerage, Trust,
and Other Services
   Emerging market
   Add value to the huge amounts of data available on
    the open networks
   Revenue
       Subscription
       Pay-per-use
       Advertising
       http;//

To top