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Next E-Business Model 2.0 - PowerPoint

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					E-Business Model 1.0
Digitize the offline world
              DIGITIZE THEM!
Encyclopedia       Auction     Donation
 Dictionary     Coffee Forum      Shopping Plaza
          Library     Magazine
                                   Newspaper
 Bank
             Classifieds
                           Retail Shop
       University                         Wallet
                     Supermarket
                                     Wholesaler
              Radio      Phone
Television                          Music Shop
                  Bookstore
                                Diary
             DIGITIZE THEM!
e-Encyclopedia     e-Auction   e-Donation
 e-Dictionary e-Coffee Forum
                                 e-Shopping Plaza
          e-Library e-Magazine
                                   e-Newspaper
 e-Bank
             e-Classifieds
                           e-Retail Shop
       e-University e-Supermarket         e-Wallet
                                     e-Wholesaler
              e-Radio e-Phone
e-Television                        e-Music Shop
                  e-Bookstore
                                e-Diary
 Dot-com Became Dot-bomb




      NASDAQ Composite index peaked in March 2000 and burst before 2001
      * http://en.wikipedia.org/wiki/Dot-com_bubble

e-Supermarket failure
• Webvan.com spent far too much on infrastructure (close to one billion USD).
It went bankrupt in 2001 before it had even turned a profit.
• Chowhuay.com went under construction since 2001.
Why did some models go well,
     but some go hell?
E-Business Model 2.0
Make people’s life easier
The Transaction Triangle

                    50 Baht




                   200 Baht
       30 Baht

            It is transaction cost!
What is Transaction Cost?
 From theory…
    Fixed cost of exchange – billing, invoicing, providing receipts,
     and handling payments.
    Search costs – buyers and sellers search for each other.
    Communication costs – costs of exchanging information.
    Information costs – gathering and providing many types of
     market data.
    Monitoring costs – buyers and sellers place their trust in the
     intermediary.

 In my opinion…
    Transaction cost is the cost that makes our life difficult.
    Normally, we frequently feel that our life are not difficult.
Compaq & Dell Case Study


                  T3 < T1 + T2



                         T3

   Manufacturer                  Customer
PantipMarket.com Case Study
Classifieds Magazine        PantipMarket.com
T2 + T3 < T1                T4 < T2, T5 < T3




                       T1

           Seller             Buyer
Google AdWords & AdSense
Case Study
Online                            Online
Agency                            Agency




         Publisher   Advertiser
4 Ways for Your Online Business
                1.   Disintermediary
4 Ways for Your Online Business
                1. Disintermediary
                2. Be intermediary
4 Ways for Your Online Business
                1. Disintermediary
                2. Be intermediary
                3. Reduce transaction
                   cost to compete with
                   existing intermediary
4 Ways for Your Online Business
                1. Disintermediary
                2. Be intermediary
                3. Reduce transaction
                   cost to compete with
                   existing intermediary
                4. Be intermediary of
                   intermediaries
Google Acquired DoubleClick
 DoubleClick is a big player in display advertising.
 Google bought DoubleClick for $3.1 billion on April 13
  (while YouTube was acquired for $1.76 billion).
 Google’s net profit in 2006 was $3.0 billion.
 DoubleClick’s annual revenue was about $300 million.
 One of DoubleClick’s subsidiaries is Performics, the
  third rank provider of Affiliate Marketing in US.
 What will happen if Google try to step in Affiliate
  Marketing business?
Before Acquisition

                                      AdWords




                 Affiliate Marketer




 Product Owner                        Publisher
Cakeholder Before Acquisition
After Acquisition




 Product Owner   Affiliate Marketer   Publisher
Cakeholder After Acquisition
                           12.5
                   12.5
                   15                        60




                        Product Owner
                        Google & Performics
                        Affiliate Marketer
                        Publisher