Business Models of Electronic Commerce

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Business Models of Electronic Commerce. e-Business . What is a Business Model?. an architecture for the product, service and information flows, including a description of the various business actors and their roles; and - PowerPoint PPT Presentation

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  • Business Models of Electronic Commercee-Business

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  • What is a Business Model?an architecture for the product, service and information flows, including a description of the various business actors and their roles; anda description of the potential benefits for the various business actors; anda description of the sources of revenues

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  • B2B vs. B2CBusiness to Businessinvolves multiple transactions from the same customer to the same vendor (electronic hierarchy)repeat business (cost justification)requires a promise to pay (e.g., P.O. or monthly contract)Direct: Consumer/Retail Purchasesthe emphasis is on convenience, quick delivery of goods, and lower retail pricinge.g., SecireTax: sells a $10 pay-per-use software rental over the web (tax calculation software)

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  • Internet Business Models - 1E-shoppromotion, cost-reduction, additional outlet, (seeking demand)E-procurementadditional inlet, (seeking suppliers)E-auctionelectronic bidding (no need for prior movement of goods or parties)E-mall(collection of e-shops), aggregators, industry sector marketplace3rd party marketplacecommon marketing frontend and transaction support to multiple businesses

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  • e-ShopTravelocity

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  • e-Shop - FastParts

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  • e-AuctioneBay

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  • (eBay) (www.ebay.com) A A B B C C

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  • e-Auction - Auction

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  • e-Mall CS Club

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  • 3rd Party MarketplaceCitius

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  • Internet Business Models 2Virtual communitiesfocus on added value of communication between membersValue chain service providersupport part of value chain (e.g., logistics, payments)Value chain integratoradded-value by integrating multiple steps of the value chainCollaboration platformse.g., collaborative designInformation brokerstrust providers, business information and consultancy

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  • Virtual CommunitiesPhoenix Textiles

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  • Value Chain Service ProvidersFederal Express

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  • Info. Brokers

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  • Classification of Business ModelsMultipleFunctions/IntegratedSingleFunctionLowerHigherDegree of InnovationE-ShopE-ProcurementE-AuctionE-MallTrust ServicesInformation BrokerageValue Chain Service ProviderVirtual CommunityCollaboration PlatformThirty Party MarketplaceValue Chain IntegratorFunctionalIntegration

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  • Business Models of Internet Shopping Malls

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  • Business Models [Rappa, 2000]Brokerage ModelBuyers and sellers are brought together to transact over the web.Advertising ModelBroadcasting model: generates incomes from banner advertisementsInfomediary ModelMediates between users and suppliers of useful informationMerchant ModelClassic wholesalers & retailers (e-tailers) over the webManufacturing ModelManufacturers go direct to buyersAffiliate ModelMerchants charge for advertising, based on the sales that have actually occurred Community ModelContributions are solicited from, or advertisements are presented to, loyal visitorsSubscription ModelMerchants charge for advertising, based on the sales that have actually occurred Utility Modela metered usage or pay as you go approach

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