E-Business Models - Outline

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12 Δεκ 2013 (πριν από 3 χρόνια και 5 μήνες)

73 εμφανίσεις

1

E
-
Business Models
-

Outline


What is a business model


Classifying e
-
business models


Applegate, HBS


Rappa
, NCSU


(
http://digitalenterprise.org/models/models.html
)


Information Discovery models


Social Network models


The world of online advertising


Evolution of e
-
business models


2

Business Model


It is a
description

of the value a company offers to one
or several segments of customers and of the
architecture of the firm and its network of partners for
creating, marketing, and delivering this value and
relationship capital, to generate profitable and
sustainable revenue streams.









(OSTERWALDER, 2004)


3

Business Model


Why and What?


A business model is the organization’s essential logic
for consistently achieving its principle objectives


generate revenue on a sustained basis


E.g., Online retailer model, subscription model


It also describes the market, business, and system
support structures


It specifies where the organization is situated in the
supply chain


In very general terms the three basic modeling products
are:


Activity models
-

what a business does


Process models
-

how a business accomplishes what it does


Data models
-

describes the information structure of a business

4

Developing the eCommerce business model


eCommerce strategies are best when driven by
business, not technology, concerns.


One way is to dissect the buying/selling process
into its various elements, from the buying side
and the selling side, and with your customers
and suppliers. Then, think about how you can
apply the Web to each


What are your customer needs now and how are
they changing? How can the Web help you
address them?

And, leverages
technology
opportunities

5

E
-
Business Models


Applegate, HBS

Network Business Models

Producers

(E.g., Online Content
Producers)

Product/Service
Distributors

Infrastructure
distributors


(E.g., VOIP
Services, Data
Centers)

Infrastructure
Portals

(E.g., LTE Portal)

Focused
Distributors

Portals

Infrastructure

6

E
-
Business Models


Focused Distributors


Online Retailers


Assume inventory, price set by seller, physical products/services


Online Marketplaces


Electronic channel to link buyers and sellers, online sales


Aggregators


Collect product information for consumers, no online sales


Infomediaries


Focus on information products, transaction online


Exchanges


Price discovery by auction or bid/ask, transaction online

7

Another Way to Classify Business Models
(Dr. Michael
Rappa
, NCSU)


Brokerage model (
Orbitz
, Priceline,
Paypal
)


Advertising model (Yahoo, Monster)


Infomediary

(
DoubleClick
, Edmunds)


Merchant model (Amazon,
LandsEnd
)


Manufacturer/Producer (Dell)


Affiliate (Amazon)


Virtual community (
RedHat
,
MSNMoney
)


Subscription (Netflix,
Truste
)


Utility (ISPs and ASPs)

(
http://digitalenterprise.org/models/models.html
)

Brokerage Model


Market makers who bring buyers and seller together


Market makers do not take ownership of the
goods/service


Value added is in bringing together


adequate number of buyers for sellers to be able to sell
profitably and/or


adequate number of sellers for buyers to purchase
competitively


Usually charge transaction
-
based fee from the seller
and occasionally from buyers


Orbitz
,
Escrow.com
,
ebay

Advertising Model


Extension of the traditional media ad model


Works best when the website can attract high traffic of
users


Banner are the most common form of ads


Portals are good examples of ad
-
driven models


Yahoo.com


Other example are classifieds (
Craigslist
) and online
media (
NCAA.com
)


Keyword Search based sponsored links are also ads


Infomediary Model


Focus on value added information to buyers / sellers


Data about products and producers provided in the
form of reports


Lendingtree.com
,
Edmunds.com


Data about consumers collected, carefully analyzed
and used for targeted marketing


Nielson
,
DoubleClick


Online Merchant Model


Online version of well
-
known physical stores


Sometimes online
-
only presence


Retail pricing


Shipping is free or based on quantity


Popular examples


Bestbuy.com (click
-
and
-
mortar)


Lands’ End (catalog)


Apple’s iTunes Stores (digital content)


Amazon.com (virtual merchant)

Other models


Manufacturer direct model


Affiliate model


Connects from small websites (partner sites) to well
known merchants through a link


Percentage of sales to the affiliated partner sites


Pay
-
for
-
performance model that imposes very little cost
to big merchants


Amazon.com, Google


Online Communities


Based on a focus topic/activity and user loyalty


Contextual advertising and premium services

Information Discovery Model


Need for discovery tools


Search engines


Google
,
Yahoo
,
FilesTube
,
SearchCrystal



Meta
-
search engines


Metacrawler
,
Kartoo


Discovery of material in foreign languages


Google
,
Yahoo BabelFish

Social Network Models


Focus on building a network of users who find value in
connecting to other users


Provide easy
-
to
-
use tools to share information and
content with other users on a selective basis or a global
basis


Variety of communication tools in multiple platforms
to make it easy to connect from anywhere


Facebook

and LinkedIn



Online Advertising Value Chain


Publishers creates ad spaces (ad inventory) on
their web pages


Maximize ad revenue and minimize risk


Search engines are special type of publishers



Ad Network is an aggregator of the ad inventory


How do ad networks add value?


www.cpxinteractive.com


Source: http://www.liesdamnedlies.com/2008/06/online
-
advertis.html

Your Ad is being Served

Source: http://www.liesdamnedlies.com/2008/06/online
-
advert
-
1.html

Online Advertising Methods


Banners


Sponsored links on search pages


Pop
-
up and pop
-
under ads


Permission marketing


ExpressPaidSurveys
,
Pay Me For Surfing


Viral marketing


Pricing Models


CPM or Impression based


Cost Per Click (CPC) or Performance based

Drivers of today’s online advertising


The emergence of “communitainment.”


The increasing popularity of “Usites.”


Mainstreaming of the Internet.


Declining usage of traditional media.


Fragmentation of content consumption.


Consumers are multitasking and they do not like ads.


Source: PiperJaffrey

19

Business Model & Web
-
site Design


Common Web
-
site Design elements


Company information and web
-
site purpose


Product/service information


Catalog search


Transaction processing / Shopping cart


Customer registration / Log
-
in


Database integration


Integration with related services


Digital certificate, payment, delivery


Contact / Feedback


How does each web
-
site design element fit
with the needs of the business model?

20

Evolution of Business Models


Why do business models evolve?


Enhance


Add features


Improve performance of current offerings


Expand


Add new product/service


Enter new markets


Extend


Add new line of business


Add new business models


Exit