b07_ebusiness.ppt

8/18/2019 b07_eBusiness.ppt

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BUSINESS B7

E-Business Models


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Learning Outcomes

1. Describe the business-to-business (B2B) andbusiness-to-consumer (B2C) e-business models

2. Describe the four main areas where companiesconduct business online

3. Differentiate between a vertical marketplace and ahoriontal marketplace

!. "ummarie the current and future trends for e-business models


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Introduction

Pure play # an $nternet retailer that has no ph%sical

store& such as 'pedia.com and maon.com

E-business

# conductin* business on the $nternet&not onl% bu%in* and sellin*& but also servin*

customers and collaboratin* with business partners

E-business model # an approach to conductin*electronic business throu*h which a compan% can

become a profitable business on the $nternet


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The four main areas where companies

conduct business online

1. Direct marketin*&

sellin*& and

services

2. +inancial and

information

services

3. ,aintenance&

repair& and

operations

(,)

!. $ntermediaries


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Direct ar!eting" Selling" # Ser$ices

/e% to success0

,arketin* # create site visibilit% and demand

"ales # allow personalied content and adaptivesellin* processes& inte*rate with back-office

"ervices # automate customer service features suchas customer feedback& customer inuires& trackin*information& and customied services

using the Internet to contact customers directly


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%inancial and Information Ser$ices

nline bankin*

a%in* bills

,akin* transfers between accounts

radin* stocks& bonds& and mutual funds

nline billin*

$nternet-based bill deliver% services saves mone%

"ecure information distribution #

Business can safe*uard information


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aintenance" &epair" # Operations

'&O(

, *oods include # office suppliers& office

euipment& furniture& computers& and replacement

parts

he Internet can transform corporate purchasing

from a labor and paperwork intensive process

into a self-service application


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Intermediaries

Intermediaries # a*ents& software& or

businesses that brin* bu%ers and sellers to*ether

that provide a tradin* infrastructure to enhance e-

business Reintermediation # usin* the $nternet to

reassemble bu%ers& sellers& and other partners in

a traditional suppl% chain in new wa%s


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Intermediaries

Content providers #

companies that use the

$nternet to distribute

cop%ri*hted content&

includin* news& music&*ames& books& movies&

and man% other t%pes of

information

nline brokers #

intermediaries between

bu%ers and sellers of

*oods and services

http://www.cnn.com/


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Intermediaries

Portals - Central

hubs for online

contents

Market makers #

intermediaries that a**re*ate

three services for market

participants

place to trade

ules to *overn tradin*

n infrastructure to

support tradin*


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Intermediaries

$nfomediar% # provides

specialied information

on behalf of producers

of *oods and services

and their potentialcustomers

pplication service

providers # sell

access to $nternet-

based software

applications to other

companies


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E-Business Models


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Business)to)Business 'B*B( odels

Business-to-business !B"B# # applies to

businesses bu%in* form and sellin* to each other

over the $nternet

E-procurement # the B2B purchase and sale of

supplies and services over the $nternet

$ystematic sourcing # involves bu%in* throu*h

prene*otiated contracts with ualified suppliers

$pot sourcing # businesses bu% transaction-

oriented commodit%-like products and rarel% involves

a lon*-term or on*oin* relationship between bu%ers

and sellers


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B"B% Marketplace classifications


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B*B e+changes are new organizational forms in

digital space that can take place in the following:

Bu%er model (few

bu%ers& man% sellers)

,arketplace model

(man% bu%ers& man%

sellers)

4on*er term

relationship model

(few bu%ers& few

sellers)

"eller model (few

sellers& man% bu%ers)


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B*B e+changes

Bu%er ,odel - everse

auction # the winnin*

bid is the lowest& rather

than the hi*hest

"eller model #

appropriate when the

supplier hosts value-

added services on its

5eb site such assuppliers6 product

catalo* and customers6

order information

4on*er term relationship

model # items reuirin*

a hi*h de*ree of

plannin* between bu%ers

and sellers either in thedesi*n sta*e or in

fulfillment

,arketplace model #

allows a virtuall% infinitenumber of businesses to

transact electronicall%

with minimal cost


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,onsumer)to)Business ',*B(

Consumer-to-business (C2B) # applies to an%

consumer that sells a product or service to a

business over the $nternet

C2B facilitates the followin*0

"ocial interaction

ersonal finance mana*ement

urchasin* products and information


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,onsumer)to),onsumer ',*,(

Consumer-to-consumer !C"C# & appliers to sites

primaril% offerin* *oods and services to assist

consumers interactin* with each other over the

$nternet

C2C communities thrivin* on the $nternet0

Communities of interest

Communities of relations Communities of fantas%


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E)Business ,hallenges

Cost

7alue

"ecurit%

4evera*e eistin* s%stems

$nteroperabilit%


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Current Trends: E-Marketplaces and

E-Markets

e-marketplaces # are interactive business

communities providin* a central market space where

multiple bu%ers and sellers can en*a*e in e-business

activities

'ori(ontal marketplaces # connect bu%ers and

sellers across man% industries& primaril% b%

simplif%in* the purchasin* process

)ertical marketplaces # provide products thatare specific to tradin* partners in a *iven industr%


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*dvantages and limitations

of various e-marketplace revenue models


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The -,ontent. /erspecti$e of

E)ar!etplaces

Content and product description establish the

common understandin* between parties in a

transaction

he accessibilit%& usabilit%& accurac%& and richness of

the content directl% affects the transaction


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%uture Trends0 E),hannels"

E)/ortals" and E)1o$ernment

e-channel # 5eb-based business channel

e-portal # a sin*le *atewa% throu*h which to *ain

access to all the information& s%stems& and processesused b% stakeholders of an or*aniations

e-government # the use of strate*ies and

technolo*ies to transform *overnment(s) b%improvin* the deliver% of services and enhancin* the

ualit% of interaction between the citien-consumer

within all branches of *overnment(s)


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E+tended E-Business Models


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Specific e-business models as they relate to

e)go$ernment

Consumer-to-government !C",# # constitutes the

areas where a consumer (or citien) interacts with the

*overnment

,overnment-to-business !,"B# # includes all

*overnment interaction with business enterprises

,overnment-to-consumer !,"C# # *overnments

dealin* with consumers8citiens electronicall%

,overnment-to-government !,",# # *overnments

dealin* with *overnments electronicall%


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,losing ,ase One 2uestions

1. eBa% is one of the onl% ma9or $nternet :pure pla%s; toconsistentl% make a profit from its inception. 5hat iseBa%6s e-business model and wh% has it been sosuccessful<

2. ther ma9or 5eb sites& like maon.com and =ahoo>& haveentered the auction e-marketplace with far less successthan eBa%. ?ow has eBa% been able to maintain itsdominant position<

3. eBa% has lon* been an e-marketplace for used *oods andcollectibles. oda%& it is increasin*l% a place where ma9orbusinesses come to auction their wares. 5h% would abrand name vendor set up shop on eBa%

b07_ebusiness.ppt

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