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Electronic Business Models. Dr Sherif Kamel The American University in Cairo. Outline. Components of business models. eBusiness and change. B2B business models. B2C business models. Business models — today’s objective. - PowerPoint PPT Presentation
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Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
Copyright © 2002 Marketspace LLC
Electronic Business ModelsElectronic Business Models
Dr Sherif Kamel
The American University in Cairo
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
Copyright © 2002 Marketspace LLC
Outline
Components of business models.
eBusiness and change.
B2B business models.
B2C business models.
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
Copyright © 2002 Marketspace LLC
Business models — today’s objective
Where will the business compete?
Where will the business compete?
How will the business win?
How will the business win?
To develop an understanding of business models for the networked economy
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
Copyright © 2002 Marketspace LLC
Components of a business model
Value clusterValue cluster
Marketspace offeringMarketspace offering
Resource systemResource system
Financial modelFinancial model
Developing a business model in the networked economy requires four key choices on the part of the senior management:
• Specify the value proposition or the value cluster for the business
• Articulate the online product, service and information offer
• Define how the company needs to align its resources to deliver the value proposition
• Define and select the most appropriate revenue model to pursue
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
Copyright © 2002 Marketspace LLC
Value proposition/cluster
Value ClusterValue Cluster
Marketspace offeringMarketspace offering
Resource systemResource system
Financial modelFinancial model
The first step in the articulation of the business model is clearly specifying the value proposition or the value cluster for the business:
Defining the value proposition or the value cluster requires managers to answer the following questions:
• Which target segments should the company focus on?
• What is the combination of customer benefits that is offered?
• What makes the firm and its partners better positioned to deliver the offering than anybody else?
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
Copyright © 2002 Marketspace LLC
Value proposition/cluster
Target SegmentsTarget
Segments
The definition of the value proposition is the result of a combination of choices about the customers, the benefits offered and the unique capabilities of the firm:
“The special occasion segment”
Key Benefits Offered
Key Benefits Offered
Unique Capabilities
Unique Capabilities
Value Proposition
Value Proposition+ +
• Online experience• Unique, broad product line of complementary gifts
PC Flowers and Gift
PC Flowers and Gift
• Fresh flowers• Complementary gifts• Low prices
“PC Flowers & Gift serves the special occasion segment by providing fresh flowers and unique complementary gifts”
FTD.comFTD.com“Mid- to high-end market”
• Strong brand name• Market Communication• Supplier network
• Easy delivery of flowers
“FTD.com provides the mid- to high-end market with the easiest way to send flowers thanks to its extended network of suppliers”
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
Copyright © 2002 Marketspace LLC
CarPoint Example
Target SegmentsTarget
Segments
CarPoint’s value cluster offers benefits that address multiple segments of customers:
Key Benefits Offered
Key Benefits Offered
Unique Capabilities
Unique Capabilities
Value ClusterValue Cluster+ +
CarPointCarPoint
“The intimidated by the process”
“The efficiency of the Internet makes selecting and purchasing your car easier”
Knowledge of the Internet
Software development expertise
Information about cars and their prices
Help on how to deal with dealers (tactics used, etc.)
Extensive information
- In different formats (3D views, pictures, videos) - From different sources (i.e., Kelley Blue Book)
“The information seekers”
“Provides a one-stop source with all the necessary information to make a car purchase”
Microsoft brand name
Network of partners
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
Copyright © 2002 Marketspace LLC
Marketspace offering
Value ClusterValue Cluster
Marketspace OfferingMarketspace Offering
Resource SystemResource System
Financial ModelFinancial Model
The next step is to articulate the online product, service and information offering:
Defining the Marketspace offering requires managers to complete the following sequential tasks:
• Identify the scope of the offering
• Identify the customer decision process
• Map the offering to the consumer decision process
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
Copyright © 2002 Marketspace LLC
Scope of the offeringThe scope of the offering refers to the number of categories of products and services offered on the site:
Category-Specific DominanceFocus on one product category
Continuum of Scope
Cross-Category DominanceFocus on a large number of categories
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
Copyright © 2002 Marketspace LLC
MetamarketsThe term ‘metamarkets’ refers to sites that group products and services that are closely related in the mind of customers:
BabyCenter.com offers a good example of a “goal-derived” metamarket. The site’s products and information focus on one goal: raising a healthy child.
• Shopping for baby and maternity products
• Support community for parents
• User personalization
• Reference information
• Support and help from experts
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
Copyright © 2002 Marketspace LLC
Customer decision process
Flowers Example
DisposalDisposal
LoyaltyLoyalty
SatisfactionSatisfaction
Purchase decisionPurchase decision
Evaluation of alternativesEvaluation of alternatives
Information searchInformation search
Problem recognitionProblem recognition
Pre-purchase
Purchase
Post-purchase
Need recognition, potentially triggered by a holiday, anniversary or everyday events
Search for ideas and offerings, including:– Available online and offline stores– Gift ideas and recommendations– Advice on selection style and match
Evaluation of alternatives along a number of dimensions, such as price, appeal, availability, etc.
Purchase decision Message selection (medium and content)
Post-sales support– Order tracking– Customer service
Education on flowers and decoration Post-sale perks
The second step in the construction of the online offering is the articulation of the customer decision process for the various product categories:
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
Copyright © 2002 Marketspace LLC
Mapping the offering to the decision process
The last step in the construction of the online offering is mapping the products and services onto the customer decision process:
Customer Decision Process
Need Recognition
Search for Ideas and Offerings
Purchase
Decision
Post-Sale Support and
Perks
Evaluation of Alternatives
What occasions trigger the need for my product? What tactics can be used to stimulate demand?
What information would the consumer need to make a selection?
What are the key evaluation criteria that the consumer will use to evaluate my product/service? What information should the website offer to make the consumer comfortable with his or her choice?
What functionality should the site present to communicate privacy, trust and security?
What post-sale services can the website offer to create loyalty?
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
Copyright © 2002 Marketspace LLC
Resource system
Value clusterValue cluster
Marketspace offeringMarketspace offering
Resource systemResource system
Financial modelFinancial model
The third step is to define the resource system and how the company must align it to deliver the benefits in the value proposition:
A series of activities is required to construct a resource system:
1. Identify core benefits in the value cluster.
2. Identify capabilities that relate to each benefit.
3. Link resources to each capability.
4. Identify to what degree the firm can deliver each capability.
5. Identify partners who can complete capabilities.
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
Copyright © 2002 Marketspace LLC
Step #1 — Identify core benefits
Broad Assortment
of Gifts
Broad Assortment
of Gifts
Customer Service
Customer Service
Widespread, Easy Access
Widespread, Easy Access
High Quality of Flowers
High Quality of Flowers
The core benefits must be identified in the construction of the value cluster:
1-800-Flowers.com serves the “mid- to high-end market” with a broad gift assortment, fresh flowers, reasonable prices and easy access because of its strong brand name, product and media partnerships and bricks-and-mortar network of franchises.
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
Copyright © 2002 Marketspace LLC
Step #2 — Link capabilities to benefits
Broad Assortment
of Gifts
Broad Assortment
of Gifts
Customer Service
Customer Service
Widespread, Easy Access
Widespread, Easy Access
High Quality of Flowers
High Quality of Flowers
Managers need to identify which capabilities are required to deliver each benefit, regardless (at this point) of the ability of the company to access or develop that capability:
For 1-800-Flowers.com, the benefit “widespread, easy access” is linked to four capabilities: strong brand name, wide reach to customers, multiple points of contacts and a popular website.
Wide Reach to Customers
Wide Reach to Customers
Multiple Contact Points
Multiple Contact Points
Popular WebsitePopular Website
Strong Brand Name
Strong Brand Name= Capabilities
= Core benefits
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
Copyright © 2002 Marketspace LLC
Step #3 — Link resources to capability
Broad Assortment
of Gifts
Broad Assortment
of Gifts
Customer Service
Customer Service
Widespread, Easy
Access
Widespread, Easy
Access
High Quality of Flowers
High Quality of Flowers
After the capabilities are identified, the firm should determined the resources necessary to deliver each capability:
Wide Reach to CustomersWide Reach to Customers
Multiple Contact Points
Multiple Contact Points
Popular WebsitePopular Website
Strong Brand Name
Strong Brand Name
TelephoneTelephone
OnlineOnline
Franchise Stores
Franchise Stores
CatalogCatalog
3,000 Affiliates3,000 Affiliates
= Activities & assets
= Capabilities
= Core benefits
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
Copyright © 2002 Marketspace LLC
Steps #4-5 — Ability to deliver capabilities
Broad Assortment
of Gifts
Broad Assortment
of Gifts
Customer Service
Customer Service
Widespread, Easy Access
Widespread, Easy Access
High Quality of Flowers
High Quality of Flowers
The next steps assess whether the company has all the necessary capabilities in-house or if it has to look outside and select the most appropriate partners to complete the missing capabilities.
1-800-Flowers.com would not be able to deliver the capability “wide reach to customers” alone, and therefore would need to create partnerships. Companies like MSN, AOL and Snap are potential partners.
Wide Reach to CustomersWide Reach to Customers
Multiple Contact Points
Multiple Contact Points
Popular WebsitePopular Website
Strong Brand Name
Strong Brand Name
= Activities & assets
= Capabilities
= Core benefits AOLAOL
MSNMSN
SnapSnap
StarmediaStarmedia
= Partners
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
Copyright © 2002 Marketspace LLC
Type of financial modelsA variety of financial models can be used to assess the value of the business model that follows from the resource system. Three examples are:
Revenues Models
Revenues Models
Shareholder Value ModelsShareholder Value Models
Growth Models
Growth Models
• Identify the flow of cash into the organization
• Assess how the company intends to generate cash flow or shareholder value
• Assess how the company will be able to drive revenue growth
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
Copyright © 2002 Marketspace LLC
Revenue modelsWhile firms can pursue a number of revenue models, some are used most frequently:
AdvertisingAdvertising
• Advertising revenues can be generated through the selling of ads, site sponsorships, event underwriting, etc. (e.g., Yahoo, AOL, Business2.com)
Product, Service, InformationProduct, Service, Information
• Revenues can be generated from the sales of goods and services (e.g., Amazon, CDNow, Buy.com)
TransactionTransaction
• Revenues can be accrued from charging a fee or taking a portion of the transaction sum for facilitating a customer-seller transaction (e.g., Schwab, eBay)
SubscriptionSubscription
• Website can gain revenues by offering subscription services for information (e.g., www.FT.com, www.NYTimes.com)
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
Copyright © 2002 Marketspace LLC
Porter strategy model Key concepts:• There are only three basic strategies• Each implies a different business model• Firms can pursue only one strategy at the time
DifferentiationDifferentiation CostCost NicheNiche
• Requires constant innovation and leadership on the benefits that matter most to the customer
Business Model
Business Model
Networked Economy Example
Networked Economy Example
• Focus on gaining competitive advantage on costs while maintaining parity level on differentiation
• Focus the business on a particular segment of the market and then pursue either differentiation or cost strategy
• www.Travelocity.com • www.Lowestfare.com
• www.Lastminute.com
Possible Strategies
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
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1980s… Company vs. company
1990s…Supply chain vs. supply chain
2000s+…Business model vs. business model
eBusiness changes - basis of competition
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
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eCommerce environment
Macro-Environment
Suppliers Competitors Intermediaries Customers
TechnologyInnovation
Trends
SocietyPublic opinion
Moral constraintsEthical constraints
Organization
Micro-Environment
Country SpecificEconomic factorsLegal constraintsCultural factors
InternationalEconomic factorsLegal constraintsCultural factors
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
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B2B business models
Business models and marketplace control1. Suppliers
2. Customers
3. Intermediaries
Other business models1. Virtual corporation
2. Networking between headquarters and subsidiaries
3. Online services to business
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
Copyright © 2002 Marketspace LLC
1. Supplier-oriented marketplace
Most common B2B business model.
Environment for most of over 85% of the manufacturer-driven electronic stores.
Individual consumers and business buyers use the model.
Architecture is the same for B2C.
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
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Customer’sOrder
Information
Supplier’sElectronic Store
Supplier’sProductsCatalog
B2C ECB2B EC
Consumer
Consumer
BusinessCustomer
BusinessCustomer
Supplier-Oriented B2B/B2C marketplace architecture
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
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Cases
Dell Computers sold 90% of their computers to business buyers over the Internet.Cisco sold 1 billion US dollars worth of routers, switches and network interconnections devices in 1998 through the Internet.Need to have a good and dynamic web site and a group of loyal customers.The model is not convenient to large and frequent buyers.Information stored on the suppliers servers and not on the buyer’s information system.B2B and B2C platforms differ in terms of shopping cart characteristics.
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
Copyright © 2002 Marketspace LLC
Case: www.ingram.com
Computer Reseller Ingram Micro.
Open only to existing and subscribed customers.
Building loyalty with its frequent buyers.
Sellers get rid of surplus goods and buyers are offered huge discounts.
Percentage of gain could be 600% more than offline auctions, on average.
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
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www.ingram.comwww.ingram.com
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2. Buyer-oriented marketplace
Ideal for large and frequent buyers.
Big buyers should open their own marketplace.
The marketplace is open on the buyer’s servers and suppliers are invited to bid on the announced RFQs.
Great opportunity for competitive and committed suppliers.
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
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Buyer-oriented B2B marketplace architecture
Buyer’sElectronic Store
Buyer’sRequesting Products
Catalog
Supplier’sBid Information
BusinessSupplier
BusinessSupplier
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Cases
GE and Boeing are good examples.
It is becoming to be known as tender sites.
Introduction of online directories listing all RFQ sites.
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www.ge.com www.ge.com
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www.boeing.com www.boeing.com
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Cases
Boeing’s PART, www.procure.net, www.manufacturing.net and www.industry.net
PART links Boeing to 300 key suppliers of its maintenance parts.
www.procure.net – Targets maintenance, repair and operations purchases– Online since 1996 with 30 seller sites and 100,000 products listed in electronic
catalogs. – 1 million hits per month. – No registration, but only firms with validated information can buy from the
seller sites.
www.industry.net has over 275,000 members from 36,000 organizations (1998).
10,000 visitors daily directed to 53 seller sites.
www.industry.net charges between 2,500 and 250,000 US dollars for the online catalog searching.
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3. Intermediary-oriented marketplace
The market place where consumers and business buyers meet.
Architecture is very close to that in the B2C cases.
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Intermediary’sElectronic Store
Supplier’sProduct
Information
BusinessSupplier
BusinessSupplier
Customer’sOrder
InformationSharedProductCatalog
BusinessCustomer
BusinessCustomer
Intermediary-oriented B2B marketplace model
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www.techsavvy.com www.techsavvy.com
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www.travelocity.com www.travelocity.com
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Virtual corporation
The most up-to-date re-engineered form of organizational structure = Virtual Corporation.
Typical organization with business partners sharing costs and resources for the purpose of producing a product or service.
Mainly dependent of B2B platforms.
Modern VC is a network of creative people, resources, and ideas connected by online services and/or the Internet.
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
Copyright © 2002 Marketspace LLC
Virtual corporation goals
Each partner brings itscore competence to
form an all-starwinning team
Each partner brings itscore competence to
form an all-starwinning team
Excellence
Resources of the business partners are
frequently under utilized, could be more profitable
in the case of a VC
Resources of the business partners are
frequently under utilized, could be more profitable
in the case of a VC
Utilization
VC can find and meetmarket opportunity
Better than an individual company
VC can find and meetmarket opportunity
Better than an individual company
Opportunisim
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
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B2B platform for virtual corporation
Electronic mail
Desktop video conferencing
Knowledge sharing
Groupware
EDI
EFT
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Networking between headquarters and subsidiaries
Franchiser vs. Franchisee
Electronic mail Message boards Chat rooms Online corporate data access
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www.marriott.com
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Case: Marriott Hotels
Marriott as a chain has 1,500 hotels worldwide in 50 countries.
600 of which = 40% are franchisee.
Revenues in 1998 = 10 Billion US Dollars.
Marriott went online in 1995 (Internet-based).
www.marriott.com receives orders worth 3 million US Dollars monthly.
Company intranet for 20,000 employees becoming extranet between all franchisee.
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
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B2B and the supply chain
B2B applications consist of a series of processes and roles that represent the supply chain of a specific product and/or service.
External operations with partners outside the organization are as important as the interaction between the units within the organization.
Rawmaterial
End-userSupply Chain Process
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Upstream Activities
Involving material and service inputs
from suppliers
Internal Activities
Involving manufacturing and packaging of goods
Downstream Activities
Involving distribution and sale of products to distributors and
customers
Supply chain divisions
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
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B2B insights
Backbone = Supply Chain ManagementIt represents the coordination or order generation, order taking, and order fulfilment and distribution of products, services and information
Contribution = Customers + SuppliersLower purchase costs
Reduced inventory
Enhanced efficiency of logistics
Increased sales
Lower sales and marketing costs
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Selling = electronic marketingSelling = electronic marketing
Purchasing = procurement managementPurchasing = procurement management
Electronic Intermediary = service providerElectronic Intermediary = service provider
Delivery = JITDelivery = JIT
Network Platform = internet/intranet/extranetNetwork Platform = internet/intranet/extranet
Communication Protocol = EDICommunication Protocol = EDI
Back-End IS = ERP systemsBack-End IS = ERP systems
B2B componentsB2B components
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Online services to business
Famous online services include:Tourism
Employment placement/job market
Real state
Trading stocks
Cyber banking
Insurance
Auctions
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It is important to note that…
There are 2 categories of internet businessesPure play– Businesses having only an online presence
www.amazon.com www.ebay.com
Bricks and clicks– Businesses combining online presence with traditional offline
operations. www.bn.com www.nordstrom.com www.nytimes.com
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
Copyright © 2002 Marketspace LLC
B2C pure-play business models
Direct sellersMake money by selling products or services to consumers.
IntermediariesFacilitate transactions between buyers and sellers and receive a percentage of the value of each transaction.
Advertising-based modelsHave ad inventory on their site and sell it to interested parties.
Community-based modelsallow users worldwide to interact with one another on the basis of interest areas.
Fee-based modelscharge viewers a subscription fee to view content.
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
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Bricks-and-clicks business model
For some product categories, individuals have to touch, feel, or try on a product before buying.Delivering products is a hassle for dot-coms.Product returns can be tricky.Salespeople can help customers by answering product questions, providing feedback, and suggesting other products.Spin off the online venture.Create a strategic partnership.Create a joint venture between a bricks-and-mortar store and an online company.Integrate the online operation with the existing physical operation by creating a division within the company.
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
Copyright © 2002 Marketspace LLC
B2B pure-play business models
Business markets are unique in many ways:High value of purchases
Large order size
Items purchased
Purchase specificity
Team buying
Use of buying specialists
Special services required
Team selling
Vendor/value analysis
Leasing
Competitive bidding
Derived demand and cyclical demand
Number and location of buyers
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B2B pure-play business models
EDI and ExtranetsEDI– Created on a closed network—systems did not speak to one another.
Extranets– An intranet that is adapted so that external parties are provided
varying degrees of access to information.
B2B marketplaces—net marketsBroadly described as all online marketplaces where buyers and sellers congregate to exchange goods and services for money.
Net markets can be organized either horizontally or vertically.
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
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B2B pure-play business models
Types of net markets…1. Buy-centric markets are organized by large, influential buyers as
a place where small and fragmented sellers can sell their goods.
2. Sell-centric markets are markets where one or more big sellers build a marketplace for small, fragmented buyers.
3. Neutral exchanges appear when both the sellers and the buyers are fragmented.
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B2B pure-play business models
Why do use net markets?Selection of buyers or sellers (global markets) is greater.
Dynamic markets may be a great place to move inventory quickly.
Efficient exchange process minimizes employee time.
Prices are low due to expanded access to sellers.
Some one-time deals are available only to online audiences.
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B2B pure-play business models
Challenges faced by eMarketplaces…Building traffic is a big challenge for eHubs.
Competing eMarketplaces.
Integrating other sales channels with eMarketplaces.
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Incorporating the Internet/Web for more effective business
Steps include…1. Business assessment
2. Delivering value to the consumer
3. Define revenue model
4. Implementation
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Step #1: Business assessment
Digitality and profit orientationDigitality– The digitality of a business is the proportion of a business that is
online.
Profit orientation– Each company must determine whether its online operation is a
service to consumers or if it will provide income for the organization.
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Step #2: Delivering value to the consumer
ValueA consumer’s perception of the consequence of using a product or service in relation to prior expectations.
Steps to deliver value include…1. Identify how different consumers perceive value.
2. Choose which value elements will be delivered.
3. Provide the value—build the business in such a way that it manifests the desired elements.
4. Develop an integrated communications package to help customers learn about the nature of the value.
5. Assess how customers perceive the value being delivered.
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Step #2: Delivering value to the consumer
Value drivers in physical versus virtual spaces…Physical space value drivers – the 4 Ps
– Product– Price– Place– Promotion
Virtual space drivers – the Internet toolkit– Commerce– Communication– Cost reduction– Connectivity– Community – Content– Computing
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Step #3: Define revenue model
Ways to maximize profits.1. Commerce - Selling products or services to consumers or
businesses.
2. Advertising - Selling advertising space to interested advertisers.
3. Fees - Charging fees to consumers for various services.
4. Sale of consumer information - Aggregating consumer behavior information and selling it to interested companies.
5. Credit - Receiving money from the consumer on day 1 and paying vendors after a long period of time (float).
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
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Step #3: Define revenue model
eBusiness typically have intangible and informational assets.
One of the primary benefits of the Internet is the ease of linkage between firms.
Copyright © 2003 Sherif KamelCopyright © 2003 Thomson Learning/South Western
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Step #4: Implementation
Internet time
Higher visibility of errors
Lower switching costs
More complex linkages
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Step #4: Implementation
Why CRM systems fail?Losing sight of why the CRM system is being implemented.
Not having a clear sponsor who owns the vision.
Underestimating the difficulties of integration.
Why CRM systems succeed?Allocate adequate resources.
Provide incentives for business units to collaborate.
Consider the activities of both online and offline competitors.
Build an Internet culture.
Allow customer input to drive design.