An comparative study on E-business models

A Comparative Study On E-business Models Page 1

SYNOPSIS

ON

“A Comparative Study on E-Business

Models”

GUIDED BY: SUBMITTED BY:

PROF. RACHNA JAIN SUNIL CHICHRA

MBA BE 3rd sem


Contents

No. Title Page No.

1. Introduction

2

2. Literature Review

6

3. Objectives

9

4. Methodology

10

5. References

12


INTRODUCTION

There are many benefits of bringing your business to the web. An e-business

can offer personalised service, high quality customer service and improved

supply chain management. Through this study we explore the different types of

business operating on the web, as well as the technologies needed to build and

run an e-commerce website.

An e-business is defined as a company that has an online presence. E-businesses

that have the ability to sell, trade, barter and transact over the web can be

considered e-commerce businesses. The combination of a company’s policy,

operations, technology and ideology defines its business model. Entrepreneurs

starting e-businesses need to be aware of these models and how to implement

them effectively. Through this study we define a number of models and the

technologies that make them possible.

"E-business" is defined as the application of information and communication

technologies (ICT) which support all the activities and realms of business. E-

business focuses on the use of ICT to enable the external activities and

relationships of the business with customers. Electronic business methods

enable enterprises to link their internal and external data processing systems

more efficiently and flexibly and serve better to the needs and expectations of

their customers. E-business uses web-based technology to improve relationships

with customers.

The concept of e-business was originated in western countries with the

development of internet-working. The concept was adopted in Indian marketing

culture after the globalization of Indian economy. The multinational companies

brought the modern e-business concepts owing to the greater benefit

transparency if was widely accepted. More implementation of E-business in

different section of the economy in helping the country to achieve 8% to 9%

annual GDP growth and self-confident to take double digit growth in coming

year which has been discussed in detail. The present study mainly dealt with

position and challenges of complementary the e-business of India. There is very

little research on India that can quantify e-business and its growing trend in

India. The importance of this study is to provide an overview to the readers


about the current status of e-business in the country along with discussion on its

usefulness and challenges in implementing it in Indian economic scenario. The

study will also provide a future projection model based upon growing trend in

Indian economics. The overall objective of the study is to provide qualitative as

well as quantitative information about the e-business in Indian economy.

The term "E-Business" refers to the integration, within the company, of tools

based on ICT to improve their functioning for the company, its clients, and its

partners. E-Business no longer only applies to those companies all of whose

activities are based on the internet, but also to traditional companies. The term

E-Commerce, which is frequently mixed up with the term E-Business, although,

only covers one aspect of E-Business, i.e. the use of an online support for the

relationship building between a company and clients.

The impact of e-business is not only important with respect to company and

client relationship but also to improve performance and efficiency within the

company. Local Area Network (LAN) helps building faster communication

within the company leading to saving high cost and precious time. One of most

effective tool globally adapted by many organizations is developed by SAP AG,

Germany, commonly known as SAP. The SAP is benefitting the organizations

in numerous ways and few advantages are as below:

-wide

real-time information

GOALS OF E-BUSINESS MODELS

An increase in margins

Increase in staff motivation

As a result of consumer satisfaction

Privileged relationship with clients


A concise review of existing definitions and classification frameworks

has demonstrated the multiplicity and diversity of current research efforts

in order to define, classify, and assess E-business models. This finding

drives to the further conclusion that e-business models are quite broad

concepts, which can be attributed widely diversified meanings, based on

the adopted research perspective and the given context. In the lack of a

concise framework for discussing e-business models, managers and

researchers use their own approach for designing, operating and assessing

the adoption of e-business models. The results of their work cannot be

neither evaluated nor communicated to people and organisations that

have a different conceptual model of business models and use a different

agenda of issues for discussing them.

Electronic business (e-business) is an execution by electronic means of

interactive, inter-organizational processes. E-business represents a shift in

the business doctrine that is changing traditional organizational models,

business processes, relationships and operational models that have been

dominant for the past 20 years. The new doctrine of e-business requires

an enterprise to integrate and synchronize the strategic vision and tactical

delivery of products to its customers with the information technology and

service infrastructure needed to meet this vision and process execution. In

the next few years, successful enterprises will restructure their

organization, process and technology infrastructure for successful e-

business execution.

It is well known that e-business might bring several advantages to a

company. However, existing practical business applications have not

always been able to deliver the benefits they have promised in theory.

Prior to adopting e-business, companies need to assess the costs needed

for setting up and maintaining the necessary infrastructure and

applications, and they need to compare it to the expected benefits. Several

alternative e-business models might be taken into consideration.

Although the evaluation of alternative solutions might be difficult, it is

essential because it reduces some risks associated with the introduction of

E-business. The business processes should be analyzed first in order to

find out if they are well defined, adequate, and ready for the

implementation of new information technology. In this way only, an


improvement of quality, lower costs, and shorter performance times could

be expected. The main objective of this paper is to develop a simulation

model of business-to-business (B2B) electronic commerce process that

could be used evaluate the potential benefits and constraints of a BR and

an introduction of e-business project.


LITERATURE REVIEW

Several Attempts have been made so far to Define E-Business Models:

I. Timmers (1998) examined “E-business Models for Electronic

Markets” in view of new features of the internet and want to know

the emerging business models and different strategic marketing

approaches are applied. He studied on 11 different models i.e. E-

shop, E-auction, E-mall, E-Procurement, virtual communities,

value chain service provider, value chain integrator, information

brokers, Collaboration platforms, 3rd marketplace and trust

services. Some of these models are essentially an electronic re-

implementation of traditional forms of doing business, such as e-

shops.

II. Raphael Amit and Christophe Zott (2001) examined “Value

Creation in E-Business” and find the rapid pace of technological

developments coupled with the growth of e-businesses gives rise to

enormous opportunities for the creation of new wealth. They draw

on a wide body of literature in entrepreneurship and strategic

management and use cross-case analysis of a unique data set we

developed, in order to identify common patterns of value creation

in e-business. The analysis led to the development of the value-

drivers model, which includes four factors that enhance the value

creation potential of e-business: efficiency, complementarities,

lock-in, and novelty.

III. Weill & Vitale (2001) examined on the “Typology of Atomic E-

business Models” who described about the way a firm does

business electronically and states the relationships between

consumers, allies and suppliers and that identifies the major flows

of product, information, and money, and the major benefits to

participants. In this study Models were Content provider (Reuters),

Direct to consumer (Dell.com, Gap.com), Intermediary (Auctions,

Portals, and Agents), Value Net Integrator (Cisco), Virtual


Community (Motley Fool), Whole of Enterprise/Govt. (One

interface with customers), Shared Infrastructure (ABACUS) and

Full Service Provider (Amazon.com, Gesupply.com).

IV. Ramiro Goncalves (2001) studied on “E-commerce Maturity”

Which was Comparison of the principal Growth Models of E-

commerce i.e. Perspective, Barriers, Focus, Source, Verification,

Developments, Emphasis and Stages and states the difference

between E-commerce and E-business.

V. Applegate (2001) presented four digital Business Models i.e.

Focused Distributor Models (Retailer, Marketplace, aggregator),

Portal Models (Horizontal portals, Vertical portals, Affinity

portals), Producer Models (Educator, Advisor, Service provider,

Information and news services, Custom Supplier) and

Infrastructure Provider Models (Infrastructure portals).

VI. Ronel Smith analysed “The impact of E-business on the

organisation” and concluded E-business in an organisation

invariably has a significant impact on various operations and

aspects of the organisation, causing changes in areas such as

human resources, strategic planning, and technological

infrastructure & customer service. The decision is to implement the

E-business initiative which should not be undertaken lightly and

the benefits that can be gained from such a venture must be

investigated thoroughly before deciding to go ahead. E-business

plans must be devised as part of the corporate strategy and must

take into consideration the impact of e-business will have on

processes, governance and people. It is important that companies

create a single coherent plan, formalise decision-making

procedures and communicate e-business initiatives across the

organisation and integrate the e-business plan with corporate goals.

VII. Information Society Technologies (2002) submits the report on

“E-Factors and current Trends on E-Business Models” and its

objective is to find out factors affecting of E-Business Models

adoption and its variances in the models due to innovation and


adoption of technology by customers and organisations. This

contains a review of E-Business Models literature which aim to

answer the following questions related to the current trends of E-

business models: Q. how can E-business be defined? Q. Difference

between e-business and e-commerce? Q. What are the existing

classifications of e-business models? Q. Which are the revenue

models and Value drivers of e-business? Q. What are the

components of e-business models? And the main objective is to

know the factors closely associated with them are made to provide

essential information for appreciation and evaluation of the

complex nature of present day e-business model taxonomies.

VIII. Alexander Osterwalder (2002) submitted report on “E-business

model ontology for modelling E-business” and analysed that Why

the e-business model idea is interesting to study, and found that it

can be an adequate methodology and foundation for managerial

tools and IS requirements Engineering to react to the increasingly

dynamic business environment. As product life cycles become

shorter, competition global and the use of ICT (information and

communication technology) an imperative, managers have to find

new ways to manoeuvre and decide in this complex environment.

Managers must understand the new opportunities offered by ICT,

integrate them into their existing business models and share them

with other stakeholders.


OBJECTIVES

To compare various E-Business models.

To analyse various E-business model implementation.

To analyse the factors responsible for rapid use of Storefront

model in comparison with Auction model.


METHODOLOGY

This major research project is purely based on secondary data and secondary

sources. Secondary data analysis involves the analysis of an existing dataset,

which had previously been collected by another researcher, usually for a

different research question. Secondary data analysis is widely used by

researchers undertaking and it is analysis of quantitative data, and has begun to

be applied to qualitative data.

SOURCES OF SECONDARY DATA

There are also many other sources to collect the secondary data and mainly the

secondary data have already being collected by someone and published through

many sources such as:

Magazines

Newspapers

Radio

Research’s

Term papers

News Channels

Booklets

Internet

Pamphlets, etc.


REFRENCES

1. Afuah, a.c.tucci (2001), “Internet business models and strategies”,

Boston, MacDraw hill International Editions , New York

2. Applegate, L. M. (2001) “E-business Models: Making sense of the

Internet business landscape”, In G. Dickson, W. Gary, and G. DeSanctis

(Eds.), Information Technology and the future enterprise: New models

for managers, Upper Saddle River, N.J. Prentice Hall

3. Bagchi, S., Tulskie, B. (2000) “E-business models: Integrating learning

from strategy development experiences and empirical research”, 20th

annual International Conference of the strategic management society,

Vancouver, oct15-18

4. Timmers, P. (1998) “Business Models For Electronic Markets” , Journal

on Electronic Markets, 8(2), p 3-8

5. Gordijn J., J. Akkermans and J.van Vilet (2001), “Designing and

Evaluating E-Business Models, IEEE Intelligent systems, July/August ,

16(4): 11-17

6. Jurij jaklic, mojca Indihar stemberer (2004): “Evaluating of

alternative E-business models” by business process simulation Modelling

7. Raphael Amit and Christoph Zott (2001) “value creation in E-

Business” strategic management journal , strat. Mgmt J.,22: 493-520 ,

DOI : 10.1002/smj.187

8. Dr. Nishant Srivastav and Shashank Singh (2012) “E-Business scope

and challenges in India, International Journal of Business and

Management Invention, ISSN (Online): 2319 – 8028, www.ijbmi.org

Volume 2 Issue 8ǁ August. 2013ǁ PP.01-08


9. George hodge and christen cagle (2004) “Classification of Business to

Business E-business models “AUTEX Research Journal, Vol. 4, No4,

December 2004 © AUTEX

10. Adamantia G. Pateli (2003) “A Framework for understanding and

analysing E-business models” 16th Bled e-commerce Conference

eTransformation Bled, Slovenia, June 9 - 11, 2003

11. Bienstock, C., M. Gillenson and T Sanders (2002). "A Typology of E-

Commerce Business Models." Quarterly Journal of Electronic Commerce

3(2): 173-182

12. Sewell, M and I.Mccarthey (2001) “E-business and its role in small

Business networks”, Proceedings of the Manufacturing Information

Systems, 4th SME, SME International Conference. pp. 214-221

13. Agrawal B (2001) “Defining the E-business Model “A Tanning

Technology White Paper. (http://www.tanning.com), (030418)

14. Phan, D.D (2002) “ E-business Development for competitive

Advantages” a case study.” Information Management, Vol.40, pp. 581 –

590

15. Kalakota, R and Robinson, M (1999), “E-business – Roadmap for

Success”, 2nd edition, Addison – Wesley

Some Websites:

www.google.com

www.wikipedia.com

www.iconocast.com

www.digitalenterprise.org

www.gartner.com

www.bitpipe.com

http://www.google.com/

http://www.wikipedia.com/

http://www.iconocast.com/

http://www.digitalenterprise.org/

http://www.gartner.com/

http://www.bitpipe.com/

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An comparative study on E-business models