E-Business Models Week 3 Şule Özmen
E-Business Models Business-Webs (B-WEBS) We will discuss the following Business Models Aggregation Value Chain Alliance Distributive Networks On the basis of Main theme and key process Customer role Knowledge focus Value proposition
E-Business Models Agora Aggregations (Portal, Infomediary) Alliances Value Chains Distributive Networks Brokerage Model Advertising Model Community Model
Some Example E-Business Models Agora Aggregations (Portal) (Infomediary) Value Chains Alliances Distributive Networks (enabler) estore, eBay, priceline e-kolay, Superonline, Ixir, Yahoo, Amozon, Travelocity, Expedia Cisco, Dell, Intel AutoXchange Compact Disc, Linux, Java AOL, Fedex
E-Business Models ( Participants) B2B B2C expedia (Online Media) C2B: C2C:
AGORA Main theme and key process: Customer role: Knowledge focus: Value proposition: Dynamic pricing price discovery Market player Timing and market intelligence Liquidity
E-Bay (1995)–Agora – C2C Market Place Thousands of categories, millions of items for sale on the site Traditional auction and fixed price trading At least twice as large as its nearest competitors. Half.com* is acquired by e-Bay *Half.com is fixed price person to person e-commerce site
Priceline.com B2C Market Place A new type of e-commerce. Electronic demand collection system: Product categories: airline tickets, hotel rooms, rental cars, personal finance service that offers home mortgages automotive services that sells new cars planning to offer a “name your own price service for long distance calling”
AGGREGATIONS – PORTAL- INFOMEDIARY ADVERTISING MODEL Main theme and key process: Customer role: Knowledge focus: Value proposition: Selection and convenience needs matching Buyer Market segmentation, supplier offerings, fulfillment Optimization of selection, organization, price, convenience, matching, fullfillment
ALLIANCES –COMMUNITY MODEL Main theme and key process: Customer role: Knowledge focus: Value proposition: Creativity – Innovation Contributor Creativity, community Creative collaboration in aid of a goal shared accross a community of contributors
DISTRIBUTIVE NETWORKS Main theme and key process: Customer role: Knowledge focus: Value proposition: Distribution – allocation Sender/recipient Network optimization, visibility and transparency Facilitate the exchange and delivery of information, goods, services
VALUE CHAINS Main theme and key process: Customer role: Knowledge focus: Value proposition: Process Integration –Supply Chain Management Value driver Supply Chain Management Design and delivery of an integrated product or service to a specific set of customers
Value Chains – Cisco a winner in e-business Sells 80% of its products on line (about a million dollars a month) Reduced its operating costs Communication among all the participants is encouraged order – to - delivery cycle times are reduced.
Value Chains – Intel a winner in e-business Sells more than 1 billion worth of product per month Sales intermediaries are able to check prices, view product road maps and buy products through a password protected, customized Web site Reduction in transaction costs of products sold Fewer errors in order processing Reduced order – to –delivery cycle
You can have a look on these sites and share your knowledge with us
Assignment Evaluate priceline offer (refer slide 9 please) Which web sites do you visit more? Select one or a few of them and evaluate these sites on the basis of the following characteristics. a-what they offer? b-what is their target market? c-do you think that internet is the best channel to offer what they offer? d-what are the basic features on this web site which you think interesting or different from others?