1. BUSINESS MODELS Categories

2. Focused Distributors Examples Retailer Amazon.com Marketplace QuckenInsurance Exchange ebay Differentiators Control Sell Price set Physical Likely Likely Inventory online online product/service revenues costs yesyes noyessales Possiblyyesnonotransactions

3. Focused Distributors Multiple business models are required to ensure flexibility and sustainability Must align closely with vertical and horizontal portals or evolve their model

4. Portals Are emerging as a dominant source of power within e-business markets Enterprise portals provide both horizontal access to business networks and vertical industry-wide solutions

5. Portal models Example Horizontal Yahoo! Vertical Quicken.com webMD.com Affinity TheKnot.com Differentiators Deep Affinity Likely Likely Content & solutions revenues costs Trough through partnerships partnerships with vertical and affinity portals yes no Within affinity group yes

6. Producer Models Examples Manufacturers Ford.com Service providers American Express Educators Harvard Business School Advisors Ernst& Young (ey.com) Information and News services Wsj.com Custom suppliers Dell Differentiators Sell/serve Sell/serve Level of Likely Likely online offline customization revenues costs yes yes low to moderate yes possibly moderate to high yes yes moderate to high yes yes high

7. Producer trends Must be best in class: no 1 or no 2 brand to survive Industry supplier coalitions are forming Some large full-service producers (AE, for example) in financial services industry, are acquiring a full range of products and services to become producer vertical portals

8. Infrastructure Provider Distributor models Examples Retailer Staples.com Marketplace Techdata.com Exchange Converge.com Differentiators Control Sell Price set Physical Likely Likely Inventory online online product/service revenues costs yesyes no yes usuallyyes bidding yes Possibly yes yes

9. Infrastructure Provider continued Examples Equipment manufacturers Cisco Micron Software firms Microsoft Oracle Services firms Doubleclick Custom suppliers-hardware Micro Age Custom suppliers-software Sapient Differentiators Sell/Serve Sell/Serve Customization Likely Likely online offline revenues costs yesyes low to moderate yes yes moderate to high yes yes high yes usually high sometimes yes high

10. Infrastructure provider trends Rigid lines between digital infrastructure providers and the digital business built on top of the infrastructure are blurring. There are two competing ASP models: producer ASPs (SAP, Oracle) that provide online access to their brand name software and distributor ASPs that offer a full suite of Internet hosting and integration services across a broad range of software brands For example USI USI

11. Infrastructure Portal models Example Horizontal AOL.com Att.com Vertical Application Service providers (ASPs) aspstreet.com Differentiators Content, commerce Hosting L ikely Likely Community solutions services revenues costs Trough through partnerships partnerships with non-infrastructure portals & ASP yes Usually

12. ASPs list an example The list

13. Trends Horizontal portals such as AOL are vertically integrating with horizontal infrastructure providers such as Time-Warner cable networks Globalization of the technical infrastructure standards enabling emergence of global infrastructure portals Example: aspstreetaspstreet