1      ITEC 410Current TechnologiesFurther Explanation on:New Business ModelsCategories of E-Business ModelsFactors Aff...
Learning Objectives Discuss the New Trending e-Business Models:     – Flash Sales     – Subscriptions     – Social Bookma...
Learning Objectives                    (continued) Discuss the Five Categories of e-Business Models:     – B2C     – B2B ...
Learning Objectives                     (continued)  Discuss the Factors that affect e-Business   Success       – The Net...
E-Business Basics  E-commerce – Process of buying or selling   goods or services across a telecommunications   network  ...
E-Business Models  Business models       – How a company conducts business in order to         generate revenue       – C...
New E-Business Models           Flash Sales Description: web application that collects all  limited-offer deals from a nu...
New E-Business Models         Subscriptions Description: web application that delivers  products (e.g. magazines, DVDs) o...
New E-Business Models    Subscriptions - Continue Retail Value:   – Companies don’t have to store extra goods in     the ...
New E-Business Models      Social Bookmarking Description: web application that collects and  organizes content found on ...
New E-Business Models Social Bookmarking - Continue Retail Value:   – Companies can learn more about consumer     behavio...
New E-Business Models    Collaborative Commerce Description: web application that allows the  users to share a service an...
New E-Business ModelsCollaborative Commerce - Continue Retail Value:   – Companies who buy an expensive resource     (e.g...
New E-Business ModelsNext Generation Marketplaces Description: web application that collects  information from the intern...
New E-Business Models    Next Generation Marketplaces -              Continue Retail Value:   – If customers are companie...
E-Business Model CategoriesCreating a Winning E-Business   16Second Edition, Chapter 1
E-Business Models             (continued) Business-to-consumer (B2C)   – Retail sales (e-retail) including airline ticket...
E-Business Models                     (continued)  Business-to-business (B2B)       – Businesses selling to other busines...
E-Business Models                     (continued)  Business-to-business (B2B)       – Vertical markets (markets in which ...
E-Business Models                     (continued)  Business-to-government (B2G)       – Derived from B2B       – Business...
E-Business Models                     (continued)  Consumer-to-consumer (C2C)       – Individual Consumers sell or exchan...
E-Business Models                     (continued)  Consumer-to-business (C2B)       – Reverse auctions in which a single ...
Factors Affecting                E-Business Success  The network effect (If people using your   goods/service increase, t...
Factors AffectingE-Business Success (continued)  Innovative marketing ideas (Your marketing   ideas must be smart in orde...
Factors AffectingE-Business Success (continued)  Scalability (Your e-business must be able to function   well in the face...
Factors AffectingE-Business Success (continued)  Ease of entry into electronic markets (Your e-   business must not spend...
Factors AffectingE-Business Success (continued)  Ability to quickly adapt to marketplace   changes (If customers suddenly...
End of Lecture                  28
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Itec410 e busness_case_lec

  1. 1. 1 ITEC 410Current TechnologiesFurther Explanation on:New Business ModelsCategories of E-Business ModelsFactors Affecting E-Business Success
  2. 2. Learning Objectives Discuss the New Trending e-Business Models: – Flash Sales – Subscriptions – Social Bookmarking Websites – Collaborative Commerce – Next Generation MarketplacesCreating a Winning E-Business 2Second Edition, Chapter 1
  3. 3. Learning Objectives (continued) Discuss the Five Categories of e-Business Models: – B2C – B2B – B2G – C2C – C2BCreating a Winning E-Business 3Second Edition, Chapter 1
  4. 4. Learning Objectives (continued)  Discuss the Factors that affect e-Business Success – The Network Effect – Innovative Marketing Ideas – Scalability – Ease of Entry into Electronic Markets – Ability to quickly adapt to Marketplace ChangesCreating a Winning E-Business 4Second Edition, Chapter 1
  5. 5. E-Business Basics  E-commerce – Process of buying or selling goods or services across a telecommunications network  E-business – Widest spectrum of business activities using Internet and Web technologies  Many technologies facilitate e-business – Electronic Funds Transfer (EFT) – Electronic Data Interchange (EDI) – Internet / World Wide WebCreating a Winning E-Business 5Second Edition, Chapter 1
  6. 6. E-Business Models  Business models – How a company conducts business in order to generate revenue – Companies can either adapt old models (e.g. ecommerce) or create new ones  E-business models are often categorized by type of customer (business customer, individual customer, government customer)Creating a Winning E-Business 6Second Edition, Chapter 1
  7. 7. New E-Business Models Flash Sales Description: web application that collects all limited-offer deals from a number of e-commerce sites and display these deals to the user Customer Value: customer goes to one place to find all discounted deals Retail Value: companies get rid of old goods quickly Risks / Limitations: – discounted deals finish quickly – Your e-Business spends a lot on network traffic (lots of visitors) and marketing your site 7 Daily Deals: Flash Sales for One-day offers
  8. 8. New E-Business Models Subscriptions Description: web application that delivers products (e.g. magazines, DVDs) or services (e.g. streaming videos, chatting subscriptions) weekly, monthly, quarterly, or yearly to customers Customer Value: – Customer tries out and discovers new products – Customer saves time on shopping (products come to his home) 8
  9. 9. New E-Business Models Subscriptions - Continue Retail Value: – Companies don’t have to store extra goods in the store (they know how much to store) – Companies always have cash because customers subscribe for durations (not buy once). Example: Monthly subscriptions with annual contracts Risks / Limitations: – Customers may feel bored from subscriptions if goods and services look the same every time – Customers may have to pay shipping costs 9
  10. 10. New E-Business Models Social Bookmarking Description: web application that collects and organizes content found on social media sites, usually using the tags that users create for content Customer Value: – Customer find all social media information about an item in one place (using the item tag) – Customer can get related recommendations (e.g. most users who search for #tag1 also search for tag2, so recommend #tag2 for a user who searched for #tag1) 10
  11. 11. New E-Business Models Social Bookmarking - Continue Retail Value: – Companies can learn more about consumer behavior (e.g. Which items that the same users like on social media? Who are the similar users?) Risks / Limitations: – Chicken and Egg problem: • In order for users to come to our site, we need content • In order for us to bring content to the site, we need users to enter these content 11
  12. 12. New E-Business Models Collaborative Commerce Description: web application that allows the users to share a service and bills the user monthly or per use Customer Value: – Customer doesn’t need to buy an expensive service (e.g. cloud) as he can just pay for sharing the service – Customer can spend the money on sharing many services instead of buying a single service, allowing him to discover many new services 12
  13. 13. New E-Business ModelsCollaborative Commerce - Continue Retail Value: – Companies who buy an expensive resource (e.g. a cloud) can now distribute the cost of that resource on its customers, while stay using the resource for their business Risks / Limitations: – When the economy is strong, customers will not be interested to share, they just buy! 13
  14. 14. New E-Business ModelsNext Generation Marketplaces Description: web application that collects information from the internet about sellers and buyers, and match them together Customer Value: – Buying Customer doesn’t need to search for sellers. Selling customer doesn’t need to search for buyers – Customers find what they need easily 14
  15. 15. New E-Business Models Next Generation Marketplaces - Continue Retail Value: – If customers are companies who do retails, they do not need to spend on marketing Risks / Limitations: – Chicken and Egg Problem: • Selling customers will not subscribe to our site if there are no much buyers • Buying customers will not subscribe to our site if there are no much sellers 15
  16. 16. E-Business Model CategoriesCreating a Winning E-Business 16Second Edition, Chapter 1
  17. 17. E-Business Models (continued) Business-to-consumer (B2C) – Retail sales (e-retail) including airline tickets, entertainment venue tickets, hotel rooms, stock purchases, diet and fitness programs Brick-and-mortar (companies that have a physical presence and offer face-to-face customer experiences) are moving to brick-and click (companies selling offline and online) – Sears, Best Buy, Barnes & Noble, the Gap Pure-play e-retailers and catalog merchants (they just sell goods & services. They do not own them) – Amazon.com, eBags, Harry and David 17
  18. 18. E-Business Models (continued)  Business-to-business (B2B) – Businesses selling to other businesses – Online stores, such as Office Depot, Staples – Internet and Web technologies • Web hosting • Web design • Hardware and software • ConsultingCreating a Winning E-Business 18Second Edition, Chapter 1
  19. 19. E-Business Models (continued)  Business-to-business (B2B) – Vertical markets (markets in which vendors offers good and services specific to an industry, trade, profession, or other group of customers with specialized needs ) – Exchanges, aggregators, auctions (for groups) • Virtual market spaces for groups buyers and group sellers • Elance, ATLA Exchange, Business.com, HedgeHogCreating a Winning E-Business 19Second Edition, Chapter 1
  20. 20. E-Business Models (continued)  Business-to-government (B2G) – Derived from B2B – Businesses provide various products and services for government agencies – Example: A private company manages the publications / updates of public e-newspapers – Bidmain, B2GMarketsCreating a Winning E-Business 20Second Edition, Chapter 1
  21. 21. E-Business Models (continued)  Consumer-to-consumer (C2C) – Individual Consumers sell or exchange products and services directly with other individual consumers – Auctions, online classified ads, expert information exchanges • eBay, American Boat Listing, TraderOnline.com, AllExpertsCreating a Winning E-Business 21Second Edition, Chapter 1
  22. 22. E-Business Models (continued)  Consumer-to-business (C2B) – Reverse auctions in which a single consumer names his own price for his own products or services to businesses to buy – Consumer’s offer made to multiple businesses, which can accept or decline offer – Priceline.comCreating a Winning E-Business 22Second Edition, Chapter 1
  23. 23. Factors Affecting E-Business Success  The network effect (If people using your goods/service increase, the value of your goods/services increase, and vice versa) – Total value of a product, service, or technology grows as more and more people use it • Telephone system example – Single telephone has no value; as more people join the telephone system, the value of each telephone increases • uBid online auction site example – As more people participate, the auction site becomes more valuable to buyers and sellersCreating a Winning E-Business 23Second Edition, Chapter 2
  24. 24. Factors AffectingE-Business Success (continued)  Innovative marketing ideas (Your marketing ideas must be smart in order for your e-Business to succeed) – Viral marketing (the use of social networks to produce increases in brand awareness). Hotmail example: • Hotmail users grew at a rapid rate because of electronic word of mouth coupled with the network effect • Electronic word of mouth or viral marketing spreads from user to user in the same way a 24 human virus spreads from person to person
  25. 25. Factors AffectingE-Business Success (continued)  Scalability (Your e-business must be able to function well in the face of rapid growth of customers) – Systems and procedures meet growing customers needs – AllAdvantage e-business failure example • E-business idea: Paying for users to browse the Web and view advertising • Millions of customers signed on; but sadly most advertisers did not sign! • The company did not have the scalability to meet the rapid growth in customers with small number of 25 advertisers
  26. 26. Factors AffectingE-Business Success (continued)  Ease of entry into electronic markets (Your e- business must not spend too much on creating the business!) – Low-cost technologies make it easy to create new e-businesses – eBay and online auction example • Easy for consumers to interact at auction site • Web auction software is cheap and easy to install /maintain • E-businesses earn commissions without having to manage, warehouse, and distribute products 26
  27. 27. Factors AffectingE-Business Success (continued)  Ability to quickly adapt to marketplace changes (If customers suddenly became not interested in a certain product or service, your e- Business should be able to change them immediately ) – Rapid knowledge transfer (you should rapidly know about consumer shits in interests) – Need to make decisions quickly – Exploit new ideas and opportunities – Handle new challenges • Amazon.com is an example of ongoing evolution from a basic e-business idea (book selling) to innovative e-business 27 idea (selling almost everything)
  28. 28. End of Lecture  28

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