This document discusses traditional and innovative business models. It defines the key components of a business model as including infrastructure, offerings, customers, and financials. It then provides examples of different revenue models such as direct sales from manufacturers to customers, name-your-own-price models, reverse auction sites, and customization models where products are tailored to customers' specifications. Revenue streams can include selling products/services online, earning commissions, charging monthly fees, and collecting referral commissions.

2. • What is it?
• Tradi,onal Business Model
• Component of Business Model
• How to use the Component?
• Innova,ve Business Model
• Revenue Model

4. • A method of doing business by which a company can
generate revenue to sustain itself
• Spells out where the company is posi,oned in the
value chain – ac,vi,es the company adds value to the
product/ service it supplies.
• Are a subset of business plan

5. • Wal‐Mart, Tesco, Carrefour, etc: buys merchandise,
sells it, and generate profit.
• TV sta,on: free broadcas,ng to its viewer but survive
upon a complex business model involving adver,sers
and content providers.
• Yahoo!, Google, etc

6. INFRASTRUCTURE OFFERING CUSTOMERS
Partner Customer
Network Rela,onships
Core Value
Customer
Capabili,es Proposi,on
Distribu,on
Key Ac,vi,es
Channels
Revenue
Cost Structure FINANCIALS
Stream

9. • Most common EC models
• Sales may be from a manufacturer to a customer,
elimina,ng intermediaries/ physical stores
• Eg. Dell

11. • Model in which a buyer sets the price he/she is willing
to pay and invites sellers to supply the good or service
at that price
• Eg. Priceline.com
• will try to match the customer’s request with a supplier
willing to sell the product/ service at that price

13. • A customer specifies his/ her need and then an
intermediate company (eg. Hotwire.com) matches the
customer’s need against a database, locates the lowest
price, and submits it to the consumer
• Poten,al buyer has 30‐60 min to accept/ reject the
offer
• Eg. Norwich Union, Pricerunner.com, Kelkoo.com

15. • Customiza*on: Crea,on of a product or service
according to the buyer’s specifica,ons
• Eg. Dell – PC, Nike – shoes, Mabel – Barbie dolls

17. • A method that a company, organisa,on or individual
uses to collect money from users of their product or
service.
• In essence, a method of earning money and a way to
collect it.

18. • Companies generate revenue from selling
merchandise/ services over their Websites (Wal‐Mart)

19. • Companies receives commission based on the volume
of transac,on made (broker, realtor)

20. • Customers pay a fixed amount (monthly), to get some
type of service (Astro, TMnet)

21. • Companies receive commissions for referring
customers to others’ Web sites (Amazon.com)