This document discusses different types of business models and e-commerce. It defines e-commerce as digitally enabled commercial transactions between organizations and individuals. E-business refers to digital processes within a firm. Major types of e-commerce include business-to-consumer, business-to-business, consumer-to-consumer, and peer-to-peer. It also outlines various electronic payment systems used in e-commerce such as credit cards, digital wallets, stored value accounts, and digital checking.

1. New Business Models and Value Propositions

3. Key Ingredients of a Business Model

4. Internet Business Models
lVirtual storefront – eg: Amazon.com
lInformation broker – eg: Kbb.com
lTransaction broker – eg: Expedia.com
lOnline marketplace – eg: eBay.com
lContent Provider – eg: CNN.com
lOnline service provider – eg: Salesforce.com
lVirtual community – eg: Motocross.com
lPortal – eg: Yahoo.com

5. E-commerce
E-commerce involves digitally enabled commercial
transactions between and among organizations
and individuals
Digitally enabled transactions include all transactions
mediated by digital technology

6. E-business
E-business refers primarily to the digital enablement
of transactions and processes within a firm,
involving information systems under the control of the firm
E-business does not include commercial transactions
involving an exchange of value across
organizational boundaries

7. The Difference between E-commerce and E-business

8. Types of E-commerce
Classified by nature of market relationship
Business-to-Consumer (B2C)
Business-to-Business (B2B)
Consumer-to-Consumer (C2C)
Classified by type of technology used
Peer-to-Peer (P2P)
Mobile commerce (M-commerce)

9. Major Types of E-commerce

10. Business-to-Consumer (B2C) E-commerce
Many types of business models within this category
including online retailers, content providers, portals,
transaction brokers, service providers, market
creators and community providers

11. Business-to-Business (B2B) E-commerce
l Two primary business models within B2B:
Net marketplaces (includes e-distributors, e-
procurement companies, exchanges and industry
consortia)
Private industrial networks (includes single firm
networks and industry-wide networks)

12. Consumer-to-Consumer (C2C) E-commerce
lProvides a way for consumers to sell to each
other, with the help of an online market maker
eBay most well-known example

13. Peer-to-Peer (P2P) E-commerce
Uses peer-to-peer technology, which enables
Internet users to share files and computer resources
without having to go through a central Web server
lNapster most well-known example until put out of
business for copyright infringement

14. M-commerce
lUse of wireless digital devices such as cell phones
and handheld devices to enable transactions on the
Web

15. Electronic Commerce Payment Systems
lCredit Card payment systems
lDigital Wallet
lAccumulated balance digital payment systems
lStored Value payment systems
lDigital Cash
lPeer-to-Peer payment systems
lDigital Checking
lElectronic billing presentment and payment systems

16. Credit Card
lRepresents an account that extends credit to consumers,
permitting consumers to purchase items while deferring
payment, and allows consumers to make payments to
multiple vendors at one time
Credit card associations – Nonprofit associations (Visa,
MasterCard) that set standards for issuing banks

17. Digital Credit Card Payment Systems
Extend the functionality of existing credit cards for use as
online shopping payment tools
Focus specifically on making use of credit cards safer and
more convenient for online merchants and consumers
lExample: Cred

18. Digital Wallets
Most important functions:
Authenticate consumer through use of digital certificates
or other encryption methods
Store and transfer value
Secure payment process from consumer to merchant

19. Accumulating Balance
lAccounts that accumulate expenditures and to which
consumers make period payments
lExamples: American Express accounts

20. Digital Accumulating Balance Payment
Systems
Allows users to make micropayments and purchases on the
Web, accumulating a debit balance for which they are billed at
the end of the month
Examples: Q pass and I Pin

21. Stored Value
lAccounts created by depositing funds into an account and
from which funds are paid out or withdrawn as needed
lExamples: Debit cards, gift certificates, prepaid cards, smart
cards

22. Online Stored Value Systems
lPermit consumers to make instant, online payments to
merchants and other individuals based on value stored in an
online account
lRely on value stored in a consumer’s bank, checking or credit
card account

23. Digital Cash
lNot really “cash” – rather, are forms of value storage and
value exchange that have limited convertibility into other
forms of value, and require intermediaries to convert
lMany of early examples have disappear; concepts survive as
part of P2P payment systems

24. Peer-to-Peer Payment systems
lSends money using the Web to individuals or vendors who
are not set up to accept credit card payments
lEx: PayPal, Yahoo Pay Direct

25. Checking Transfer
lFunds transferred directly via a signed draft or check from a
consumer’s checking account to a merchant or other
individual
Not anonymous, require third-party intervention (banks)
Introduce security risks for merchants (forgeries, stopped
payments), so authentication typically required

26. Digital Checking Payment Systems
lExtend the functionality of existing checking accounts for use
as online shopping payment tools
lExamples: eCheck, Western Union MoneyZap

27. Electronic billing presentment and payment
sytems
lSupports electronic payment for online and physical store
purchases of goods or services after the purchase has taken
place
lExamples: CheckFree, Yahoo Bill Pay, MSN Bill Pay