The document discusses several topics related to business models and the internet landscape: 1) It discusses frameworks for analyzing business models from authors like Evan & Wurster, Porter, Amit & Zott. 2) It covers different types of business models that emerged on the internet like distributor, portal, and producer models. 3) It analyzes technological and economic factors that impact internet business models like excludability, rivalry, and transparency.

1. Making sense of the Internet business landscape

2. Massive channel disintermediation?
Delineation between technology producers and
technology users?
Conducts of Dot-com
Performance of vogue virtual integrations?

3. Evan & Wurster
Less about any specific new technology than a new
behavior for reaching critical mass;
The universal pervasion of open standards;
The precipitate changes of the structure of entire industry
and the ways companies compete
M. Porter:
Return to the fundamental principles underlying the
novelty of phenomena

4. Be shaped and reshaped by customers and the
business community
Emerging through evolution and adaptation
A flexible Value web (network) dominated a
single/dedicated value chain

5. The properties of models
Enable study of the structure of a complex system,
relationships among structural elements, assumptions,
and a description of the system in action
Can be built before the real system to help predict how the
system might respond if we change the structure,
structure, relationships, and assumptions
A model in the world of business
A description of a complex business that enables study of
its structure, the relationships among structural elements,
and how it will respond in the real world

6. A business model depicts the content,
structure, and governance of
transactions designed so as to create
value through the exploitation of
business opportunities.
Amit & Zott (SMJ, 2001, p.511)

7. The good or information that are being exchanged
The resources and capabilities that are required to
enable the exchange
E.g., transparency of transaction, vertical &
horizontal expansion of product/service, the degree
of customization, technologies of transaction

8. The parties that participate in the exchange
The ways in which these parties are linked
The order process and the adopted exchange
mechanism
E.g., the providers of complementary assets,
transaction speed, mode, simplicity, safety & reliability,
integration of online & offline supply chains

9. The ways in which flows of information, resources,
and goods are controlled by the relative parties
The incentives for the participants in transactions
E.g.,cooperative and shared incentive among allied
partners, commitment and investment of co-
specialized assets, loyalty maintenance

10. A description of roles and relationships
among a firm’s consumers, customers, allies,
and suppliers that identifies the major flows
of product, information, and money, and the
major benefits to participants, almost, over
Internet .
(Weill & Vitale, Place to Space, 2001, p.34)

11. Distributors models
Focused distributor models
Retailer, marketplace, aggregator/infomediary, exchange,
E*trade, Amazon
Portal models
Horizontal, vertical, affinity, AOL, Yahoo!, iVillage
Producer models
Manufacturers, service providers, educators, advisors,
information/news service, custom suppliers, Ford, GE, Boeing,
Ernst & Yong, WSJ, McGraw-Hill

12. Infrastructure provider models: to construct business that
deliver the technology infrastructure
Focused distributor
Infrastructure retailer/marketplace/exchange, CompUSA, Staples,
IngramMicro, Egghead
Portal
Horizontal/vertical infrastructure portals, AOL, AT&T, Oracle
Producer
Equipment/component manufacturers, infrastructure software/services
firms, IBM, Dell, Compaq, Oracle, Ariba, MS, Doubleclick
Custom software/hardware suppliers, Dell, Andersen Consulting

13. Three technological prerequisites to facilitate
market economy
Excludability
Rivalry
Transparency
Could Internet technologies promote above three
properties for the information-based economy?
If not all, some business mechanisms will be needed

14. Customer value—segmentation, value proposition
Scope—core or by-products
Pricing—attractive willingness-to-pay prices
Revenue sources—exploitation & leverage of
complements
Connected activities—the complete value chain
Construction—IT infrastructure, organization, and
key champion
Capability—acquisition of necessary competence
Sustainability—setup firewall to prevent imitation

15. The customer perspective
Efficiency, responsiveness, security
Anything valuable more than social contact & face-to-face
interactions?
The business community perspective
Assets investment: current/tangible/intangible assets
Revenue flow: commerce/content/community/
infrastructure revenue sources
Cost allocation: M/I/T categories

16. Attach to the gateway
Leverage with the complements
Search the common interface
Enhancement on functionality
Expansion of diversity on existing businesses
Extension on new businesses
Exit for far-leap

17. Evans, P. and T. Wurster (1997), “Strategy and the
New Economics of Information,” Harvard Business
Review, 75(5), Sept.-Oct., pp.70-83.
Porter, M. E. (2001), “Strategy and the Internet,”
Harvard Business Review, 79(3), March, pp.62-78.

18. Chatterjee, Debabroto, Rajdeep Grewal and V.
Sambamurthy (2002), “Shaping Up for E-commerce:
Institutional Enablers of the Organizational
Assimilation of Web Technologies,” MIS Quarterly,
Volume 26, Number 2, pp.65-89.
Fichman, R. G. and Kemerer C. F. (1999), “The Illusion
Diffusion of Innovation: An Examination of Assimilation
Gaps,” Information Systems Research, Sept. pp, 255-275.
Kline, R. B. (1998), Principles and Practices of Structural
Equation Modeling, The Guilford Press, New Work.

19. Grover, Varun, and Pradipkumar Ramanlal (1999), “Six
Myths of Information and Markets: Information
Technology Network, Electronic Commerce, and the Battle
for Consumer Surplus,” MIS Quarterly, Volume 23, Number
4, pp.469-495.
Stigler, George (1961), "The Economics of Information",
Journal of Political Economy.

20. Attracting the base of customers by heavy discounts
rather than true costs
Click-through is not the same as cash
Booming by the curiosity rather than utility
Revenue inflow from stocks rather prices
Enjoying subsidized inputs
Masking true costs but transferring them to
shareholders
Understatement of the need of capital for asset
building

21. Dot-Coms multiplied so rapidly because of
Every low barriers to entry
Raising capital without having to demonstrate
performance and viability.
Just going through a period of transition
Return to the fundamentals eventually

22. Industry structure
Five/six forces analysis
Competitors/complementarities
Customers
Suppliers
Substitutes
Entrants
Sustainable competitive advantage
Operational effectiveness
Strategic positioning