This document discusses e-commerce and various business models related to electronic markets. It begins by asking what e-commerce is and listing examples like online shopping, banking, and advertising. It then defines key terms like B2C, B2B, and different types of e-business models. The document outlines elements of business models and provides examples like the merchant, subscription, and advertising models. It also discusses dimensions of IT business value and resources for further information on business models for electronic markets.

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E-Commerce Business Plans
E-Commerce
MH prince

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What is E-Commerce?
Is it electronic mail?
Is it electronic data interchange (EDI)?
Is it video on demand?, home shopping?,
electronic publishing?
Is it home banking? Or online personal financial
information management?
Is it a new way of organizing?
Is it interactive advertising and marketing?
Is it a new methodology that shows how to
implement re-engineering and total quality?

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Buzzwords cheatsheet
Speed, Scope, Scale
Content, Community,
Commerce
Sequential, Pooled,
Reciprocal
B2C, B2B, C2C, C2B,
B2G
Disintermediation
/ Reintermediation
E-Commerce, E-
business?
Internet, Intranet,
Extranet, VPN
More, less innovation?
Integration?
Automational,
Informational,
Transformational:
Operational,
Managerial

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Definition of business model
An architecture for the product, service, and
information flows surrounding a value-creating
activity
Description of the various business stakeholders
and the potential benefits to each
Description of the revenue flows that sustain the
model
(Strategy as who we are and what we do)

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business models?

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E-Business on the Internet
Business-to-consumer (B2C)
– Amazon, Dell
Business-to-business (B2B)
– Freemarkets, CommerceOne
Verticalnet
Consumer-to-consumer (C2C)
– Ebay, QXL
Consumer-to-Business (C2B)
– Priceline, Accompany, LastMinute

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E-Business on the Internet
Business-to-government (B2G)
– E-commerce Resource Center
Markets for Information
– infomarco, epinions, abuzz
Markets for Bandwidth and Access
Interorganizational Systems (Extranets)
Enterprise-wide (Intranets)
Look for electronic commerce opportunities within the
enterprise, with business partners, and with customers.

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E-Commerce, E-Business
Electronic commerce is the integrated use of
computing and communications technologies for
business transactions.
First generation e-commerce uses the web as an
alternative channel for conducting business (e.g.,
placing orders).
E-Business, in addition to encompassing e-
commerce, includes both front- and back-office
applications.

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Second-Generation E-
commerce
Allows the business to do something with
electronic networks that can’t be done effectively
any other way
Ties a business process to the Web as the primary
mechanism for conducting daily business
Is based upon full life-cycle business applications
Provides adaptive, personalized, value-added
services

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Sharing Information with
Partners
Interorganizational systems (IOS) are types of
information systems that permit the coupling of
transactions between organizations, making them
more efficient and responsive.
An Extranet is an application of Internet
technology that provides specific external parties
with controlled access to internal corporate
information.

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Electronic Data Interchange
(EDI)
EDI has been used for 20 years, but it has
– High cost
• EDI applications are costly to develop and operate
– Limited accessibility
• Value-Added Networks (VANs) are often used
– Rigid requirements
• highly structured protocols and rigid meaning of data
– Partial solutions
• ordering and fulfillment, but not accounting or inventory

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Unbundling the Organization
Product
Innovation
Management
Customer
Relationship
Management
Infrastructure
Management
Scale
Scope
Speed
Electronic commerce has low interaction cost, it is natural
for web-based businesses to focus on a single core process.
(Hagel and Singer, 1999)

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Content
Community
Commerce

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8 Business Model Examples
Merchant model:
Subscription or Metered usage
Infomediary
Advertising
Brokerage
Affiliates
Manufacturers
Communities and Communication

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Business Model Examples
Merchant model:
– Virtual only or Catalog, Travelocity, Expedia
– Bricks & Clicks
– Bits-only.
Subscription or Metered usage
– Glassbook, Wall Street Journal, FatBrain, Consumer
Reports -- BUT: NYT, Slate, MP3, etc...
Infomediary
– Portals, registration requests
– MyMealPlan, When, Evite, Versity, WebMD
– Iowa electronic, Hollywood, Cheathouse, Dr. Koop

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Business Model Examples
Advertising models
– freebies: BlueMountain, Freemerchant
– Specialized, personalized portals: Yahoo, Excite, Lycos
Brokerage models
– Aggregate buyers (Accompany)
– Fulfill: Kozmo, E-trade, Carsdirect
– B2B bartering: MetalSite, ChemConnect
– Search agent/bot: MySimon, CareerCentral
bottomdollar,

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Business Model Examples
Manufacturers
– Intel, Apple, Virtual Vineyards
Communities
– VerticalNet, iVillage, ICQ, Firefly
– HumanClick, PeopleSupport
– ThirdVoice, Ubique, iMarkup, uToK
– “Viral Marketing”

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Customer Service Life Cycle
Requirements
AcquisitionOwnership
Retirement
Need description
Product offering
Order entry
Payment / Settlement
Delivery logistics
Service and support
Account management
Transfer (Disposal)
Review / Audit

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Business Models for Electronic Markets:
Paul Timmers

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Business Models for Electronic Markets:
Paul Timmers (2)

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Evaluation

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Dimensions of IT Business Value
Automational Informational Transformational
Business
Processes
Operational
Management
Labor Cost
Inventory Cost
Administrative
Expense
Utilization
Responsiveness
Accuracy
Decision Quality
Resource Usage
Efficiency Effectiveness Adaptability
Cycle Time
Customer
Relationships
Competitive Flexibility
Organizational Form
IT Business Value Metrics
Doing things better Doing better things Doing different things

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Resources
Business Models for Electronic Markets
http://www.electronicmarkets.org/netacademy/publications.nsf/all_pk/949/$fil
e/v8n2_timmers.pdf?OpenElement&id=949
What’s your business model?
http://www.eloquent.com/cgi/eloweb.dll?id=274-0
Intermediaries and CyberMediaries
http://www.ascusc.org/jcmc/vol1/issue3/sarkar.html
Internet Business Model Patents
http://www.jonesaskew.com/articles/99/s99modelpat.html

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Resources (2)
The B2B Boom – Business 2.0 9/99
http://www.business2.com/index/0999/
The Truth About Business Models
http://www.strategy-business.com/briefs/99301/
The Journal of Computer-Mediated
Communication (JCMC)
http://www.ascusc.org/jcmc