The document discusses five categories of e-business models: B2C, B2B, B2G, C2C, and C2B. It also discusses factors that affect e-business success, including the network effect, innovative marketing ideas, scalability, ease of entry into electronic markets, and the ability to quickly adapt to marketplace changes. Examples are provided for each category and factor.

1. 1
ITEC 410
Current Technologies
 Categories of E-Business Models
 Factors Affecting E-Business Success

2. Learning Objectives
 Discuss the Five Categories of e-Business Models:
– B2C
– B2B
– B2G
– C2C
– C2B
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3. 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 Changes
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Second Edition, Chapter 1

4. 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 Web
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5. E-Business Models
 Business models
– How a company conducts business in order to
generate revenue
– Widespread access to the Internet and Web
allows companies to adapt old models and
create new ones
 E-business models are often categorized by
type of customer
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6. E-Business Models
(continued)
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7. 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 are moving to
brick-and click companies
– Sears, Best Buy, Barnes & Noble, the Gap
 Pure-play e-retailers and catalog merchants
– Amazon.com, eBags, Harry and David
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8. E-Business Models
(continued)
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9. E-Business Models
(continued)
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10. E-Business Models
(continued)
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11. 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
• Consulting
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Second Edition, Chapter 1

12. E-Business Models
(continued)
 Business-to-business (B2B)
– Online trading communities for vertical markets
– Exchanges, aggregators, auctions
• Virtual marketspaces for buyers and sellers
• Elance, ATLA Exchange, Business.com,
HedgeHog
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13. E-Business Models
(continued)
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14. E-Business Models
(continued)
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15. E-Business Models
(continued)
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16. E-Business Models
(continued)
 Business-to-government (B2G)
– Businesses provide a marketspace for other
businesses and government agencies
– Bidmain, B2GMarkets
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17. E-Business Models
(continued)
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18. E-Business Models
(continued)
 Consumer-to-consumer (C2C)
– Consumers sell or exchange products and
services directly with other consumers
– Auctions, online classified ads, expert information
exchanges
• eBay, American Boat Listing, TraderOnline.com,
AllExperts
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19. E-Business Models
(continued)
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20. E-Business Models
(continued)
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21. E-Business Models
(continued)
 Consumer-to-business (C2B)
– Reverse auctions in which a single consumer
names his or her own price for products or
services
– Consumer’s offer made to multiple businesses,
which can accept or decline offer
– Priceline.com
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22. E-Business Models
(continued)
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23. Factors Affecting
E-Business Success
 The network effect
– 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 sellers
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Second Edition, Chapter 2

24. Factors Affecting
E-Business Success (continued)
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25. Factors Affecting
E-Business Success (continued)
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26. Factors Affecting
E-Business Success (continued)
 Innovative marketing ideas
– Hotmail and viral marketing 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
human virus spreads from person to person
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27. Factors Affecting
E-Business Success (continued)
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28. Factors Affecting
E-Business Success (continued)
 Scalability
– Ability of a business to function well in the face of
rapid growth
• Systems and procedures meet 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; advertisers did not
– No scalability with rapid growth in customers
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Second Edition, Chapter 2

29. Factors Affecting
E-Business Success (continued)
 Ease of entry into electronic markets
– 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
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Second Edition, Chapter 2

30. Factors Affecting
E-Business Success (continued)
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Second Edition, Chapter 2

31. Factors Affecting
E-Business Success (continued)
 Ability to quickly adapt to marketplace changes
– Rapid knowledge transfer
– 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
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32. Factors Affecting
E-Business Success (continued)
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33. End of Lecture
02
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