E-Business Models
The Internet is forcing
companies to transform themselves, to rethink
their strategies, organisation and business
models.
What is the best E-business
model? is a question many companies have.
However there is no E-business model that fits
for all. Electronic commerce over the Internet
can be either complementary to traditional
business or represent a whole new line of
business.
Business models currently in
place
On the basis of case study
research, the following business models can be
identified which are currently applied by
companies :
-
Portals
-
E-shops
-
E-malls
-
E-procurement
-
E-auctions
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Capacity optimizers
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E-logistics
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B2B Marketplaces
-
Virtual Communities
-
Value Chain Service
Providers
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Value Chain Integrators
-
Collaboration Platform
Providers/ Collaboration Creation Centers
-
E-service Providers (trust,
marketing, finance and other services)
-
Information Brokers qnd
e-speculators
-
Providers of extended
products
-
Others
Many of these business models
are, with some modifications, applied in the
mobile commerce sector, like m-shops, m-infomediaries
and m-auctions. There are however also new
mobile e-services emerging, like m-portals for
positioning, video and personalised services, or
m-banking services.
Four fundamental stages of
E-business development are prevalent:
-
Stage 1 : marketing and
deployment of an E-business company strategy
(Website development both internally across
the whole organisation and externally)
-
Stage 2: channel innovation
(portal solutions, order entry & tracking,
e-catalogues, participation in E-ventures,
dedicated Externets)
-
Stage 3: full business
integration (full integration between
companies, collaborative planning and product
development, supplier consolidation)
-
Stage 4: full participation
in different horizontal value chains.
The current reality for many
large players presents stage 2. This stage
encompasses channel enhancement and demand
management, the publishing of Websites, online
catalogues, basic online trading, and Enterprise
Resource Planning (ERP) connectivity. While many
companies are able to receive orders
electronically, there is often no, or only
partial, online-integration between their
back-end and front-end systems.
Benefits for companies
If full integration of
business processes can be achieved this will
provide companies with the following advantages
:
-
the ability to share
information in real time
-
effective channel
management - to ensure consistency and quality
in the level of service and delivery
-
transparency of business
process
-
cost and time efficiencies
-
the ability to better meet
customer demands and requirements
-
control of the value chain.
Practical examples and
case studies of e-business intiatives
The
following Websites provide practical examples
and case studies of e-business intiatives :
-
Line 56. Profiles each week businesses
which have demonstrated superior initiative,
commitment and success by aligning people,
processes and technology to deliver corporate
value.
-
E - 100. Provides information on how
Germany's top - 100 companies are using the
Internet for their e-business strategies.
Hungry minds
An e-Business Model Ontology for Modeling
e-Business, by Alexander Osterwalder,
Yves Pigneur, June 2002
Business Models on the Web, by
Michael Rappa. In this article Michael Rappa
identifies nine generic forms of business models
apparent on the web, including: Brokerage,
Advertising, Infomediary, Merchant, Manufacture,
Affiliate, Community, Subscription, and Utility.
Business Models for Electronic Markets,
by Paul Timmers in: Gadient, Yves; Schmid, Beat
F.; Selz, Dorian: EM - Electronic Commerce in
Europe. EM - Electronic Markets, Vol. 8, No. 2,
07/98. This article provides a very good
framework for the classification of Internet
electronic commerce business models by outlining
emerging business models and strategic marketing
approaches that are applied.
E-Commerce Business Models, by
Carlina Capelo, Erkan Konar, Sundaram Raman,
Derya Savaser, February 2000. This article gives
an excellent overview on the different business
model definitions currently applied.
The Truth about Internet Business Models,
by Jeffrey F. Rayport, 1999
Electronic Commerce:
Strategies and Models for Business-to-Business
Trading, by Paul Timmers, Wiley & Sons Ltd,
April 2001. This book focuses on marketing in
B2B Internet electronic commerce and highlights
successful ecommerce strategies. It gives an
overview on the most successful models and
offers managers informed recommendations on how
to implement them in their own businesses.
Internet Business Models and
Strategies, by A. Afuah, C. Tucci, Boston:
McGraw Hill, 2001. This book explores Internet
business models and strategies and what it takes
for them to allow firms to make money. It
provides theoretical frameworks for analysis as
well as cases for further discussion.
Internet, Comercio
Colaborativo y mComercio, by I. Laso, M.
Iglesias; Ediciones Mundi Prensa, 2002. This
book gives an excellent analysis of the latest
technological developments in electronic
commerce, e-markets and new business models.
Internet y Comercio
Electronico, by J. Briz, I. Laso, Ediciones
Mundi Prensa, 2001, p. 283 – 292. Chapter 12 of
this Spanish e-commerce bestseller gives an
overview on Internet business models. |
RoDI
ISOC
IWA
ARTT
RTS
WQC 2003
ISAQ 2005