Chapter 1 The e-Business Revolution

Why look for an analytical model? l In the eBusiness world: n time to market is extremely short n prototypes only way to validate a business model n prototypes must appear to be strategic move to win customers and truly gauge response n If successful, the pilot must interact with the rest of the business seamlessly

Definitions l Atomic eBusiness Model: n The essence of the way eBusiness is conducted. l eBusiness Model: n A combination of atomic models that describe the eBusiness activities in an initiative. l eBusiness Initiative: n Unique combination of a model, customer segments, channels to the customer, and required IT infrastructure l eBusiness Implementation: n Complete description of eBusiness in a firm

eBusiness Initiative Atomic eBusiness Models Customer Segment Channel IT Infrastructure

Principles on which Models are based l All companies will be influenced by eBusiness l Transition is difficult due to issues listed earlier l Managers are struggling with evaluating initiatives l Schematics will assist with defining and assessing models l IT is a critical success factor l A finite set of atomic eBusiness models l Only some combination of models compatible l Business models best understood with examples l Business models must be prototyped fast l Firms must examine core competency, assets, and models to define initiatives

Atomic Business Models l Content Provider l Direct to Customer l Full-Service Provider l Intermediary l Shared Infrastructure l Value Net Integrator l Virtual Community l Whole-of-Enterprise/Government

Characteristics of Atomic eBusiness Models l Characteristics include: n Strategic Objectives n Sources of revenue n Critical success factors n Core competencies