By Peter Weill and Michael R. Vitale HARVARD BUSINESS SCHOOL PRESS 1 PLACE TO SPACE: migrating to e -business models E-Commerce Initiatives and Atomic Business Models of E-Commerce

By Peter Weill and Michael R. Vitale HARVARD BUSINESS SCHOOL PRESS 2 E-Commerce Initiatives and Atomic Business Models of E-Commerce 1.Content Provider 2.Direct to Customer 3.Full-Service Provider 4.Intermediary 5.Shared Infrastructure 6.Virtual Community provides content (information goods and services) via Intermediaries. provides goods or services directly to the customer, often bypassing traditional channel members and intermediaries. provides a full range of services in one domain (e.g. financial, Health, industrial chemicals) directly and via allies, attempting to own the primary customer relationship (CR). brings together buyers and sellers by concentrating information. brings together multiple competitors to cooperate by sharing common IT infrastructure. creates and facilitates an online community of people with a common interest, enabling interaction and service provision.

By Peter Weill and Michael R. Vitale HARVARD BUSINESS SCHOOL PRESS 3

By Peter Weill and Michael R. Vitale HARVARD BUSINESS SCHOOL PRESS 4

By Peter Weill and Michael R. Vitale HARVARD BUSINESS SCHOOL PRESS 5 Traditional Computer Retailer’s Business Model vs. Dell Direct-to-Customer E-Business Model

By Peter Weill and Michael R. Vitale HARVARD BUSINESS SCHOOL PRESS 6 Content Provider Atomic E-commerce Business Model Schematic

By Peter Weill and Michael R. Vitale HARVARD BUSINESS SCHOOL PRESS 7 Transaction Broker Model A: Direct-to-Customer

By Peter Weill and Michael R. Vitale HARVARD BUSINESS SCHOOL PRESS 8 Transaction Broker Model B: Full-Service Financial Provider

By Peter Weill and Michael R. Vitale HARVARD BUSINESS SCHOOL PRESS 9 Transaction Broker Model C: Intermediary – Financial Vortal with Fees

By Peter Weill and Michael R. Vitale HARVARD BUSINESS SCHOOL PRESS 10 Transaction Broker Model D: Intermediary – Portal with Advertising

By Peter Weill and Michael R. Vitale HARVARD BUSINESS SCHOOL PRESS 11 GE Supply Company Full-Service Provider E-Business Model Schematic

By Peter Weill and Michael R. Vitale HARVARD BUSINESS SCHOOL PRESS 12 eBay E-Business Model Schematic of a community provider and C2C market creator

By Peter Weill and Michael R. Vitale HARVARD BUSINESS SCHOOL PRESS 13 Intermediary Provider Atomic E-commerce Business Model Schematic

By Peter Weill and Michael R. Vitale HARVARD BUSINESS SCHOOL PRESS 14 Virtual Community Atomic E-commerce Business Model Schematic

By Peter Weill and Michael R. Vitale HARVARD BUSINESS SCHOOL PRESS 15 What is it used for? I see it, I see something called the INTERNET… Can’t see yet; the connection is a little bit slow… Courtesy of cartoonist Selçuk Erdem