E-Business Model

E-Business Model definition An e-and m- business model is an approach to conducting electronic business through which a company can sustain itself and generate profitable revenue growth An e-and m- business model is an approach to conducting electronic business through which a company can sustain itself and generate profitable revenue growth The business model spells out how a company plans to make money and how it is competitively positioned in an industry The business model spells out how a company plans to make money and how it is competitively positioned in an industry

Innovation produit Gestion des relations-clients Gestion des infrastructures Aspects financiers Business model Financial aspects Financial aspects HOW MUCH? What is the revenue model? the profit model? designed to last? WHO? How to manage relationships with customers, satisfy them and generate revenues to be on the winning side? Customer Relationship Customer Relationship WHAT? What is the scope of products and services, its value (its benefits) for the customer, the capabilties to deliver them in an innovating way? Product innovation Product innovation HOW? How to organize the infrastructure, its resources, the knowledge and the structure of resulting costs, manage the value chain and processes, build alliances to achieve performance? Infrastructure logistics Infrastructure logistics

Classifications Classifications may be according to:  Interacting participants –B2C, B2B, C2C, G2C, G2B, P2P  Value proposition (offer)  Revenue model  Main theme, key processes  Customers’ role  Type of e-commerce technology  etc.

B2C  B2C group is a much newer area and largely equates to electronic retailing over the Internet.  This category has expanded greatly in the late 1990s with the growth of public access to the Internet.  The business-to-consumer category includes electronic shopping, information searching (e.g. railway timetables) but also interactive games delivered over the Internet.  Examples? –Amazon.com –Egghead.com

Enterprise User Profiles Workflow Business rules Payment Analytics Internet Intranet Figure: A B2C e-business Model

B2C Applications  Electronic storefront  Electronic malls  Advertising online  Service online –selling books, toys, computers –e-banking (cyberbanking) –online stock trading –online job market, travel, real estate

Figure : B2C and B2B Internet Commerce in the U.S. (Source: Forrester Research) Billion

What is B2B?  “ B2B ” is business- to- business commerce conducted over the Internet (called B2B e-commerce space, or e- marketplaces) N

business-to-business  The business-to-business (B2B) group includes all applications intended to enable or improve relationships within firms and between two or more companies.  In the past this has largely been based on the use of private networks and Electronic Data Interchange (EDI).  Examples from the business-business category are the use of the Internet –for searching product catalogues, –ordering from suppliers, –receiving invoices and making electronic payments.  This category also includes collaborative design and engineering, and managing the logistics of supply and delivery.

business-to-business  The volume of B2B (Business-to-Business) transactions is much higher than the volume of B2C transactions.  The primary reason for this is that in a typical supply chain there will be many B2B transactions involving sub components or raw materials, and only one B2C transaction, specifically sale of the finished product to the end customer. supply chainraw materials supply chainraw materials  For example, an automobile manufacturer makes several B2B transactions such as buying tires, glass for windscreens, and rubber hoses for its vehicles. The final transaction, a finished vehicle sold to the consumer, is a single (B2C) transaction. B2C

Figure : A B2B Model (Source: Goldman Sachs Investment Research Report) Banks, Financial Institutions eCredit.com Suppliers  Production materials  Operating goods, services Enterprise Customers Logistics Celarix, NTE

B2B Applications  Advertising  Auctioning  Procurement  Channel management  E-commerce – (Exchange employee) – (Industry to Industry) – (Business to Business) –

B2C vs. B2B Source: Goldman Sachs Investmenet Research

Benefits of B2B  B2B solutions create competitive dynamics through: –cost savings  the composition of cost (product versus process costs)  the number of intermediaries in the supply chain. –new financial (revenue) opportunities  the rate of industry-wide B2B adoption  business model N