E-COMMERCE, STRATEGY & MANAGEMENT (COM350) E-COMMERCE MODELS

Week 4 This Weeks Topics: –E-COMMERCE MODELS

This Week E Commerce Models - strategic points Download Introduction to Online Commerce and read for next week Introduction to Online Commerce Read pp of ‘E-Business and E- Commerce Management’, Chaffey.

DEFINITION OF BUSINESS MODEL A business model is what allows a company to capture and deliver value to its customers Elements of a business model: –Organizational goals, –Strategies –Processes –Technologies –Structure

E-COMMERCE VERSUS TRADITIONAL MODELS Traditional Models –ICT / IS support the business systems E-business Models –ICT / IS are integral to the business model. The difference lies in the degree of integration.

ICT / IS INTEGRATION Degree of integration is determined by the degree of ‘virtuality’ of: the product, the processes, the delivery agent (intermediary) In traditional business these elements are physical In pure e-commerce they are virtual Virtual and physical elements can be mixed

3 DIMENSIONS OF E-COMMERCE (After Choi et al 1997) Traditional Commerce Pure E-commerce Physical Agent Physical Product Virtual Product Virtual Process Physical Process Virtual Agent

Business Models on the Web (Rappa) –