1. E-BUSINESS MODELS

2. INTERNET BUSINESS LANDSCAPE

3. What is current Internet Business Landscape? Your Examples?

4. Fundamentals of improving technology and its use are still valid. What are these fundamentals? Internet Business Landscape

5. Security and stability remain unsolved... (that is why air is out of the balloon) Prediction: slower pace of the developments Reevaluation of the brick- and- mortar business fundamentals: are these really at work in the Internet business landscape? Internet Business Landscape Fundamentals

6. Your Examples ? Technology Capabilities: pre and post Internet

7. Technology capabilities example: progression of major paradigms in HCI ERA PARADIGM IMPLEMENTATION 1950sNoneSwitches, wires, punched cards 1970sTypewriterCommand-line interface 1980sDesktopGUI/WIMP 2000sNatural interactionPUI (perceptual User Interfaces (multimodal input and output)

8. Technology capabilities pre- & post Internet Closed standards limit participation to individuals and companies with access to proprietary software Proprietary ownership of the platform enables owner to set commerce standards and policies Rigid design limits business functionality and flexibility High cost, long time frame, specialized expertise to develop business solutions provide powerful barriers Open standards enable global connectivity; anyone with the browser and Internet access can Shared ownership of the network; collaboration and coordination required to define and manage commerce Modular, flexible software and infrastructure enables business flexibility Lower cost (but still costly) and expertise and shorter time frame to develop business solutions (lowers barriers to entry?)

9. Business community perspective Introducing new business model is like introducing new virus--it disrupts status quo Who was Enron and what happened? Survival of new model depends on process of adaptation--both business community and model are altered

10. Business community perspective B2C B2B –C2C –C2B

11. Business community perspective Consider B2C Experience of buying a product offline Experience of buying a product online amazon.com-INTRODUCTION OF CLICK AND ORDER into brick- and- mortar industry

12. View from LandsEnd B2C Please visit www.landsend.com and investigate “Shop with a Friend” service

13. Software A unique good A unique industry Can be viewed from many unique perspectives

14. Supplier value chain for software vendor The supplier value chain from software vendor to user has four primary stages

15. INTERNAL SOFTWARE ARCHITECTURE

16. A separation of technological progress from applications

17. What is going on? Information appliances Pervasive computing Mobile and nomadic information technology A component marketplace Evolving pricing and business models

18. View from CISCO Internet Business Landscape

19. View from Cisco

20. View from Cisco Please visit http://www.cisco.com/warp/public/750/icorporation/ index.html

21. Consider Cisco iQ | Five Changes You Must Make to Your Internet Strategy Now

22. Pattern of business model evolution Mortar Click- and -order Click- and- mortar has impact on revenue, cost, assets

23. Some Reminders Channel- any series of firms or individuals who participate in the flow of products and services from producers to consumers Market- a group of potential customers with similar needs that are willing to exchange something of value with sellers offerings goods and services

24. Some Reminders Vertical Market--channel system in which whole channel focuses on the same target market at the end of the channel Horizontal Market--channel system in which channel focuses on broad target markets at the end of the channel

25. Some Reminders Portal- Gateway to access An example of an early portal (pre-Internet) American Airlines’ SABRE system Portal- Gateway and destination Vertical-pertaining to a single area of interest Horizontal-pertaining to broad range of interests

26. Some Reminders Yahoo!- A horizontal portal WebMD- A vertical portal

27. Dilemma Industrial age business model took long to develop We have a shorthand for understanding how a business was structured, how it interacted with others in the industry, how it made money, how it delivered value to customers, suppliers, partners, employees

28. It also told everyone who did business with us what we can expect “ I sell cars” Industrial-age business model is so familiar that it no longer requires deep explanation

29. Internet Provides a new channel for procuring and distributing products and services Allows invention of new models

30. Business Model A description of complex business that enables study of its structure, relationships among structural elements, and how it will respond in the real world Clarity about: assumptions, parameters structure, relationships, economics, dynamics