02 ec lect business models concepts
INFO 3435 eCommerce
Teaching Objectives
2. eCommerce Business
Models and Concepts
•
•
•
•
Identify the key components of eCommerce business models.
Describe the major B2C business models.
Describe the major B2B business models.
Describe business models in other emerging areas of eCommerce. • Explain the key business concepts and strategies applicable to eCommerce.
Alexander Nikov
2-2
How popular is
Tweet Tweet:
What’s Your Business Model?
• What characteristics or benchmarks can be used to assess the business value of a company such as Twitter?
• Have you used Twitter to communicate with friends or family? What are your thoughts on this service? • What are Twitter’s most important assets?
• Which of the various methods described for monetizing Twitter’s assets do you feel might be most successful?
2-3
2-4
Outline
Components of eBusiness models
1. eCommerce Business Models
2.
3.
4.
5.
Major Business-to-Consumer (B2C) Business Models
Major Business-to-Business (B2B) Business Models
Business Models in Emerging eCommerce Areas
How eCommerce changes business: Strategy, Structure, and Process
2-5
2-6
The eight key elements of a business model eCommerce Business Models
• Business model
– Set of planned activities designed to result in a profit in a marketplace
• Business plan
– Describes a firm’s business model
• eCommerce business model
– Uses/leverages unique qualities of Internet and Web
2-7
2-8
8 Key Elements of a Business Model
1. Value Proposition
• Why should the customer buy from you?
• Successful eCommerce value propositions:
– Personalization/customization
– Reduction of product search, price discovery costs
– Facilitation of transactions by managing product delivery 2-9
2. Revenue Model
2-10
Advertising Revenue Model
• How will the firm earn revenue, generate profits, and produce a superior return on invested capital?
• Web site that offers content, services and/or products also provides a forum for advertisements and receives fees
Teaching Objectives
2. eCommerce Business
Models and Concepts
•
•
•
•
Identify the key components of eCommerce business models.
Describe the major B2C business models.
Describe the major B2B business models.
Describe business models in other emerging areas of eCommerce. • Explain the key business concepts and strategies applicable to eCommerce.
Alexander Nikov
2-2
How popular is
Tweet Tweet:
What’s Your Business Model?
• What characteristics or benchmarks can be used to assess the business value of a company such as Twitter?
• Have you used Twitter to communicate with friends or family? What are your thoughts on this service? • What are Twitter’s most important assets?
• Which of the various methods described for monetizing Twitter’s assets do you feel might be most successful?
2-3
2-4
Outline
Components of eBusiness models
1. eCommerce Business Models
2.
3.
4.
5.
Major Business-to-Consumer (B2C) Business Models
Major Business-to-Business (B2B) Business Models
Business Models in Emerging eCommerce Areas
How eCommerce changes business: Strategy, Structure, and Process
2-5
2-6
The eight key elements of a business model eCommerce Business Models
• Business model
– Set of planned activities designed to result in a profit in a marketplace
• Business plan
– Describes a firm’s business model
• eCommerce business model
– Uses/leverages unique qualities of Internet and Web
2-7
2-8
8 Key Elements of a Business Model
1. Value Proposition
• Why should the customer buy from you?
• Successful eCommerce value propositions:
– Personalization/customization
– Reduction of product search, price discovery costs
– Facilitation of transactions by managing product delivery 2-9
2. Revenue Model
2-10
Advertising Revenue Model
• How will the firm earn revenue, generate profits, and produce a superior return on invested capital?
• Web site that offers content, services and/or products also provides a forum for advertisements and receives fees