business models u brokerage u advertising u infomediary u merchant u manufacturer u affiliate u...
TRANSCRIPT
Business ModelsBusiness Models
Brokerage Advertising Infomediary Merchant Manufacturer
Affiliate Community Subscription Utility
Rappa
BrokerageBrokerage Bringing together buyers and sellers
Fulfillment (e.g., Etrade) Market Exchange (charge seller a fee; e.g., Metalsite) Business Trading Community (vertical web community) Buyer aggregator (buying group; Mobshop) Distibutor (multi-vendor catalog; NECX) Virtual Mall (hosts merchants via portal; Yahoo! Stores) Metamediary (VM+processing+protection; zShops) Auction Broker (conducts auctions for sellers; eBay) Reverse auction (broker can earn spread; Priceline) Classifieds (price may or may not be specified) Search Agent (seeks goods/prices; MySimon) Bounty Broker (reward for finding items; BountyQuest)
AdvertisingAdvertising
Extension of traditional broadcasting model Generalized Portal (high-volume; Yahoo!) Personalized Portal (customized; My.Yahoo!) Specialized Portal (vortal, targeted) Attention/Incentive Marketing (pay for
viewing; CyberGold, IWon) Free Model (hosting, access, greeting cards;
BlueMountain)
InfomediaryInfomediary
Collect and sell information about consumers Recommender System (users
exchange information about products/services; Deja.com; ePinions)
Registration Model (Content site, free to viewers, registration required; NYTimes.com)
Merchant ModelMerchant Model
Classic wholesalers & retailers (auction or fixed price) Virtual Merchant (Amazon; OnSale) Catalog Merchant (Mail order
migrated to the web; Levenger) Click and Mortar (traditional + Web;
Gap, Lands End; B&N) Bit Vendor (Strictly digital, most often
downloaded only; Eyewire)
The OthersThe Others
Manufacturing Model: Eliminating an intermediary (Flowerbud, Dell)
Affiliate Model: Distributed sites provide click-through; (Amazon; BeFree)
Community Model: Users contribute content, funding, or knowledge on demand; newsgroups (fee version: Guru)
Subscription Model: Pay access; high value is essential (because 46% won’t pay)
Utility Model: Metered usage; pay as you go (Fatbrain)
Why do Why do any E-Businessany E-Business??
0% 10% 20% 30% 40% 50% 60% 70%
New Sales
Competitive pressure
Customer pressure
Cost savings
Internal efficiency
Staff productivity
Value chain integration
Product differentiation
Partner Pressure
New Prospect base
Meta Group study (Infoworld; 3-27-2000, p.24)
The The Landscape: Landscape: Business Business ModelsModels
TargetB C
BSource ofGoods, Info
C
B to B: E-Steel, Free Markets
B to C:Amazon, Dell
C to B:Priceline
C to C:Ebay, QXL
Economist, Feb 26, 2000
The ModelsThe Models
B to C: Generates transactions from consumers.
B to B: Interbusiness transactions. B to B to C: Integration of activities
from the supply chain to the consumer.
Infoworld, 4-3-2000, p. 111 (M. Vizard)
Alphabet Soup?Alphabet Soup?
Target of Goods, Information
B C G
Source
B B to B B to C B to G
C C to B C to C C to G
G G to B G to C G to G
Movement Toward Movement Toward Integration: B to B to Integration: B to B to CC
Target of Goods, Information
B C G
Source
B B to B B to C B to G
C C to B C to C C to G
G G to B G to C G to G
Creative Cash Flow Creative Cash Flow ModelsModels
Amazon.com has a unique advantage…
Shared by others?
Creative Approach: Creative Approach: Business Method Business Method Patents!Patents!
Amazon: One-Click shopping Amazon: Affiliates program Open Market: shopping carts Open Market: secure credit card trans. Priceline.com: name-your-own-price
auction Sightsound.com: selling digital content
for download (asking for 1% royalty)
Actual Patents Owned (Infoworld, 3-6-2000, p. 30)
Amazon’s PatentAmazon’s Patent
July 1998: Federal Appeals Judge rules that business processes can be patented.
October 1999: Amazon sues Barnes and Noble for one-click orders.
December: Judge agrees with Amazon, forcing B&N to add a step to its checkout process.
March 2000: Patent Office announces plans for tighter oversight of e-commerce patents.
Feb 2001: Judge allows Barnes & Noble to return to one-click ordering! Case still in lower court
PC Week: 4-17-2000, pg. 80, Wall St. Journal Feb 2001
