e-business explained through an e-business model approach course heg neuchâtel, october 2001...
Post on 15-Jan-2016
219 views
TRANSCRIPT
e-Business e-Business explained through an e-Business Model approachexplained through an e-Business Model approach
Course HEGNeuchâtel, October 2001
Alexander OsterwalderHEC Lausanne
[email protected](+41 21) 692.3420
© 2001 Osterwalder, HEC Lausanne e-business 2
Université de Lausanne
WEB | AGENDA | FIN
Agenda
• e-Businesspages
– an e-Business Model Approach to Strategy
• Business model components > Model 8
– Product innovation 11• Value proposition, Target Customer and Capabilities
– Customer Relationship 22• Information, Feel & Serve and Trust & Loyalty
– Infrastructure Management 38• Assets, Activity Configuration and Partner Network
– Financial Aspects 51• Revenue Model, Cost Model and Profit/Loss
http://i
nforge.unil.ch/aoste
rwa
© 2001 Osterwalder, HEC Lausanne e-business 3
Université de Lausanne
WEB | AGENDA | FIN
e-Business and the « Hype cycle »[Gartner Group, 2001]
© 2001 Osterwalder, HEC Lausanne e-business 4
Université de Lausanne
WEB | AGENDA | FIN
«How the Internet influences industry structure»[Porter, 2001]
© 2001 Osterwalder, HEC Lausanne e-business 5
Université de Lausanne
WEB | AGENDA | FIN
Why an e-Business Model Approach to e-Strategy?
• A buzzword with no precise definition
– […] Executives, reporters and analysts who use the term don't have a clear
idea of what it means. They use it to describe everything from how a company
earns revenue to how it structures its organization [Linder, 2001]
• Dynamic business environment
– Shorter product life cycles
– Increased & global competition
– New Information and Communication Technologies (ICT)
• Evolving dynamic business networks
– Business Webs [Tapscott & al., 2000]
– Co-opetition [Brandenburger & al., 1996]
– Fluid organizations [Selz, 1999]
© 2001 Osterwalder, HEC Lausanne e-business 6
Université de Lausanne
WEB | AGENDA | FIN
e-Business Models: Opportunities
A company that defines it’s business model can...
• …react to rapid change
– Business architects/designers
• …share knowledge
– Business decisions
– buy in
• …simulate & learn
– System dynamics
– ScenariosXML
System
thinking
Objects
© 2001 Osterwalder, HEC Lausanne e-business 7
Université de Lausanne
WEB | AGENDA | FIN
e-Business Model Approach: what is it?
Business Processes
Business Model
StrategyPlanning level
Architectural level
Implementationlevel
Information & Communication
Technology (ICT) pressure
e-Business opportunities & change
e-Businessprocesses
e-Business Technology layer
© 2001 Osterwalder, HEC Lausanne e-business 8
Université de Lausanne
WEB | AGENDA | FIN
e-Business Model Approach: Core Elements of e-Business?
value forvalue for resources forresources for
Revenue Value added + CostsRevenue Value added + Costs
profit price
CUSTOMERRELATIONSHIP
CUSTOMERRELATIONSHIP
InformationInformation
Feel & serveFeel & serve
Trust & loyaltyTrust & loyalty
PRODUCTINNOVATION
PRODUCTINNOVATION
Target CustomerTarget Customer
Value propositionValue proposition
CapabilitiesCapabilities
INFRASTRUCTUREMANAGEMENT
INFRASTRUCTUREMANAGEMENT
Resources/assetsResources/assets
Activities/processesActivities/processes
Partner networkPartner network
The e-Business Model Framework (eBMF)
[Ben Lagha, Osterwalder, Pigneur, 2001]
© 2001 Osterwalder, HEC Lausanne e-business 9
Université de Lausanne
WEB | AGENDA | FIN
e-Business Model Approach: Relationships between concepts
CUSTOMERRELATIONSHIP
CUSTOMERRELATIONSHIP
PRODUCTINNOVATION
PRODUCTINNOVATION
FINANCIALASPECTS
FINANCIALASPECTS
INFRASTRUCTUREMANAGEMENT
INFRASTRUCTUREMANAGEMENT
resourcefor
resourcefor
value for
revenue for
resource for
cost
feedback for
builton
© 2001 Osterwalder, HEC Lausanne e-business 10
Université de Lausanne
WEB | AGENDA | FIN
e-Business Model Approach: Relationships between concepts
CUSTOMERRELATIONSHIP
CUSTOMERRELATIONSHIP
PRODUCTINNOVATION
PRODUCTINNOVATION
FINANCIALASPECTS
FINANCIALASPECTS
INFRASTRUCTUREMANAGEMENT
INFRASTRUCTUREMANAGEMENT
resourcefor
resourcefor
sold through
revenue for
resource for
cost
feedback for
buildson
TARGET CUSTOMER
VALUE PROPOSITION
CAPABILITIES
RESOURCES & ASSETS
ACTIVITY CONFIGURATION
PARTNER NETWORK
INFORMATION
FEEL & SERVE
TRUST & LOYALTY
REVENUE MODEL
PROFIT / LOSS
COST MODEL
has needs value for
resource for builds on
to enable supposes
resource for builds on
to improve to collect
to establish to improve
to increase
diminishes
buildson
© 2001 Osterwalder, HEC Lausanne e-business 11
Université de Lausanne
WEB | AGENDA | FIN
Product Innovation
CUSTOMERRELATIONSHIP
Information
Feel & serve
Trust & loyalty
value for resources for
Revenue Value added + CostsRevenue Value added + Costs
profit price
Target Customer
Value proposition
Capabilities
PRODUCTINNOVATION
INFRASTRUCTUREMANAGEMENT
Resources/assets
Activities/processes
Partner network
[Ben Lagha, Osterwalder, Pigneur, 2001]
ProductInnovation
ProductInnovation
© 2001 Osterwalder, HEC Lausanne e-business 12
Université de Lausanne
WEB | AGENDA | FIN
Target Customer : Geographical Reach
• With the Internet you are immediately global– increasing reach
– languages, cultures and legal systems…
• Location loses importance– Surgeons in New York can operate in France
(Operation Lindbergh) - (pdf)
• Low distribution costs for digital products – text, images, sound, software, numbers
• Increased competition– a tailor in Shanghai can hand-make a suit for
a lawyer in Boston and FedEx it to him
© 2001 Osterwalder, HEC Lausanne e-business 13
Université de Lausanne
WEB | AGENDA | FIN
Target Customer : Irrelevance of Time
• Always open (24/7)
ProductInnovation
ProductInnovation
www.leshop.chIncreasing routinization/automationIncreasing routinization/automation
© 2001 Osterwalder, HEC Lausanne e-business 14
Université de Lausanne
WEB | AGENDA | FIN
Target Customer : Increasing Flow of Information
• Decreasing searching costs - the customer is better informed
ProductInnovation
ProductInnovation
• Higher expectations “the competition is just one-click-away”
www.comparis.ch
© 2001 Osterwalder, HEC Lausanne e-business 15
Université de Lausanne
WEB | AGENDA | FIN
Value Proposition
To characterize product innovation, the value proposition
• defines,
• the actual product or service, and
• the value or benefits perceived by customers of the products and services offered by the firm.
• In the case of e-business this offer naturally includes a strong information system component, principally the Internet.
VALUE PROPOSITION CAPABILITESTARGET
Targeted customers Competencies, aptitudes
ProductInnovation
ProductInnovation
© 2001 Osterwalder, HEC Lausanne e-business 16
Université de Lausanne
WEB | AGENDA | FIN
Value Proposition
VALUEPROPOSITION
servicelevel
costadvantage
innovation
CUSTOMER RELATIONSHIP INFRASTRUCTURE MANAGEMENT
PRODUCT INNOVATION
ProductInnovation
ProductInnovation
© 2001 Osterwalder, HEC Lausanne e-business 17
Université de Lausanne
WEB | AGENDA | FIN
ProductInnovation
ProductInnovation
Value Proposition : Case Study
Audible.com makes it possible for the customer to listen to audiobooks, lectures, radio, newspapers and more, either at their desktop computer or on-the-go with a portable device. (complementary product innovation)
The value for the customer consists in :• A new complementary product for computers &
portable devices (product innovation)• The low price of the product (because of digital
distribution)• Speeded up distribution & access (over the Internet)• Improved shopping experience (through samples &
critics)
© 2001 Osterwalder, HEC Lausanne e-business 18
Université de Lausanne
WEB | AGENDA | FIN
ProductInnovation
ProductInnovation
Value Proposition : Case Study
LiveManuals helps people find interactive product manuals on the Web to understand how their products work (innovation + service)
The value for LiveManuals customers consists in :• Finding support information for thousands of products (product innovation)• Using live product simulations to see how they work• Getting fast answers with interactive user manuals• Tracking warranties (personalization)• Storing all the customer’s model numbers in one place (personalization)
The value for LiveManual partners consist in :• Making their products more accessible• Specializing on their core competencies
© 2001 Osterwalder, HEC Lausanne e-business 19
Université de Lausanne
WEB | AGENDA | FIN
ProductInnovation
ProductInnovation
Value Proposition : Case Study
The medical nutrition network of Novartis wants to help people deliver better nutritional care.
(service)
The value consists in :• Educational material• Updates on the latest in the Medical
Nutrition field at Novartis• Support services for consumers, health
professionals and patients
© 2001 Osterwalder, HEC Lausanne e-business 20
Université de Lausanne
WEB | AGENDA | FIN
Capabilities
VALUE PROPOSITION
Capabilities
TARGET
Customers
Competencies
[Bagchi, 2000]
ProductInnovation
ProductInnovation
© 2001 Osterwalder, HEC Lausanne e-business 21
Université de Lausanne
WEB | AGENDA | FIN
Capabilities Network[IBM, 1999]
Forumwith authors
attractpeople
• A capability depends on another• When its performance depends on the another’s
ProductInnovation
ProductInnovation
© 2001 Osterwalder, HEC Lausanne e-business 22
Université de Lausanne
WEB | AGENDA | FIN
Customer Relationship
CUSTOMERRELATIONSHIP
Information
Feel & serve
Trust & loyalty
INFRASTRUCTUREMANAGEMENT
value for resources for
Revenue Value added + CostsRevenue Value added + Costs
profit price
Target Customer
Value proposition
Capabilities
Resources/assets
Activities/processes
Partner network
PRODUCTINNOVATION
[Ben Lagha, Osterwalder, Pigneur, 2001]
Customerrelationship
Customerrelationship
© 2001 Osterwalder, HEC Lausanne e-business 23
Université de Lausanne
WEB | AGENDA | FIN
Feel & Serve : What is a Channel?
• A channel can be defined as a set of mechanisms or a network via which a firm “goes to market” and delivers its value proposition.
– Owned channels - direct (i.e. Web, phone, fax…)
– Owned channels - indirect (i.e. brand shops)
– Partner channels (intermediation i.e. retail, shops, ...)
• More precisely it defines how a firm is “in touch” with its customers for a variety of tasks
– Customer Buying Cycle (CBC)
– Customer Service Life Cycle (CSLC) The purpose is to make the right quantities of the right
products or service available at the right place, at the right time
The purpose is to make the right quantities of the right
products or service available at the right place, at the right time
Customerrelationship
Customerrelationship
© 2001 Osterwalder, HEC Lausanne e-business 24
Université de Lausanne
WEB | AGENDA | FIN
Feel & Serve : Customer Buying CycleCustomer
relationship
Customerrelationship
Implementation and UseTraining Monitoring MaintenanceTroubleshootingReverse Logistics (Returns)Life Cycle ManagementCommunity
Offer (Specification)NegotiationDecisionContractOrder & Order TrackingBilling & Payment(Financing)(Risk taking)Fulfillment
InformationConsulting
(&Requirements)Specification
Testing(Community)
AdvertisingPromotions
Public RelationsPartnerships
AFTER SALES
EVALUATIONPURCHASE
AWARENESS
[Muther, 2000; Ives, 2000]
© 2001 Osterwalder, HEC Lausanne e-business 25
Université de Lausanne
WEB | AGENDA | FIN
Feel & Serve : Channel DesignCustomer
relationship
Customerrelationship
CHANNEL Awareness Evaluation Purchase After sales
Barnes and NobleStores
(Retail)
barnesandnoble.com
(Website)
Affiliation Network(Internet)
Barnes and NobleUniversity(Website)
TV, Print, Movies(Mass media)
Promotion of authors and books
Reading cornersCoffee shopsSales person
Cash registry(cash/credit card)
Return books
Banners to books etc.
Search functionCustomer review
CriticsExcerpt
Shopping cartcheckout
(Credit card)
Order statusReturn books
Transaction history
Specialized affiliate Websites
Expert commentaries
Recommendation
Free online coursesCourses based on
books etc.
Mass advertising
Barnes & Noble Inc.
© 2001 Osterwalder, HEC Lausanne e-business 26
Université de Lausanne
WEB | AGENDA | FIN
Cost(shirt)
% profit
Added value
CustomerRetailerDistributorProducer
$20.91$11.36$20.45
Price $52.72$31.81$20.45 $52.72
Producer RetailerDistributor Customer $52.72 0%
Producer CustomerRetailerDistributor $41.34 28%
Producer CustomerRetailerDistributor $20.45 62%
[Benjamin, 1995]
Feel & Serve : Dis-intermediation (who owns the customer?)Customer
relationship
Customerrelationship
© 2001 Osterwalder, HEC Lausanne e-business 27
Université de Lausanne
WEB | AGENDA | FIN
Functions of intermediaries
Facilitate • Matching between an offer and a demand• the research of products (& their sellers)• the aggregation of products (& of sellers)• the aggregation of customers (& and their needs)
– buying clubs, customer associations, group buying
• the protection of the private sphere and the management customer profiles• putting sellers under pressure• evaluation of needs and the suggestion of the adequate product• the management of risk (insurance)• the distribution of the articles• the diffusion of information on products• influence on the buying act (Marketing)• the transmission of information about the customer
Intermediaries improve the efficiency of the exchange between producers and consumers, by aggregating transactions and creating economies of scale or scope
Customerrelationship
Customerrelationship
© 2001 Osterwalder, HEC Lausanne e-business 28
Université de Lausanne
WEB | AGENDA | FIN
Feel & Serve : Distribution channels
Airline Travel AgencyReservation S.
80% by Internet!
Otopenia …
Illustrations
[Klein, 2001]
Customerrelationship
Customerrelationship
© 2001 Osterwalder, HEC Lausanne e-business 29
Université de Lausanne
WEB | AGENDA | FIN
Feel & Serve : Intermediaries
IV. Intermediary reinforce by the Internet
III. Cyber-mediary
II. Threatened intermediaryI. Direct market reinforced by the Internet
More expensive with intermediary Cheaper with intermediary
Pre-internet
Pos
t-in
tern
et
Expedia …
Illustrations
More expensive with intermediary
Cheaper withintermediary
[Sakar, 1995]
ultra-intermediation
extra-intermediation
dis-intermediation
re-intermediation
Customerrelationship
Customerrelationship
© 2001 Osterwalder, HEC Lausanne e-business 30
Université de Lausanne
WEB | AGENDA | FIN
Distribution channel conflict
For established companies (incumbents, bricks-and-mortars)
• Risk of cannibalization• Difficulty to reconcile to ways of selling
– on the sales force level
– Compaq and its resellers and the advent of direct sales
• Former competencies, advantage or disadvantage?– unusable or contra-productive, in case of radical innovation
– Capitalization possible, if innovation incremental
• QUESTION: start doing e-commerce:– Integrated entity?
– Separated company?
[Afuah, 2001]
versus
Customerrelationship
Customerrelationship
© 2001 Osterwalder, HEC Lausanne e-business 31
Université de Lausanne
WEB | AGENDA | FIN
Information
• Data Warehousing– gather information
• Data Mining– find relations between information
• Business Intelligence– learn from information
– OLAP
• Personalization– use information for customer relationship
– recommending systems
– personnel customer memory
Customerrelationship
Customerrelationship
Online Analytical Processing(OLAP)
© 2001 Osterwalder, HEC Lausanne e-business 32
Université de Lausanne
WEB | AGENDA | FIN
• Suggest a personalized content• maintain a privileged relation with the customer• preserve a track of each visit and a customer profile• manage an individualized interaction
– promotion, action, catalogue, historic, ...
– from business rules (if … then)
– and from the client's profile– without interfering (too much) with his private life
Information : Recommending system – rule basedConversion
prospect client
© 2001 Osterwalder, HEC Lausanne e-business 33
Université de Lausanne
WEB | AGENDA | FIN
Information : Recommending system - Collaborative filtering
• anticipate customers needs– recommend products
• from his preferences– as if we knew him for a long time
• and from preferences of other clients with similar tastes– word of mouth & correlation (if you liked this, then you should also like this …)
– learn by experience
– agents (intelligent)• big mass of information rating
book 1 book 2 book 3 book 4Isabelle 1 1 5 ?Thomas 5 2 1Mathieu 5 2Catherine 2 2 4 5Benoît 3 3 3Fabian 1 1 3 4
Catherine and Fabian seem to have a similar judgement to Isabelle's for the books 1, 2 (& 3);their rating (explicit) is used for Isabelle's (implicit) for the book 4: between 4 and 5
Customerrelationship
Customerrelationship
© 2001 Osterwalder, HEC Lausanne e-business 34
Université de Lausanne
WEB | AGENDA | FIN
CRM – Customer Relationship Management
MARKETING
SALES
SERVICE
Customer care
– Call center, messaging, web …
– Self-service
– Pro-active, quality of service, …
– Sales force (SFA - Sales Force Automation)
• Prevision, contacts, estimate, proposition, follow up …
– Convert a visitor to a customer and keep the customer
– initiative, campaign
– from telemarketing to messaging
– one-to-one marketing
personalization
Customer Base
Customerrelationship
Customerrelationship
© 2001 Osterwalder, HEC Lausanne e-business 35
Université de Lausanne
WEB | AGENDA | FIN
Trust & Loyalty
TRUST
SECURITY
PRIVACY
Contribute to the establishment of
BRAND
Notoriety …
Fear: financial losses
Fear: loss of intimacy
INFO- MEDIARY COMMUNITY
Certification
Verification et authorization
Escrow
Notary, payments
Expertise
Guarantee of quality
Rating
Reputation of actors
Insurance
Risk management
Contribute
QUALITY
Customerrelationship
Customerrelationship
© 2001 Osterwalder, HEC Lausanne e-business 36
Université de Lausanne
WEB | AGENDA | FIN
Trust & Loyalty : Community
Group of people or entities– that share values or interests
– and use the le Net regularly &at the same place
transaction Business, trading, occasions, barter …
interest Idea sharing,communication …
fantasy Role games, fantasy world…
relation Assistance (disease), sharing of experiences …
[Hagel, 1997]
Put pressure on sellers
Meeting ofsellers/buyers
Target customers
BuyUnion(mass)
BuyUnion(mass)
Marketmix
(informed)
Marketmix
(informed)
BarterNew age
(unselfish, elitist)
BarterNew age
(unselfish, elitist)
Sale target
(spendthrift)
Sale target
(spendthrift)
One-to-TribeOne-to-TribeOne-to-OneOne-to-One
Customerrelationship
Customerrelationship
© 2001 Osterwalder, HEC Lausanne e-business 37
Université de Lausanne
WEB | AGENDA | FIN
• Receives, merges and manages the buyers information• protects the buyer • supplies information to vendors• puts the vendors under pressure• obtains advantages for the buyer on the behalf of the vendors
– for the information given to the vendors
• prefigured by Portals, buying clubs, associations of consumers …• requires skills and rare technologies
• Who can become info-mediary?– Fiduciaries– Merchants– buying clubs & consumer associations– databases– media, portals, …
Trust & Loyalty : Infomediary
brand
trafficemotion
[Hagel, 2000]
Customerrelationship
Customerrelationship
© 2001 Osterwalder, HEC Lausanne e-business 38
Université de Lausanne
WEB | AGENDA | FIN
Infrastructure Management
CUSTOMERRELATIONSHIP
Information
Feel & serve
Trust & loyalty
INFRASTRUCTUREMANAGEMENT
INFRASTRUCTUREMANAGEMENT
value for resources for
Revenue Value added + CostsRevenue Value added + Costs
profit price
Target Customer
Value proposition
Capabilities
Resources/assetsResources/assets
Activities/processesActivities/processes
Partner networkPartner network
PRODUCTINNOVATION
[Ben Lagha, Osterwalder, Pigneur, 2001]
Infrastructuremanagement
Infrastructuremanagement
© 2001 Osterwalder, HEC Lausanne e-business 39
Université de Lausanne
WEB | AGENDA | FIN
Activity Configuration : Configuration of activities
Laminer (1)
Presser (13)
Découper (14)
Souder (9)
Concevoir (16)
Rechercher composants
(17)
Assembler (8)
Stocker (15)
Livrer (10)
Gérer les stocks (11)
Livrer (12)
Presser (2)
Découper (3)
Alusun
Aerotech
Stocker (4)
Livrer (7)
Metalu
Tôles laminées
Tôles pressées
Toits
Capots moteurs
Landcar
ToitsCapots moteurs
Toits
Capots moteurs
SkyStar
Composants
Composants
Panneaux alu
Alliages reçus
Tableaux de bord
Rechercher alliages (5)
Suivre les contrats (6)
Propositions émises Contrats
Commandes
Informations alliages
Montants encaissés
Emettre des propositions
Conclure des contrats
E1
E2
Tôles pressées
Tôles découpées
Eléments soudés
Tôles laminées
Tableaux de bord
Plans
Panneaux alu
Eléments soudés
Eléments soudés
Tôles pressées
Informations
Informations
Tableaux de bord
Nouvel alliage
Commandes
Cartel
[Revaz, 1995]Infrastructuremanagement
Infrastructuremanagement
© 2001 Osterwalder, HEC Lausanne e-business 40
Université de Lausanne
WEB | AGENDA | FIN
Activity Configuration : Value ChainInfrastructuremanagement
Infrastructuremanagement[Porter, 1985]
© 2001 Osterwalder, HEC Lausanne e-business 41
Université de Lausanne
WEB | AGENDA | FIN
Case study: ColorMailer
ColorMailer...
• ...is a brand of Colorplaza Ltd., an independent company based in Vevey/Switzerland, active in the field of digital imaging and in the development of multimedia Internet applications.
• ...offers products and services in the domain of digital imaging for private customers.
• …bets on the increasing number of owners of digital cameras and scanners (~ 30 million people).
Http://www.colormailer.com
[Ben Lagha, Osterwalder, Pigneur, 2001]
Infrastructuremanagement
Infrastructuremanagement
© 2001 Osterwalder, HEC Lausanne e-business 42
Université de Lausanne
WEB | AGENDA | FIN
Case study: Infrastructure management element at ColorMailer
ACTIVITY CONFIGURATIONACTIVITY CONFIGURATION
Needfor
Resourcesfor
RESOURCES/ASSETSRESOURCES/ASSETS
in-housein-house
Resourcesfor
Needfor
PARTNER NETWORKPARTNER NETWORK
out-houseout-house
uploadimages
Print ofimages
Deliveryof items
Marketingof product
services
Printinginfrastructure
Packingstaff
ColorMailerWebsite
[Ben Lagha, Osterwalder, Pigneur, 2001]
Infrastructuremanagement
Infrastructuremanagement
© 2001 Osterwalder, HEC Lausanne e-business 43
Université de Lausanne
WEB | AGENDA | FIN
Partner Network : Alliances and partnerships
Authormarketing
Authormarketing
Distributorinventory
Distributorinventory
Amazon.comsales
Information systemscoordination
contents
Amazon.comsales
Information systemscoordination
contents
Shippingtransporttracking
Shippingtransporttracking
Affiliatesales
Affiliatesales
Customerbuy
content
Customerbuy
content
Bankpayment
Bankpayment
deliver deliver
order
sale order
sales
critics
Credit cardclearance
returns
Infrastructuremanagement
Infrastructuremanagement
© 2001 Osterwalder, HEC Lausanne e-business 44
Université de Lausanne
WEB | AGENDA | FIN
Partner Network : e-SCM, e-procurement and e-market
Electronicmarket
suppliersbuyers
supply chain
Power of buyers
Reduced transaction costs Improved information access group buying …
Reduced selling costs bigger market access Dis-intermediation …
Power of suppliers
Market Vs. relation
Customers’needs
Integratedchannels
Products/services
Flexibleprocesses
Outsources/In-house
competencies
procurement
Infrastructuremanagement
Infrastructuremanagement
© 2001 Osterwalder, HEC Lausanne e-business 45
Université de Lausanne
WEB | AGENDA | FIN
HIERARCHY
MAKEMAKE
Supply chain
MARKET
BUYBUY
Production cost
Coordination costlow
high
low
NETWORKNETWORK
high
[Malone, 1993]
Co-production
partnership
Externalization
Virtualization
Holding
Partner Network : Strategic network Infrastructuremanagement
Infrastructuremanagement
© 2001 Osterwalder, HEC Lausanne e-business 46
Université de Lausanne
WEB | AGENDA | FIN
Logistics: the hidden face of e-commerce
• Shop– department and/or stock (eventually separated)
• Franchise or partnership– fragmented sector: multitude of small shops
• Multi-channel distribution center existing– mail order business with a certain volume
• Ad hoc distribution centers– mail order business with a high volume
and also• Virtual warehouse (partnership with third party)
– outsourcing– use of distribution centers FedEx, for ex.
• Direct sending by manufacturer – outsourcing– integration of information systems
transportation
warehousing
[Kalakota, 1999]
Infrastructuremanagement
Infrastructuremanagement
© 2001 Osterwalder, HEC Lausanne e-business 47
Université de Lausanne
WEB | AGENDA | FIN
Order fulfillment (warehousing)
centralized distributed
self-operated
outsourced
Structure
Ope
ratio
n DedicatedFulfillment
Center
DedicatedFulfillment
Center
DistributedDeliveryCenters
DistributedDeliveryCenters
Third-PartyFulfillment
Center
Third-PartyFulfillment
Center
PartnerFulfillmentOpération
PartnerFulfillmentOpération
Build-to-order
ManufacturerDirectShipment
In-store
[Kalakota, 1999]
Infrastructuremanagement
Infrastructuremanagement
© 2001 Osterwalder, HEC Lausanne e-business 48
Université de Lausanne
WEB | AGENDA | FIN
Changing the warehousing approach
centralized distributed
in h
ouse
outs
ourc
ed
Structure
Ope
ratio
n DedicatedFulfillment
Center
DedicatedFulfillment
Center
DistributedDeliveryCenters
DistributedDeliveryCenters
Third-PartyFulfillment
Center
Third-PartyFulfillment
Center
PartnerFulfillmentOpération
PartnerFulfillmentOpération
Examples
VolumesInvestmentFlexibility
Infrastructuremanagement
Infrastructuremanagement
© 2001 Osterwalder, HEC Lausanne e-business 49
Université de Lausanne
WEB | AGENDA | FIN
Scénario ABC
Standards - XML
• Collection of business components (product, supplier, order, …)
• and standard processes (fulfillment, invoicing, delieving …)
• XML tags for inter-application exchanges– EAI, B2B, …– EDI legacy (ISO codes, X12 components)
• bizTalk– By Microsoft– Simple Object Access Protocol (SOAP)
• Common Business Library (CBL)– By CommerceOne
• Commerce XML (cXML)– By Ariba
• and also Bolero, IOTP, OAGIS, OCF …
[Haifei Li, 2000]
Infrastructuremanagement
Infrastructuremanagement
© 2001 Osterwalder, HEC Lausanne e-business 50
Université de Lausanne
WEB | AGENDA | FIN
Standards - ebXML
Initiative OASIS & UN-CEFAC (Edifact)
UML
TPATradingPartner
Arrangement
Infrastructuremanagement
Infrastructuremanagement
© 2001 Osterwalder, HEC Lausanne e-business 51
Université de Lausanne
WEB | AGENDA | FIN
Financial Aspects
INFRASTRUCTUREMANAGEMENT
resources for
Target Customer
Value proposition
Capabilities
Resources/assets
Activities/processes
Partner network
PRODUCTINNOVATION
[Ben Lagha, Osterwalder, Pigneur, 2001]
CUSTOMERRELATIONSHIP
Information
Feel & serve
Trust & loyalty
value for
Revenue Value added + CostsRevenue Value added + Costs
profit price
FinancialAspects
FinancialAspects
© 2001 Osterwalder, HEC Lausanne e-business 52
Université de Lausanne
WEB | AGENDA | FIN
Value creation and revenues - a simple equation
«The creation of an economic value stays the measure of success»
• PROFIT
= (P – VC).Q – FC
P the unit price of a product
VC the variable cost of a unit
Q the number of products sold
FC fixed costs
FinancialAspects
FinancialAspects
FINANCIALASPECTS
FINANCIALASPECTS
REVENUE MODEL
PROFIT / LOSS
COST MODEL
to increase
diminishes
© 2001 Osterwalder, HEC Lausanne e-business 53
Université de Lausanne
WEB | AGENDA | FIN
FinancialAspects
FinancialAspects
Revenue Models
• Selling– selling a good : flowers
(i.e. www.fleurop.ch)
– selling a service : brokerage(i.e. www.consors.ch)
• Revenue Sharing– affiliation programs
(i.e.Amazon.com)
– commission(i.e.ColorMailer.com & partners)
© 2001 Osterwalder, HEC Lausanne e-business 54
Université de Lausanne
WEB | AGENDA | FIN
FinancialAspects
FinancialAspects
Revenue Models (…continued…)
• Providing/Leasing– Application Service Providers (ASP)
(i.e. JD Edward Enterprise Resource Planning (ERP))
• Advertising/Sponsoring– www.romandie.com / www.yahoo.com
www.jdedwards.com
© 2001 Osterwalder, HEC Lausanne e-business 55
Université de Lausanne
WEB | AGENDA | FIN
FinancialAspects
FinancialAspects
Revenue Models (...continued)
• Transaction Cut– auctions (i.e. eBay.com)
– brokerage (i.e. SWX Swiss Exchange www.swx.ch)
• Licensing– intellectual capital (Rambus)
– Software (i.e. Oracle, Microsoft, …)
• Franchising– Benetton, McDonalds
© 2001 Osterwalder, HEC Lausanne e-business 56
Université de Lausanne
WEB | AGENDA | FIN
FinancialAspects
FinancialAspects
Pricing Models
• Free– subsidized through other
revenues (i.e. advertising)
• Fixed Pricing– menu pricing (ev. with discount)
– subscription
– pay per use
– below cost (...subsidized)
• One-to-one bargaining– negotiation
• Auction– reverse auction
– dutch auction
– ...
Free: le Monde
Subscription: WS Journal
Dutch Flower Auction
© 2001 Osterwalder, HEC Lausanne e-business 57
Université de Lausanne
WEB | AGENDA | FIN
FinancialAspects
FinancialAspects
Pricing Models (…continued)
• Barter– no money flow
• Real-time Market Driven– offer/demand (i.e. stock markets)
• Product Mix dependant– bundling (i.e. computers, mobile
phones, hotels)
• Lowest price– (i.e. through agents,
through proof)
colruyt.be
barterdirectory.com.au
© 2001 Osterwalder, HEC Lausanne e-business 58
Université de Lausanne
WEB | AGENDA | FIN
• Based on – catalog– negotiation between the seller and the buyer– auction– request for proposal (RFP)
• « good bye to fixed pricing »?– Suppliers enjoy price differenciation in order to avoid comparison– Customers enjoy low price and gaming using comparison
Yield Management • Allows to calculate in real time (online if on the Internet)
• the best prices• for maximazing the profit generated by the sales• based on a forecasting model of sale behavior
(for micro-segments)
Transforming the pricing[Klein, 2000]
Yield Management
© 2001 Osterwalder, HEC Lausanne e-business 59
Université de Lausanne
WEB | AGENDA | FIN
Trends towards dynamic and online pricing
• Based on – catalog– negotiation between the seller and the buyer– auction– request for proposal (RFP)
• « good bye to fixed pricing »?– Suppliers enjoy price differenciation in order to avoid comparison– Customers enjoy low price and gaming using comparison
Yield Management • Allows to calculate in real time (online if on the Internet)
• the best prices• for maximazing the profit generated by the sales• based on a forecasting model of sale behavior
(for micro-segments)
[Klein, 2000]
FinancialAspects
FinancialAspects
© 2001 Osterwalder, HEC Lausanne e-business 60
Université de Lausanne
WEB | AGENDA | FIN
Yield Management - conditions
• Perishable product– No value after a given date (seat onboard, room, …)
• Variable demand and rigid production capacity– Demand changes (high, low, …)
– Offer is fixed
• Reservation– Before the use of the service
• Price differenciation– Elasticity (demand/price) is variable according to the segment
– Attract customer with high sensity to price with low prices (apex)
– Keep demanding people with price barriers (1st class)
• High fixed cost & low variable cost• Price leverage
– Small increase of revenu causes significative increase of profit
© 2001 Osterwalder, HEC Lausanne e-business 61
Université de Lausanne
WEB | AGENDA | FIN
e-Business Models: HEC Lausanne Research Objectives
E-Business Model Ontologyor Framework (eBMF)
- concepts/models (components)- links between concepts/models
E-Business Model Ontologyor Framework (eBMF)
- concepts/models (components)- links between concepts/models
E-Business Model Handbook- navigate in concepts (www)
- graphical representation- illustrative examples
E-Business Model Handbook- navigate in concepts (www)
- graphical representation- illustrative examples
E-Business Model Language (eBML)
- ontology representation (xml)- graphical representation
- knowledge sharing
E-Business Model Language (eBML)
- ontology representation (xml)- graphical representation
- knowledge sharing
E-Business Model Design Tool
- computer assisted design- evaluation
- change management
E-Business Model Design Tool
- computer assisted design- evaluation
- change management
E-Business Model Simulation
- scenarios (system dynamics)- learn about Business Models
- be prepared
E-Business Model Simulation
- scenarios (system dynamics)- learn about Business Models
- be prepared
E-Business Model Games
- play, learn & understand
E-Business Model Games
- play, learn & understand
[Ben Lagha, Osterwalder, Pigneur, 2001]
© 2001 Osterwalder, HEC Lausanne e-business 62
Université de Lausanne
WEB | AGENDA | FIN
END