Transcript No Slide Title

E-Business Models
Kazan State University
Instructor: Sasa Dekleva
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Outline
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Introduction
Marketplaces and Exchanges
Storefront model
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Auction model
Portal model
Dynamic pricing models
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Shopping cart technology
Online shopping malls
Name your price, Comparison pricing, Demand-sensitive
pricing, Bartering
B2B e-business: benefits and obstacles
Click-and-mortar businesses
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Introduction
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E-business
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A company has online presence
A company buys, sells, trades or barters over the Internet
Business model is defined by company’s policies,
operations, principles and technology
Key components of e-business include:
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electronic data interchange (EDI)
messaging, e-mail
electronic funds transfer
file transfers, e-forms
customer service
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Electronic Marketplaces and
Exchanges
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Some serve specific industry communities and consist
of:
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Provide access to neutral information about products
from a variety of competing companies
Examples include:
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independent "market makers“
industry-led consortia
private collaborative e-marketplaces
Chemdex.com for the chemicals industry (closed by now)
plantautomation.com for plant automation managers
eDental.com for dentists
Integration of online auctions is increasing the
attractiveness of such communities
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“Consortia" Marketplaces
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Such markets include:
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Covisint for the auto industry
eHitex and e2Open for the electronics/high-tech sector
Aerospan and MyAircraft.com for the aerospace industry
Transora for the food, beverage, and consumer packagedgoods industries
Avendra and HotelnetB2B for the hotel and hospitality
industry
TradeRanger and Intercontinental Exchange for the energy
industry
Buyers and sellers will be able to negotiate deals
electronically and employ intelligent agents to do it
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E-Markets and Exchanges
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Potential for significant savings and reaching new
markets
Still in flux, because:
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e-market ventures face long-term financial issues
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traditional companies with lots of money back the industry
consortia
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retrenchment in venture capital and investor funding
could pull out of these operations if they fail to deliver value
suppliers may back away from buyer-side marketplaces
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fear of commoditization of their products
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Storefront Model
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Enables merchants to sell products or services on the
Web
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Involves transaction processing, security, online payment,
information storage
E-commerce allows companies to conduct business
24-by-7, all day everyday, worldwide
An e-commerce storefront should include:
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online catalog of products
order processing
secure payment
timely order fulfillment
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Shopping Cart Technology
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Shopping cart
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Shopping cart is supported by:
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Order-processing technology allowing customers
to accumulate lists of items they wish to buy as
they continue to shop
product catalog
merchant server
database technology
Combining a number of purchasing methods
to give customers a wide array of options
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Online Shopping Malls
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Wide selection of products and services
Offers greater convenience than shopping at
multiple online shops
Consumers can make multiple purchases in
one transaction
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Auction Model
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Online auction sites
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Reserve price
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Act as forums through which Internet users can log on and
assume the role of either bidder or seller
Collect a commission on every successful auction
Sellers post items they wish to sell and wait for buyers to bid
The minimum price a seller will accept in a given auction
Reverse auctions
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Allow the buyer to set a price as sellers compete to match or
even beat it
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eBay’s Home Page
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Placing a Bid on eBay
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Portal Model
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Portal sites
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Horizontal portals
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Give visitors the chance to find almost everything they are
looking for in one place
Portals that aggregate information on a broad range of
topics
Yahoo!, AltaVista, Google
Vertical portals
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Portals that offer more specific information within a single
area of interest
WebMD, IMDB, FirstGov
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Portals
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Enterprise portals remain a potent force
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for binding together business goals
for providing a unified view of the enterprise to its
customer base
Increasingly viewed as appropriate for
nontransactional relationships
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Dynamic Pricing Models
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The Web has changed the way products are priced
and purchased
Comparison pricing model
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Demand-sensitive pricing model
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Web sites using shopping bot technology to find the lowest
price for a given item
Group buying reduces price as volume of sales increases
Name-your-price model
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Name-your-price for products and services
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Dynamic Pricing Models
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Bartering model
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Rebate model
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Individuals and business trade unneeded items for items
they desire
Ubarter.com, isolve.com
Sites offer rebates on product at leading online retailers in
return for commission or advertising revenues
eBates
Free offering model
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Free products and services generate high traffic
Freemerchant, StartSampling, FreeSamples.com
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E-Business Benefits
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The major benefits include:
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lower purchasing costs
improved supply-chain management
reduced cycle times
faster time to market
improved customer service
new market opportunities
improved management controls as a result of
embedded business rules
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Access to Information
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E-business gives companies access to information on
their customers and vendors
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Through XML, e-business applications can make accounting,
marketing, inventory, and product information accessible to
business partners
E-business extracts data and transmits it over the Internet to
the partner's computer system
The information is integrated into the partner's databases
and stored in data marts or data warehouses
Using OLAP or data-mining tools, business analysts can
examine and model customer preference and purchasing
trends
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E-Business Barriers
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Barriers include:
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lack of single, comprehensive solutions
need to reorganize business processes
legacy application integration
security
bandwidth
scalability
high-availability issues
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Click-and-Mortar Businesses
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Brick-and-mortar
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Click-and-mortar
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Companies that operate solely offline with
traditional business practices
Companies operating with both an online and
offline presence
Click-and-mortar companies have brand
recognition, and an established customer
base
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Barnes and Noble, BestBuy
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Click-and-Mortar Businesses
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Key benefits to automotive industry
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Combined supplier base
Connects automobile manufacturers, dealers and consumers
in a single marketplace
Decreases lead time and production costs
Key benefits to electronics industry
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Provides access to thousands of components from hundreds
of electronic suppliers
Provides ability to search by part number, product type or
manufacturer
Increases competitive pricing
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Click-and-Mortar Businesses
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Key benefits to energy industry
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Provides real time pricing data on energy commodities
Provides access to hundreds of energy commodities
Allows regional energy providers to gain access to worldwide
market
Key benefits to food industry
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Reduced lead time preserves perishables
Provides access to real time pricing data
Online auction technology allows for alternative pricing
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Click-and-Mortar Businesses
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Benefits to chemical industry
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Access to millions of chemical products from
thousands of suppliers
Integrated supply chains provide faster, more
reliable transactions
Benefits to construction industry
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Contracting and subcontracting are made simpler
by online bidding
Construction companies can find raw materials
from suppliers worldwide
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Software Offerings
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Software vendors call their offerings "e-business"
solutions, which include:
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e-commerce
supply-chain management
customer, partner, and employee relationship management
business intelligence
and knowledge management
All solutions coming now on the market will deliver
data to browsers, typically as an HTML rendering
Many Web-aware applications now support XML
standards
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Standards
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E-business requires open, standard platforms
and protocols
Open standards for e-business include:
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TCP/IP
XML
HTML
HTTP
COM
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CORBA
ANSI X.12
SET
SSL
need to plug into
ERP
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Extensible Markup Language
(XML)
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System for defining, validating, and sharing
document formats
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XML enhances interoperability between systems and
databases
Created and developed by the W3C XML Working Group
XML maintains the separation of the user interface from
structured data
XML resembles and complements HTML, with XML tags
describing the data
More than 330 XML initiatives are underway among various
industry groups
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XML-Related Initiatives
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UDDI (Universal Description, Discovery and
Integration)
XAML (Transaction Authority Markup Language)
tpaML (Trading Partner Agreement Markup
Language)
SOAP (Simple Object Access Protocol)
e-Speak
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