E-Commerce/MCS-510

e-Commerce Chapter6 Business Process Engineering

[Book: E-Commerce : A Managerial Perspective, P.T. oseph!

1.Approaches:
A Business Model is the method of doing usiness ! "hich a compan! can sustain itself# that is generate re$enue. %he Business Model spells out ho" a compan! ma&es mone! ! specif!ing "here it si positioned in the $alue of chain. E'ample (adio and %) aired free.

*.Models and Methodologies:

Although there are man" #i$$erent %a"s to categori&e e- 'usiness mo#els, the" can 'e 'roa#l" categori&e# as +1, E- usiness Model ased on the relationship of transaction parties +*, E- usiness Model ased on the relationship of transaction t!pes

E- 'usiness Mo#el 'ase# on the relationship o$ transaction parties

Business

Business

/o$ernment

Customer

Customer

-ig: E- usiness transaction +page .1,

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B*C : Sells products or ser$ices directl! to customers# eg ama0on.com B*B : Sells products or ser$ices to other usiness# or rings multiple u!ers and
sellers together in a central mar&et place# eg. Chemde'.com B*/: Business selling to local# state and federal agencies# eg. i/o$.com C*C : Consumers sell directl! to other consumers# eg e a!.com C*B : Consumers fi' price on their o"n# "hich usiness accept or decline. Eg 1riceline.com

(a" Material 1roducer

Manufacturer

5istri utor

(etailer

Consumer

B*B -ig: (elation et"een B*B and B*C *.1 B*C: *.1.1 2o" B*C "or&s
)isiting the $irtual mall Customer registration Customer u!s the product Merchant process the order Credit card is processed 3perations management :eg 4ualit! management Shipment or deli$er! Customer recei$es After sales ser$ice

B*C

E-Commerce/MCS-510

*.1.* Benefits of B*C

6ne'pensi$e cost Big 3pportunities /lo ali0ation (educed operational coast Customer con$enience 7no"ledge management

*.1.. Barriers of B*C

8ou can see ut !ou can not touch# feel and smell 5igital 1hotographs are not color accurate Consumer e'pects high ser$ice standards %rusting the compan!/ rand -inancial securit! 1ersonal 5ata

*.* B*B: *.*.1 2o" B*B "or&s: %ools and techni4ues

9se of pricing as a tool 9se of application ser$ice pro$ider Model 9se of generic Model "hich are &no"n for efficienc! as "ell as personali0ed attention to $arious usiness customers 9se of Comparison shopping

*.*.* B*B %ransaction Model

B*B Storefronts: 1ro$ide usiness "ith purchase# order fulfillment and other $alue added ser$ices. Eg Staples.com B*B $ertical Mar&ets: 1ro$ide a trading communit! for specif!ing industr!. Eg 2otel(esource.com B*B aggregators: 1ro$ide a single mar&etplace for usiness purchasing for multiple suppliers egChemde'.com B*B trading hu s: 1ro$ide a mar&et place for multiple $ertical mar&ets. Eg )ertical:et.com B*B 1ost and ro"se Mar&ets: 1ro$ide Mar&etplace "here participants post u! and sell opportunities eg CA%E;.com

E-Commerce/MCS-510 B*B auction mar&ets: 1ro$ide a mar&et place for u!ers and sellers to enter competiti$e ids and contracts eg -reeMar&ets.com B*B full! automated e'changes: : 1ro$ide a mar&et place for the automatic matching of standardi0ed u! and sell contracts. Eg 1aperE'cange.com

*.*.. Benefits of B*B

5irect interaction "ith customers -ocussed sales promotion Building customer lo!alt! Scala ilit! Sa$ings in distri ution cost

E- 'usiness Mo#el 'ase# on the relationship o$ transaction t"pes

%his usiness model is usuall! controlled ! t"o parameters namel! Control and $alue 6ntegration. Based on this fi$e t!pes of transaction can e identified: Bro&erage: Aggregator : Connects u!ers and sellers 6nfo-mediar!: 1ro$ides information e.g. !ahoo.com Communit!: )alue chain: portals e.g. !ahoo.com

.. Management of Changes