E-Business Markets and Models. Truong Tuan Anh CSE-HCMUT

Transcription

1 E-Business Markets and Models Truong Tuan Anh CSE-HCMUT

2 Fundamental Definitions Business and commerce using internet Firms who exist because of the internet (firms born on the net, sometimes referred to as internet pureplays ) Firms who use the internet as an addition to their core business Trends Some firms born on the net have expanded to incorporate a traditional bricks-andmortar aspect to their business Some traditional firms to incorporate an e-business aspect to their activities

3 Internet and E-Business Environment The internet brings both a challenge and an opportunity for businesses Economics of exchanging information The cost of sending additional units of information via the internet is practically zero and the reach is global Connectivity and interactivity Any one can connect Two-way communication in real-time Network economies of scale Accessing a wider customer base electronically at low cost

4 Internet and E-Business Environment The internet brings both a challenge and an opportunity for businesses Speed of change Speed up the transactions process and raise expectations of customers Economics of abundance Information is a valuable asset in the internet economy can get revenue Merchandise exchange The internet provides a mechanism for displaying a huge array of products and services without having to incur the costs of display that traditional stores incur

5 Internet and E-Business Environment The internet brings both a challenge and an opportunity for businesses Prosumption Customising or personalising products or services to match the requirements of individual customers Industrial context Value generated in e-business communities transcends industrial sectors Communications channel The internet provides an effective medium for accessing, organising and communicating information

6 Internet and E-Business Environment The internet brings both a challenge and an opportunity for businesses Transactions channel Transaction costs for customers are reduced The time and effort expended searching for products and comparing prices is significantly reduced Distribution channel Products and services such as financial information, news, music, software, ticketing and reservations, and consultancy services are just some of the multitude of information-centred products that can be delivered quickly and cheaply to online customers

7 E-marketplaces

8 E-marketplaces E-marketplaces: electronic exchanges where firms can register as buyers or sellers and undertake business activities using the internet E-marketplaces can be used by firms to acquire inputs, and sell outputs, electronically, thereby saving on search costs and transaction costs Three main types of e-marketplaces Public exchanges Consortium exchanges Private exchanges

9 E-marketplaces: Public exchanges Before the Internet: B2B trading process was slow, fragmented, ineffective, and costly Buyers paid too much, sellers had high expenses, and intermediaries were needed to smooth the trading process Solution Traders meet electronically in a large Internet marketplace Save on transaction costs, reduce cycle time, and find new markets and trading partners around the globe

10 E-marketplaces: Public exchanges Public exchanges: Independently-operated B2B trading platforms for facilitating online transactions between trading partners Are open to any business or group of businesses, and usually run by third parties A e-marketplace many-to-many

11 E-marketplaces: Public exchanges Public exchanges: Market maker: the third-party that operates an exchange (and in many cases, also owns the exchange) Systematic sourcing: purchasing done in longterm supplier buyer relationships Spot sourcing: unplanned purchases made as the need arises

12 E-marketplaces: Public exchanges

13 E-marketplaces: Consortium exchanges Consortium exchanges (CE) An exchange owned and operated by a group of competing businesses who combine their buying power to gain group-wide savings on the supply of materials

14 E-marketplaces: Consortium exchanges Two types: Purchasing-oriented consortia Vertical Purchasing-Oriented CE: all the players are in the same industry Horizontal Purchasing-Oriented CE: owneroperators are large companies from different industries that unite for the purpose of improving the supply chain

15 E-marketplaces: Consortium exchanges Two types: Selling-oriented consortia Most selling-oriented consortia are vertical Participating sellers have thousands of potential buyers within a particular industry

16 E-marketplaces: Consortium exchanges Issues for consortia Legal challenges for B2B consortia Level of collaboration among both competitors and business partners Antitrust and other competition laws must be considered

17 E-marketplaces: Private exchanges An exchange owned and operated by a single firm to link its trading system directly to that of its suppliers Also known as company-centric marketplaces

18 E-marketplaces: Private exchanges Problems with private exchanges Transaction fees: require to pay transaction fees with existing customers Sharing information: do not want to share business data with competitors Cost savings: not great enough to attract buyers Recruiting suppliers: lose direct contact with customers Too many exchanges

19 E-marketplaces The key advantages offered by e-marketplaces: Much greater scope for firms to form trading partnerships Opportunities for lower costs associated with the negotiation and transactions of products and services through the use of automated systems Benefits from a more open and transparent pricing environment Opportunities presented by access to value-adding services using electronic systems Opportunities for access to global markets, particularly for small and medium sized enterprises (SMEs).

20 E-business Models

21 E-business Markets Business-to-Business (B2B) Business-to-Consumer (B2C) Consumer-to-Consumer (C2C)

22 E-business Models Business model can be defined as the organisation of product, services and information flows, and the sources of revenues and benefits for suppliers and customers An e-business model is the adaptation of an organisation s business model to the internet economy There is a wide range of sophistication associated with business models, some are complex and require collaboration between partners, whereas others are easily set up and operated by few people.

23 E-business Models

24 E-business Models Business-to-Consumer (B2C): e-shops, e-malls, e- auctions, buyer aggregators, infomediaries, classifieds, portaling, manufacturer model, subscription Business-to-Business (B2B): e-auctions, infomediaries, e-procurement, e-distribution, portaling, e-marketing, trading communities, thirdparty marketplaces, collaboration platforms, value chain integrators, value chain service providers, affiliates Consumer-to-Consumer (C2C): e-auctions, virtual communities

25 E-business Models

26 E-business Models

27 Takeaways Internet and E-Business Environment E-marketplaces E-business Models

28 Topics E-business economics The internet: law, privacy, trust and security