2-1 INTERNET MODELS. Dr Richard Boateng
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1 2-1 INTERNET MODELS Dr Richard Boateng
2 New Business Models and Value Propositions Electronic Business, Electronic Commerce, and the Emerging Digital Firm Internet Business Models Virtual storefront: Sells physical products directly to consumers or businesses. play.com; amazon.com Information broker: Provides product pricing and availability information; generates revenue from advertising or directing buyers to sellers. nexttag.com; pricerunner.co.uk; pricegrabber Transaction Broker: Processes online sales transactions for fee. paypal; worldpay
3 Internet Business Models Electronic Business, Electronic Commerce, and the Emerging Digital Firm Online Marketplace: Provides digital environment where buyers and sellers meet. ebay.com; amazon.com Content Provider: Provides digital content, such as news; revenue from fees or advertising sales. cnn.com; myjoyonline.com Online Service Provider: Provides connectivity; revenue from fees, advertising, or marketing information. - providers, paid news (wall street)
4 Electronic Business, Electronic Commerce, and the Emerging Digital Firm New Business Models and Value Propositions Internet Business Models (cont.) Virtual Community: Provides online meeting place for people of similar interests. facebook, myspace Portal: Provides initial point of entry to the Web, along with specialized content and services. yahoo, msn Syndicator: aggregates content or applications to resell as package to third-party Web sites. RSS Feeds
5 5 RSS (Really Simple Syndication) is a web-based format for sharing and distributing Web content, such as news headlines. Using an RSS reader, you can view data feeds from various news sources, such as CNN.com, including headlines, summaries, links to full stories.
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7 Electronic Commerce Categories of Electronic Commerce Business-to-consumer (B2C): Retailing products and services to individual shoppers Business-to-business (B2B): Sales of goods and services among businesses Consumer-to-consumer (C2C): Consumers selling directly to consumers
8 Electronic Commerce Customer-Centered Retailing Direct Sales Over the Web Disintermediation: Removal of intermediary steps in a value chain, selling directly to consumers, significantly lowers purchase transaction costs Reintermediation: Shifting intermediary function in a value chain to a new source, such as service hubs
9 The benefits Electronic of disintermediation Commerce to the consumer Figure 4-2
10 Activity-Level Models Order processing 2. Online purchasing Content publisher 5. Business intelligence (BI) 6. Online advertising and public relations (PR) 7. Online sales promotions 8. Dynamic pricing strategies online
11 Business Process-Level Models Customer relationship management (CRM) 2. Knowledge management (KM) 3. Supply chain management (SCM) 4. Community building online 5. Database marketing 6. Enterprise resource planning (ERP)
12 Enterprise-Level Models E-commerce, direct selling, content sponsorship 2. Portal 3. Social networking 4. Broker models Online exchange, hub Online auction 5. Agent models Manufacturer s/selling agents Shopping agent
13 Pure Play Models 2-13 Pure plays are businesses that began on the internet. They represent the top level of the E-Business pyramid. Pure plays face significant challenges. They must compete as new brands. They may need to take customers away from established businesses. Some pure plays have redefined industries: E*Trade, ebay, Yahoo!, MySpace.
14 Performance Metrics 2-14 Performance metrics are specific measures designed to evaluate the effectiveness and efficiency of operations. Performance metrics: Provide measurable outcomes. Must be easy to understand and use. Must be actionable. Can be utilized for employee evaluations.
15 Web Analytics 2-15 Web analytics, commonly called metrics, is the study of user behavior on Web pages. Metrics measure activities such as: Click throughs Visitor patterns Length of time spent on a page or site Conversions to sales Web analytics software helps companies analyze data on server logs for marketing purposes.
16 Social Engagement Metrics 2-16 Online measurement also includes metrics for evaluating Web 2.0 technologies. Social engagement metrics allow marketers to know how visitors participate, not just whether they landed on a page. Time spent viewing a video, playing a game, or listening to music. Writing a comment on a blog. Downloading a MP3 file, ring tone, or other content.
17 The Balanced Scorecard 2-17 The Balanced Scorecard provides a framework for understanding e-marketing metrics. The Balanced Scorecard provides 4 perspectives. Customer perspective Internal perspective Learning and growth perspective Financial perspective
18 The Balanced Scorecard: 2-18 Customer Perspective The customer perspective scorecard includes ways to measure goals such as customer loyalty, satisfaction, appropriateness of target markets, etc. Loyalty and satisfaction measures may include percentage of visitors who return to site and time between visits. Transaction measures may include measurement of unique visitors, online sales abandoned, etc.
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21 The Balanced Scorecard: 2-21 Internal Perspectives The Internal perspective scorecard includes ways to measure goals related to the quality of online services. Quality of online technical help such as amount of time to answer Web page loading time Inventory levels, inventory turns
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23 The Balanced Scorecard: 2-23 Learning and Growth Perspectives The learning and growth perspective scorecard includes ways to measure goals related to online service innovation and continuous improvement. Average time from concept to start Speed to match a rival s site Time between site relaunches
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25 People want to be part of something exciting Twitter rose to over 800,000 users in June 2009, up from 13,000 in 2008* *comscore study, June 2009 Reported in Marketing Charts, August 17th 2009
26 Twitter is seeing astronomical growth *courtesy Hitwise Australia, July 2009 (Hitwise.com.au) The Social Web for Business
27 The Balanced Scorecard: 2-23 Financial Perspectives The financial perspective scorecard includes ways to measure financial goals. Sales growth and market share Return on invested capital Average order value Individual customer profit
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