Академический Документы
Профессиональный Документы
Культура Документы
Gilbert Peffer
JAD Workshop
Business Model
Components and linkages
Dynamics
Performance
Internet
Environment
Competitive
Macro
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Properties of Internet
Impact of the Internet on the 5-Cs
Limitation to transactions over the Internet
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Properties of Internet
Mediating technology: Internet facilitates exchange relationships among
parties distributed in time and space
4 types of interconnection:
-
B2B: Business-to-business
B2C: Business-to-consumer
C2C: Consumer-to-consumer
C2B: Consumer-to-business
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Properties of Internet
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Properties of Internet
Low cost standard: everybody uses the same protocol. As there is only
one standard, costs for users are lower.
Creative destroyer: the low entry costs, flexibility and unlimited
possibilities allow entrepreneurs to create new businesses.
Transaction-cost reducer: Internet reduces the costs of searching for
sellers and buyers, collecting information on products, negotiating
contracts and transportation.
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Properties of Internet have a huge impact on the 5 main activities that rest
on information exchange: coordination, community, content
communication and commerce:
Impact on Coordination
Internet reduces the cost of transactions
Internet improves product-service features and quality
Impact on Community
Internet redefines communities, making them larger and much more
valuable
Distance and time are no drawbacks to join a community
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Impact on Content
Information, entertainment and other products are delivered over the
Internet to more people
Impact on Communication
People can exchange electronic messages real-time, to many people and
with high content
Every user has the capacity to broadcast messages
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C2B: consumers state their price, and firms either take it or leave it.
- Usually, intermediaries play an important role
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Internet cannot transmit tacit knowledge (that is, knowledge uncoded and
nonverbalised).
Individuals and organisations are cognitively limited. So, they may not be
able to encode their knowledge into a form that can be transmitted over
the Internet.
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Definition
A taxonomy of Business Models
Elements of a Business Model
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Definition
An Internet business model is a set of Internet and non-Internet-related
activities planned or evolving that allows a firm to make money using the
Internet and to keep the money coming.
An business model should include answers to a number of questions:
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Brokerage: firms act as market makers who bring buyers and sellers
together and charge a fee for the transaction they enable.
Examples: travel agents, online brokerage firms, online auction houses.
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Merchant: wholesalers and retailers sell goods and services over the
Internet.
Manufacturer: manufacturers try to reach end users directly through the
Internet.
Affiliate: a merchant has affiliates whose websites have click-through to the
merchant, which pays a fee to the affiliates each time a visitor to an affiliates
site clicks through to the merchants site and buys something.
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Product features
Being the first to introduce it
Ease of access to the products
Service
Product mix
Association with another firm
Brand-name reputation
Low cost: products or services cost customers less than those of its
competitors
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Scope
Scope deals with:
Market segments or geographic areas to which the value should be offered
How many types of products that embody versions of this value should be sold
Revenue sources
Determination of the sources of a firms revenues and profits.
It allows to make better strategic decisions
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Connected activities
A firm must perform the activities that underpin the value (value chain).
The activities should be consistent with the value the firm is offering, reinforce
each other, take advantage of industry success drivers and make the industry
more attractive to the firm.
The activities a firm performs are a function of where the technology is in that
industrys life cycle, the technological evolution of the customers and what
competitors are doing.
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Implementation
The way of carrying out the decisions depends on several factors:
Structure of a firm.
Systems that allow information flow in the shortest time to the right target for
decision making.
Motivation of employees, and capability of making the right decisions with the
available information.
Recognizing the potential of an innovation.
Organisational culture.
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Capabilities
Firms need resources to perform the activities
Firms need the capacity to turn the resources into customer value and profits:
competence.
The competitive advantage allows the firm to offer its customers better value
than competitors.
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Sustainability
To sustain a competitive advantage a firm can pursue some subset of three
generic strategies:
Block strategy: a firm tries to erect barriers around its business model to
prevent others from imitating it.
Run strategy: a firm must keep innovating its business model.
Team-up strategy: a firm can pool others resources to strengthen its business
model.
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