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Different types of businesses B2C – Business to consumer B2B – business to business Infomediary – broker who facilitates transaction by providing information. B2I2C - Business – Infomediary - Customer B2I2B – Business – Infomediary - Business C2I2B – Customer – Infomediary - Business

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different types of businesses
Different types of businesses
  • B2C – Business to consumer
  • B2B – business to business
  • Infomediary – broker who facilitates transaction by providing information.
  • B2I2C - Business – Infomediary - Customer
  • B2I2B – Business – Infomediary - Business
  • C2I2B – Customer – Infomediary - Business
  • C2I2C – Customer – Infomediary - Customer
the rise of infomediaries
The Rise of Infomediaries
  • Has become useful with the “unbundling of the value chain” in many industries
  • Control the choke points of information
  • Typically, built around:

(1) user activities

(2) life events

(3) demographic segment

(4) special interests

hypermediation at play
Hypermediation At Play*
  • Bob wants to know more about a Harry Potter book
  • Netscape -- GoTo.com -- Nancy’s Harry Potter Page -- Etoys -- buy book at $8.97;
  • Who made money from the clickstream?

- Netscape (from GoTo.com) -- 2 cents;

- GoTo.com (from Nancy) -- 2 cents;

- Nancy (from Etoys) -- 7.5%

- Etoys, distributor, Visa company, UPS

- Others? Inktomi, BeFree

* Source: Nicholas G. Carr (2000, HBR)

rise of vertical and horizontal market hubs
Rise of Vertical and Horizontal Market Hubs*
  • Vertical examples:

Biotech

  • Vertical communities are:

industry-specific, members only, neutral

  • They provide:

directories, new kind of content, and links to commerce

  • Horizontal market hubs are cross-category and often country-focused

*The material on this page is sourced from The Forrester Report, Nov. 1996

the case of
The Case of
  • UBid buys excess capacity brands with major labels like AT&T, Panasonic, Callaway, 3M, and Calvin Klein
  • These products are auctioned on the web
  • They also let suppliers place their products directly for auction
  • Ubid takes a cut from every auction on its site
web benefits ward hanson
Web Benefits – Ward Hanson
  • Improvement based
    • Internal savings – cost savings
    • Increase marketing effectiveness – better image
    • Understanding customers - loyalty
  • Revenue based
improvement based
Improvement based
  • Enhancement
    • Brand building - Disney
    • Category building - Intel
    • Improving Online Quality -
  • Efficiency
    • Cost reduction
      • Catalogs
      • Customer service
    • Free trial
  • Effectiveness
    • Dealer support – GM BuyPower
    • Supplier support – GE and its trading process network
    • Information collection
revenue based
Revenue based
  • Provider pays
    • Sponsorship
    • Retail alliances
      • Valuable locations
      • Exclusive deals
    • Banner Ads
    • Prospect fees
    • Sales commissions – affiliate programs
    • Data and market research
revenue based continued
Revenue based (continued)
  • User pays
    • Product sales
    • Pay per use
    • Subscription
    • Complementary goods sales
paul timmer s classification
Paul Timmer’s Classification
  • E-shop
    • Promotion, cost reduction, additional outlet
    • (seeking demand)
  • E-procurement
    • Additional inlet (seeking suppliers)
  • E-auction
  • E-mall – collection of e-shops
  • Third party market place
    • Common marketing front end and transaction support to multiple businesses
slide17
Virtual Communities – focus on communication between members
  • Value chain service provider – support part of value chain e.g. logistics, payments
  • Value chain integrator – Added value by integrating multiple steps of the value chain
  • Collaboration platforms
  • Information Brokers – trust providers, business information, consulting
slide18

Value chain

integrator

Functional

integration

E-mall

E-procurement

E-auctions

E-shop

Degree of innovation