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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

  • 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


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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


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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)


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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


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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


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Web Benefits – Ward Hanson

  • Improvement based

    • Internal savings – cost savings

    • Increase marketing effectiveness – better image

    • Understanding customers - loyalty

  • Revenue based


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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


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Revenue based

  • Provider pays

    • Sponsorship

    • Retail alliances

      • Valuable locations

      • Exclusive deals

    • Banner Ads

    • Prospect fees

    • Sales commissions – affiliate programs

    • Data and market research


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Revenue based (continued)

  • User pays

    • Product sales

    • Pay per use

    • Subscription

    • Complementary goods sales


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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


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  • 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


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Value chain members

integrator

Functional

integration

E-mall

E-procurement

E-auctions

E-shop

Degree of innovation