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Benefits to the Business

Explore key benefits, challenges, and strategies of e-business models to increase sales, reduce costs, and enhance customer service while addressing security and payment systems. Learn about revenue models, resource management, and the relationship between business models and strategy.

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Benefits to the Business

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  1. Benefits to the Business • Increasing Sales • Reducing Costs • Improved Customer Service • Responding to Competitive pressures • Expanded Market Research

  2. Challenges • Privacy & Security • Security & Payment Systems • Firewalls • Personal Information Protection & Electronic Documents Act • Wallets, PayPal, smart cards

  3. BUS 361E-Business Chapter 2 Business Models & Strategies

  4. Objectives • Key elements of an internet business model • Similarities & Differences between B2B and B2C • Sims/Diffs between bricks, bricks n clicks, clicks n brick and click models • Key revenue generating approaches • Importance of a strategy • Relationship between business models & strategy • Key areas addressed by a strategic plan

  5. Business Plans/models 7 typically common components … reordered • Core Products & Services • External forces: PESTEL-G • Markets, Customers & Facilities • Core Business Process: develop, produce, market & distribute • Alliances • Resource Management • Strategic Mgmt Process

  6. E-Bus Strategy • The 7 (or 8) components • Unique value proposition • Core & Distinctive competencies • Cost leadership vs. Product Differentiation • B2B, B2C, B2G not mutually exclusive

  7. Core Process i.e. Just how “e” are we? • B … physical sites, e used to attract customers • BnC … physical sites but also an e-channel • CnB … internet based but distribution network • C … totally internet based only physical presence offices/ecommerce operations

  8. B2B vs. B2C • Longer term agreements • Negotiation • Relationships established & maintained • Larger volumes & revenues • Customised web pages for larger customers

  9. Revenue Models • Merchant Model (Costco, HBC, Sears) • Direct sales by Manufacturer (Nike, Kraft, Dell) • Manufacturer Service • Subscription (Netflix, Napster, newspapers) • Utility (pay as you go e.g. Skype) • Infomediary (checkout51, Snapsave) • Licensing (usually software) • Advertising (banner, popup, click through, search engines) • Affiliate (you scratch my back …) • Community (tofino.ca) • Brokerage (10 ways inc: classifieds, virtual malls, auctions, brokers …)

  10. Resource Management • Acquisition, development & allocation • $, people (skills)

  11. E-bus & Corporate Strategy Every strategy must take into account the following: • Arenas • Vehicles • Differentiators • Pace • Economic Logic

  12. And e-business • How does e-bus help us reach our objectives • Gap analysis • Closing gaps • Risk analysis • Defining IT needs … processes, infrastructure .. • Tactical plan • Measuring performance

  13. Terms to know • Asynchronous • Channel conflict • Clickthrough count • Reverse Auction • Banner Ads

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