At the core of the development of an e-business strategy for any particular organization lays several issues that need to be spotted on by any person who intends to successfully develop either a B2C e-business model or a B2B e-business model. Due to the rapid development of technology and globalization in the 21st century, e-business has suddenly become an important means of conducting business transactions given the big difference in both businesses and consumers’ way of living prior and during the advent of technology.
According to (Wickramasinghe, 2007) since the various e-business models were tested to deliver outstanding and beneficial results in any organization, big or small, many organizations has strived to develop value-driven and sustainable e-business models. (Tsai et al., 2005) state that e-business models that have developed over the past decade have benefited many business organizations by improving their operational efficiencies, reducing their costs, as well as connecting them to a great number of suppliers and customers from the different parts of the world.
(Rappa, 2010) also points out that what’s interesting is that most e-business models are free from complications and are very simple to use. Since e-business model determines how much a company or organization will be able to generate profit, it helps a lot when a specific company’s business model is clear and simple.
Nevertheless, technology has a very clever way of increasing the profit generated by a specific e-business model that an organization utilizes and at the same time make these business models evolve depending on the demands of time and the people. (Shafer et al., 2005) also argues that no matter how powerful and well-crafted a specific mode...
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...del can make the difference. Management Services, 50, 24-28.
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SHAFER, S., SMITH, H. & LINDER, J. (2005) The power of business models. Business horizons, 48, 199-207.
TSAI, W., CHIEN, S., FAN, Y. & CHENG, J. (2005) Critical management issues in implementing ERP: empirical evidences from Taiwanese firms. International Journal of Services and Standards, 1, 299-318.
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The term business model gained popularity due to “the explosive growth of new ventures sparked by the internet”1 and is often erroneously used “to glorify all manner of half-baked plans”.2 Strategy is another “buzzword” that is often mistakenly used interchangeably with business model. There are numerous differences between the two but the defining characteristic is that a “business model is independent of competitors and the current state of the market”,3 focusing inwardly to describe, “as a system, how the pieces of a business fit together”.2 Strategy focuses on performance, looking outwardly at the industry, analyzing the current competition, future competition, suppliers and customers, and answers the key question “how you will do better than your rivals.” 2
According to Osterwalder and Pigneur (2010), a business model is utilized to demonstrate the rationalization of the methods an organization utilizes to create, capture and deliver value. The business model serves as a blueprint for strategy implementation through the processes, structures and systems of the organization; accordingly, nine building blocks can be utilized to describe the logic behind the company’s intentions to make profit (Osterwalder & Pigneur, 2010). The nine building blocks named by Osterwalder and Pigneur (2010) are customer segments, value propositions, channels, customer relationships, revenue stream, key resources, key activities, key partnerships and cost structure. These building blocks are used to describe the: imperative groups of organizations or people that will be served, value created by services and products within a defined segment of customers, communication and capacity with which value will be delivered, relationship types within the specific segments, cash generated in customer segments, assets that are critical to a successful business model, critical functions that must be carried out by the company to ensure a successful business model, network of partners and suppliers make the model work, and costs that are required for business model operations (Osterwalder & Pigneur, 2010).
Shafer, S. M., Smith, H. J., & Linder, J. C. (2005). The power of business models. Business
There are many organizations currently operating on business models and strategies that were developed several to many years ago. These models and strategies may work but can they be better? Over the past decade information technology has advanced, e-business models have exploded, the Internet has been on fire, and CEO’s have changed so fast it can make you dizzy.
For the purpose of this paper, I selected the following three categories for comparison : B2C, C2C and e-Government. For the sake of ease, I chose representative entities for each category : Amazon (B2C), EBay (C2C) and Arizona government, www.az.gov (e-Government). In the following paragraphs, I will identify the differences and similarities of those three business models by addressing the questions in the syllabus.
Johnson, M.W., Christensen, C.M., & Kagermann, H. (2008). Reinventing your business model. Harvard Business Publishing. Retrieved from http://hbr.org/
A business model could be defined as portrayal of the potential benefits for a group of stakeholders or actors; also it can be seen as architecture of how a firm generates its revenue. Over the years many firms have tried to use the Internet to create their own unique selling points, which can be seen as their business models. For instance Amazon.com’s innovation in this regards was to eliminate the traditional arrangement of supply chain (Disintermediation) and to make value out of it. Several other e-commerce sites have carried out similar transformations e.g.Ebay.com in the area of auction. Though there has been no consensus on the definition of a business model in the online context, practitioners have tried to link the term “e-commerce” to firms that can conduct all aspects of their transactions online hence some classification of the various market structures that operate in the Internet has been developed (Mahadevan, 2000).
The future of economic competitiveness for most enterprises relies on entrance and active participation in the e-commerce market. An essential problem with e-commerce is that the controls and organization are different for each site. There is no standard way of building t...
The term business model has been applied to situations where is a strategic management and entrepreneurial tool, it relate to the firms about how is going to make profit, and how to deal with internal player and external players by use appropriate model (Papazouglou and Ribbers, 2006, p. 662). It helps manager to growth the business and enhances a great profit by choosing different business models.
Finally there are many different revenue models that a business is going to consider and also reinvent their revenue models. The revenue model finally needs to satisfy the customer and client decisions. Many busine...
When the buzzword of business model was very active and reactive during the internet boom, many individuals did not understand the concept of the proper business model for the proper business (Magretta, 2002). When not utilizing the right type of model for the organization, the model will be misused and distorted (Magretta, 2002). Understanding the traditional organization and learning organization, will allow an organization to determine which time of organization they desire the most.
This analysis discusses four articles that examines the concept of the business model, how it complements a business strategy. They introduce frameworks to assess and categorize business models through the importance of the value proposition. In Business Models: A Challenging Agenda, Baden-Fuller and Mangematin (2013) introduce a four-prong typology to discuss the value proposition through value creation and capture and how a business model is not a complete description and is alterable. Johnson, Christensen and Kagermann (2008) focus on the understanding and analysing a business model to decide if it needs re-inventing (change) or if it can be applied to a new business. In Why Business Matter, Joan Magretta (2002) writes about testing the
What's e-business? It is the transformation of every business process through using the internet and associated technologies. In this transformation, each part of the business becomes a part of an intrinsic network, which enables employees, suppliers and customers of a given enterprise to conduct their tasks. People usually try to make a point in differing e-business from e-commence, but as I see, e-commerce is a part of the e-business category, and an important one.
Business models are possibly the most discussed and least understood facet of the web. Brokerage models, such as Priceline.com are market makers: they bring buyers and sellers together to facilitate transactions. Priceline.com leads the way to a unique new type of e-commerce known as a "demand collection system". Priceline.com is the world's first online buying service through which consumers name the price they're willing to pay. Leveraging the unique attributes of the Internet, Priceline.com finds sellers willing to meet buyers' needs and price.
E-business is a wider concept that takes into account all the aspects of use of information technology in business. Apart from buying and selling, it also includes servicing customers, collaboration with business partners, and engages incorporation across business processes and communication within the organisation (Rowley, 2002)