Internet Business Models

Internet Business Models

The Internet can help companies create and capture profit in new ways

by adding extra value to existing products and services or by

providing the foundation for new products and services. The Internet

Business models are abstraction of what and how the enterprise

delivers product or service, showing how the enterprise creates wealth

by taking advantages of the Internet's rich communication

capabilities. They provide the customer with a new product or service;

they provide additional information or service along with a

traditional product or service, or they provide a product or service

at a much lower cost than traditional means.

The most important Internet Business models that have emerged include:

Virtual storefront. It sells physical goods or services on-line

instead of through a physical storefront or retail outlet. Examples

are Amazon.com, WingspanBank.com

Marketplace concentrator. It concentrates information about products

and services from multiple providers at one central point. Examples

are ShopNow.com, InsureMareket

On-line exchange. It is a bid-ask system where multiple buyers can

purchase from multiple sellers. Examples are Asia Capacity Exchange,

E-Steel.

Information broker. It provides product, pricing, and availability

information. Example is PartNet.

Transaction broker. It enables buyers to view rates and terms from

various sources. Example is E*TRADE.

Auction. It provides electronic clearinghouse for products where price

and availability are constantly changing, in response to customer

demand. Examples are eBay, Ubid.

Reverse auction. It enables consumers to su...

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... system can make manufacturing information more accessible to different

parts of the organization, increasing precision and lowering costs.

The applications include quality measurement, maintenance schedules,

design specifications, machine output, order tracking, etc.

Digital Information Services

Powerful and far-reaching digital information services enable

networked PC and workstation users to obtain information from outside

the firm instantly without leaving their desks. Commercial service

provides desired mix.

Distance Learning

Distance learning is education or training delivered over a distance

to individuals in one or more locations. It can be accomplished with

print-based materials and based on information technology, including

teleconferencing or interactive multimedia, including the Web sites.