Revenue Models for e-Business on The Web
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Transcript of Revenue Models for e-Business on The Web
IT6305 e-Business Applications Revenue Models for e-Business on The Web
Upekha [email protected]
The Linear Model (Traditional)
Direct-to-Customer Model
Direct-to-Customer Model Can sell at lower prices Build to customer order Receive payment earlier Speed up new product release cycles
and faster delivery of goods Use customer data to provide
customized value added service Proactive decision making
Supply Chain Model (Horizontal Marketplace )
Supply Chain Model Information flow across the supply chain All parties have a strong electronic bond
and backend systems Some companies do/don’t own any part of
the value chain They have access to information about all
from suppler/manufacturer to the customer This enables very effective order
processing, product tracking and fast resolution of SCM issues.
Full Service Provider Model(Vertical Marketplace)
Full Service Provider Model
Has to know a lot about the customer Provides own products or services bundled with
third party products or services. Commission from third party products Can charge customers a service fee
Offers a wide range of products/services to the customer at a reasonable or lower price
Offers different channels Internet, face-to-face, phone, etc.
This is a very effective strategy to achieve economies of scale in delivery/distribution, channel usage and promotion
Digital Value Hub - eRegion
Digital Value Hub
Strong B2B partnerships and collaborations between nodes in the supply chain
The industry competitors willingness to work together
Trust relationships among the competitors in an industry
A strong force against foreign competition
Revenue Sharing Model
Revenue Sharing Model - ePortal The sellers get together through a Portal They Market/ Promote products collectively
to a larger market segment Sellers can work on larger projects/orders
as they work collectively Pose as a larger company with a wider product
range/capacity to get larger projects Collective bulk orders with suppliers
Reduce bargaining power of suppliers Resources as well as profits are shared
among companiesUses the synergy of a collection of SMEs to get the competitive advantage.
eAuctioneer eBusiness Model
eAuctioneer (Intermediar
y)
Seller 2 Buyer 1
Buyer 2Seller 1
eBay
eAuctioneer eBusiness Model
Intermediary does not take responsibility for the sale or the payment and the eAuctioneer owns the valuable customer relationship and data but not the transaction.
2014, 2013, 2012, 2011 , 2009 –
(30 Marks)