E-Business Models

Learning about models of E-Business is made easy through this presentation. It contains the comprehensive information about models of E-Business. It helps the students to learn the concepts quickly with the help of examples. The models are presented with crisp explanation.

1. E-BUSINESS MODELS
UNIT 2

2. E-BUSINESS MODEL
•Itreferstothewayinwhichabusinessisconductedandthe
existenceofrelationshipbetweenbuyerandseller.
•Ane-businessmodelissimplytheapproachacompanytakes
tobecomeaprofitablebusinessontheInternet.
•Therearemanybuzzwordsthatdefineaspectsofelectronic
business,andtherearesubgroupsaswell,suchascontent
providers,auctionsitesandpure-playInternetretailersin
thebusiness-to-consumerspace.

3. Business-to-Business(B2B)
Business-to-Consumer(B2C)
Consumer-to-Consumer(C2C)
Business-to-Government(B2G)
Government-to-Business(G2B)
Government-to-Citizen(G2C)
Consumer-to-Business(C2B)
PeertoPeer(P2P)

5. •Business-to-business(B2B)–appliestobusinessesbuying
formandsellingtoeachotherovertheInternet
•B2Bcompaniesaresupportiveenterprisesthatofferthethings
otherbusinessesneedtooperateandgrow.
•B2Bcompanieshaveanentirelydifferenttargetaudience:
Theyoffertherawmaterials,finishedparts,servicesor
consultationsthatotherbusinessesneedtooperate,growand
profit.

6. Industrial Marketing System
Supplier Manufacturing
Manufacturing
Consumer Products
Industrial Products

7. MRF Tyre
Supplier Manufacturing tyre
Manufacturing car
using tyre
Tyre
Consumrproduct
Car

8. TYPES OF B2B MODELS
•Buyer model (few buyers,
many sellers)
•Marketplace model (many
buyers, many sellers)
•Longer term relationship
model (few buyers, few
sellers)
•Seller model (few sellers,
many buyers)

9. Buyer Model
Inthismodel,therearefewbuyersandmanysuppliers.The
buyerhashis/herownonlinemarketplace.Ittheninvites
suppliersandmanufacturerstodisplaytheirproducts.Buyers
searchinelectronicstoresinmallsandmarketsforsimilar
serviceprovidingproductsandcomparethem.
e.g. : GE’s electronic bidding

11. Market Place
•Inthistypeofmodel,therearemanybuyersandmany
suppliers.Anintermediarycompanyrunsamarketplacewhere
businessbuyersandsellersmeetanddobusinesswitheach
other.
•E.g.:Alibaba.

13. Long term relationship
•Inthistypeofmodel,therearefewbuyersandfewsuppliers.
Anintermediarycompanyrunsamarketplacewherebusiness
buyersandsellersmeetanddobusinesswitheachother.
e.g.: Airbus

15. Seller Model
Inthistypeofmodel,therearemanybuyersandfewsuppliers.
Thesupplierprovidesacommonmarketplace.Thismarketis
usedbybothindividualcustomersaswellasbusinesses.Forthe
successofthismodel,goodwillinthemarketandagroupofloyal
customersisveryimportant.
e.g.: Cisco

17. BUSINESS TO CONSUMER (B2C)
Asthenamesuggests,itisthemodelinvolvingbusinessandconsumers.Inthis
model,onlinebusinessselltoindividualcustomers.Businesstocustomer
coversthosee-commercewebsitesandtransactionstroughwhichorganization
sellgoodstocustomerovertheinternet.B2Cisalsoknownasinternetretailing
orE-tailing.
Business/organization
Customer
B2C
•B2C refers to a business communicating with or selling to an individual rather
than a company

18. Major Business-to-Consumer (B2C)
Business Models
2. E-Tailer/Storefront
1. Portal
3. Content Provider
4. Transaction Broker
5. Service Provider
6. Market Creator
7. Community provider

19. 1. Portal
•A portalis a web-based platform that collects
information from different sources into a single user
interface.
•Portalspersonalizecontentbasedonabalanceof
audienceandfunction.Inotherwords,theyneedto
knowwhoisusingtheportalandwhatthoseusersneed
togetdone.
•Twotypesa)Horizontalportalb)Verticalportal

20. 1. Portal
a)Horizontal/General:Offersanintegratedpackageofservices
andcontentsuchassearch,e-mail,chatetc.Seekstobea
user’shomebase.e.g:yahoo.com,msn.com
b)Vertical/Specialized:Offersservicesandproductsto
specializedmarketplace.Agatewayorportaltoinformation
relatedtoaparticularindustry,suchashumanresources,
healthcare,insurance,automobiles,orfoodmanufacturing.
Portalsarealsoseenaslikelybusiness-to-business
communities.e.g.:www.constructionplus.com

21. Portal Services
➢An integrated package of
content like
»News
»weather forecasts
»currency rates
»stock quotes
»phone and map
information
➢Serviceslike
»Entertainment
»Chat
»Game
»Downloads
»Shopping-auction
»E-card
»Sms service
»search

22. 2. E-tailer
•Ane-tailerisaretailerthatprimarilyusestheInternetasa
mediumforcustomerstoshopforgoodsand/orservices
provided.
•Therearedifferenttypesofe-tailerbasedonthenatureof
performingbusinessactivities.

23. 2. E-tailer
a)Virtualmerchant:Onlineversionofretailstorewherecustomerscan
shop24/7withcomfort.E.g.:Amazon.com
b)Click and mortar: Online distributor channel for company that also has
physical stores. e.g.: Walmart.com
Catalog merchant: Online version of direct catalog. The catalog merchant
has generally lower prices than other retailers and lower overhead
expenses due to the smaller size of store and lack of large showroom
space. E.g.: LandsEnd.com, pepperfry.com
d) Online mall: Online version of mall. E.g.: Fashionmall.com
e)Manufacturerdirect:Onlinesalesmadedirectlybymanufacturers.E.g.:
Dell.com,

24. 2. E-tailer
d) Online mall: Online version of mall. E.g.: Fashionmall.com
e)Manufacturerdirect:Onlinesalesmadedirectlyby
manufacturers.E.g.:Dell.com,

25. 3. Transaction Broker
•Processorsofonlinesalestransactions,suchasstockbrokers
andtravelagentsthatincreasecustomer`sproductivityby
helpingthemdothingsfaster.Itassistsbuyers,sellers,orboth
duringtransactionandactsasanagentforlargermarkets.
•Furthermore,theysellothersproductsratherthantheirown
product.Transactionbrokersreceivecommissionsforevery
transactionthathadbeensuccessfullyconcludedinorderto
sustaintheirbusiness.
•E.g.: Indiainfoline.com, Monster.com

26. 4. Content provider
➢Informationandentertainmentproviderslikenewspapers,
sportssitesorotheronlinesourcesofferingup-to-date
information(news,specialinterest,photos,video,artworketc.)
tocustomers.
➢Electronicintermediariesthatcontrolinformationflowin
cyberspace,oftenaggregatinginformationandsellingitto
others.Theydonotownthecontentbutaggregateand
distributethecontentproducedbyothers
•E.g.: Sportsline.com, CNN.com, espncricinfo.com

28. 5. Service Provider
➢Companiesthatmakemoneybysellingusersaservice,rather
thanaproduct.Offersservicesonline,likeconsultancy,trade
knowledge,expertiseetc.
➢Eg. Window updates offered by Microsoft, Incometax.gov.in,
Paytm.com

29. 6. Market Creator
•Web-basedbusinessesthatuseinternettechnologytocreate
marketsthatbringbuyersandsellerstogether.Auctionsand
otherformsofDynamicPricing
•The successfactorsare:
➢Attracting sufficient critical number of sellers and buyers to the
marketplace.
➢Speed, ability to become operational quickly
•E.g.: eBay.com, Priceline.com, upperbid.com

30. 7. Community Provider
➢Siteswhereindividualswithparticularinterests,hobbiesand
commonexperiencecancometogetherandcompare.
➢Communitiesutilizeelectronictoolssuchasforums,chat
rooms,e-maillists,messageboards,andotherinteractive
Internetmechanisms,whichareusuallytailoredtotheparticular
community.
e.g.: Mouthsut.com, Team-bhp.com

31. Players in B2C Business Model
1)Consumer:Onewhobuysproductsorservicesonline.
2)Seller:Onewhosellsproductstoendcustomeronline.
3)Intermediary:Anycompanywhichfacilitates
transactionsbetweenconsumers.

32. Consumer Shopping Procedure in B2C
1.Basic requirement determination.
2.Search for available items that can meet the requirement.
3.Compare the candidate items with multiple perspectives
4.Place an Order.
5.Pay the Bill.
6.Receive the delivered items and inspect them.
7.Contact the vendor to get after-service and support, or to
return if disappointed.

33. B2C e-commerce transactions
VISA
Order form
Order placed
by user
Shopping cart
credit card is
charged
Order is
competed
E-mail is sent to customer to merchant
Sent to warehouse
Shipping carrier picks up
shipment

34. B2C Distribution

35. Challenges to B2C
•Consumer traffic
•Payment processing
•Client support
•Product findability

36. Recent Trends in B2C
•Voice Search
•Augmented Reality (AR)
•Try before buy
•Social Platforms
•Artificial Intelligence

37. B2B Vs. B2C
Parameters B2B B2C
1 Definition
The selling of goods and
services between two business
entities is known as Business
to Business / B2B.
The selling of goods and services
to a consumer is known as
Business to Consumer / B2C.
2 Customer Company Customer(End User)
3 Need to focus onRelationship Benefits of the product
4 Chain
Supplier to Manufacturer
Manufacturerto Wholesaler
Wholesalerto Retailer
Retailer to Consumer
5 Chain horizon Lengthy Short
6 Buying & Selling cycleLengthy Short
7 Decision Making Long process Simple
8 Brand Value
Depends upon trust & mutual
relationship
Aggressive advertising &
promotion

38. •Consumer-to-business (C2B) –applies to any consumer that sells a
product or service to a business over the Internet
•C2B facilitates the following:
–Social interaction
–Personal finance management
–Purchasing products and information

40. Players in C2B Business Model
1)Consumer:AconsumerintheC2Bbusinessmodelcanbeany
individualwhohassomethingtooffereitheraserviceora
good.Theindividualispaidfortheworkprovidedtothe
companies.Dependingonthemodel,the"consumer"canbe:
•Awebmaster/bloggerofferingadvertisingservice
(throughGoogleAdsenseprogramforexampleor
amazon.comaffiliationprogram)
•Aphotographeroradesignerofferingstockimagesto
companies by selling his artwork
throughFotoliaoristockphotoforexample
•Anyindividualansweringapollthroughasurveysite
•Anyindividualwithconnectionsofferingjobhiringserviceby
referringsomeone through referralhiring
siteslikejobster.comorh3.com

41. 2)Business:BusinessintheC2Bbusinessmodel
representsanycompaniesbuyinggoodsorservices
toindividualtroughintermediaries.Herearesome
examplesofpotentialcompanieswhichcanbesuch
clients:
•Anycompanywhichwantstofillajob
(throughreferralhiringsites)
•Anycompanyneedingtoadvertiseonline
(throughGoogleAdwordsprogramforexample)
•Anyadvertisingagencywhichneedstobuya
stockphoto(throughmicrostocksites)

42. 3)Intermediary:TheIntermediaryisthecrucialelement
sinceitcreatestheconnectionbetweenbusinesswhich
needsaserviceoragoodandamassofindividuals.
Intermediaryisusuallyaportalbothforbuyers
(businesses)andseller(individuals).
The intermediary plays two roles:
•Itpromotesgoodsandservicesofferedbyindividuals
byproposingadistributionchannel.Itofferswhat
individualscan'tdothemselves:largepromotion,
logisticandfinancialsupport,technicalexpertise
•Itoffersbuyersacontacttoamassofindividualsand
takescareofmoneytransactionsandlegalaspects

43. •C2C,orcustomer-to-customer,orconsumer-to-consumer,isabusiness
modelthatfacilitatesthetransactionofproductsorservicesbetween
customers.
•C2C communities thriving on the Internet:
–Communities of interest
–Communities of relations
–Communities of fantasy

44. Players in C2C Business Model
1)Consumer:Onewhobuysorsellsproductsor
servicesonlinewithhelpofintermediary.
2)Intermediary:Anycompanywhichfacilitates
transactionsbetweenconsumers.
e.g.:e-Bay.com,olx.com,craigslist.com

45. Benefits of C2C
•Thereareminimalcostsinvolvedwiththelackofretailersand
wholesalers,keepingthemarginshigherforsellersandpriceslowerfor
buyers.
•Thereisalsotheconveniencefactor–insteadoftryingtosellitemsin
personatabrick-and-mortarstore,consumerscansimplylisttheir
productsonlineandwaitforbuyerstocometothem.
•Buyersdon'tneedtodrivearoundandsearchthroughstoresforanitem
theywant–theyjustsearchforitonaC2Csite.

46. Challenges
•Creditcardpaymentscanbedifficult,astheplatformsarenot
necessarilysecureandabletoprocesssuchpayments.
•Thereisalackofqualitycontrol–sincethesellersareconsumers
themselves,thereislittlerecourseforpoorlymadeormisrepresented
products.
•Ontheflipside,becausethebuyersareconsumersthemselves,the
paymentguaranteescanbehardtoenforce.

47. Types of C2C
•Online Auctions
•Online Classifieds
•Online Selling

48. Citizen to Government(C2G)
•Itconstitutestheareaswhereaconsumer(orcitizen)
interactswiththegovernment
•C2Gapplicationsusuallyincludetaxpayment,
issuanceofcertificatesorotherdocuments,etc.
•C2Gapplicationsareunderthescopeoftransactions
thataredoneandhandledmoreefficientlyand
effectivelywithe-Commercesystemsand
technologies.
•E.g:incometax.gov.in,irctc.gov.inetc.

49. Business to Government(B2G)
•B2Ge-commercemeansbusiness-to-governmente-
commerce,aconceptwheregovernmentagenciesand
businessescanusetheInternettotransactbusiness.
•AtypicalB2Ge-commercewebsiteoffersanefficientsystem
forbusinessinformationexchangeaswellasfacilitationof
businesstransactionsovertheInternet.
•E.g.:www.gs1india.org

50. Business to Government(B2G)
•Business-to-government(B2G)isabusinessmodelthatreferstobusinessesselling
products,servicesorinformationtogovernmentsorgovernmentagencies.
B2Gnetworksormodelsprovideawayforbusinessestobidongovernment
projectsorproductsthatgovernmentsmightpurchaseorneedfortheir
organizations.Thiscanencompasspublicsectororganizationsthatproposethebids.
B2GactivitiesareincreasinglybeingconductedviatheInternetthroughreal-time
bidding.

51. Government to Business (G2B)
•G2Bconceptisusedforexpressingtherelationshipbetweenpublicadministration
andenterprises.Therelationshipmayreferthedemandforinformationfromthe
enterprisesinanylifesituationoratransferofanofficialdocumenttothestatutory
body.
•TheabbreviationisusuallyusedtorefertotheICTsolutionthatconvertssuch
communicationtotheelectronicformortodescribeasolutionthatsimplifiesthe
communicationbetweenpublicadministrationandenterprises
•E.g.:tenders.gov.in

52. •G2B(GovernmenttoBusiness)isatermthatreferstotherelationships
betweenorganizations(subjects)ofpublicadministrationandenterprises
(businesses).Thedesignationcanbeusedforanyrelationshipbetweenthe
subjectofpublicadministrationandtheenterprisesasoneofthebasice-
Governmentmodels.
•InG2Bmodeltheinitiativecomesfromagovernmentorganizationand
businessesarethetargetgroup.SomesourcesdistinguishalsoB2G
(BusinesstoGovernment)wheretheinitiativecomesfrombusinesses,
whileothersourcesconsiderbothG2BandB2Gasequalwithoutimportant
nosignificantdifference,ie.withthesamemeaning.

53. •Themodelcoversanelectronicexchangeofanyinformationbetweenbusinesses
andthegovernment,usuallyusinginternetsothecooperationorcommunication
ismoreefficientthanisusuallyofftheinternet.InG2B,governmentagenciesand
businessusewebsites,procurementmarketplaces,applications,webservices.
•Examples of G2B / B2G services are:
•government procurement
•electronic procurement marketplaces
•electronic auctions
•e-learning
•electronic incorporation forms
•updating corporate information
•sending filled-out electronic forms (eg tax forms, social insurance forms)
•sending electronic payments
•sending / receiving answers electronically
•on-line meetings
•project management cooperation

54. Governmentto Government (G2G)
•Governmenttogovernment(G2G)istheelectronicsharingof
dataand/orinformationsystemsbetweengovernment
agencies,departmentsororganizations.
•ThegoalofG2Gistosupporte-governmentinitiativesby
improvingcommunication,dataaccessanddatasharing.

55. Peer to Peer Model
•Peer-to-peer(P2P)isadecentralizedcommunicationsmodelinwhich
eachpartyhasthesamecapabilitiesandeitherpartycaninitiatea
communicationsession.
•Unliketheclient/servermodel,inwhichtheclientmakesaservice
requestandtheserverfulfillstherequest,theP2Pnetworkmodel
allowseachnodetofunctionasbothaclientandserver.
•e.g.:Airbnb,AristotleCircle,eBay,Match.com,andZopa

56. Mobile Commerce

57. M-Commerce
•M-commerce(mobilecommerce)isthebuyingandsellingof
goodsandservicesthroughwirelesshandhelddevicessuchas
cellulartelephoneandpersonaldigitalassistants(PDAs).
Knownasnext-generatione-commerce,m-commerceenables
userstoaccesstheInternetwithoutneedingtofindaplaceto
plugin.

58. Mobile Commerce Infrastructure
•Cellular (mobile) phones
•PDAs
•Interactive pagers
•E-Readers
•Tablet
•Laptops
•Smart Watches
•Handheld Game Consoles
1. Hardware

59. Mobile Commerce Infrastructure
•Unseen infrastructure requirements
–Suitably configured wireline or wireless WAN modem
–Web server with wireless support
–Application or database server
–Large enterprise application server
–GPS locator

60. Mobile Commerce Infrastructure
2. Software
–Micro browser
–Mobile client operating system (OS)
–Bluetooth
–Mobile application user interface
–Back-end legacy application software
–Application middleware
–Wireless middleware

61. Mobile Commerce Infrastructure
•Networks
•Wireless transmission media
•Microwave
•Satellites
•Radio
•Infrared
•Cellular radio technology
–Wireless systems

62. Mobile Service Scenarios
•Financial Services.
•Entertainment.
•Shopping.
•Information Services.
•Payment.
•Advertising.
And more ...

63. Early content and applications have all been geared around information delivery but as time moves on
the accent will be on revenue generation.
M-commerce
Entertainment
•Music
•Games
•Graphics
•Video
Communications
•Short Messaging
•Multimedia Messaging
•Unified Messaging
•e-mail
•Chatrooms
•Video -conferencing
Transactions
•Banking
•Broking
•Shopping
•Auctions
•Betting
•Booking & reservations
•Mobile wallet
•Mobile purse
Information
•News
•City guides
•Directory Services
•Maps
•Traffic and weather
•Corporate information
•Market data

64. Mobile Payment for M-Commerce
•MobilePaymentcanbeofferedasastand-alone
service.
•MobilePaymentcouldalsobeanimportantenabling
serviceforotherm-commerceservices(e.g.mobile
ticketing,shopping,)

65. Mobile Payment
•the consumer must be informed of:
–what is being bought, and
–how much to pay
–options to pay;
•the payment must be made
•payments must be traceable.

66. Advantages of M-Commerce
–Mobility—users carry cell phones or other mobile devices
–Broad reach—people can be reached at any time
–Ubiquity—easier information access in real-time
–Convenience—devices that store data and have Internet, intranet,
extranet connections
–Instant connectivity—easy and quick connection to Internet, intranets,
other mobile devices, databases
–Personalization—preparation of information for individual consumers
–Localization of products and services—knowing where the user is located
at any given time and match service to them

67. Limitations of M-Commerce
•Usability Problem
•small size of mobile devices (screens, keyboards, etc)
•limited storage capacity of devices
•hard to browse sites
•Technical Limitations
•lack of a standardized security protocol
•insufficient bandwidth

68. Limitations of M-Commerce
•Technical Limitations…
•transmission and power consumption limitations
–poor reception in tunnels and certain buildings
–multipath interference, weather, and terrain problems and
distance-limited connections
•WAP Limitations
•Speed
•Cost
•Accessibility

69. E-Business Models Comparison
Parameter B2B B2C C2C C2B
Nature
Players
Scope
Types

70. Questions
Section A
1.What is e-business model?
2.What is B2C model?
3.What is a portal?
4.What is M-Commerce?
5.Who is a e-tailer?
6.What is G2G model?
7.Mention any four services of M-commerce.
8.What is C2B model?
9.Give two examples for C2C model.
10.What is P2P model?

71. Section B
1.What are the types of B2B model?
2.Write a brief note on C2G model.
3.Discuss about the advantages and disadvantages of M-
Commerce
4.Who are the players in C2B model?
5.How P2P model is different from C2C model?
6.Explain the process of purchasing products in B2C model.
Section C
1.Elaborate the different types of B2C model.
2.Explain about the infrastructure of M-Commerce