CORP3500 eBusiness • 2010–11 34 CORP3500 2010–2011 eBusiness John Powell eBusiness concepts and frameworks: Business models for reference list see www.economicstoolbox.com CORP3500 eBusiness • 2010–11 35 Outline ! Typologies – Marketplace Channel Structure & Intermediation – Key dimensions of eBusiness – Defining ʻe-spaceʼ ! Perspectives on Business models – Keen & Qureshi (2005) / Pateli and Giaglis (2004) – Magretta (2002) – Laseter et al (2007) – Osterwalder and Pigneur (2010) – Lam and Harrison-Walker (2003) – Rappa (2005) – Anderson (2008) CORP3500 eBusiness • 2010–11 36 Typologies • 1 [print] ! Marketplace Channel Structure & Intermediation Chaffey (2007:45) Figure 2.3 Chaffey (2007:46) Figure 2.4 CORP3500 eBusiness • 2010–11 37 Typologies • 2 [print] Key dimensions of eBusiness Buyer Business Consumer Government Seller Business B2B B2C B2G Consumer C2B C2C / P2P C2G Government G2B G2C G2G Adapted from Chen, 2001:2; See also Chaffey, 2007:12 Figure 1.2 CORP3500 eBusiness • 2010–11 38 Typologies • 3 [print] Defining ʻe-spaceʼ Adapted from Choi et al (1997) – distribution CORP3500 eBusiness • 2010–11 39 Business models • Context “The term “business model” is a recent addition to the management literature and largely a product of the dot com era. It is entirely absent from all the most influential books on organizational design, business strategy, business economics and business theory through to the mid- to late 1990s. It is almost everywhere in books on e-commerce…” Keen and Qureshi (2005) See also Osterwalder et al (2005) CORP3500 eBusiness • 2010–11 40 Business models • Context Pateli and Giaglis (2004) ! Lit. review classified business model research into eight ʻdomainsʼ: – Definitions – Components – Conceptual models – Design methods and tools – Taxonomies – Change methodologies – Evaluation models – Adoption factors } Magretta [Lam & Harrison-Walker, Rappa, Anderson] [Osterwalder & Pigneur] [Eisenmann et al] CORP3500 eBusiness • 2010–11 41 Business models • Definition & Components = “A summary of how a company will generate revenue, identifying its product offering, value-added services, revenue sources and target customers” (Chaffey, 2007:61) See Chaffey (2007:61-76) Dot com boom… “A company didnʼt need a strategy, or a special competence, or even any customers – all it needed was a Web-based business model that promised wild profits…” Magretta (2002:86) See Laseter, Kirsch and Goldfarb (2007) CORP3500 eBusiness • 2010–11 42 Business models • Definition & Components Magretta (2002:86): “… while it's true that a lot of capital was raised to fund flawed business models, the fault lies not with the concept of the business model but with its distortion and misuse.” ! A good business model must answer Peter Druckerʼs key questions: – Who is the customer ? – What does the customer value ? – How does the business generate profit ? [Magretta, 2002:87] ! ʻNarrativeʼ test / ʻNumbersʼ test