42.541 Current Issues in Business
Information Systems
e-Business Architecture: Strategy and Design
E-Business Architecture
Lecture 3
Dr Gerald Grant
E-business Models
What’s different about e-businesses?
Why is it important to understand the ebusiness model that is being adapted?
Copyright © 1997-2001
Dr Gerald Grant
2
E-business Models
Applegate (2001)
Successful e-businesses shape and are
shaped by customers and the business
community
E-business models develop in an
evolutionary way
Value webs have replaced value chains
We need new “mental models” about how
businesses are designed and operate
Copyright © 1997-2001
Dr Gerald Grant
3
E-business Models
Applegate (2001)
Focused Distributors
 Retailers
Chapters.ca, Justwhiteshirts.com, etc.
 Marketplaces
QuickenInsurance, E-Loan
 Aggregators
Autoweb
 Infomediaries
Internet securities
 Exchanges
Priceline.com, Freemarkets Online
Copyright © 1997-2001
Dr Gerald Grant
4
E-business Models
Applegate (2001)
Portals
 Horizontal Portals
Provides information, search, etc.
AOL, Yahoo!, MSN,
 Vertical Portals
Provides information and transactions
Quicken.com, WebMD, Expedia
 Affinity Portals
Targeted at specific audiences
 women (iVillage.com
 ethnic minorities (Netnoir.com)
Copyright © 1997-2001
Dr Gerald Grant
5
E-business Models
Applegate (2001)
Producer models
 Manufacturers
Ford, GM, etc.
 Service providers
American Express, Avis
 Educators
Harvard, Fathom
 Advisors
Accenture, Ernst & Young
 Information and News Services
CNN.com, Wall Street Journal
 Custom Suppliers
Copyright © 1997-2001
Dr Gerald Grant
6
E-business Models
Applegate (2001)
Infrastructure Portals
 Manufacturers
Intel, Cisco, Microsoft
 Service providers
FedEx, DoubleClick, Agency.com
 Focused Distributors
Ingram Micro, Tech Date
 Vertical Portals
Sales.com, MySAP.com,
 Horizontal Portals
AOL, [email protected],
 Custom Suppliers
Dell, Viant
Copyright © 1997-2001
Dr Gerald Grant
7
B-WEB Typology
(Don Tapscott et al., 2000, Digital Capital)
Self Organizing
Alliance
Agora
Distributive
Network
Control
Value
Chain
Aggregation
Hierarchical
Low
High
Value Integration
Copyright © 1997-2001
Dr Gerald Grant
8
Tapscott et al.’s Classification
Agora- focus on dynamic pricing
- Key process - price
discovery eg. eBay, Priceline, FreeMarkets
Aggregation-focus on selection and convenience
-
Key process - needs matching - eg. Amazon.com,
HomeAdvisor, Etrade, Travelocity.
Value Chain-focus on process integration
- Key
process - product design, supply chain
management eg. Cisco Systems, Dell Computer,
Alliance-focus on creativity - key process
innovation eg. America Online, Linux, NetNoir, MP3
Distributive Network-focus on
allocation/distribution - Key process distribution eg. Enron, UPS, Wells Fargo
Copyright © 1997-2001
Dr Gerald Grant
9
Key Features of B-W eb Types
Ma in
the me
Agora
Aggregation
• Dynamic
pricing
Va lue
• Liquidity—
proposition converting
goods into a
desirable price
Custome r
role
• Market
player
Know le dge • Timing
focus
• Market
intelligence
Value Chain
Alliance
Distributive
Network
• Selection and • Process
convenience
integration
• Creativity
• Allocation/
distribution
• Optimization
of selection,
organization,
price,
convenience,
matching, and
fulfillment
• Design and
delivery of an
integrated
product or
service that
meets a specific
set of customer
needs
• Creative
collaboration
in aid of a
goal shared
across a
community of
contributors
• Facilitate the
exchange and
delivery of
information,
goods, and
services
• Buyer
• Value driver
• Contributor
• Sender/
recipient
• Market
segmentation
• Supplier
offerings
• Fulfillment
• Innovation
• Supply-chain
management
• Community
• Creativity
• Standards and
roles
• Network
optimization
• Visibility and
transparency
Ke y
proce ss
• Price
discovery
• Needs
matching
• Product
design
• Supply-chain
management
• Innovation
• Distribution
Ex a mple s
• Yahoo!
classifieds
• eBay
• Priceline
• AdAuction
• NASDAQ
• MetalSite
• FreeMarkets
•
•
•
•
•
•
•
•
•
•
•
•
• America
Online
• NetNoir
• Linux
• MP3
• W intel
•
•
•
•
Copyright © 1997-2001
Amazon.com
Chemdex
HomeAdvisor
W ebvan
E*Trade
Travelocity
W SJI
Cisco Systems
Dell Computer
General Motors
Celestica
Bidcom
Dr Gerald Grant
Enron
UPS
AT&T
W ells Fargo
(Tapscott et al., 2000)
10
E-business Application
Architecture
Business Partners
Suppliers, Distributors
Resellers
ERP
BI
EAI
CRM
Finance/Accounting/Auditing
Management Control
Administrative Control
HRMS/e-Procurement
Supply Chain Management
Selling Chain Management
Copyright © 1997-2001
Customers
Dr Gerald
Grant
Resellers
11
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E-business Models Applegate (2001)