S3PE SYSTEM

Strategy, structure, system, people and environment

Different Elements of Equity

IPO Process

Commerce strategies

B2B
B2C
P2P – C2C
C2B
B2E business-to-employee

Pricing Model

1. Fixed (menu) pricing
2. One-to-one bargaining
3. Auction
4. Reverse auction
5. Barter
6. Free

Profit Sites:

1. E-commerce
2. Content aggregators
3. Brokers/agents
4. Market makers
5. Service providers
6. Backbone operators
7. ISPs/OSPs
8. Last mile
9. Content creators
10. Software suppliers
11. Hardware suppliers

Business Model Taxnomy vs. Typology: Examples from the literature 2

Business Model Taxnomy vs. Typology: Examples from the literature 1

Revenue Model

Commission Model
Commission model relies on two factors:
1. Large volume of completed transactions to make the commission model worth while
2. To offset low volume with very expensive transaction
Commission – Intermediary – Brokerage


Advertising Model
Two ways:
Reaching broadest possible audience
Have a highly targeted and specialized audience.

Markup – based Model

Production – based Model

Refferral – based Model
Refferral – Affiliate – Click-through

Subscription – based Model

Fee-for-Service – based Model

Six Models

Complementary assets
Incremental/Radical dichotomy
Architectural innovation
Disruptive change
Innovation value – add chain
Technology life cycle

Internet Technology Life Cycle

Who Profits from Innovation. David Teece

Complementary Assets

Complementary assets are all other capabilities – apart from those that underpin the technology or invention – that the firm needs to exploit the technology.

Which and When Activies to Perform

Differentiation (8):(Customer Value)

Product Features
Timing
Location
Service
Product Mix
Linkage between functions
Linkage with other firms
Reputation
Reference: Afuah, A. and Tucci, C. L. 2003, Internet Business Models and Strategies, second edition, McGraw-Hill, New York.

Elements of a Business Model
Reference: Afuah, A. and Tucci, C. L. 2003, Internet Business Models and Strategies, second edition, McGraw-Hill, New York.

Properties of the Internet and the 5-Cs

5-Cs Impact on Internet:

Coordination
Commerce
Community
Content
Communication

Reference: Afuah, A. and Tucci, C. L. 2003, Internet Business Models and Strategies, second edition, McGraw-Hill, New York.

Value Network Profit Sites with Representative Companies
Reference: Afuah, A. and Tucci, C. L. 2003, Internet Business Models and Strategies, second edition, McGraw-Hill, New York. P21

Internet Infrastructure (5):

Backbone
Router (digital switches)
Point of presence
Computer servers
User’s connected computers

Reference: Afuah, A. and Tucci, C. L. 2003, Internet Business Models and Strategies, second edition, McGraw-Hill, New York. P13