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Information management > Lecture 3 > Flashcards

Lecture 3 Flashcards

1
Q

business model

A

Set of planned activities (processes) designed to result in a profit in a marketplace

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2
Q

Business model is not the same as

A

Business strategy

Business plan

Business case (argumentation supporting an investment or project proposal)

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3
Q

E-commerce business model

A

A business model that uses or leverages unique qualities of IT, internet and web

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4
Q

Revenue model

A

Describes how the firm eanrs revenue, generates profits, and produce a superior return on invested capital

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5
Q

Major types (revenue model)

A

Advertising revenue model (get money for clicks)

Subscription revenue model (get money for subscriptions)

Transaction free revenue model (get money per transsaction)

Sales revenue model (get money because your sales > production costs)

Affiliate revenue model (get money for referrals or a revenue from partner sales)

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6
Q

Major types

A

Advertising revenue model (get money for clicks)

Subscription revenue model (get money for subscriptions)

Transaction free revenue model (get money per transsaction)

Sales revenue model (get money because your sales > production costs)

Affiliate revenue model (get money for referrals or a revenue from partner sales)

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7
Q

Advertiser firms buy data from gaming platforms to

A

Personalize advertisements and messages to gamers

Enhance the conversion rate (number of responses from gamers)

Enhance the return on advertising spend (ROAS)

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8
Q

Gaming platforms with a freemium revenue model gets revenue from

A

Subscription gamers (direct payments)

Free gamers (via advertiser firms)

note: challenge = to make gaming rewarding and attractive for both gamer groups

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9
Q

Organizational development

A

Which organizational structure of the firm is needed to carry out the business plan

–> many firms have failed because they lacked business processes, organizational structures and culture required to scale up and manage e-commerce

Describes how the firm will organize work
typically divided into functional departments
As comapny grows, hiring moves from generalists to specialists

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10
Q

Management team

A

What kinds of competences (experiences and background) are important for the companys leaders to have

Employees are responsible for making the business model work

strong management team gives instant credibility to outside investors

strong management team may not be able to salvage a weak business model, but should be able to change the model and redefine the business as it becomes necessary

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11
Q

Five B2B business model types:

A

1) E-distributor (supplies products and services directly to businesses)

2) E-procurement (creates and sells access to digital markets)

3) Exchange (independent digital marketplace)

4) Industry consortium (vertical marketplace for a specific industry)

5) Private industrial network (coordinate flow of goods; private exchange for one large firm)

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12
Q

Five B2B business model types:

A

1) E-distributor (supplies products and services directly to businesses)

2) E-procurement (creates and sells access to digital markets)

3) Exchange (independent digital marketplace)

4) Industry consortium (vertical marketplace for a specific industry)

5) Private industrial network (coordinate flow of goods; private exchange for one large firm)

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13
Q

E-distributor marketplace (ED-M)

A

Creates own sales catalog by gathering information from many suppliers

Sells the listed products to customers and suppliers directly to individual businesses

Owned by one company seeking to serve many customers

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14
Q

E-procurement marketplace

A

EP-M creates and sells “access to many digital markets”

EP-M links each customer to many providers

Customers pay a service fee to the (firm that owes the) EP-M to get access to the EP-M and to the large variety of providers that all sell certain goods

Via the EP-M
Customers can search, select, buy and pay the goods they need

Customers pay a fee to run ariba software as a service. Ariba software can be linked to internal purchasing software SAP system

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15
Q

Exchange marketplace (X-M)

A

Independently owned digital marketplace: many suppliers meet some large buyers

X-M creates strong competition between suppliers (price transparency for some large business customers)

An X-M serves typically a single industry

Force suppliers into price competition

Number of exchanges has dropped dramatically

Revenue model for the X-M transaction fees commission fees

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16
Q

Industry consortium marketplace (EC-M)

A

A marketplace, industry specific, owned by a consortium of firms

Open only for specific firms

More successful than exchange

Sponsored by powerful industry players; strengthens traditional purchasing behavior

Revenue model various

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17
Q

Private industrail networks (PTX)

A

Private industrial networks form the largest part of B2B ecommerce today

Many large companies operate their own private industrial networks

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18
Q

Specific objectives for a firm to deploy a PTX include

A

Efficiend buying and selling

Effective resource planning on enterprise scale and industry-wide scale

Increased supply chain visibility to all parties

Close relationship with suppliers and buyers: enhanced demand forecasting, conflict resolution

Global operations

Risk reduction: use of financial derivatives, insurance and future markets to prevent supply & demand imbalance

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19
Q

Some difficulties with categorizing E-commerce business models:

A

1) Large firms like amazon use different business models:

E- tailer (selling goods)

Content providers (e-books, prime)

Market creator (firm in firm)

E-commerce infrastructure provider (amazon web service)

2) Laudon and traver business model types per 2022 include:
7B2C models
5B2B models
Fund provider business model
E-commerce enabler business model

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20
Q

Raising capital for a start up:

A

To bootstrap a new firm, a business model must be primed with revenues:

Seed capital (start the company working by using your own savings)

Raise capital (attract attention from sponsor)

Incubator (get some limited funding in cash + start up support)

Angel investor (Get large funding (investment) against an equity share (for the investors))

Venture capital (Get large funding from investment fund for other investors)

Crowdfunding (use internet to enable individuals to collectively support)

21
Q

Alternative for the laudon and traver models

A

A well known alternative for the 14 models of laudon and traver are the “8 atomic business models” by weill and vitale

The business model of a firm typically consists of a combination of some of these 8 atomic business models

Designing your business model = mixing these eight atomic models

22
Q

Atomic business models

A

Content provider

Direct to consumer

Full service provider

Intermediary

shared infrastructure

Value net integrator

Virtual community

Single point of contact

23
Q

How E-commerce changes business

A

Business strategy and business model innovation
Low cost trategy or customer intimacy strategy (personalization)
Which data do I have – Which data do I need
Industry structure
Fig 2.3 competitive analysis (porter)
Fig 2.5 industry supply chains and value webs
Organizational structure
Firm value chain analysis (porter)
Business processes (process redesign)

24
Q

Industry structural analysis:

A

An effort to understand and describe the nature of competition in an industry, the nature of substitute products, the barriers to entry and the relative strength of consumers and suppliers

25
Q

How IT influences industry structure:
IT influence on:

A

Rivalry among competitors
Powers of suppliers
Power of customers
Threat of new entrants
Threat of substitute products

But also: influence of IT on:
Industry value chains and value networks
Firm (internal) value chains

26
Q

Firm value chain

A

The set of activities a firm engages in to create final products from raw inputs

27
Q

Eight elements of a business model

A

Value proposition
Revenue model
Market opportunity
Competitive environment
Competitive advantage
Market strategy
Organizational development
Management team

28
Q

Seven Major B2C business model types

A

E taile

Community provider

Content provider

Portal

transaction broker

Market creator

Service provider

29
Q

Seven Major B2C business model types
E-tailer

A

Some firms combine the e-tailer model (click) with the brick model

30
Q

Seven Major B2C business model types
Community provider

A

provides an on-line platform for a community (e.g. facebook)

31
Q

Seven Major B2C business model types
Content provider

A

Provides digital news, movies, music, etc (nu.nl, netflix)

32
Q

Seven Major B2C business model types
Protal

A

Provides a starting point with search tools, content, services (steam for games)

33
Q

Seven Major B2C business model types
Transaction broker

A

provides transaction/payment services for consumers (pay pal)

34
Q

Seven Major B2C business model types
Market creator

A

Provides a marketplace (ebay; marktplaats)

35
Q

Seven Major B2C business model types
Service provider

A

provides online services (googledocs, apple i cloud

36
Q

Atomic business models
Direct to consumer

A

Provides goods or services directly to customer often surpassing traditional intermediaries

37
Q

Atomic business models
Full service provider

A

offers a full range of services in one domain (e.g. financial, health care) directly or via complementors (intermediaries) who are attempting to own the primary customer relationship

38
Q

Atomic business models
Intermediary

A

Brings together buyers and sellers by concentrating information (e.g. search engines, auctions))

39
Q

Atomic business models
shared infrastructure

A

Brings together multiple competitors to cooperate by sharing a common IT infrastructure

40
Q

Atomic business models
Value net integer

A

Coordinates value net activities by gathering, synthesizing and distributing information among firms

41
Q

Atomic business models
Virtual community

A

Facilitates and creates loyalty of an online community of people with a common interest

42
Q

Atomic business models
Single point of contact

A

Offers a firm-wide single point of contact consolidating all services provided by a large multi-business organization

43
Q

Industry structural analysis

A

An effort to understand and describe the nature of competition in an industry, the nature of substitute products, thhe barriers to entry and the relative strength of consumers and suppliers

44
Q

Threat of substitute products(how e commerce influences industry structure)

A

New substitute emerge; streaming video replaces DVDs, online reservation systems replacing travel agents

45
Q

Bargaining power of buyers (how e commerce influences industry structure)

A

Availability of global price and product information shifts bargaining power to buyers

46
Q

Barriers to entry (how e-commerce influences industry structure)

A

May reduce barriers to entry such as need for physical store, salesforce; however first mover advantages may increase barriers to entry for subsequent entrants

47
Q

Bargaining power of suppliers (how e commerce influences industry structure=

A

online procurement systems typically decrease bargaining power of suppliers; however, supliers can also benefit from the elimination of intermediaries allowing them to sell directly to end-purchasers

48
Q

Rivalry among existing competitors (how e-commerce influences industry structure)

A

Increases price competition; expands the market

Information management (15 decks)

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