Download ECommerce Reference Model - E-Commerce - Lecture Slides and more Slides Fundamentals of E-Commerce in PDF only on Docsity!
Electronic Commerce (WS-02/03) 2-
ECommerce Reference Model
Base Technologies (Internet-, Communication-, Security-, DB-, Software-Technology) Forms of Payment Security, Trust Transact. Control Agent Technlgy Mediation, Negotiation EDI Political and Legal Aspects of EC Business Process Reengineering (BPR) Tools Electronic Trading Systems Virtual Organizations Kinds of Cooperation Applications for horizontal and vertical sectors Technical issues Organi- zational issues [MeTuLa99]
Electronic Commerce (WS-02/03) 2-
Brokerage Model: Reverse Auction
The "name-your-price" business model, also called "demand collection," pioneered and patented by Priceline (www.priceline.com). Prospective buyer makes a final (usually binding) bid for a specified good or service, and the broker seeks fulfillment. The broker's fee is the spread between the bid and fulfillment price and perhaps a processing charge. Examples: PriceLine (www.priceline.com), Respond (www.respond.com). www.priceline.com
Electronic Commerce (WS-02/03) 2-
Auctions (1)
Overview of auctions formats [ecommerce.ncsu.edu02, LR99]: o Classic English o Classic Dutch o Sealed Bid (First-bid and Second-bid) o Reverse Auction o Double Auction o Multi-Item Auction Definition An auction is a market institution with an explicit set of rules for determining resource allocation and prices on the basis of bids from the market participants.
Electronic Commerce (WS-02/03) 2-
German UMTS Auction
Auction where 3rd generation mobile communication frequency blocks were sold. Rules of the first auction: o In the first round, participants may bid secretly and synchronously for at most 3 blocks. o In the following rounds, every participant may bid for at most as many blocks as he has bid in the first round. o Every round takes 40 min. o For every block, every valid bid must surpass the last round‘s highest bid by a minimum increment, chosen by the auctioneer (10% of last round‘s highest bid, at the end 5%). o The auction ends when no valid bid is given for any block. o After the end of the first auction, only telcos which purchased successfully could purchase further blocks in a second auction. NOTE: These rules were developed using game theory, ensuring the auction would raise much money (approx. 50 billion €). [RegTP00]
Electronic Commerce (WS-02/03) 2-
Business Models: Manufacturer Model
This model is predicated on the power of the web to allow manufacturers to reach buyers directly and thereby compress the distribution channel (i.e., eliminate wholesalers and retailers). The manufacturer model can be based on efficiency (cost-savings that may or may not be passed on to consumers), improved customer service, and a better understanding of customer preferences. Perishable products that benefit from fast distribution, like fresh flowers (example: Flowerbud , www.flowerbud.com), may prove advantageous by eliminating middlemen. The model has the potential for channel conflict with a manufacturer's established supply chain. Examples: Intel (www.intel.com), Apple (www.apple.com). Specialization: Brand Integrated Content www.flowerbud.com
Electronic Commerce (WS-02/03) 2-
Merchant Model: Surf-and-Turf
Traditional brick-and-mortar establishment with web storefront (a combination of physical and web-enabled store). The model has the potential for channel conflict. Physical stores can prove to be an asset if cleverly integrated into web operations. Also known as "bricks-and- clicks". Examples: www.lehmanns.de www.lehmanns.de
Electronic Commerce (WS-02/03) 2-
2. EC from a Business Perspective
2.1 A Taxonomy of EC Business Models 2.2 Trends & Directions General Trends B2C and B2B business model trends
