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An in-depth analysis of business categories and models in the context of the Internet. digital firms, business processes, electronic markets, e-business, e-commerce, CRM, SCM, and various e-business models. The document also includes figures and references for further study.
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4.1 Business Categories
by Professor Vasile AVRAM, PhD
References
4.2 Business Models
4.3 The E-Commerce Development
And Functional Architecture
4.1 Business Categories
Concepts, Notions, and Definitios introduced:
Digital firm
Business processes
Electronic market
Electronic business (e-business)
Electronic commerce (e-commerce)
VPN
Intranet
Extranet
Private industrial network
The e-business – e-commerce relationships
CRM (Customer Relationship Management)
SCM (Supply Chain Management)
Business categories
4.1 Business Categories
Electronic business (e-business). The extensive use of business
information system through an organization is commonly referred to as
electronic business or e-business.
There are two common definition of e-business concept:
“all electronically mediated information exchange, both within an
organization and with external stakeholders supporting the range of
business processes”;
“the use of Internet and other digital technology for organizational
communication and coordination and management of the firm”.
Electronic commerce (e-commerce). Electronic commerce (e-
commerce) is the process of buying and selling goods and services
electronically with computerized business transactions using Internet,
networks, and other digital technologies.
4.1 Business Categories
Figure 4.1 Intranet
4.1 Business Categories
Private industrial network. A private industrial network or
net marketplace (or e-hubs) is a web-enabled network
linking systems of multiple enterprises (firms, companies,
organizations etc) for the coordination of enterprises trans-
organizational business processes.
4.1 Business Categories
Figure 4.3 The extended company and management of customers and suppliers
relationships
4.1 Business Categories
Figure 4.5 e-commerce is a part of e-business
( source [PG-07] )
4.1 Business Categories
CRM (Customer Relationship Management). CRM focuses on
managing all of the ways that a firm deals with its existing and
potential new customers.
A starter definition of customer relationship management
(CRM) is ” The infrastructure that enables the delineation of an
increase in customer value, and the correct means by which to
motivate valuable customers to remain loyal - indeed, to buy
again[1]. ”
[1] CRM Handbook, The: A Business Guide to Customer Relationship Management,
by Jill Dyché, Addison Wesley Professional,
4.1 Business Categories
Figure 4.6 Business categories
Figure 4. 7 The electronic business value chain
4.2 Business Models
A business model describes how the enterprise delivers a
product or service, showing how the enterprise creates
wealth. Business models have been defined and categorized
in many different ways, the models are implemented in a
variety of ways, and they are perhaps the most discussed and
least understood aspect of the web.
4.2 Business Models
”An e-business model is a description of the roles and
relationships among a firm's consumers, customers, allies,
and suppliers that identifies the major flows of product,
information, and money, and the major benefits to
participants.”
Figure 4. 8 Electronic marketplace for B2B commerce
4.2.1 Classification of e-business models
In determining an appropriate e-business model, several
criteria can be used, such as [PG-07]:
Involved parties, such as business-to-business, business-
to-consumer, and/or consumer-to-consumer;
Revenue sources, such as transaction fee, product price,
and/or exposure fee;
Value configuration, such as value chain, value shop,
and/or value network;
Integration with customers and/or partners;
Relationships, such as one-to-many, many-to-many, and/or
many-toone;
Knowledge, such as know-how, know-what, and know-why.
4.2.1 Classification of e-business models
Online marketplace: Provides a digital environment where
buyers and sellers can meet, search for products, display
products, and establish prices for those products (eBay.com,
Priceline.com, ChemConnect.com, Pantellos.com)
Content provider: Creates revenue by providing digital content, such
as digital news, music, photos, or video, over the Web (WSJ.com,
CNN.com, TheStreet.com, Gettyimages.com, MP3.com)
Online service provider: Provides online service for individuals and
businesses. Generates revenue from subscription or transaction fees,
from advertising, or from collecting marketing information from users
(@Backup.com, Xdrive.com, Employease.com, Salesforce.com)
Virtual community: Provides online meeting place where people with
similar interests can communicate and find useful information
(Motocross.com, iVillage.com, Sailnet.com)
Portal: Provides initial point of entry to the Web along with specialized
content and other services (Yahoo.com, MSN.com, StarMedia.com)
4.3 The E-Commerce Development And Functional
Architecture
Figure 4.9 The Market Evolution and Complexity of e-Commerce / e-Business Development
Source: e-Business Management Models: A Services Perspective and Case Studies, Revere Group,
Todd Miller, Matthew L. Nelson, Stella Ying Shen and Michael J. Shaw