- Integrating the businesses could create synergies by sharing resources and leveraging existing customer relationships, but may also introduce complexity - Keeping the businesses separate allows them to develop customized strategies for different customer segments and market dynamics - The core competencies, target customers, product offerings, and business models of the traditional vs Internet business should be evaluated to determine the best organizational structure - An integrated structure may be preferable if there are significant overlaps, while separate structures work better for businesses with different competencies, customers, or markets

1. Introduction to e-Business

6. Government Business Consumer Government Business Consumer E-commerce and Broader Internet Applications Source OECD (2000) C2C e.g. action markets C2B e.g. price comparisons C2G e.g. taxes B2C e.g. e-commerce B2B e.g. e-commerce B2G e.g. procurement G2C e.g. information G2B e.g. information G2G e.g. coordination

12. Eight Key Ingredients of a Business Model Key Questions Business Model Components Value Proposition Why should the customer buy from you? Revenue model How will you earn money? Market opportunity What marketspace do you intent to serve, and what is its size? Competitive environment Who else occupies your intended marketspace? Competitive advantage What special advantages does your firm bring to the marketspace? Market strategy How do you plan to promote your products to attract customer? Organizational development What types of organizational structures within the firm are necessary to carry out the business plan? Management team What kinds of experiences and background are important for the company’s leaders to have?

27. Enterprise User Profiles Workflow Business rules Payment Analytics Internet Firewall Figure: A B2C e-business Model Intranet

29. Various B2C Business Model

30. cont…

38. Various (B2B) Business Model

41. Figure : B2C and B2B Internet Commerce in the U.S. (Source: Forrester Research) Billion

42. How Big is B2B? Figure: The Goldman Sachs B2B Sizing in USA

44. Traditional versus E-Business Models? C B C B C: Individual Consumer B: Business

45. Seven Unique Feature of E-Commerce Technology