E business models

Summary

This video lecture delves into e-business models, explaining their core components and frameworks. It covers the definition of a business model, the Business Model Canvas, and the nine building blocks for creating value, including customer segments, value propositions, and revenue streams. The lecture also explores various e-business models like direct selling, brokerage, and digital marketplaces, and highlights critical success factors for online businesses. Real-world examples such as Amazon, Google, and Facebook are discussed to illustrate different business models and strategies for creating and capturing value in the digital economy.

Takeaways

• 📚 A business model is a framework outlining how a business creates, delivers, and captures value.
• 💡 The Business Model Canvas (BMC) is a strategic tool used to design, challenge, and invent business models, consisting of nine components.
• 🎯 The primary goal of a business model is to generate value for customers, encourage payments, and convert these into profits.
• 💼 Key components of a business model include value proposition, revenue model, market opportunity, competition, market strategy, organizational development, and management team.
• 🔑 Value Propositions answer why customers should buy from you, focusing on the products or services that meet customer needs.
• 💬 Customer Segments identify the target audience for a business's offerings.
• 📈 Revenue Streams clarify how a company earns income from its customers, including different pricing mechanisms.
• 🏢 Key Activities and Key Resources are crucial for creating and delivering the proposed value to customers.
• 🤝 Key Partners are necessary for enhancing and supporting the business model, such as collaborators or suppliers.
• 💰 Cost Structures involve both fixed and variable costs associated with producing and delivering the value proposition.
• 🌐 E-business models adapt traditional business models to the internet economy or create entirely new models exploiting digital technologies.

Q & A

What is the primary focus of the lecture?

The lecture focuses on e-business models, aiming to help viewers understand what a business model is and to list and briefly explain several e-business models.

What is a business model according to the lecture?

A business model is a framework or architecture that outlines how a business is organized and financed to create, deliver, and capture value.

What does the Business Model Canvas (BMC) consist of?

The Business Model Canvas consists of nine components: value propositions, customer segments, channels, customer relationships, revenue streams, key activities, key resources, key partners, and cost structures.

What is the significance of the Business Model Canvas?

The Business Model Canvas is a tool for visualizing and designing business models. It helps to document existing models, develop new ones, challenge existing models, and invent new business models using a shared language.

How does the lecture describe the value proposition in a business model?

The value proposition refers to the products or services offered that meet the needs of customers, which is one of the key components of the Business Model Canvas.

What is direct selling in the context of e-business models?

Direct selling is a model where producers sell their products or services directly to customers through the web, bypassing intermediaries such as retailers.

What are the benefits of direct selling to consumers mentioned in the lecture?

The benefits of direct selling to consumers include cost savings, rapid delivery, and personalization of products and services.

How does the lecture define a broker in an e-business context?

A broker in an e-business context is an intermediary that creates a market where buyers and sellers negotiate and complete transactions, often gaining revenue through fees or commissions.

What role do trading communities play in e-business?

Trading communities provide a platform for information and communication to support business activities, particularly for industry members, and often charge a subscription fee for access to their services.

What are the critical success factors of e-business discussed in the lecture?

The critical success factors of e-business include adding value to customers, achieving a critical mass of customers, continuous innovation, and adaptable marketing and promotion strategies.

What tasks does the lecture conclude with for the viewers?

The lecture concludes by asking viewers to discuss the business and revenue models of companies such as Google, Facebook, Instagram, Amazon.com, Google Play, and App Store.