Strategic Design of B2B e-Marketplace Business Models
10 Strategic Design Considerations
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Diploma Thesis from the year 2001 in the subject Business economics - Business Management, Corporate Governance, Reutlingen University (Unternehmensführung), language: English, abstract: Inhaltsangabe:Abstract:Due to the enormous analyst projections on worldwide B2B e-commerce, and additionally forced by the low barriers to entry, races to implement e-marketplaces have started since everyone was keen to get a share out of this large opportunity.However, as the recent e-marketplace shake-out demonstrated, many e-market makers have often concentrated on Internet Technology, forgetting that once...
Diploma Thesis from the year 2001 in the subject Business economics - Business Management, Corporate Governance, Reutlingen University (Unternehmensführung), language: English, abstract: Inhaltsangabe:Abstract:
Due to the enormous analyst projections on worldwide B2B e-commerce, and additionally forced by the low barriers to entry, races to implement e-marketplaces have started since everyone was keen to get a share out of this large opportunity.
However, as the recent e-marketplace shake-out demonstrated, many e-market makers have often concentrated on Internet Technology, forgetting that once it comes down to its base, e-business it not about bytes, but still about pure business. Often, the first-movers business models grounded on great ideas, but were not sustainable.
e-Marketplaces base on complex business models that present key strategic issues which must be addressed prior to the creation and implementation of any technology infrastructure.
With the help of the10 Strategic Design Considerations Guideline for the creation of a B2B e-marketplace business model, the reader firms that are considering becoming e-market makers, and firms interested in participating in an e-marketplace as buyer, seller or service provider- should be able to formulate a complete e-market strategy for an e-marketplace initiative.
The 10 key strategic steps to consider on the way to create the Business Model Design are as follows:
1. Market and Stakeholder Analysis: Which are the quantitative and qualitative attributes of the market: market segmentation, fragmentation of the sell-and buy-side, existing and competing industry channels, complexity of product/ process? Who are the buyers and sellers, service providers, transaction influencers and competing marketplaces? Who are the key stakeholders that are needed to gain critical mass for the marketplace?
2. e-Marketplace Models: What forms of eMarketplaces do exist? Which trend of model can be identified? Should the e-marketplace be proprietary or open? Which roles does an e-marketplace take?
3. Value Proposition: What does the marketplace offer the key players? How will this value proposition gain differentiation in the market? What value proposition will attract and retain those players? How will this value proposition evolve over time?
4. Key Parameters & Value-Added Services: Which technology capabilities and key functions are required to fulfill the offering and maintain the market?
5. Functional Architecture Model: How does the logical construct of the functional requirements look like? What is actually behind the platform?
6. Pricing Mechanism: How is price determined for items being bought and sold? What different pricing mechanisms exist?
7. Revenue Model: How does the e-marketplace owner capture value from his business? Where do the revenue streams from successful e-marketplaces derive from?
8. Equity Structure: What are possible ways of sharing out the equity?
9. Strategic Roadmap: How is the plan of the roadmap for the evolution of the e-marketplace, including key partnerships and alliances? Which is the reaction plan in case of emerging competition?
10.Business Plan: How sustainable is the business model? What are the anticipated reactions from competitors and other major players in the market? Who will likely react positively or negatively and why? What are the economic implications of the business model for the market makers and key stakeholders?
Presentation of the Business Case. By addressing those 10 steps, the e-marketplace management will be well positioned to capture optimum market opportunity and sustain the market position as competitive pressures emerge, due to a well-built strategic roadmap. Meanwhile creating the B2B e-marketplace business model guided by the Strategic Design Considerations, the e-marketplace designer should take into consideration a ...
Due to the enormous analyst projections on worldwide B2B e-commerce, and additionally forced by the low barriers to entry, races to implement e-marketplaces have started since everyone was keen to get a share out of this large opportunity.
However, as the recent e-marketplace shake-out demonstrated, many e-market makers have often concentrated on Internet Technology, forgetting that once it comes down to its base, e-business it not about bytes, but still about pure business. Often, the first-movers business models grounded on great ideas, but were not sustainable.
e-Marketplaces base on complex business models that present key strategic issues which must be addressed prior to the creation and implementation of any technology infrastructure.
With the help of the10 Strategic Design Considerations Guideline for the creation of a B2B e-marketplace business model, the reader firms that are considering becoming e-market makers, and firms interested in participating in an e-marketplace as buyer, seller or service provider- should be able to formulate a complete e-market strategy for an e-marketplace initiative.
The 10 key strategic steps to consider on the way to create the Business Model Design are as follows:
1. Market and Stakeholder Analysis: Which are the quantitative and qualitative attributes of the market: market segmentation, fragmentation of the sell-and buy-side, existing and competing industry channels, complexity of product/ process? Who are the buyers and sellers, service providers, transaction influencers and competing marketplaces? Who are the key stakeholders that are needed to gain critical mass for the marketplace?
2. e-Marketplace Models: What forms of eMarketplaces do exist? Which trend of model can be identified? Should the e-marketplace be proprietary or open? Which roles does an e-marketplace take?
3. Value Proposition: What does the marketplace offer the key players? How will this value proposition gain differentiation in the market? What value proposition will attract and retain those players? How will this value proposition evolve over time?
4. Key Parameters & Value-Added Services: Which technology capabilities and key functions are required to fulfill the offering and maintain the market?
5. Functional Architecture Model: How does the logical construct of the functional requirements look like? What is actually behind the platform?
6. Pricing Mechanism: How is price determined for items being bought and sold? What different pricing mechanisms exist?
7. Revenue Model: How does the e-marketplace owner capture value from his business? Where do the revenue streams from successful e-marketplaces derive from?
8. Equity Structure: What are possible ways of sharing out the equity?
9. Strategic Roadmap: How is the plan of the roadmap for the evolution of the e-marketplace, including key partnerships and alliances? Which is the reaction plan in case of emerging competition?
10.Business Plan: How sustainable is the business model? What are the anticipated reactions from competitors and other major players in the market? Who will likely react positively or negatively and why? What are the economic implications of the business model for the market makers and key stakeholders?
Presentation of the Business Case. By addressing those 10 steps, the e-marketplace management will be well positioned to capture optimum market opportunity and sustain the market position as competitive pressures emerge, due to a well-built strategic roadmap. Meanwhile creating the B2B e-marketplace business model guided by the Strategic Design Considerations, the e-marketplace designer should take into consideration a ...
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