An comparative study on E-business models

SYNOPSIS
ON
“A Comparative Study on E-Business
Models”
GUIDED BY: SUBMITTED BY:
PROF. RACHNA JAIN SUNIL CHICHRA
MBA BE 3rd sem
A Comparative Study On E-business Models Page 1

Contents
No. Title Page No.
1. Introduction
2
2. Literature Review
6
3. Objectives
9
4. Methodology
10
5. References
12

INTRODUCTION
There are many benefits of bringing your business to the web. An e-business
can offer personalised service, high quality customer service and improved
supply chain management. Through this study we explore the different types of
business operating on the web, as well as the technologies needed to build and
run an e-commerce website.
An e-business is defined as a company that has an online presence. E-businesses
that have the ability to sell, trade, barter and transact over the web can be
considered e-commerce businesses. The combination of a company’s policy,
operations, technology and ideology defines its business model. Entrepreneurs
starting e-businesses need to be aware of these models and how to implement
them effectively. Through this study we define a number of models and the
technologies that make them possible.
"E-business" is defined as the application of information and communication
technologies (ICT) which support all the activities and realms of business. E-business
focuses on the use of ICT to enable the external activities and
relationships of the business with customers. Electronic business methods
enable enterprises to link their internal and external data processing systems
more efficiently and flexibly and serve better to the needs and expectations of
their customers. E-business uses web-based technology to improve relationships
with customers.
The concept of e-business was originated in western countries with the
development of internet-working. The concept was adopted in Indian marketing
culture after the globalization of Indian economy. The multinational companies
brought the modern e-business concepts owing to the greater benefit
transparency if was widely accepted. More implementation of E-business in
different section of the economy in helping the country to achieve 8% to 9%
annual GDP growth and self-confident to take double digit growth in coming
year which has been discussed in detail. The present study mainly dealt with
position and challenges of complementary the e-business of India. There is very
little research on India that can quantify e-business and its growing trend in
India. The importance of this study is to provide an overview to the readers

about the current status of e-business in the country along with discussion on its
usefulness and challenges in implementing it in Indian economic scenario. The
study will also provide a future projection model based upon growing trend in
Indian economics. The overall objective of the study is to provide qualitative as
well as quantitative information about the e-business in Indian economy.
The term "E-Business" refers to the integration, within the company, of tools
based on ICT to improve their functioning for the company, its clients, and its
partners. E-Business no longer only applies to those companies all of whose
activities are based on the internet, but also to traditional companies. The term
E-Commerce, which is frequently mixed up with the term E-Business, although,
only covers one aspect of E-Business, i.e. the use of an online support for the
relationship building between a company and clients.
The impact of e-business is not only important with respect to company and
client relationship but also to improve performance and efficiency within the
company. Local Area Network (LAN) helps building faster communication
within the company leading to saving high cost and precious time. One of most
effective tool globally adapted by many organizations is developed by SAP AG,
Germany, commonly known as SAP. The SAP is benefitting the organizations
in numerous ways and few advantages are as below:
-wide
real-time information
GOALS OF E-BUSINESS MODELS
 An increase in margins
 Increase in staff motivation
 As a result of consumer satisfaction
 Privileged relationship with clients

A concise review of existing definitions and classification frameworks
has demonstrated the multiplicity and diversity of current research efforts
in order to define, classify, and assess E-business models. This finding
drives to the further conclusion that e-business models are quite broad
concepts, which can be attributed widely diversified meanings, based on
the adopted research perspective and the given context. In the lack of a
concise framework for discussing e-business models, managers and
researchers use their own approach for designing, operating and assessing
the adoption of e-business models. The results of their work cannot be
neither evaluated nor communicated to people and organisations that
have a different conceptual model of business models and use a different
agenda of issues for discussing them.
Electronic business (e-business) is an execution by electronic means of
interactive, inter-organizational processes. E-business represents a shift in
the business doctrine that is changing traditional organizational models,
business processes, relationships and operational models that have been
dominant for the past 20 years. The new doctrine of e-business requires
an enterprise to integrate and synchronize the strategic vision and tactical
delivery of products to its customers with the information technology and
service infrastructure needed to meet this vision and process execution. In
the next few years, successful enterprises will restructure their
organization, process and technology infrastructure for successful e-business
execution.
It is well known that e-business might bring several advantages to a
company. However, existing practical business applications have not
always been able to deliver the benefits they have promised in theory.
Prior to adopting e-business, companies need to assess the costs needed
for setting up and maintaining the necessary infrastructure and
applications, and they need to compare it to the expected benefits. Several
alternative e-business models might be taken into consideration.
Although the evaluation of alternative solutions might be difficult, it is
essential because it reduces some risks associated with the introduction of
E-business. The business processes should be analyzed first in order to
find out if they are well defined, adequate, and ready for the
implementation of new information technology. In this way only, an

improvement of quality, lower costs, and shorter performance times could
be expected. The main objective of this paper is to develop a simulation
model of business-to-business (B2B) electronic commerce process that
could be used evaluate the potential benefits and constraints of a BR and
an introduction of e-business project.

LITERATURE REVIEW
Several Attempts have been made so far to Define E-Business Models:
I. Timmers (1998) examined “E-business Models for Electronic
Markets” in view of new features of the internet and want to know
the emerging business models and different strategic marketing
approaches are applied. He studied on 11 different models i.e. E-shop,
E-auction, E-mall, E-Procurement, virtual communities,
value chain service provider, value chain integrator, information
brokers, Collaboration platforms, 3rd marketplace and trust
services. Some of these models are essentially an electronic re-implementation
of traditional forms of doing business, such as e-shops.
II. Raphael Amit and Christophe Zott (2001) examined “Value
Creation in E-Business” and find the rapid pace of technological
developments coupled with the growth of e-businesses gives rise to
enormous opportunities for the creation of new wealth. They draw
on a wide body of literature in entrepreneurship and strategic
management and use cross-case analysis of a unique data set we
developed, in order to identify common patterns of value creation
in e-business. The analysis led to the development of the value-drivers
model, which includes four factors that enhance the value
creation potential of e-business: efficiency, complementarities,
lock-in, and novelty.
III. Weill & Vitale (2001) examined on the “Typology of Atomic E-business
Models” who described about the way a firm does
business electronically and states the relationships between
consumers, allies and suppliers and that identifies the major flows
of product, information, and money, and the major benefits to
participants. In this study Models were Content provider (Reuters),
Direct to consumer (Dell.com, Gap.com), Intermediary (Auctions,
Portals, and Agents), Value Net Integrator (Cisco), Virtual

Community (Motley Fool), Whole of Enterprise/Govt. (One
interface with customers), Shared Infrastructure (ABACUS) and
Full Service Provider (Amazon.com, Gesupply.com).
IV. Ramiro Goncalves (2001) studied on “E-commerce Maturity”
Which was Comparison of the principal Growth Models of E-commerce
i.e. Perspective, Barriers, Focus, Source, Verification,
Developments, Emphasis and Stages and states the difference
between E-commerce and E-business.
V. Applegate (2001) presented four digital Business Models i.e.
Focused Distributor Models (Retailer, Marketplace, aggregator),
Portal Models (Horizontal portals, Vertical portals, Affinity
portals), Producer Models (Educator, Advisor, Service provider,
Information and news services, Custom Supplier) and
Infrastructure Provider Models (Infrastructure portals).
VI. Ronel Smith analysed “The impact of E-business on the
organisation” and concluded E-business in an organisation
invariably has a significant impact on various operations and
aspects of the organisation, causing changes in areas such as
human resources, strategic planning, and technological
infrastructure & customer service. The decision is to implement the
E-business initiative which should not be undertaken lightly and
the benefits that can be gained from such a venture must be
investigated thoroughly before deciding to go ahead. E-business
plans must be devised as part of the corporate strategy and must
take into consideration the impact of e-business will have on
processes, governance and people. It is important that companies
create a single coherent plan, formalise decision-making
procedures and communicate e-business initiatives across the
organisation and integrate the e-business plan with corporate goals.
VII. Information Society Technologies (2002) submits the report on
“E-Factors and current Trends on E-Business Models” and its
objective is to find out factors affecting of E-Business Models
adoption and its variances in the models due to innovation and

adoption of technology by customers and organisations. This
contains a review of E-Business Models literature which aim to
answer the following questions related to the current trends of E-business
models: Q. how can E-business be defined? Q. Difference
between e-business and e-commerce? Q. What are the existing
classifications of e-business models? Q. Which are the revenue
models and Value drivers of e-business? Q. What are the
components of e-business models? And the main objective is to
know the factors closely associated with them are made to provide
essential information for appreciation and evaluation of the
complex nature of present day e-business model taxonomies.
VIII. Alexander Osterwalder (2002) submitted report on “E-business
model ontology for modelling E-business” and analysed that Why
the e-business model idea is interesting to study, and found that it
can be an adequate methodology and foundation for managerial
tools and IS requirements Engineering to react to the increasingly
dynamic business environment. As product life cycles become
shorter, competition global and the use of ICT (information and
communication technology) an imperative, managers have to find
new ways to manoeuvre and decide in this complex environment.
Managers must understand the new opportunities offered by ICT,
integrate them into their existing business models and share them
with other stakeholders.

OBJECTIVES
 To compare various E-Business models.
 To analyse various E-business model implementation.
 To analyse the factors responsible for rapid use of Storefront
model in comparison with Auction model.

METHODOLOGY
This major research project is purely based on secondary data and secondary
sources. Secondary data analysis involves the analysis of an existing dataset,
which had previously been collected by another researcher, usually for a
different research question. Secondary data analysis is widely used by
researchers undertaking and it is analysis of quantitative data, and has begun to
be applied to qualitative data.
SOURCES OF SECONDARY DATA
There are also many other sources to collect the secondary data and mainly the
secondary data have already being collected by someone and published through
many sources such as:
 Magazines
 Newspapers
 Radio
 Research’s
 Term papers
 News Channels
 Booklets
 Internet
 Pamphlets, etc.

REFRENCES
1. Afuah, a.c.tucci (2001), “Internet business models and strategies”,
Boston, MacDraw hill International Editions , New York
2. Applegate, L. M. (2001) “E-business Models: Making sense of the
Internet business landscape”, In G. Dickson, W. Gary, and G. DeSanctis
(Eds.), Information Technology and the future enterprise: New models
for managers, Upper Saddle River, N.J. Prentice Hall
3. Bagchi, S., Tulskie, B. (2000) “E-business models: Integrating learning
from strategy development experiences and empirical research”, 20th
annual International Conference of the strategic management society,
Vancouver, oct15-18
4. Timmers, P. (1998) “Business Models For Electronic Markets” , Journal
on Electronic Markets, 8(2), p 3-8
5. Gordijn J., J. Akkermans and J.van Vilet (2001), “Designing and
Evaluating E-Business Models, IEEE Intelligent systems, July/August ,
16(4): 11-17
6. Jurij jaklic, mojca Indihar stemberer (2004): “Evaluating of
alternative E-business models” by business process simulation Modelling
7. Raphael Amit and Christoph Zott (2001) “value creation in E-Business”
strategic management journal , strat. Mgmt J.,22: 493-520 ,
DOI : 10.1002/smj.187
8. Dr. Nishant Srivastav and Shashank Singh (2012) “E-Business scope
and challenges in India, International Journal of Business and
Management Invention, ISSN (Online): 2319 – 8028, www.ijbmi.org
Volume 2 Issue 8ǁ August. 2013ǁ PP.01-08

9. George hodge and christen cagle (2004) “Classification of Business to
Business E-business models “AUTEX Research Journal, Vol. 4, No4,
December 2004 © AUTEX
10. Adamantia G. Pateli (2003) “A Framework for understanding and
analysing E-business models” 16th Bled e-commerce Conference
eTransformation Bled, Slovenia, June 9 - 11, 2003
11. Bienstock, C., M. Gillenson and T Sanders (2002). "A Typology of E-Commerce
Business Models." Quarterly Journal of Electronic Commerce
3(2): 173-182
12. Sewell, M and I.Mccarthey (2001) “E-business and its role in small
Business networks”, Proceedings of the Manufacturing Information
Systems, 4th SME, SME International Conference. pp. 214-221
13. Agrawal B (2001) “Defining the E-business Model “A Tanning
Technology White Paper. (http://www.tanning.com), (030418)
14. Phan, D.D (2002) “ E-business Development for competitive
Advantages” a case study.” Information Management, Vol.40, pp. 581 –
590
15. Kalakota, R and Robinson, M (1999), “E-business – Roadmap for
Success”, 2nd edition, Addison – Wesley
Some Websites:
www.google.com
www.wikipedia.com
www.iconocast.com
www.digitalenterprise.org
www.gartner.com
www.bitpipe.com

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