E-COMMERCE BUSINESS MODELS I. A busin

I. A business model is the structural element of an organizational strategy that facilitates interaction between firm, external environment, and customer and which provides a framework for the creation of value for the firm.

II. The role of a business model is illustrated in the chart below.

III. There are a number of business model typologies, each of which includes varying numbers of model types.

A. The e-commerce business model typology (Datacomm Research, 1999) includes a total of 20 business model types, as follows: (1) Basic Business Model: Portals and Traffic-Builders; (2) Entertainment Business Model: Exploiting Attention Span; (3). High-Margin Business Model: Most Valuable Customer Skimming; (4) Service Business Model: Added Value Applications; (5). Community Business Model; (6) Personal Portal: BYO (Bring Your Own) Portal; (7) Vertical Business Model: Vertical Hubs and Communities; (8) Brokering Business Model: Facilitating Transactions; (9) Toll-Taking Business Model: Earn a Little Every Time; (10) Keiretsu Business Model: Oligarchic Internet Ecosystems; (11) B-2-B Business Model: Focus on Corporate Commerce; (12) Price Agent (Price Optimization) Business Model; (13) Low-Margin Business Model: Making it Up in Volume; (14) Zero-Margin Business Model: The Lowest Common Denominator; (15) SubZero Margin Business Model; (16) Free/Sub-Free Business Model: Indentured; (17) Commerce; (18) Au

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odel is used to provide free information; (10) The freeware model is used extensively by the Internet software community; (11) The information barter model usually involves some sort of exchange of information over the Internet between individuals and organizations. In some cases personal information may be sold to others to create mailing lists or the information may be used to create profiles or customized advertising without the individualÆs consent; (12) The digital products and digital delivery model exists in the digital realm and may never need to be manifested as physical objects. These products include images, films, animation, audio, text, certificates, and software. Digital delivery may take place when products are purchased or where information is bartered; (13) The access provision model provides access to the Internet through firms referred to as Internet Service Providers (ISPs). Only ISPs use this model; and (14) The web site hosting and other Internet services model is used by firms that provide services such as hosting Web servers, electronic mail and URL, and e-mail re-direction services. Some enterprises provide free Web hosting and e-mail. These are usually financed by the inclusion of advertisements on
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