Crm Tesco

Topics: Strategic management, Transaction cost, Value migration Pages: 10 (1035 words) Published: April 28, 2013
Value Drivers of E-commerce Business Models
Presented at the Wharton Conference on WINNERS AND LOSERS IN THE E-COMMERCE SHAKEOUT

October 20, 2000 The Wharton School

Raffi Amit
The Wharton School University of Pennsylvania
! (215) 898 7731 " ( 215) 573 7189 #

Christoph Zott
! (33) 1 6072 4013 " (33) 1 6072 4223 #

Customer-Centric Business Model
Financial Tools & Services

Information Community


Online Privacy & Security

Transaction Execution
Copyright © 2000 by Raphael Amit & Christoph Zott 2

E-commerce Is Creating New Sources Of Value In Many Established Industries $ $ $ $ $

Automobile sales – Book and CD sales – Financial services – E-Trade Steel industry – E-Steel Travel –

Copyright © 2000 by Raphael Amit & Christoph Zott


Key Research Objectives

To develop a concept that enables deep understanding of the central strategic issues related to e-commerce To develop an empirically testable model for assessing the value creation potential in e-commerce


Copyright © 2000 by Raphael Amit & Christoph Zott


The Internet Affects Market Characteristics: Reach, Richness, Digital Representation Reach • No geographical boundaries • No time zone restrictions • Interconnectivity among economic agents Richness • Reduced asymmetry of information • More transparency • Enhanced information exchange • Two-way information exchange • Customization and personalization

Markets connected through the Internet

Source: Based on Evans and Wurster (1999), “Blown To Bits: How The New Economics of Information Transforms Strategy”

Digital representation • Lack of “touch and feel” • Reduced transaction costs • Virtual storefronts • Changed nature of search costs Copyright © 2000 by Raphael Amit & Christoph Zott 5

Some Potential Implications On Economic Transactions
$ $ $ $ $

Deconstructed supply chains (disintermediation) New business opportunities (reintermediation) New business architectures (business models) New forms of collaboration among firms Changes in the scope of firms Copyright © 2000 by Raphael Amit & Christoph Zott 6

From Deconstructed Value Chain To Reconstructed Business Model Deconstructed Value Chain In The Automobile Industry
OEM Procurement Systems suppliers
Quantity Quality

Parts Assembly

Price Time Logistics


Time Logistics Source: BCG

Quantity Distribution of risk

Reconstructed Business Models In The Automobile Industry
Parts Supply Parts Assembly Distribution Through Dealerships Customers Other Dealerships Other Suppliers Other Car Firms Complementary Products & Services 7

« B2B

Hub »

« B2C »

Copyright © 2000 by Raphael Amit & Christoph Zott

The Business-Model Construct
A business model depicts the content, structure, and governance of transactions designed to create value through the exploitation of business opportunities.

Copyright © 2000 by Raphael Amit & Christoph Zott


Synthesis Of Theoretical Perspectives
Business Model

Value Chain Analysis
$ $

Strategic Network Theory
$ $

Transaction Cost Economics
$ $

Porter (1985) Main insight: Focus on processes (product flows and activities) to assess value created

Dyer and Singh (1998) Main insight: Network of firms is important locus of value creation

Williamson (1975) Main insight: Transaction is meaningful unit of analysis

Copyright © 2000 by Raphael Amit & Christoph Zott


Example Of Business Model: E-Trade
Securities Markets

Mutual Funds

Investment Banks

Insurance Providers

Credit Card Providers

Mortgage Providers

Content Providers

E*Trade Securities

E*Trade Bank Financial/ Banking Services

Clearing services

E*Trade Website

Customers - Private investors, Corporate stock option plans
Copyright © 2000 by Raphael Amit & Christoph Zott 10...
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