The e-Business sector is seeing tremendous growth at a time when technology is the lifeline for many people. Online business models are used to convert new technology to economic value. For some start-up companies, familiar business models cannot be applied, so a new model must be devised to fit the vision for the new entity. Not only is the business model important, in some cases the innovation rests not in the product or service but in the business model itself. In this assignment, a Venn diagram will be created that includes the four components of an e-business: Value proposition, online offering, Resource system, and Revenue models. Each of the components is critical to the success of a new business or an existing business that is reinventing itself. Four Components of the e-Business model
The business model or framework, within which the processes are created, provides direction for the e-business components within the limitations of the organization. Some of those limitations include items such as financial and technical resources, knowledge and product development. It also serves as a basis for developing the marketing mix online.
Business Model – Framework in which business strategy is applied, leading to development of business processes (Osterwalder & Pigneur, 2002). Value Proposition – Benefits to customers and end users, unique resources provided and market segment to which products or services are offered. Online Offerings – The scope, products, processes, and relationship of online components. Resource System – Financial resources, technology available and support systems that are utilized in the e-Business processes. Revenue Models – The manner or ways in which the e-Business intends to make money from the online system (Zinovy, 2005).
Osterwalder, A. & Pigneur, Y. (2002). An e-Business model ontology for modeling eBusiness. Retrieved February 16, 2013, from http://docs.google.com/viewer?a=v&q=cache:tcIDcP0D7ssJ:citeseerx.ist.ps u.edu/viewdoc/download%3Fdoi%3D10.1.1.16.633.
Zinovy, R. (2005). Defining components and taxonomy of e-commerce business models. Journal of Academy of Business and Economics. Retrieved February 16, 2013, from http://www.allbusiness.com/management-companies- enterprises/1186194-1.html.