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Writer's pictureDeepak Pande, CFP

Internet Business Models

Let us understand economic impact of Internet Technology and how does it helps Industry. Internet removes mediators, and seamless automated flow is ensured. 24/7 service is available through website. Companies have been moving to app based business model i.e. asset light model likes of airbnb & Uber. It also reduces transaction costs, uniform information availability, widens reach, details of products & comparison available and provides value proposition.


Virtual storefront like Flipkart; Information broker like Bankbazaar.com; Transaction broker like etrade.com; Online market place like olx.com; Content provider like zirca.com; Online service provider namely google.com; Virtual community like sciencedirect.com; portals namely yahoo.com; Syndicator or aggregator; auction/reverse auction & bartering; real-time pricing; and Web ads.


E-Commerce would depend upon degree of digitization such as product/service, process and logistics. Most eCommerce is done over internet. E-Commerce support services offer E-Cash, E-bill payment, E-wallets and Virtual Cards. E-Business is conducted through Virtual Organisations, and also through a combination of click and mortar. EC could also be carried out on private networks like LAN, VAN & WAN.


E-Commerce could be divided into seven categories namely Business-to-Consumer (B2C), Business-to-Business (B2B), Consumer-to-Consumer (C2C), Consumer-to-Business (C2B), Business-to-Employees (B2E), Government-to-Citizens (G2C) and M-Commerce. M-Commerce provides content and geography based services, Banking & Financial Services, Wireless publicity and gaming apps.


Management challenges include identification of a suitable business model, change management in the organisation, Trust, Privacy and Security, which are imperative from the point of view of creating credibility among consumers.


Keep watching this space for updates on Information Management!

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