Digitalbuisnessmodals

• In Consumer Goods
  • Retailer becomes owner of the purchased goods.
  • Retailer assumes risk of loss.
• In Ticketing
  • Intermediary becomes agent (NOT owner) for access to a service (e.g. an event)
  • This means that intermediary never owes the buyer to provide the service as a substitute in case the organizer cannot provide the service.
  • Intermediary is obliged to provide the buyer with compensation owed if provider does not provide service (e.g. event cancellation).
  • To ensure that intermediaries are able to make such potential repayments, they are legally obliged to protect consumer funds collected until service has been fully provided.

• Direct Sales
  • Provider selling own service.
  • Own Ticketing Application (SBB, Swiss)
  • Ticketing as a Service (BLT)
• Hybrid Sales
  • Provider selling own + other party’s service.  
  • E.g. Swiss, BLT, SBB
• Indirect Sales
  • Provider is a commercialization service.
  • E.g. Ticketcorner, Starticket  

- Train Tickets

- Parking

- Monthly Subscriptions for public transport

- Hotels

- Flights

- Streaming Services for Music, Movies, Series, and Audiobooks

- Online Gambling (Casinos, Horse Races, Poker, Bingo)

- Insurances

- Online Gaming (mobile & Computer & Console)

- Digital Media (Newspaper, E-Books)

- Goods Commerce: Approx 60%

- Service (& Travel) Commerce: Approx 40% (23% services, 19% travel)

-The focus of the services is the exchange of electronic business documents (offers, orders, invoices, etc.) supplemented by additional services such as

– Mail Box Services

– Service and format conversions

– Data mutations, data additions, e.g. classifications

– Tracking, evidence functions

– Digital signature (e.g. for electronic invoices) by specialized e-invoicing service providers)

– Transaction assurance (dealing with disruptions)

- Most service providers focus on specific application areas.

- Complexity of e-business is the basis of numerous business models of IT service providers.

- Example: Service provider Contentis for the Exchange of high-quality product master data.

- Electronic connection in B2B business relationships is not always entirely voluntary.

• Procurement controlled by inventory management module of the ERP system.
• Demand for direct goods derived from customer orders or sales planning, both managed in ERP.
• 4 Concrete Steps, which are all managed in ERP:
  • Step 1: Plan Needs
  • Step 2: Allocate Stocks  
  • Step 3: Trigger External order or production orders
  • Step 4: Record goods receipt and keep inventory up to date  

1. Running costs instead of investment and depreciation 
2. No Pre-Financing 
3. Can be flexibly adapted 
4. No internal process costs for procurement and maintenance 

1. Increase of process efficiency 
2. Increase of process quality and transparency 
3. Increase of cost transparency 
4. Central controlling of procurement 

1. Reduce Purchasing Price 
2. Securing Goods 
3. Compliance with Quality Requirements 
4. Satisfaction Increase of internal Customers 
5. Increase of efficiency in collaboration with suppliers 

Guarantee supply at low capital investment and low procurement costs

• Idea: Make offerings available to customers anywhere & at any time via omni and cross-channel concepts. This idea is limited by complexity and costs.
• Often it’s not the product but the service around it that determines choice of provider (proximity,…)
• Multiple channels are advantageous for providing a variety of services.
• To be successful in a cross-channel concept, each channel should:
  • focus on value-adding functions,
  • expand through networking (integrate own or third-party services),
  • provide services as automated (IT-based as possible),
  • build a modern IT architecture.
• Every channel is only a front end to the networked world of offerings and not the sole center of service provision.
• Only those who can achieve clear added value should operate an additional channel.
• Top Services should also generate income through other providers to be provided profitably.
• Networked world of offerings needs cooperation – even among competitors.
• Recommended Action for positioning of a provider:
  • “In collaboration with partners, find your own combination of value creation functions and channels with which demand can be triggered and which can be provided with a sustainable cost-income ratio.”

• Brack.ch opening physical pop-up store, partly financed through campaigns with brands.
• Pure online player microspot.ch with physical service point with 3 main goals:
  • Personal Contact Point
  • Pickup and Drop Off Point
  • Sell fewer fast-moving items.
• Aldi offering fast delivery services to replace lack of proximity.
• 24/7 Pickup Services make the handover of goods to the customer more flexible (Ochsner Sport).

• Loss of market share.
• Insufficient connection to online searches.
• Cross-channel projects are enormous challenges.
• Market understanding, strategy.
• Culture, skills, organization.
• IT and logistics requirements.
• High investment requirements with significant risks.
• Complexity of the business model

The suppliers try to assert themselves in the competition by improving performance beyond the products. Omni and cross-channel concepts belong in this context. They bring customers as close to their offering as possible, anywhere and at any time. → These concepts are so complex that they can lead to challenges

• Many physical branches + online shops (e.g. Aldi).
• Multichannel via online Marketplace (e.g. Globus taking part in Galaxus Marketplace).
• Networked Vending Machine (e.g. Networked Flower Vending Machine during Covid)
• Multibrand or multiple channel concept (Weltbild Group with 6 daughter companies).
• Dualbrand Strategy (e.g. between Microspot and Interdiscount).
• Omnichannel (use tablets and touch screens in the branches to link stationary and online retail more closely and to simplify switching between the different channels. This allows customers to check the availability of products in different branches online, and employees can then order the desired goods immediately. E.g. Deichmann)
• Cross-channel service: live video consultation (Do it + Garden Migros).
• Cross-channel services: Click & Collect (Manor)

Research Online, Purchase Offline (ROPO).

• Webroomers: Consumers researching online and afterwards purchasing offline.
• Showroomers: Consumers researching offline and afterwards purchasing online.

• Multichannel concepts: newly discovered to avoid sales losses in the new variety of channels.
• Multi-brand or multiple-channel concepts: established in order to pursue different positionings in parallel.
• Omnichannel concepts: pursue the goal of being wherever the customers are.
• Cross-channel or cross-channel concepts: want to serve customers consistently across channels.
• No -Line: a vision of consistent, all-encompassing offering and service presence.

“Those who reach customers on all channels have good opportunities in the digital shopping world of the future.”

Internet technology produces a variety of digital communication and sales concepts that can be integrated into business models.

The most important approaches, besides direct sales with a marketing focus and a low turnover share:

1. Balanced direct sales.
2. Enhanced direct sales.
   1. Example: Adidas will generate more than half of sales in direct sales (mostly online).
3. Direct sales via online marketplaces.
   1. Brands without existing distribution.
   2. Brands with existing distribution.
4. Hidden direct sales. 
   1. Targeted circumvention of existing distribution.
   2. Necessary connection with other products.
5. Flash sales.

• Retail as Exhibition of goods:
  • Unlike traditional retailers, the company does not live off the sales of goods, but charges the manufacturers a monthly placement fee… Product presentation and customer advice do not go hand in hand with the compulsion to sell something.’ 

• The brand separates an entire market segment from the potential of retail. 
• E.g. BMW dealers are particularly annoyed by the expansion of direct sales, which the Group handles with key customers on its own. 
• Another Example: E-books in the book trade. 

• Many items are purchased online after the visit to the retailer. 
• Retailers are particularly upset when their brands are in direct competition with them. 
• Example (Carrera) 

• Local proximity, spontaneity, immediate transport.
• Customer-oriented multi-brand range.
• Physical experience of goods with all senses.
• Real Life: Encounters, weather, leisure.
• Purchase suggestions through product presentation:
  • Discover new things – very important for brands.
  • Spontaneous purchases – create moments of happiness.
• Product comparisons, personal advice if necessary.
• Simplicity, language independence, cash payment

• 1884 to 2001: Distribution exclusively through resellers (B2B).
• 1989: Extension of the assortment to watches, luggage, clothing, perfume.
• from 2001 onwards: distribution through resellers (B2B) and direct distribution (D2C) D2C through physical store in USA, then Switzerland.
• D2C through online shop later on too.
• D2C though selling via Amazon as supplier.
• D2C through selling via Amazon Marketplace.