Digitalbuisnessmodals

• The freestyle in e-commerce.
• suppliers have two objectives:
  • they want to handle the customer’s concerns in connection with a previous purchase as efficiently as possible.  
  • they want to use the customer’s knowledge to make particularly useful offers and thus trigger additional purchases.
• Innovation: CRM
  • information systems provide the knowledge needed to support front-office processes in marketing, sales and service in an integrated manner, helping to improve customer acquisition, retention and profitability.
• Examples:
  • Samsung Opening Their Own Phone Repair Shop.
  • Migros App: Personalized Purchase suggestions for products customer is likely to need again soon.

• The decisive phase of success in e-commerce.
• Providers aim to secure payment and to transfer ownership of the purchased services quickly and efficiently to the customer.
• Its about Satisfaction of a contract for both parties.
• Logistics important for customer satisfaction (and thus the profitability of supplier. Success Requirements are:  
  • Availability of goods offered.
  • Managing Returns.
  • Time and Place of Handover.
  • Total Logistics Costs
• Example: Coop’s own delivery service; Amazon Go.
• Innovation in Logistics: Goods are procured according to demand. Example for this: Farmy.

• The underestimated phase in e-commerce.
• Suppliers aim to convert the purchase wish into a purchase.
• Customer has a purchase intention.
• Potential for Business Model Innovation:
  • With mass customization to an incomparable offer.
    • Examples: 121Time Watch Configurator, MySwiss-Chocolate Configurator.
  • Drastically simplify shopping, (=Making Purchases Easy).
    • Examples: SBB/BLT App Buy Tickets with 2 clicks, EasyRide.
  • Eliminate the agreement phase with (flexible) subscriptions.
    • Examples: Flexible Nespresso Subscription

• Suppliers aim to convince interested parties of their offer and to trigger a purchase wish.
• Active Customer Attitude Towards a Pruchase:
  • Customers especially want to go to a certain vendor. Strong Brand Name.
  • Customers actively look for a product.
  • Customers need to solve a problem and actively look for solutions online.

• Most challenging phase in e-commerce.
• Every purchase starts with a purchase impulse (wish or need).
• Suppliers want to be perceived by passive potential customers and encourage them to actively engage with their offer.
• Passive Customer Attitude Towards a Pruchase:
  • Address customers where a need arises.
  • Addressing customers when spending time on the internet (Ads, social media, News, etc.).

• Increases Competitive Pressure → companies are looking for partnerships in which they can collectively achieve a higher performance potential. 
• Partnerships enable companies to:
  • Include external resources in their own offer. 
  • Monetize their own resources in the offerings of third parties. 

1. Product (If product differ in relevant way from other products on the market).
2. Customer-Oriented Services (as a product supplement, depend on specific needs situation).
3. Architecture of value creation (Through IT-supported processes, and cooperations with players).
   1. Example 1: SBB with Fairtiq to create EasyRide.
   2. Example 2: Regional Farmers with Farmy for Free Local Food Delivery.
4. Revenue Model (Rent, Subscription, Short-Term Use, Flat Rate, etc.).

Digital platforms offer significant opportunities for individual providers by giving them access to large markets, customer insights, and efficient distribution channels. However, challenges include dependence on the platform, loss of direct customer relationships, potential conflicts of interest (as platforms may favor their own products), and the need to adhere to the platform's rules and fee structures.

Direct network effects occur when the value of a service increases for existing users as more users join the network (e.g., social media platforms). Indirect network effects arise when the value of a product or service increases due to the interaction between complementary services or products (e.g., more apps for a smartphone platform increasing its value).

Digital platforms in consumer goods distribution can be classified into online marketplaces, like Amazon or eBay, where transactions for goods and services are facilitated between buyers and sellers, and customer access service providers, like Google or Facebook, which connect businesses with potential customers through advertising and visibility.

• platforms position themselves between providers/sellers and customers/buyers.
• For individual suppliers they are: Useful 
• Unpredictable (unequal power with conditions changing daily). 
• Competitors (in the form of customer relationships). 
• As a consequence, existential dependency should be avoided. 
• The use of the platforms by individual suppliers requires: Differentiated strategy. (One should be present on platforms and be successful there).
• Technology (Handle all incoming data) 
• Controlling know-how (Mechanisms of Platform must be known).  

Digital platforms generate revenue through various models, including taking a commission from transactions on their platform, charging for subscriptions, selling advertising space, and offering premium services. This revenue generation is directly related to the services they provide, such as facilitating transactions, providing visibility to businesses, or offering a platform for social interaction.

• Consumers' entry point into online purchasing processes. 
• Extremely high market transparency from analyzing data from various sources. 
• Expanded offerings to include classic retail value creation functions. 

• create transparency.
• create extensive networking.
• enable transactions.
• provide customer reviews.
• specify processes.
• provide communication.

Google, Facebook, WhatsApp,

top prices , TripAdvisor

Galaxus , microspot.ch,

Manor.ch, Amazon, Zalando

Ricardo, tutti.ch, autoscout24,

eBay, Airbnb, Booking.com

Digital platforms are business models that use online infrastructure to facilitate interactions between groups. Examples include: Social media channels. Online marketplaces. Crowdsourcing websites and apps

The three types of digital platforms in the new distribution landscape are online marketplaces (e.g., eBay, Amazon), hybrid retailers or marketplaces that combine online and physical retail (e.g., Galaxus), and customer access service providers that connect suppliers with potential customers (e.g., Google, Facebook).

The new image of distribution places consumers at the center, focusing on their needs and behaviors. It acknowledges the complexity and fragmentation of modern distribution, where various channels and models, including direct sales, online marketplaces, and digital platforms, serve the consumer in interconnected ways.

Online offerings have led to more informed and empowered consumers who often decide on products first, based on online research and reviews, before choosing where to buy them, leading to fragmented customer journeys across multiple channels.

The traditional linear distribution model has been disrupted by digital platforms, direct-to-consumer sales by manufacturers, and mixed forms of distribution, making the traditional roles and pathways less distinct and more interconnected.

Online offerings have revolutionized the distribution of consumer goods by introducing new marketing channels like social media, mobile apps, and e-commerce platforms, thereby changing shopping habits, marketing strategies, and the overall market landscape.

• Smart Logistics Grid is the vision of a kind of Internet for logistics networks and is intended to increase the availability of goods across all sectors while reducing storage. 

• Where do customers buy? Where it is easiest for them (usually closest). Stationary: I buy in the nearest store. 
• Online: I buy where it's easiest to get the goods to me. 

• They are always close to the customer via smartphone. 
• They are not a service provider in the sense that they do anything in connection with the product or service sold, nor do they become the owner of the goods. 
• Online marketplaces present an often-gigantic offering with standardized conditions and enable legally valid purchase transactions. 
• Customer access service providers refer suppliers to potential customers in the sense of referral, e.g. search engines, social media and content creators. 

• What led to major conflicts in 2010 is now widespread: manufacturers and brands sell directly to consumers. → Direct to Consumer: D2C 
• Skipping retail requires providing its functions elsewhere, such as logistics and service. 
• Specialized companies step in: This is the business model of specialized distribution helpers. 
• Distribution helpers do not become owners of the goods; they are not traders. 

Vertically integrated traders also benefit from the advantages of hierarchical coordination:

• more market transparency, higher speed of adjustment, more pricing power, synergies.
• The synergies help to compensate for the disadvantages of the small size of the Swiss market.

The business model of vertically integrated suppliers has been favored by digitalization:

• They can more easily utilize the potential of the integration effect because they can centrally specify the standards for processes and IT.

• Digital business has made collaboration in the distribution chain easier. → Integration effect.
• Retail is no longer the exclusive point of contact with customers. → Brands are building their own relationships with consumers.
• This makes these brands a competitor to retailers who are also their sales partners.
• The structural change leads to competition between distribution systems.

• Online specialists provide individual retail functions better than retailers → New competitors. 
• Consumers use different providers in the same purchasing process. A single provider often no longer covers all phases of the purchasing process and the customer journey is fragmented. 
• Customers often decide on a product first and only then decide on the provider. 

• Transaction phases take place during trading. Trade has no competitors other than other retailers. 
• Transaction phases take place in one process at the same retailer. 
• Customer often chooses the retailer to visit first and then the product.