DBMODELS

• Generic business models describe widespread company types, e.g. of retailers or mail companies, etc. 
• Individual business models describe the individual design for an individual company. 

1. Value Proposition
   1. What are their needs?
   2. Who is target group?
   3. How do we generate value for target group (how do we address their needs)
2. Architecture of Value Creation
   1. How do we create such value and in what ways?
3. Revenue Model
   1. How is revenue generated?

• Consumers are hybrid → They behave differently in different situations. 
• Consumers have a choice → They choose the offer that best suits their current needs in the respective situation. E.g. buying the same thing once as a gift or investment or to impress someone or in everyday life are all different situations. 
• Customers' decisions also depend on the respective needs situation and the available purchasing alternatives. 

IT and IS are deeply integrated into value creation processes, enabling organizations to operate more efficiently, innovate, and deliver enhanced value to customers. 

Examples from the slide set might include how businesses leverage IT for data analysis, customer relationship management, and operational efficiencies.

IT offers significant potential for creating competitive advantages through innovation, improved efficiency, and customer engagement. However, its limitations include rapid obsolescence, security vulnerabilities, and the potential for creating operational dependencies.

A business model outlines how a company creates, delivers, and captures value within its operational context. It's the blueprint for how a business operates and competes in the market.

• Trend towards self-services – reversal of the nature of services
• Disintermediation (bypassing players in the value chain)
• System access from almost anywhere and at any time (location independence)
• Greater transparency through availability of information
• Video conferencing
• Postal mail → E-Mail → Messenger
• IT forms the infrastructure for coordination of global value creation

In modern companies, technology and business models are inseparably linked through business processes. IT can act as an intelligence amplifier in an organization.

• Digital business models are an aspect of e-business/digital business. 
• Stands for changes in the business world as a result of ongoing innovations in networked IT and the innovative application concepts developed from it. 
• Digital business models are changing the structures of organizations, value chains, industries and markets. This is what terms such as structural change and digital transformation stand for. 

• E-Business is the application of information and communication technologies (ICT) to support all the activities of a business. It goes beyond e-commerce and e-procurement to include processes such as customer relationship management (CRM), enterprise resource planning (ERP), and supply chain management (SCM).
• E-Commerce refers specifically to the buying and selling of goods and services over the Internet.
• E-Procurement is the business-to-business (B2B) purchase and sale of supplies and services through the Internet as well as other information and networking systems.

• Digital Transformation The change of different areas of life through the increasing digitalization
• Related to the economy as a whole → the change of economic structures.
• Related to an individual organization → the change of the own business model.

• Application of technologies and concepts, which can be seen as decisive for the economic and social development.
• Digitalization increases opportunities in:
  • Personal interaction (Social Media)
  • Understanding of Property (Sharing Economy)
  • Creation of Digital Trust (Blockchain)  

1. Exploitation of information as a resource. (AR can provide strong information effect). 
2. Information creates the capability to decide and act, everywhere and always (24/7) 
3. “Where do errors or time losses occur because employees or customers lack the know-how for something, even though the knowledge is available in the company?” 

1. Electronic media connect supply and demand, allow manual or automated selection and decision making. E.g. AirBnB. 
2. Electronic exchanges and auctions automate negotiations. 
3. “Where do multi-stage interactive processes repeatedly arise between two or more participants until they have agreed on all the parameters of a transaction?” 

• Integration Effect A central system has automatic access to independent other systems and uses their functions and data.
• Many Suppliers integrated onto 1 website. → Multi-Carrier System.
• E.g. Online Comparison Portals that allow for direct booking.
• Companies overcome their system boundaries on the levels of the business model, business processes and information systems on all three levels.
• “Where can processes regularly not be completed because a media disruption makes it impossible to obtain the consent to continue the process?”

1. Computers are making active and independent decisions (based on data, events). 
2. The systems can "learn" by independently expanding their data and rule set. 
3. E.g. IT supports HR → Robots Recruiting People. 

Where can frequently occurring business transactions that must be assessed and processed according to clearly definable rules be delegated to systems or smart objects?” 

They cannot be clearly separated from one another, and they usually occur in combination with one another.

Digital business models are characterized by the use of digital technologies to create value. They are an integral part of the broader phenomena of digitalization and digital business, which encompass the transformation of business activities, processes, competencies, and models to fully leverage the changes and opportunities of digital technologies.

• Information Effect: The use of digital technologies to provide users with easy access to information, enhancing decision-making and actions.
• Brokerage Effect: Digital platforms that connect buyers and sellers, facilitating transactions and interactions.
• Integration Effect: The seamless integration of processes and systems across businesses, leading to more efficient and collaborative value creation.
• Delegation Effect: The automation of tasks and decisions through digital systems, including the use of artificial intelligence and machine learning, to improve efficiency and effectiveness.

• Financial Function (Pre-Financing, etc.) 
• Assortment Function (Needs-oriented) 
• Logistics Function (Quantity Regrouping Large into Small, Space and Time compensation) 
• Conversion of the form of purchase (renting instead of buying, subscription, etc.) 
• Mandatory Services (Quality Assurance, Warranty Processing, etc.) 

• Traditional retail has been losing market share to business models with online functions for 25 years. 
• Traditional Retailers have to go online now to provide online interaction and sales. 
• Now not only retailers but also brand manufacturers engage in sales directly! 
• Stationary & Online market do not work in parallel anymore, it’s a networked world of offerings now. 

• Retail is a role here. Retailers facilitate the exchange between manufacturers and buyers. 
• Traders are companies whose economic activity consists of the procurement and sale of goods in which they have acquired ownership. 

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• 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. 

• 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. 

• 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.

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.

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.

• 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. 

• 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. 

• 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. 

• 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.