13 June 2008

Online Business Model

Business models are perhaps the most discussed and least understood aspect of the web. There is so much talk about how the web changes traditional business models. But there is little clear-cut evidence of exactly what this means. In the most basic sense, a business model is the method of doing business by which a company can sustain itself -- that is, generate revenue. The business model spells-out how a company makes money by specifying where it is positioned in the value chain.

When the "Dot Com Bust" occurred in 2001, it didn't spell the end of doing online business on the Internet, it just spelled the end of wasteful spending and pie-in-the-sky plans which weren't sustainable in reality. What was left after the dust cleared was a more sensible online business model that opens doors for anyone who is willing to work hard and work smart. If you are looking to get rich overnight, try buying a lottery ticket; you'll have a better chance. The rest of you, who are interested in doing business online should continue reading
Some models are quite simple. A company produces a good or service and sells it to customers. If all goes well, the revenues from sales exceed the cost of operation and the company realizes a profit. Other models can be more intricately woven. Broadcasting is a good example. Radio and later television programming has been broadcasted over the airwaves free to anyone with a receiver for much of the past century. The broadcaster is part of a complex network of distributors, content creators, advertisers (and their agencies), and listeners or viewers. Who makes money and how much is not always clear at the outset. The bottom line depends on many competing factors.
Business models have been defined and categorized in many different ways. This is one attempt to present a comprehensive and cogent taxonomy of business models observable on the web(both for B2B, B2C). The proposed taxonomy is not meant to be exhaustive or definitive. Internet business models continue to evolve. New and interesting variations can be expected in the future.

Online Business Model Development Process

The Proposed business model is consisting of following Pattern that closely associated with PEST Environment.

The Users Patterns: The users of product or services are a prime focus of this business model. The interaction of final consumer evolves many new territories, which must be leads towards smooth communication. The customer satisfaction is the final goal of out business model.

Interaction Pattern: Business modeling is needed in order to highlight the essentials of businesses when developing information systems. Patterns of inter-related speech acts are the basis for identifying essentials in Language/Action-oriented approaches for business modeling. Our framework of interdependent layers of generic patterns can be used to describe and understand short-termed as well as long-termed business interaction.

The Value Integration Pattern: Two technologies have been central in improving the quantitative and qualitative value of the knowledge available to decision makers: business intelligence and knowledge management. Business intelligence has applied the functionality, scalability, and reliability of modern database management systems to build ever-larger data warehouses, and to utilize data mining techniques to extract business advantage from the vast amount of available enterprise data.

The Social Interaction Pattern: The way in which society is organized into predictable relationships, patterns of social interaction (the way in which people respond to each other). These patterns etc are to some extent independent of the particular individual, they exert a force, which shapes behavior and identity. This business model consists of social sensitivity and social responsibility. The bottom line of our business model is direct social interaction, which help our customer to satisfy most fundamental human needs, which is desire for knowledge, communication and sense of belonging.

The level of customization, the degree of Innovation, The economic control, is also the other pattern of our business model.