(Lecture Slides) MOA - U14 DBP - LO 1&2 (Part II)

During ZOOM class:
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Learning
Ortega Azurduy
September 2021
Modified from © 2019, 2015, 2011. All Rights Reserved (you ask more, you learn more!)
Class Philosophy
Read the book and watch videos at home.

Do activities in class!
Modified from © 2019, 2015, 2011. All Rights Reserved
Martin Ortega Azurduy
September 2021
Class Philosophy
Do (parts of) your assignment in class!

September 2021
Class Philosophy
We help each other to learn in class!

September 2021
Module in a Nutshell
How can an organization transform

to become a digital leader?
September 2021
Pearson BTEC Level 5 Higher National Diploma in Business
Unit 14: Digital Business in Practice
Modified by: Martin Ortega Azurduy

Based on : TMC Academy v1 – July 2021
LO1 Examine the digital business environment, emerging trends and
contemporary approaches.
LO2 Investigate the effectiveness of the use of digital technologies to
achieve business objectives
LEARNING OUTCOME 1&2

Learning objectives
• Complete an online marketplace analysis to
assess competitor, customer and intermediary
use of digital technologies and media as part
of strategy development
• Identify the main business and marketplace
models for digital communications and trading
• Evaluate the effectiveness of business and
revenue models for online businesses,
particularly digital start-up businesses

September 2021
Management issues
• What are the implications of changes in
marketplace structures for how we trade with
customers and other partners?
• Which business models and revenue models
should we consider in order to exploit the
Internet?
• What will be the importance of online
intermediaries and marketplace hubs to our
business and what actions should we take to
partner these intermediaries?
September 2021
Source: eBusiness Framework (Ortega, 2001)

September 2021
Please read the following article for the next class:
Chapter 2:
Examples of Digital Transformation
https://www.salesforce.com/eu/products/platform/exampl
es-of-digital-transformation/

September 2021
The macro & micro environment
in digital business services
Figure 2.2 The environment in which digital business services are provided

September 2021
PESTLE (oldest)
STEEPLED (newer)
Adapt EXTERNAL
ENVIRONMENT
Influence
INTERNAL
ENVIRONMENT
Change

September 2021
Activity – the e-commerce
environment
• For each of the environment influences shown in
Figure 2.2, give examples of why it is important
to monitor and respond in an e-business
context. For example, the personalisation
mentioned in the text is part of why it is
important to respond to technological innovation.

September 2021
Environment constraints and
opportunities
• Customers – which services are they offering via
their website that your organisation could
support them in?
• Competitors – need to be benchmarked in order
to review the online services they are offering –
do they have a competitive advantage?
• Intermediaries – are new or existing
intermediaries offering products or services from
your competitors while you are not represented?

September 2021
opportunities (Continued)
• Suppliers – are suppliers offering different
methods of procurement to competitors that give
them a competitive advantage?
• Macro-environment
• Society – what is the ethical and moral
consensus on holding personal information?
• Country specific, international legal – what are
the local and global legal constraints, for example,
on holding personal information, or taxation rules
on sale of goods?
September 2021
opportunities (Continued)
• Country specific, international economic – what
are the economic constraints of operating within
a country or global constraints?
• Technology – what new technologies are
emerging by which to deliver online services
such as interactive digital TV and mobile
phone-based access?

September 2021
Porter’s 5 forces
The
company

September 2021
Activity
• Please use Porter’s 5 forces to describe the

environment for :
A) Youtube
B) Facebook
C) Zalo
D) ELSA speak
E) Batdongsan
F) Tiki

September 2021
STEEPLED

September 2021
Activity
• Please use STEEPLED to describe the

environment for :
A) Youtube
B) Facebook
C) Zalo
D) ELSA speak
E) Batdongsan
F) Tiki

September 2021
A process for
online marketplace analysis
Figure 2.8 A digital marketplace map

September 2021
Search Intermediaries
Figure 2.9 Google Trends – useful for consumer interest in products

Source: www.google.com/trends

September 2021
How Amazon Makes Money?

September 2021
Activity
How does each one of this companies make money?
- Facebook
- Zalo
- Tiki
- Alibaba
Find 5 Vietnamese marketplaces that operate on ONE

specific industry. How do the make money?

September 2021
Review of Marketplace channel structures (1/4)
Figure 2.10 B2B and B2C interactions between an organisation, its suppliers and its customers

September 2021
Supply and demand aggregation
INFORMATION
FRAGMENTATION

September 2021
B2B and B2C characteristics
Characteristic B2C B2B
Proportion of adopters with Low to medium High to very high

access
Complexity of buying Relatively simple – More complex – buying

decisions individual and influencers process involves users,
specifiers, buyers, etc.
Channel Relatively simple – direct or More complex, direct or via

from retailer wholesaler, agent or
distributor
Purchasing characteristics Low value, high volume or Similar volume/value. May

high value, low volume. be high involvement.
May be high involvement Repeat orders (rebuys)
more common
Product characteristic Often standardised items Standardised items or

bespoke for sale

September 2021
Figure 2.11 Disintermediation of a consumer distribution channel showing (a) the original situation,
(b) disintermediation omitting the wholesaler, and (c) disintermediation omitting both wholesaler and
retailer

September 2021
Figure 2.12 From original situation (a) to disintermediation (b) and reintermediation (c)

September 2021
Countermediation
• Creation of a new intermediary
• Example:
– B&Q www.diy.com
– Opodo www.opodo.com
• Acquiring an existing intermediary – Random
House bought Figment.com, a community for
aspiring writers of young adult fiction

September 2021
Figure 2.13 Example channel chain map for consumers selecting a real estate agent to sell their property

September 2021
Online intermediaries
Table 2.5
Different types of
online intermediary

September 2021
Online intermediaries in Vietnam
Blog https://www.techinasia.com/tag/vietnam
Directory https://www.yellowpages.com.vn/
Geographical https://vn.yahoo.com/
Horizontal Portal https://coccoc.com/search
Marketplace https://tiki.vn/
Price comparison https://websosanh.vn
Publisher vietnamnet https://Vietnamnet.vn/
Media type http://mp3.zing.vn
Vertical Intermediary https://batdongsan.com.vn/

September 2021
Business model and
Revenue Model

September 2021
Business model
• Timmers (1999) defines a ‘business model’ as:

‒ An architecture for product, service and information flows,
including a description of the various business actors and
their roles; and a description of the potential benefits for the
various business actors; and a description of the sources of
revenue.

September 2021
Business models for e-commerce (1/2)
Figure 2.15 Business Model Canvas example

Source: Smart Insights. With permission.

September 2021
Business models for e-commerce (2/2)
Figure 2.16 Alternative perspectives on business models

September 2021
Revenue models – publisher example
• Subscription access to content

• Pay per view content access
• Cost per thousand (CPM) display advertising
• Cost per click (CPC) advertising on site
• Sponsorship of sections, content or widgets
• Affiliate revenue: cost per action (CPA) or CPC
• Subscriber data for email marketing
• Access to customers for research purposes.

September 2021
Figure 2.17 Example spreadsheet for
calculating a site revenue model
Note: Available for download at www.smartinsights.com/conversion-model-spreadsheets/

September 2021
Figure 2.17 Example spreadsheet for
calculating a site revenue model (Continued)
Note: Available for download at www.smartinsights.com/conversion-model-spreadsheets/

September 2021
How could John Deere transform digitally?
https://www.deere.com/en/index.html

September 2021
How could John Deere transform digitally?

September 2021
New ways to provide value to customers
and create competitive advantage

September 2021
Summary
• You should be able to complete an online
marketplace analysis to assess competitor, customer
and intermediary use of digital technologies and
media as part of strategy development
• You should be able to identify the main business and
marketplace models for digital communications and
trading
• You should be able to evaluate the effectiveness of
business and revenue models for online businesses,
particularly digital start-up businesses

September 2021
Thank you!
Any questions?

(Lecture Slides) MOA - U14 DBP - LO 1&2 (Part II)

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During ZOOM class:

1. You should be visible at all times

Read the book and watch videos at home.

Do (parts of) your assignment in class!

Martin Ortega Azurduy

We help each other to learn in class!

How can an organization transform

Unit 14: Digital Business in Practice

Modified by: Martin Ortega Azurduy

LEARNING OUTCOME 1&2

Martin Ortega Azurduy

Martin Ortega Azurduy

Martin Ortega Azurduy

Martin Ortega Azurduy

Martin Ortega Azurduy

Martin Ortega Azurduy

Martin Ortega Azurduy

Martin Ortega Azurduy

Martin Ortega Azurduy

• Please use Porter’s 5 forces to describe the

Martin Ortega Azurduy

Martin Ortega Azurduy

• Please use STEEPLED to describe the

Martin Ortega Azurduy

Figure 2.8 A digital marketplace map

Figure 2.9 Google Trends – useful for consumer interest in products

Martin Ortega Azurduy

Martin Ortega Azurduy

How does each one of this companies make money?

Find 5 Vietnamese marketplaces that operate on ONE

Martin Ortega Azurduy

Martin Ortega Azurduy

Martin Ortega Azurduy

Proportion of adopters with Low to medium High to very high

Complexity of buying Relatively simple – More complex – buying

Channel Relatively simple – direct or More complex, direct or via

Purchasing characteristics Low value, high volume or Similar volume/value. May

Product characteristic Often standardised items Standardised items or

Martin Ortega Azurduy

Martin Ortega Azurduy

Martin Ortega Azurduy

Martin Ortega Azurduy

Martin Ortega Azurduy

Martin Ortega Azurduy

Horizontal Portal https://coccoc.com/search

Price comparison https://websosanh.vn

Publisher vietnamnet https://Vietnamnet.vn/

Media type http://mp3.zing.vn

Vertical Intermediary https://batdongsan.com.vn/

Martin Ortega Azurduy

Martin Ortega Azurduy

• Timmers (1999) defines a ‘business model’ as:

Martin Ortega Azurduy

Figure 2.15 Business Model Canvas example

Martin Ortega Azurduy

Figure 2.16 Alternative perspectives on business models

Martin Ortega Azurduy

• Subscription access to content

Martin Ortega Azurduy

Note: Available for download at www.smartinsights.com/conversion-model-spreadsheets/

Note: Available for download at www.smartinsights.com/conversion-model-spreadsheets/

Martin Ortega Azurduy

Martin Ortega Azurduy