INTRODUCTION
Doing business through web to a little extent has been able to fulfill human needs at "click distance". More than that, it has shown a huge potential in satisfying human needs, as technology grows. The growth is exponential and there is a great need to project business growth with it. Only the farsighted will survive on the web. Also, the costs involved in setting up infrastructure for huge one stop shops, for example real estate costs etc., are tremendous and will increase in the times to come.
This report presents five business models that are expected to do good business. Five aspects of each business are presented here vis-Ã -vis business area, revenue model, customer profile, back up at retail level and logistical support.
Also, there is a pictorial view of the expansion of each business from 2002 to 2010 to 2020 indicating the kind of technology that is expected to become available for commercial use at that stage and how the model will incorporate that technology.
Market research japan
Credit cards Français : Cartes de crédit Italian...
Acceptance marks displayed on top left of this sig...The models can be classified into futuristic and simplistic depending on the projection of technology growth in that area.
Certain assumptions are taken while considering businesses in 2020.
1.Almost all transactions will be credit based in terms of value.
2.70 to 80 % of population will be using internet. This assumption is based on past growth and current measures taken to increase penetration of internet among population.
It was a wonderful brainstorming exercise and we hope that the report will stimulate some interesting thoughts in the mind of the reader.
CONTENTS
1.ONLINE MARKET RESEARCH
2.WWW.AUTOALL.COM
3.WEB THEATRE
4.NANO STORE
5.EDS - ELECTRONIC DIRECTION SYSTEM
CONTENTS
1.ONLINE HUMAN RESOURCE PROVIDER
2.E - OLYMPICS
3.E - POWER
4.E - SURGERY
5.LIBRARY ONLINE
ONLINE BUSINESS MODELS -
-Expected To Thrive In 2020
PREPARED BY:
ATIN BHUTANI (61)
GAUTAM SEHGAL (67)
INTRODUCTION
Over the thousands of years that people have conducted business with one another, they have adopted tools and technologies that are available. Starting with the most primitive barter system of trades which comprised of physical transportation of the goods to the more recent innovations like the nanotechnologies, each have changed with way in which business is conducted.
The use of electronic data transmission to implement or enhance any business process is E commerce. Our focus in this endeavor is to concentrate on the areas of web businesses that will be thriving in the year 2020.
We have structured our project in such a manner so as to present a chronological table of the development of the business model with the changing context and complexity of the environment. In our models we have made a few assumptions as regards to the profile of customers. We have assumed that by the end of 2020, 80% of the population would be net connected and nearly all of the population would posses credit cards.
We have also tried to venture into the futuristic models wherein the project itself is divided into two parts which will cover both the normal and futuristic models on which technological progress is being made.
ONLINE MARKET RESEARCH
Business area:
In terrestrial market research there are four participants:
1. Company for which market research is conducted
2. Company that conducts the market research
3. The field people who actually get to the respondents
4 The respondents
In online market research we propose to eliminate the field people. The survey will be conducted online. The respondents will be filling up the forms and uploading them into the company's database. The benefit that passed to the field people in conventional MR will be passed on to the respondents who presently get virtually nothing to fill survey form. In case of executives, online appointments can be taken and they can be asked to answer the questions or fill up the forms
We will have competent personnel to interpret the data and compile the results.
Also certain research will be undertaken by the Online MR Company whose reports will be sold as products as is currently happening in the Terrestrial market Research.
2002 2010 2020
Revenue Model:
1.Income from Services: The company for whom the research will be done would pay for the services offered. This will comprise the major chunk of total revenue.
2.Income from sale of products: certain market surveys for example national crime rate, pollution levels, television viewer ship habits etc. will be conducted periodically and the results can be sold to the parties concerned in the form of a report. This mode will comprise of a reasonable portion of revenue.
3.income from hosting advertisements
4.Income from affiliate programs: per click program, per lead program, per sale program etc.
Customer Profile:
The clients will be divided into two segments:
1.The companies which are interested in specific market research e.g. Efficiency of their advertisements, perception of their products, satisfaction level of their customers etc.
2.The institutions like government agencies, NGOs, educational institutes, NPOs etc which might be interested in the services and products.
Back up:
There might be some areas in which only terrestrial marketing is possible eg. Perception of the products offered by an FMCG in rural areas or in lower middle classes, where all the respondents might not have access to internet or incase of survey related to top executives in a sector who might not be comfortable with online interviews.
Logistical support:
1.Acceptance of orders: orders can come in via e-mails, phone, in person etc. a physical contract may be signed as well.
2.Billing and collections: money can be accepted via purchase orders, cheques, pay orders, tele transfer, credit cards, SWIFT etc.
3.Updates and changes in order: this can be handled in the same way as initial orders.
4.Database and storage: database of respondents and customers plus storage of products.
5.Delivery of products and services: delivery at doorstep, downloadable delivery etc.
6.Customer service: feedbacks and complaints management system.
ONLINE HUMAN RESOURCE PROVIDER.
Business Area:
In the changing dynamics of society life is becoming more hectic and the individuals and the organizations have no time and desire to perform menial tasks themselves. The model seeks to provide unskilled and semiskilled labor at the shortest notice for the below mentioned tasks:
1.Quick courier delivery for example urgent delivery of an item (gifts etc.) from one geographical part to another may be in a city, across states or across countries.
2.Banking related jobs.
3.Special occasions wherein the requirements of guards, helpers, cook etc. may arise.
4.Babysitters for a short term.
5.Other tasks such as serving, driving, nursing etc
6.Providing security personnel on contract basis.
7.By 2020, long term and permanent service provision is incorporated. Also the business will be into job consultancy full fledged.
2002 2010 2020
Revenue model:
1.Service charges: On the basis of time as well as skills required and nature of work, the customers would be charged. The charges could be on hourly, daily or contractual basis. These charges would account for the major chunk of revenue.
2.Income from hosting Advertisements.
3.Income from affiliate programs: per click program, per lead program, per sale program etc.
Customer Profile:
Our customer profile would include people who can afford premium services. These people are the ones with busy schedule and constituting the upper strata of society. Further our customers can be divided into two categories:
1.Corporates: The dealings with these customers will be primarily on contractual basis.
2.Individuals: These people will be availing all types of services vis-Ã -vis on hourly, daily and contractual basis.
Backup:
The backup plan would consist of:
1.Tie-ups with other specialized human resource providers.
2.Outlets which would take requirements and will forward them to the centre or service them there and then depending on the complexities of tasks.
Logistical support:
1.Acceptance of orders: orders can come in via e-mails, phone, in person etc. a physical contract may be signed as well.
2.Billing and collections: money can be accepted via purchase orders, cheques, pay orders, tele transfer, credit cards, SWIFT etc.
3.Updates and changes in order: this can be handled in the same way as initial orders.
4.Maintenance of certain percentage of inventory of personnel in case a serviceman defaults and an instant replacement is required.
5.Delivery of services and personnel, wherein the transportation and on time availability is taken care of.
6.Maintenance of contact records of all the personnel.
7.Customer service: feedbacks and complaints management system.
E-OLYMPICS
Business area:
Today, awareness level in children is increasing and so is their concept of entertainment. Computers have become an integral part of their lives and the games that can be played on the systems are becoming more and more complex. The number of children and teenagers playing games or wishing to play games on a competitive basis wherein certain incentives are gained in form of prizes will increase exponentially in the times to come.
This business model will conduct online gaming championships involving people all around the world, all round the year. People can play single player or multiplayer games. This model will be different from normal gaming sites that exist, in the sense that it will provide an interface between various users and thrill of competing. One grand event, running from two to three months will be organized annually apart from other running contests. This event will be on the lines similar to actual events for example lawn tennis championships.
Our product line will include video games that can be ordered from the site for purchase.
Revenue model:
1.Income from one time subscription
2.Income from registration on an event to event basis.
3.Revenue generated by means of contracts with the contestants as well as game manufacturing companies.
4.Promotions of game manufacturing companies including their advertisements, sponsorships etc.
5.Advertisements of other interested companies for example music systems, hardware manufacturers etc.
6.Income from affiliate programs: per click program, per lead program, per sale program etc.
Customer profile:
We will target children and teenagers ranging from age 8 to 20. These people will have purchasing power, interest and time on hand to indulge in this activity.
A spillover affect is expected into the age groups below and above the target customers as is seen nowadays also. Middle age people also play games with children around or alone for the purpose of relaxation as well as thrill associated.
Back up:
1.Gaming stations will be set at certain high customer density areas to give them a feeling of being in a playground.
2.Selling of games through various mediums like general stores, music stores, CD libraries etc.
Logistical support:
1.Subscription of users, giving user id and creating their secure profile.
2.Registration of candidates for contests and allocating resources to that event according to the number of participants.
3.Intimation of every participant's status, news related to the gaming world etc. through email or popup.
4.Storage and inventory of games and a delivery system for products.
5.Customer service: feedbacks and complaints management system.
6.Logistics of backup plan.
WWW.AUTOALL.COM
Business Area:
"WHEN I THINK OF A CAR, I THINK OF AUTOALL.COM". That is the idea behind this business model. The model provides end to end solutions in any and every area in automotive sector. The list of services and products is endless but following are the areas covered by the model:
1.Auto sale/purchase.: New as well as Second hand automobiles, those are imported or domestic.
2.Auto finance.
3.24 hrs Auto service facilities.
4.Auto auctions.
5.Auto parts: Retailing and wholesaling.
6.Auto rental with or without chauffer.
7.Modifications of automobiles.
8.Vintage automobiles: annual maintenance contracts, sale/purchase etc.
9.Advice and information on related issues such as comparison of cars etc.
10.Net launches.
The existing sites are providing information related to a few of these areas but none of hem gives such a comprehensive coverage of all the related sectors and components.
The biggest advantage of the model would be that it would incorporate needs of every level starting from information to the actual purchase of products. The website would ensure that the sale/purchase, loans and other services are procured in the manner desired and from the seller desired. The purpose therefore is to act as an authorized link between all the buyers and the sellers. Although it can act as direct provider in cases like auto servicing and repair, Information etc.
It is expected that by 2020 some of the areas will get almost wiped out for example second hand car sale, some areas will diminish to an extent like auto parts business and some areas will take a larger proportions like purchase of high end autos, imported autos and modification of auto mobiles. Also, the product life cycle will decrease. Hence there will be a shift of focus in those times.
Revenue model:
1.Income from affiliate programs: per click program, per lead program, per sale program etc. Major share of revenues would be earned by incorporation of per sale programs with the companies with whom the tie ups have been finalized.
2.Income from the commission: Certain percentage of commission can be charged from the companies as well as the customers.
3.Income generated by the services like information, financing etc.
4.Income from hosting Advertisements of the related companies.
5.Income from premium charged to the companies for specialized services provided to them for example net launches, sample surveys etc.
Customer Profile:
1.People who are aspiring to own a car (Middle class). These are the people looking for genuine advice and cost effective ways to own a vehicle.
2.People who own a car and desire a second one. (Upper middle class).
3.People who are rich and want specialized services and products eg. Vintage cars, imported cars etc.
Back up:
Set up of a request, feedback, and complaint and information system through centres. These centres will act as facilitation centres to provide all kinds of support to people who either can not have access to internet or they do not want to transact through the net. These centres will also act as retail stores for certain products like accessories. Further, these outlets will also provide promotional feature to the site by providing certain benefits for example test rides, auto finance etc.
Logistical support:
1.Acceptance of request: the request will be entered by the consumer through an online form. The request will be automatically forwarded to relevant departments for processing.
2.In case of financing, servicing, rental, a field executive will be sent over to the person's house after the customer's identity verification.
3.In other cases the information will be provided online or at the facilitation centres.
4.Next the delivery will be executed via
çhand to hand mode in cases like auto parts, servicing etc,
çonline in case of information and advice
çBy courier in case of authenticated documents like registration papers etc.
E-POWER
Business Area:
The rapid growth of Internet in a developing country like India has triggered a very pertinent question. Why can't we replicate the success of Internet growth on electricity distribution? Why do we have to be dependent upon the SEB's to give us the power? Why can't we get electricity the same way as we get our emails? The technological model behind this all hypothesis is that data is nothing but a collection of 1's and 0's. The images or data we receive are nothing but a collection of electric voltages in the elementary form. If this electric charge is stored in an accumulator at the destination location, we have the DC Current at that end, without putting any transmission wire. Now the business area would involve
1.Remote and far-off locations where supply and distribution of electricity by conventional means has been unviable.
2.To promote far off locations destinations which are and can be developed as tourist locations but yet haven't been able to, because of lack of power related infrastructure.
3.In certain emergency situations or special occasions such as marriage where availability of electricity is subject to many variables.
Revenue Model:
1.Income generated on the contractual basis from individuals as well as from organizations
2.Income generated on just-in-time basis, ie transmission of power as and when required.
3.Income generated as commission from partnership with development of tourism resorts at far off locations
4.Income generated from association with various international power companies.
5.Income through advertisements on the website
6.Income through selling power to railways for promoting distant
Customer Profile:
1.Individual customers for domestic consumption
2.Industries: Heavy, Small, Medium) for power backup, Tourism industry, Railways
3.Institutions: Government agencies involved in setting up of rural infrastructure.
Back up:
Setting up of grids at various places where storage of electricity can take place which at the time of requirement can be distributed by conventional manners. Setting up of distribution centres which can supply electricity to the consumers who do not have access to the net or do not have the facilities to capture the electricity via the web.
Logistical Support:
1.Acceptance of orders by the consumers through an online form or by other means.
2.Installation of the entire end-user gadget that accumulates power and converts the DC power into AC through field executives.
3.Processing of orders and ensuring the distribution and the supply.
4.Acceptance of monthly, bimonthly bill through credit cards.
5.A feedback mechanism for customer support
6.Customer service points
WEBTHEATRE
Business area:
"Entertainment" would be the key word in the era to come. A few years down the line, stress levels would be sky high and the management of time and stress would command a noticeable attention. Movies form a major limb of entertainment industry, and with online connection of everything imaginable, they would also reach the homes via the web. The business area as such would comprise of the following:
1.To act as distributors for the movies which would be released online and have the rights for the screening of the same. The distribution to the audience would be on subscription basis.
2.To control the rights for promotions, advertisements and other telecasts.
3.To distribute and sell the rights of already screened movies and programs to other websites or web-theatres.
Though the movies can be seen by way of CD's and DVD's, the utility of the model would be for the people who do not visit theatres due to lack of time or that of energy. With the passage of time, release of programs is fathomable as well and as already observed, interactive programs will be aired. The interaction may be from simple polling to individual participation as a character in a movie aka internet stories mode.
Revenue model:
1.Revenue generated by the delivery of products (downloadable movies and programs) and services (paid online viewing of new releases and premium programs).
2.Revenue generated by means of hosting advertisements and promotions.
3.Income from affiliate programs: per click program, per lead program, per sale program etc
4.Income from subscriptions.
5.Income from sale of rights to other companies.
Customer profile:
Customer profile per se would change with the years. To begin with, the customers in the beginning would comprise of those who do not go out for movies generally but are net savvy eg. Corporates who neither have time nor energy at the end of day but are looking for some entertainment. With the passage of time and advent of better and affordable technology, the model would be a direct competitor of the theatres per se. People will think once more before going to theatre. Customer profile then, in general would be everybody interested in entertainment.
Logistical support:
1.A way to accept orders via online application forms, e-tickets and subscription through email.
2.A way to accept money via a merchant account with a secure ordering page and a connection to a bank or traditional billing for subscription either online or through mail.
3.A fulfillment facility to send e-tickets through download mechanism and shipping of products.
4.A way to accept returns in a manner similar to the above method.
5.A way to provide customer service (often through email, on-line forms, on-line knowledge bases and FAQs, etc.
NANOSTORE
Business area:
Human needs are growing today at a fast rate and even he himself do not have the time to fulfill them. We want everything at a click distance. This model is almost same as that of an online retail store today. The difference is that this store will be storing and selling only "product recipes". These recipes are programs that once downloaded and directed to something called a "3-d printer", which is based on a technology called "nanotechnology", will generate that product.
Nano technology is a method of generating any product from atomic level. Basically, everything is made up of atoms of various elements in the periodic table. So if by a method, these atoms are selected and arranged in a way, a product can be obtained. This is similar to a normal printer from which any colored image is generated using four colors in the printer cartridge. So, different arrangements of atoms would result in different products.
Through Research and development, new products will be created and tested, their recipes will be engineered and then they can be sold online.
Revenue model:
1.Revenue from sale of product recipes.
2.Income from affiliate programs: per click program, per lead program, per sale program etc. Major share of revenues would be earned by incorporation of per sale programs with the companies with whom the tie ups have been finalized.
3.Income from hosting Advertisements of the related companies.
4.Income from premium charged to the companies for specialized services provided to them for example net launches, sample surveys etc.
Back up:
Back up can be provided at two levels:
1.At one level setting up of normal retailing stores to facilitate customers.
2.At the second level, printers will be installed at different locations and in case of some problem customers will be serviced form these centers.
Logistical support:
1.A way to accept orders via online application forms, e-tickets and subscription through email.
2.A way to accept money via a merchant account with a secure ordering page and a connection to a bank or traditional billing for subscription either online or through mail.
3.A fulfillment facility to send recipes through download mechanism and shipping of products.
4.A way to accept returns in a manner similar to the above method.
5.A way to provide customer service (often through email, on-line forms, on-line knowledge bases and FAQs, etc.
E-SURGERY
Business area:
The fast growing demand for reputed doctors from various countries allover the globe and limited scope of availability has paved a path for technological advancement in this regard. The primary idea relates to long distant surgery through the concept of simulation and e-touch. The software, hardware and implementation aspects required for the e-surgery would be focus area of the model. In simulation a special software/hardware interface has to be developed to make it look natural to the doctor operating upon. At the other end, the e-touch technology would be used wherein sophisticated embedded software medical devices would perform the job on the patient to exact perfection. The Business area here would be
1.To get consultation/treatment from specialized doctors, the patient would not have to physically travel large distances
2.Human error can be further reduced by the use of specialized surgical devices
3.In certain emergency situations where a doctor cannot be see the patient physically.
4.To monitor the body health variables like BP, pulse rate , etc
Revenue Model:
1.Revenue from charging a monthly/yearly fee to set up the infrastructure
2.Revenue from services ranging from simple diagnosis to complex surgery.
3.Income from affiliate medicinal products and services organizations: per click program, per lead program, per sale program etc
4.Income from hosting Advertisements of the related companies.
Backup:
Since the job is mission critical, adequate backup support has to be in place before we leap into the commercial launch of the model
1.A junior doctor would always be there to act as a backup in case there is any eventuality.
2.Two to three independent long distance network connections would be provided as a backup at both the ends.
3.Power backup
4.In case the system collapses due too unforeseen circumstances, provision to hire a local specialized doctor
Logistical support:
1.Supply of adequate consumables and non-consumable items before surgery
2.Installation of the required infrastructure at the hospitals. This includes one time installation of Software and hardware.
3.Maintenance of network, putting network servers at place
4.Collection mechanism to accept money (for per-use basis)
5.Technical support centers, with medico-technicians
EDS: ELECTRONIC DIRECTION SYSTEM
Business Area:
The technological breakthroughs made in the last few years have made a tremendous impact on the way automobiles are going to move on the road. The GPS model is already in place today, but by 2020 the GPS would be more than positioning system. By the end of 2020, population explosion would make the positioning as well as location intricate and impossible thereby increasing the utility of the model, especially for the first time. Moreover incorporation of the model in the security systems would a major breakthrough. GPS as such is being used for the purpose of security in many counties but its commercial use is not yet explored.
The major business areas would be:
1.To supply the information about the exact location, both in terms of latitudes and longitudes and pictorial presentation of the place. A path can also be generated by the similar process.
2.Virtual tours of many places can be arranged for the concerned customers.
3.Depending on other variables like time, fuel etc a most convenient path can be supplied.
4.To supplement the security services by maintaining the track of vehicles or persons.
Revenue model:
1.Revenue from sale of services like destinations generation.
2.Income from hosting Advertisements of the related companies.
3.Revenue from sale of products related to security to the government agencies as well as private firms.
4.Revenue from subscriptions.
5.Revenue from sale of rights to companies which require location information to be supplied to their employees eg. A terrestrial marketing firm.
Customer profile:
1.The model would serve the needs of any individual who travels and thus requires the directions.
2.Firms such as marketing firms would be targeted who need this for their employees.
3.Government agencies for the purpose of security.
4.Firms for their security.
Back up:
Since this is a just in time security, a back up would kill the inherent purpose of the model.
Logistical support:
1.A way to accept orders via online application forms, and subscription through email.
2.A way to accept money via a merchant account with a secure ordering page and a connection to a bank or traditional billing for subscription either online or through mail.
3.A fulfillment facility to supply the services (positioning and view) through download mechanism.
4.A way to provide customer service (often through email, on-line forms, on-line knowledge bases and FAQs, etc.
LIBRARY ONLINE
Business Area:
Today, there is more and more to know about less and less and this information is growing exponentially in the form of books, journals, news papers etc. also terrestrial bookstores are becoming bigger and bigger. In spite of all this it is very difficult to find relevant books at one place. Moreover, even if you find one the cost of such books is monumental and beyond means. In this scenario, there is an ever increasing need of a library that is so comprehensive that one doesn't require looking for any other source to fulfill his academic needs. This library has to be online keeping in mind the growing real estate costs and the ease an online library offers to the subscribers.
The model has following features:
1.It stores books, journals, newspapers etc and anyone can subscribe to the site, get a book issued and read it online.
2.It provides people an opportunity to download a book, a journal or part of both at a price akin photocopying in real libraries.
3.Institutes can subscribe to library services for its students. This way they will not have to spend on library infrastructure and will get a huge database of books which otherwise would have been extremely expensive to procure and maintain.
4.Corporates can also subscribe to the services.
Revenue model:
1.Revenue generated from institutes and corporates. This will be on a contractual basis that may be annually, biannually etc. the charge will be decided according to the number of licenses they purchase. Using each license only one individual can access library services.
2.Revenue from individuals paying for subscription, borrowing books and reading them online and buying books or pages from books, journals etc.
3.Income from affiliate medicinal products and services organizations: per click program, per lead program, per sale program etc
4.Income from hosting Advertisements of the related companies.
Customer profile:
Customers are divided into two segments:
1.Students and individuals: these people will subscribe to the site as they do in real libraries and will read different books by paying for them.
2.Corporates and institutions: these customers will take the benefits only on contractual basis and will derive all benefits that the business makes available.
Back up:
There can not be any back up which supports our services to the same level as we are proposing in the model. Maximum that can be done is setting up of a few real libraries at various places but that would only serve as a promotional activity and would have the same drawbacks as mentioned above. The infrastructure costs will be high as well and this will be a major consideration for us to not go for such a backup plan.
Logistical support:
1.A way to accept subscription, classifying orders, and a system to present the correct page in minimum time via online application forms, and subscription through email, database technologies etc.
2.A way to accept money via a merchant account with a secure ordering page and a connection to a bank or traditional billing for subscription either online or through mail.
3.A fulfillment facility of providing onsite support services to corporates under contract conditions.
4.A fulfillment facility to supply the services (positioning and view) through download mechanism.
5.A way to provide customer service (often through email, on-line forms, on-line knowledge bases and FAQs, etc.