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The Core + Complement Business Model Framework Cornelia C. Krüger Paula M.C. Swatman

The Core + Complement Business Model Framework Cornelia C. Krüger Paula M.C. Swatman Kornelia van der Beek. Business Model Formation within the Online News Market:. 16th Bled Electronic Commerce Conference eTransformation, June 9 - 11, 2003. Introduction.

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The Core + Complement Business Model Framework Cornelia C. Krüger Paula M.C. Swatman

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  1. The Core + Complement Business Model Framework Cornelia C. Krüger Paula M.C. Swatman Kornelia van der Beek Business Model Formation within the Online News Market: 16th Bled Electronic Commerce Conference eTransformation, June 9 - 11, 2003

  2. Introduction • Only 17 % of news sites world-wide reported making a profitin 2002(OJR, 2003) • Most newspapers initially went online with a business model very like their real-world model • Over time they have to adjust this model to keep up with changes in the: • physical • cyber worlds. • They are struggling to survive because of • declining subscriber numbers, • falling advertising revenue • A fickle and highly-critical public • We suggest an alternative approach to the creation of Internet business models for the online news market, based on the concept of “building blocks”

  3. Internet business models in literature Research into business models is of two types: • the description of specific business models and/or • the defining and analysing of the special components of a business model

  4. Taxonomies of Internet business models

  5. Components of Internet business models

  6. Linking taxonomies and components of Internet business models Weill and Vitale’s (2001) combination of taxonomies and components

  7. A generic approach Weill/Vitale’s (2001) approach to combining taxonomies and components A generic approach to combining taxonomies and components

  8. Combining taxonomies with Internet Business Model components for Online News

  9. Digital products and the digital delivery model C4 C5 Cn Content Business C1 C2 C3 Content Provider Individual components for Internet business models

  10. Combining taxonomies and components for the online news industry Taxonomy A (e.g. RZ-Online) C2 = Content C3 = Infrastructure C1= Revenue C4 = Cooperation Taxonomy B (eg. SWOL) C5 = Virtual C1 = Revenue C2 = Content C3 = Infrastructure Community Taxonomy C (e.g. RON) C6 = C1 = Revenue C2 = Content Additional C3 = Infrastructure Services

  11. Benefits of our approach • Simple identification of core components possible for most sectors and businesses • i.e. what do I need to run a business? • Structure core components according to industry/sector – then identify additional or complementary components. • In more complex industries, companies might not all have the same number of core components • identifying an appropriate business model takes longer. • As a company evolves, it may include more (or fewer) complementary components.

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