Success Criteria of Business Models

First phase of electronic commerce involves improving existing business processes Second phase of electronic commerce involves developing new business models Successful business models involves : - Clearly defined customer, product and processes - Access to technology to support processes - Integration of internet-based information to other information - Product or service fulfillment

When electronic commerce was popularised in the mid-1990's, the emphasis was "doing business on the Internet" and the first wave of electronic commerce focused on importing existing business practices into the digital environment.

Now a second wave of electronic commerce is in progress where new business models, developed for the digital environment are emerging. These models move beyond merely doing business on the Internet, but rather they are "changing the conduct of business of the Internet".

A successful business model involving the use of Internet technologies must meet four requirements :-

• Clearly identify the customers, the business activities, the product/service, and the financial transaction

• Provide accessibility to internet technologies which will handle all aspects of the sale transaction

• Integrate Internet-based information with other information required by the customer and the business

• Ensure fulfillment of the product/service