The internet’s ability to supply entree to information has improved existent estate communications and concern ( Aalberts and Townsend. 2002 ) . Business theoretical accounts represent the concern logic of companies. They are executed by company web sites and are of import to the success of companies. E-business theoretical accounts represent the principle of how companies create. deliver. and gaining control value ( Linder and Cantrell. 2000 ) . By understanding them. companies identify chances to better the concern ( Osterwalder. 2004 ) . so it is of import to understand their function. The cyberspace has changed the existent estate concern but the importance of e-business could be further developed Our chief research aim is to look into the function that e-business theoretical accounts play in existent estate. In chase of this nonsubjective. we look at the similarities and differences among e-business theoretical accounts and how they affect company success.
We investigate the importance of four concern theoretical account components–value proposition. aim client. distribution channel. and gross streams–using Canvas Framework ( Osterwalder. 2010 ) . We besides looked at the type of ebusiness theoretical accounts used by each company. The parts of this work are 1 ) designation of the constituents of e-business theoretical accounts of industry leaders. which serve as benchmarks for rivals ; 2 ) demonstrating that the usage of e-business theoretical account constituents helps companies understand which 1s contribute to company success ; 3 ) clarifying the function that e-business constituents play in pulling clients ; and 4 ) assisting companies understand which type of ebusiness theoretical accounts works best. S2-245
The paper is organized as follows. Section 2 reviews definitions of e-business theoretical accounts. subdivision 3 defines the types of e-business theoretical accounts and subdivision 4 analyzes three e-business theoretical accounts. The paper ends with a treatment in subdivision 5.
E-BUSINESS MODEL DEFINITIONSThe cyberspace has enabled new ways to present client value by utilizing e-business theoretical accounts that change how companies operate. E-business enables traditional concerns to germinate to a intercrossed brick-and-mortar/online theoretical account. E-business is an attack to spread out traditional concern theoretical accounts. addition markets. and grow gross. Several definitions of e-business exist ( Cagnina and Poian. 2009 ; Rappa. 2004 ; Osterwalder. 2010 ; Methlie and Pedersen. 2007 ) . Timmers ( 1998 ) defines eleven generic e-business theoretical accounts. from e-shops and e-procurement to swear and other third-party services. Tapscott et Al. ( 2000 ) suggest a network-and-value-centered taxonomy with five types of value webs called “business webs. ” which differ in their grade of economic control and value integrating. Weill et Al. ( 2001 ) depict eight alleged “atomic” e-business theoretical accounts ; each describes different ways of carry oning concern electronically.
E-business enterprises are represented by pure atomic concern theoretical accounts or by uniting them. Applegate ( 2001 ) introduces six e-business theoretical accounts: focussed distributers. portals. manufacturers. substructure distributers. substructure portals. and substructure manufacturers. Dubosson-Torbay et Al. ( 2002 ) place the chief dimensions–user’s function. interaction form. nature of the offering. pricing system. degree of customization. and economic control–for sorting e-business theoretical accounts. Rappa ( 2001 ) describes companies by their value proposition and ways of bring forthing gross. His categorization has nine classs of e-business theoretical accounts: securities firm theoretical account. advertisement theoretical account. infomediary theoretical account. merchandiser theoretical account. maker theoretical account. affiliate theoretical account. community theoretical account. subscription theoretical account and public-service corporation theoretical account.
E-business theoretical accounts are comprised of a set of constituents so we need to take the appropriate application model to specify the relationship between them. The growing of e-business has raised involvement in transforming traditional concern theoretical accounts to work chances through invention ( Pateli and Giaglis. 2003 ) . The cyberspace has changed the thought of a concern theoretical account and this has practical deductions for companies. Consequently. companies need to redefine client value propositions. and their concern theoretical account. Enhancing client experience helps to reshape client value propositions ( Berman and Bell. 2011 ) . Making new digital capablenesss helps to polish the operating theoretical account by leveraging information to pull off organisations. and incorporating and optimising digital and physical constituents ( Berman and Bell. 2011 ) . Effective usage of e-business theoretical accounts depends on the economic environment. market and industry conditions. and the internal and external factors of organisations. Internal and external factors affect the demand for concern theoretical account alteration. Internal maps include product/service invention. public presentation and the handiness of resources ( Giesen. et Al. . 2009 ) . Product and service invention is a cardinal driver of new e-business theoretical accounts. particularly for companies presenting to the market new merchandises or services that require new accomplishments. and capablenesss and processes that lead to new value propositions.
S2-246
Fiscal public presentation and the handiness of cardinal resources are both drivers and enablers of concern theoretical account invention. For the e-business existent estate industry. presenting new services such as nomadic device applications and on-line belongings value analysis are considered internal factors. External factors include new entrants. rivals. client penchants. client sections. engineering. regulatory/legal. and the concern environment. When client penchants for goods and services alteration. they force alterations to the client value proposition and the ebusiness theoretical account. TYPES OF E-BUSINESS MODELS
There are four primary types of e-business theoretical accounts: web-advertising theoretical account. securities firm concern theoretical account. practical value-chain theoretical account and the diversified theoretical account. Web-advertising is an extension of the traditional media broadcast theoretical account where the broadcaster is a website that provides free content and services such as electronic mail. IM. and web logs. assorted with advertisement messages in the signifier of streamer ads. One of the most sophisticated signifiers of cyberspace advertisement is Google ad. Banner ads are a major beginning of gross for broadcasters. The website platform is designed to pull users with free content. merchandises. or services ; it generates gross by selling infinite to advertizers and is a popular and quickly turning publicizing theoretical account ( Jansen and Schuster. 2001 ; Jansen and Mullen. 2008 ) . Realestate. yokel. com. Realtor. com. and Zillow. com usage this theoretical account. The securities firm theoretical account brings agents. Sellerss. and purchasers together to make concern. The agent charges a fee to at least one party involved in the dealing. Agents connect consumers with retail merchants. concerns with each other and consumers with each other. In existent estate. e-business companies enable the hunt for belongingss and supply securities firm services. Companies that use the securities firm theoretical account make money from committees and service fees.
The payment of committees to securities firms is contingent upon happening satisfactory purchasers. successful dialogues of purchase contracts between purchasers and Sellerss. the colony of minutess. and the exchange of monies between purchasers and Sellerss. In this theoretical account. the average committee charged to Sellerss by naming agents is 6 % of the purchase monetary value and is shared between Sellerss. The practical value-chain supports the traditional value concatenation and it has changed the manner concerns operate ( Rayport and Sviokla. 1995 ) . The traditional value concatenation uses information for support but the practical value-chain uses information as a value-creating chance where merchandises and services are in the signifier of digital information delivered through information-based channels. The three sites under survey usage that theoretical account. The diversified theoretical account helps companies to spread out their nucleus concern to related merchandises and services.
In this theoretical account. a parent company owns the web and the diversified theoretical account provides internally incorporate product-service mix. The theoretical account has several virtues. one of which is that it enables companies to cut down trust on nucleus merchandises and spread their hazard by traveling into other markets and offering combined product-service bundles. It offers chances to develop powerful trade names and to get better corporate image. One drawback is that it requires more investing in new engineering. every bit good as major cultural alterations for supplying diversified product/services alternatively of a individual product/service. Diversifying the concern introduces extra hazards and this may explicate why it is non used by any of the three sites.
S2-247
Analysis OF E-BUSINESS MODELSWe compare the concern theoretical accounts of the top three e-business sites utilizing Canvas Framework. We determined the popularity of the sites by the sum of concern they generate and the per centum of visitants they attract ( Top 20 existent estate web sites. 2012 ) . We selected the sites because of their popularity and place in the industry ( Ebiz/mba. 2012 ) . They are representative of existent estate sites that exhibit the nucleus services such as nomadic applications. advanced belongings hunts. map interfaces. place qui vives. demographics informations. MLS listings. belongings listing monetary values. ability to reach agents. location hunts. ability to salvage hunts. advice forums. new belongings listings. and belongings value analysis. The sample includes sites that use web-advertising. practical valuechain. or the securities firm theoretical account. Realtor. com has the ability to name belongingss worldwide. The information in table 1 were collected in several ways. First. we performed on-line characteristic analysis of three sites by logging into them to detect the assorted characteristics available to users and to measure their capableness and user friendliness. Second. we analyzed concern and proficient studies ( Zillow. com. 2012 ) .
The newness dimension of the value proposition constituent is widely used by the sites. Zillow. com has a new and interesting belongings estimation algorithm called Zestimate which provides Zillow users with place value estimates that are calculated on a scope of publically available information. including gross revenues of comparable houses in a vicinity. The new characteristic for Realtor. com is DocuSign. leting National Association of Realtors ( NAR ) members to subscribe paperss anytime. anyplace on any device utilizing the DocuSign for Realtors for free with limitless signers and limitless file storage. The NAR launched the Realtor. com International web site. which makes available to purchasers across the Earth 1000000s of for-sale belongings listings on Realtor. com. Third party content suppliers feed residential belongings informations to sites. For Realestate. yokel. com. the new characteristic is the capableness to expose the users’ location on the web site.
Sing serviceability and public presentation dimension of the value proposition. the nomadic device application in Zillow. com is helpful and user friendly. The elegance of the graphical user interface is helpful. and provides informations and information rapidly and expeditiously. Search consequence pages have mean gross revenues monetary values in each metropolis and supply a list of purchaser agents and a button to name them straight. Realtor. com continues to better lead gaining control. addition exposure for company and listings. and better the overall web site experience for existent estate purchasers and Sellerss. Realestate. yokel. com offers an easy place hunt service and utile tools that provide easy entree to 1000000s of belongings listings. a mortgage reckoner. and market snapshot information. Sing the customization dimension of the value proposition. cyberspace sites offer a package of services to users that are provided by third-party suppliers. This shows that cyberspace sites may utilize practical value-chain concern theoretical accounts.
Realtor. com has a nomadic application that has different use manners. The Realtor. com iPad app allows consumers to pass on with company Realtors via the cyberspace. Realestate. yokel. com does non hold a nomadic device application. Sing the website design dimension of the value proposition. the Mobile Widget of Realtor. com is slated to be removed. The Real Estate News and Advice will be temporarily removed and the figure of searchable vicinities on Realtor. com will increase significantly. In comparing. Zillow. com and Realestate. yokel. com have elegant designs compared to Realtor. com. The mark client constituent is indistinguishable for all the sites and includes purchasers. Sellerss. house proprietors. agents. agents. and Bankss. Sing the distribution channel constituent. websites enable communicating with clients to present value propositions. such as gross revenues. and on-line advertizements. Sing the advertisement dimension of the gross watercourse constituent. some web sites use the web-advertising theoretical account to do money from agents. agents and mortgage bank ads.
Agents and agents buy local advertizements and they pay to expose belongings listings and contact information such as agent name. belongings reference. and belongings monetary value. The three sites use a web-advertising scheme. Zillow. com generates gross by selling advertisement and which enables Zillow to offer free service to users. The gross is used to construct new cyberspace services. Zillow besides enables agents and agents to buy featured listings that appear by default at the top of a customer’s belongings hunt consequences. It allows agents and agents to buy show window ads in coveted ZIP codifications. Zillow’s current nomadic platform provides chances to present value to advertizers through its location-based advertisement options. Realtor. com. affiliated with the National Association of Realtors. enables agents to purchase advertisement on the topographic point. Agents have assorted options to market featured places to flush clients or to publicize their services in streamer ads based on vicinity. Pricing for Realtors who choose to heighten their belongings and personal advertisement is based on the advertisement industry criterion. the cost per 1000 consumers reached by the advertizement.
Ad on the site is capable to tight controls. including ads from other Realtors. Sing the paid subscription dimension of the gross watercourse constituent. the partnership between Realestate. yokel. com and Zillow. com creates the largest existent estate web on the cyberspace. enabling existent estate agents to publicize locally on Yahoo. Homebuyers have entree to more local listings on Yahoo Real Estate. along with more exposure. Zillow serves as the sole supplier of for-sale belongings listings information on Yahoo Real Estate. Yahoo will go on to command the visual aspect of for-sale listings and keep separate databases for foreclosures. freshly constructed places. and leases. It’s non the first clip Realestate. yokel. com has partnered with other companies to supply for-sale belongings listings content. Yokel and Prudential Real Estate entered into an sole understanding in 2004 for Prudential to supply for-sale listings information. but that agreement ended in 2008.
DecisionFor companies to alter. better. and innovate e-business theoretical accounts. they must understand them. To help this understanding. we analyzed the top three e-business theoretical accounts of Zillow. com. Realtor. com. and Realestate. yokel. com. The analysis includes the value proposition. aim client. distribution channels. and gross stream e-business constituents. Canvas Framework consists of nine constituents but we focused on four due to the paper limitations. The e-business theoretical accounts of the three companies exhibit similarities. differences. and common characteristics. Similarities include on-line hunts of existent belongings. ability to reach agents and list existent belongings. ability to aim Sellerss. purchasers. and agents. ability to publicize. enable personal and machine-controlled services. and set up relationships with concern spouses.
The mark client is similar across the three companies and distribution channels are indistinguishable. Companies add new characteristics and services to pull clients by distinguishing themselves from rivals. Differences exist with respect to the newness characteristic of the value proposition. Zillow’s new service. the ability to execute on-line belongings assessment. increases efficiency. provides convenience. and increases the value proposition of clients. Traditional belongings assessment is clip devouring and inconvenient as clients have to place valuators. agenda appraisal assignments. and be available for the assessment. This delays the purchasing and merchandising of belongingss and reduces merchandise turnover and gross. Real estate minutess require in the flesh signatures so Realtor enables electronic signatures. a value added service for clients. Estimating belongings values requires agents who compare the mark belongings to similar belongingss in the vicinity. More gross streams leads to increased grosss so companies with individual income watercourses benefit from geting new watercourses of income. We found that e-business theoretical account distinction plays an of import function in the success of companies.
Assorted distribution channels are used to make clients. The resources used to make. create and present value to clients are a combination of merchandises. services and engineerings including nomadic applications. A major factor in making value for clients is through the convenient entree to information and services related to existent estate. This includes entree to agents. belongings information. location informations. entree to moneymans. and mortgage analysis. Companies that combine the advertisement and the value-chain theoretical account rank higher ( Top 20 existent estate web sites. 2012 ) . Surveies indicate that Realestate. yokel. com. Realtor. com. and Zillow conflict for the leading place in the industry ( Inman intelligence. 2012 ; Property Portal Watch. 2011 ) .
In 2011. Realestate. yokel was rated figure one in market portion while Realtor was figure two. but in June 2012. Zillow was figure one. All three sites have no paid subscriptions. do non trust on agents and agents. and do non utilize securities firm except for Realtor. This suggests that the absence of paid subscriptions. agents. agents. and securities firm do non significantly affect company public presentation. since the top rival in 2011 and 2012 had none. Based on our survey. a successful e-business theoretical account does non hold to include them all. The top three executing sites Realestate. yokel. com. Realtor. com. and Zillow. com use the web-advertising theoretical account. which is the most successful theoretical account with regard to market portion and gross.
In add-on to utilizing the webadvertising theoretical account. Realtor. com uses the securities firm theoretical account. Given that Zillow and Realestate. yokel do non utilize the securities firm theoretical account suggests that it does non take to competitory advantage. The three companies use the practical value-chain. as many merchandises and services are digitized and available online. The usage of the cyberspace implies the usage of the value-chain theoretical account. None of the three sites uses the diversified concern theoretical account. The three sites use intercrossed cyberspace theoretical accounts. The Realtor. com e-business theoretical account uses web-advertising. securities firm. and practical valuechain while Zillow and Yahoo use web-advertising and the practical value-chain. The acceptance and the development of e-business theoretical accounts do matter with regard to the assorted types of endeavors such as public bureaus. for-profit private or public houses. and SMEs. Real estate companies are considered for-profit houses that are in private or publically owned and would be classified as little. medium endeavors ( SMEs ) . Public bureaus differ significantly from private or public houses in their mission and aims. Public bureaus focus chiefly on the societal good and are rarely motivated by net income.
However. for-profit houses are motivated by net income since they have an duty to make stockholder wealth. Therefore. the type of ebusiness theoretical account companies develop or follow should be congruent with the company mission and aims. Our survey indicates that the web-advertising theoretical account is appropriate for bring forthing gross and companies that are motivated by maximising gross and net income prefer it. It should non count if the company is a for-profit private or public house or a SME but it does matter if it is a public bureau. Public bureaus that are non motivated by maximising net income tend to stress the sharing of services and information. to better the societal good of communities. Public bureaus would see the practical value-chain or the diversified theoretical account appropriate picks.
The practical value-chain theoretical account is ideal for widening the endeavor beyond the confines of brick and howitzer by supplying services and information to a much larger audience. The diversified theoretical account is ideal for public bureaus that seek to leverage the synergisms that exist among assorted merchandise and service offerings. Therefore. Federal. local and not-for-profit bureaus may happen the diversified theoretical account utile. In some state of affairss. it may be feasible to develop or follow a intercrossed ebusiness theoretical account that combines the practical value-chain and the diversified theoretical account. This determination will depend on the mission and aims that companies seek to carry through. If they seek to work the natural synergisms that exist among assorted merchandises and services while aiming a larger audience. so we recommend a intercrossed theoretical account.
This survey is valuable because it identifies some of the primary constituents of e-business theoretical accounts. which help rivals measure the similarities and differences between e-business theoretical account constituents. The appraisal elucidates the strengths and failings of e-business theoretical accounts. which aid companies to better public presentation and client experience. E-business theoretical accounts aid in the executing of concern scheme and are extensions of the traditional concern. so this information is utile to alignment the e-business theoretical account with the concern scheme. By understanding the of import constituents of e-business theoretical accounts. companies are equipped to concentrate on specific constituents. Since the existent estate industry is sing adversity. cognition and penetration gained from this work aid companies improve their fight. This research has several restrictions.
First. the page limitation forced us to disregard five ebusiness constituents. We besides ignored some dimensions of the four constituents we discussed. For illustration. we ignored the information securities firm dimension of the gross watercourse constituent and several dimensions of the value proposition. so a larger survey should include them. It would be interesting to see how their inclusion changes the findings. Canvas Framework does non stress theoretical account direction. uninterrupted betterment. or concern theoretical account administration. so we recommend spread outing the survey to include them. We recommend spread outing the figure of ebusiness web sites to foster look into new findings.
Mentions1. Aalberts. R. . and Townsend. A. . ( 2002 ) . Real Estate Transactions. the Internet and Personal Jurisdiction. Journal of Real Estate Literature. Vol. 10. No. 1. pp. 27-44. 2. Applegate. L. . ( 2001 ) . Unifying e-Business Models: Lessons From the Field. HBS No. 9801-172. Boston. MA: Harvard Business School. 3. Berman. S. . and Bell. R. . ( 2011 ) . Digital Transformation: Creating new concern theoretical accounts where digital meets physical. hypertext transfer protocol: //www935. ibm. com/services/us/gbs/thoughtleadership/ibv-digital-transformation. hypertext markup language. 4. Cagnina. M. . and Poian. M. . ( 2009 ) . Beyond e-business theoretical accounts: to route to practical universes. Electronic Commerce Research. Vol. 9. No 1/2. pp. 49-75.
5. Clareity. com. ( 2010 ) . The consumer smart phone revolution: Review of Real Estate Mobile Applications for the Consumer. hypertext transfer protocol: //www. callclareity. com/review-of-real-estate-mobileapplications-for-the-consumer-2010. pdf. 6. Dubosson-Torbay. M. . Osterwalder. A. . and Pigneur. Y. . ( 2002 ) . E-Business Model Design. Classification. and Measurements. Thunderbird International Business Review. Vol. 44. No. 1. pp. 5-23.
7. Ebiz/mba ( 2012 ) . hypertext transfer protocol: //www. ebizmba. com/articles/real-estate-websites. 8. Giesen. E. . Riddleberger. E. . and Christmer. R. . ( 2009 ) . Seizing the advantage: when and how to introduce your concern theoretical account. hypertext transfer protocol: //www935. ibm. com/services/us/gbs/bus/html/ibv-business-model-innovation. hypertext markup language. 9. Inman News ( 2012 ) . hypertext transfer protocol: //www. inman. com/news/2012/07/24/top-20-real-estate-website-injune. 10. Jansen. B. . and Schuster. S. . ( 2001 ) . Offering on the purchasing funnel for sponsored hunt and keyword advertisement. Journal of Electronic Commerce Research. Vol. 12. No. 1. pp. 1-18. 11. Jansen. B. . and Mullen. T. . ( 2008 ) . Sponsored hunt: An overview of the construct. history. and engineering. International Journal of Electronic Business. Vol. 6. No. 2. pp. 114 – 131. 12. Linder. J. . and Cantrell. S. . ( 2000 ) . Carved in H2O: Changing concern theoretical account fluidness. Working Paper. Accenture Institute for Strategic Change.
13. Methlie. L. . and Pedersen. P. . ( 2007 ) . Business theoretical account picks for value creative activity of nomadic services. Journal of Policy Regulation and Strategy for Telecommunications. Vol. 9. No. 5. pp. 70-85.
14. Osterwalder. A. . ( 2004 ) . The Business Model Ontology – A Proposition in a Design Science Approach. PhD Thesis. Dissertation 173. University of Lausanne. Switzerland. 15. Osterwalder. A. . and Pigneur. Y. . ( 2010 ) . Business Model Generation. hypertext transfer protocol: //www. businessmodelgeneration. com.
16. Pateli A. . and Giaglis. G. . ( 2003 ) . A Model for Understanding andAnalyzing eBusiness Models. Proceedings of 16th Bled eCommerce Conference eTransformation. Bled. Slovenia. June 9–11.17. Property Portal Watch. ( 2011 ) . US Online Real Estate Market. hypertext transfer protocol: //www. propertyportalwatch. com/2011/07/us-online-real-estate-market/ . 18. Rappa. M. . ( 2001 ) . Business Models on the Web: Pull offing the Digital Enterprise. hypertext transfer protocol: //www. digitalenterprise. org/models/models. hypertext markup language.
S2-255
19. Rappa. M. . ( 2004 ) . The Utility Business Model and the Future of Computing Services. IBM Systems Journal. Vol. 43. No. 1. pp. 32-42.20. Rayport J. . and Sviokla J. . ( 1995 ) . Exploiting the Virtual Value Chain. Harvard Business Review. Vol. 73. No. 6. pp. 75-85.21. Schubert. P. . and Hampe. J. . ( 2000 ) . Mobile Communities: How feasible are their concern theoretical accounts? An explorative probe of the leisure industry. Electronic Commerce Research. Vol. 6. No. 1. pp. 103-121.
22. Stewart. D. . and Zhao. Q. . ( 2000 ) . Internet Marketing. Business Models and Public Policy. Journal of Public Policy and Marketing. Vol. 19. pp. 287-296. 23. Timmers. P. . ( 1998 ) . Business Models for Electronic Markets. Electronic Markets. Vol. 8. No. 2. pp. 3-8.
24. Top 20 existent estate web sites in June. ( 2012 ) . hypertext transfer protocol: //www. inman. com/news/2012/07/24/top20-real-estate-websites-in-june 25. Weill. P. . and Vitale. M. . ( 2001 ) . Topographic point to infinite: Migrating to e-Business Models. Boston. MA: Harvard Business School Press.
26. Zillow. com. ( 2010 ) . Zillow Reports Record First Quarter 2012 Results. hypertext transfer protocol: //investors. zillow. com/releasedetail. cfm? ReleaseID=669775.
