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The Rise of Infomediaries in Different Business Types

Explore how infomediaries have revolutionized various B2B, B2C, and B2I2C business models, controlling crucial information points and benefiting from hypermediation. Discover the impact and benefits of this innovative approach in different industries.

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The Rise of Infomediaries in Different Business Types

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  1. Different types of businesses • B2C – Business to consumer • B2B – business to business • Infomediary – broker who facilitates transaction by providing information. • B2I2C - Business – Infomediary - Customer • B2I2B – Business – Infomediary - Business • C2I2B – Customer – Infomediary - Business • C2I2C – Customer – Infomediary - Customer

  2. The Rise of Infomediaries • Has become useful with the “unbundling of the value chain” in many industries • Control the choke points of information • Typically, built around: (1) user activities (2) life events (3) demographic segment (4) special interests

  3. Hypermediation At Play* • Bob wants to know more about a Harry Potter book • Netscape -- GoTo.com -- Nancy’s Harry Potter Page -- Etoys -- buy book at $8.97; • Who made money from the clickstream? - Netscape (from GoTo.com) -- 2 cents; - GoTo.com (from Nancy) -- 2 cents; - Nancy (from Etoys) -- 7.5% - Etoys, distributor, Visa company, UPS - Others? Inktomi, BeFree * Source: Nicholas G. Carr (2000, HBR)

  4. Rise of Vertical and Horizontal Market Hubs* • Vertical examples: Biotech • Vertical communities are: industry-specific, members only, neutral • They provide: directories, new kind of content, and links to commerce • Horizontal market hubs are cross-category and often country-focused *The material on this page is sourced from The Forrester Report, Nov. 1996

  5. The Case of • UBid buys excess capacity brands with major labels like AT&T, Panasonic, Callaway, 3M, and Calvin Klein • These products are auctioned on the web • They also let suppliers place their products directly for auction • Ubid takes a cut from every auction on its site

  6. Web Benefits – Ward Hanson • Improvement based • Internal savings – cost savings • Increase marketing effectiveness – better image • Understanding customers - loyalty • Revenue based

  7. Improvement based • Enhancement • Brand building - Disney • Category building - Intel • Improving Online Quality - • Efficiency • Cost reduction • Catalogs • Customer service • Free trial • Effectiveness • Dealer support – GM BuyPower • Supplier support – GE and its trading process network • Information collection

  8. Revenue based • Provider pays • Sponsorship • Retail alliances • Valuable locations • Exclusive deals • Banner Ads • Prospect fees • Sales commissions – affiliate programs • Data and market research

  9. Revenue based (continued) • User pays • Product sales • Pay per use • Subscription • Complementary goods sales

  10. Paul Timmer’s Classification • E-shop • Promotion, cost reduction, additional outlet • (seeking demand) • E-procurement • Additional inlet (seeking suppliers) • E-auction • E-mall – collection of e-shops • Third party market place • Common marketing front end and transaction support to multiple businesses

  11. Virtual Communities – focus on communication between members • Value chain service provider – support part of value chain e.g. logistics, payments • Value chain integrator – Added value by integrating multiple steps of the value chain • Collaboration platforms • Information Brokers – trust providers, business information, consulting

  12. Value chain integrator Functional integration E-mall E-procurement E-auctions E-shop Degree of innovation

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