A Value-added Model for E-commerce

Given the transaction as a basic unit of analysis, a comprehensive model of value added roles can be distilled from the synthesis of network design and business process models. Any given implementation may be seen as a cluster of roles that add value for the buyer and produce revenue for the seller. The general representation of the model suggests that there are four common classes of roles from which the possibilities for adding value through e-commerce can be derived: Organic, Structural, Functional and Commercial. These roles are defined and discussed, beginning with the organic distinction of Markets vs. Hierarchies. This comprehensive model provides a solid foundation for the systematic analysis of e-commerce implementations.