the digital product delivery internet business model
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The Internet has been making an impression for its impact on
business, establishing the virtual environment, which allows
business to be electronically carried out, as is the case of e-
commerce. According to Cunningham (2001, p.2), “e-commerce
will become the main pillar for a company’s strategies, opera-
tion and technology systems”. The fact of buying and selling
remotely at any place or time alters products, processes and
relations between clients, companies, suppliers and intermedi-
aries (Turban et al., 1999). In the face of this change in the way
buying and selling takes place, the business models also change
(Afuah and Tucci, 2001).
Kauffman and Walden (2001) carried out an important study
on e-commerce, listing suggestions for research topics, among
which are: a) the study of digital products (Kaufman and Wal-
den, 2001, p. 32); and b) an understanding of how business
models are being modified by (and to) the Internet, formulating
a basis of business models for e-commerce that can offer sus-
tainable competitive advantage (p. 49). The authors point out
that business models in the e-commerce environment are differ-
ent from those of traditional businesses, and there is a need for
updated research as an attempt to understand what kinds of
business models are more efficient in different scenarios.
The topic of this research is the e-commerce of virtual prod-
ucts, that is, products or services that can be advertised, sold,
paid, delivered or used through the Internet (Choi, Stahl and
Whinston, 1997). If “the industrial economy depended on
physical goods and services, in the new economy many offers
(like software and electronic entertainment) are non-physical
and knowledge-based” (Tapscott, Ticoll and Lowy, 2001, p.
5). The context of this research is the Brazilian software mar-
ket, an important sector of the Brazilian economy. Although it
seems to display good technical know-how, its companies still
face high mortality rates, the management of their business
models being their worst problem (ANPROTEC, 2002). To-
gether with the topic and context of this research, there is the
focus on the business models for the selling of software, the
use or delivery of which occurs virtually.
The research issue underling this paper is: ‘how should a busi-
ness model be for selling software that is used or delivered vir-
tually?’ Thus, the general objective of the research is to define a
business model for the selling of software that is used or deliv-
ered in a virtual environment. Its specific objectives are: a) to
develop a preliminary business model from the literature re-
viewed; b) to identify the current situation of software sold to
be used or delivered in a virtual environment in Brazil; c) to
verify the adequacy of the business model in companies that
work with software sold to be used or delivered through a vir-
tual environment; and d) to validate the model.
In this introduction (section 1), the topic, application context,
focus and objective of the research have been presented. Sec-
tion 2 concerns the theoretical basis of the study, while section
3 presents the research method. In section 4 the current stage
business, establishing the virtual environment, which allows
business to be electronically carried out, as is the case of e-
commerce. According to Cunningham (2001, p.2), “e-commerce
will become the main pillar for a company’s strategies, opera-
tion and technology systems”. The fact of buying and selling
remotely at any place or time alters products, processes and
relations between clients, companies, suppliers and intermedi-
aries (Turban et al., 1999). In the face of this change in the way
buying and selling takes place, the business models also change
(Afuah and Tucci, 2001).
Kauffman and Walden (2001) carried out an important study
on e-commerce, listing suggestions for research topics, among
which are: a) the study of digital products (Kaufman and Wal-
den, 2001, p. 32); and b) an understanding of how business
models are being modified by (and to) the Internet, formulating
a basis of business models for e-commerce that can offer sus-
tainable competitive advantage (p. 49). The authors point out
that business models in the e-commerce environment are differ-
ent from those of traditional businesses, and there is a need for
updated research as an attempt to understand what kinds of
business models are more efficient in different scenarios.
The topic of this research is the e-commerce of virtual prod-
ucts, that is, products or services that can be advertised, sold,
paid, delivered or used through the Internet (Choi, Stahl and
Whinston, 1997). If “the industrial economy depended on
physical goods and services, in the new economy many offers
(like software and electronic entertainment) are non-physical
and knowledge-based” (Tapscott, Ticoll and Lowy, 2001, p.
5). The context of this research is the Brazilian software mar-
ket, an important sector of the Brazilian economy. Although it
seems to display good technical know-how, its companies still
face high mortality rates, the management of their business
models being their worst problem (ANPROTEC, 2002). To-
gether with the topic and context of this research, there is the
focus on the business models for the selling of software, the
use or delivery of which occurs virtually.
The research issue underling this paper is: ‘how should a busi-
ness model be for selling software that is used or delivered vir-
tually?’ Thus, the general objective of the research is to define a
business model for the selling of software that is used or deliv-
ered in a virtual environment. Its specific objectives are: a) to
develop a preliminary business model from the literature re-
viewed; b) to identify the current situation of software sold to
be used or delivered in a virtual environment in Brazil; c) to
verify the adequacy of the business model in companies that
work with software sold to be used or delivered through a vir-
tual environment; and d) to validate the model.
In this introduction (section 1), the topic, application context,
focus and objective of the research have been presented. Sec-
tion 2 concerns the theoretical basis of the study, while section
3 presents the research method. In section 4 the current stage
Answered by
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The digital product delivery internet business model sells and delivers software, multimedia, and other digital products over the internet.
Explanation:
- The digital or internet business models are standard business models that comprise business models that are operated digitally i.e. over the internet.
- They are basically used to sell and deliver software, services, multimedia, messages, and other digital products i.e router, switch, smartphones, tablets, enterprise digital assistants and etc. over the internet with the help of digital means.
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