Building an eBusiness: Design, Development and Management

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Building an e-Business Design, Developmentand
Management
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Some Statistics

• A quarterly report by the Institute for Supply
  Management (ISM) and Forrester Research found
  that the number of large-volume-buying
  organizations that reported cost savings from
  using the Internet grew from 28 percent in the
  third quarter of 2001 to 45 percent for the
  fourth quarter.

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Some Statistics

• Respondents reported purchasing 9.5 percent of
  their indirect materials and 6.2 percent of their
  direct materials over the Internet in the fourth
  quarter of 2001 -- an increase from the third
  quarter's levels of 7.1 percent and 5.3 percent,
  respectively.

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Some Statistics

• More than one-quarter (26 percent) of
  organizations bought goods or services via online
  marketplaces, an increase from 23 percent in the
  third quarter of 2001.
• Organizations have also increased their use of
  online auctions to 23 percent in the fourth
  quarter to 17 percent in the third quarter.

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Some Statistics

• "Worldwide business access to the Web is expected
  to grow at an even faster rate than the US
  market--from 1.3 million in 1996 to 8 million by
  2001." --O'Reilly Associates
• "In general, the more difficult and
  time-consuming a purchase category is, the more
  likely consumers will prefer to use the internet
  versus standard physical means." eMarketer

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Some Statistics

• "Home continues to be the most popular access
  location, with nearly 70 of users accessing from
  their homes...almost 60 shop online. The most
  popular activities include finding information
  about a product's price or features, checking on
  product selection and determining where to
  purchase a product." --IntelliQuest Information
  Group, Inc., WWITS Survey

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Some Statistics

• Despite the global economic malaise, internet use
  continues to climb. Why? Because people still
  seek ways to communicate and get information
  quickly and easily. eMarketer estimates that the
  number of internet users worldwide will jump from
  445.9 million in 2001 to 709.1 million in 2004.
  (eGlobal Report)

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Lure of E-Commerce

• Lower transaction costs
• Larger purchases per transaction
• Integration into the business cycle
• People can shop in different ways
• Larger catalogs
• Improved customer interactions

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Business Models

• Bricks-and-mortar traditional stores
• Example K-Mart
• Virtual company pure internet company
• Example Amazon.com
• Clicks-and-mortar combination of internet and
  traditional stores
• Example Barnes Noble

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Amazon.com
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Barnes Noble
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Before You Start

• What do you want your site to do?
• - Selling products
• - Selling subscriptions
• - Selling advertising
• Why do you want to sell online?
• - Find more buyers
• - Promote offline store
• - Reach other businesses

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Before You Start

• What do you want to sell?
• - Physical products, such as book, CD, etc.
• - Your employees experience and expertise
• - Your employees talent for organization
• - Your level of customer service and personal
  attention
• - Your ability to customize solutions to each
  clients need

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Steps to get started

• Generating e-Business ideas
• - A solid business plan primary purpose,
  strategy, support, business model, process.
• - Determine what you need to be competitive
  online
• - Useful links to tutorials on business plans
• www.synrgistic.com/busplan/busplan.htm
• www.adarus.com/html/demos.html

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How to write a business plan
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Generate a requirements document
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Steps to get started cont.

• Evaluating risks
• - Analyze the industry competitors
• - What businesses are successful?
• - Porters ICA model
• Threat of new entrant
• Buyers bargaining power
• Suppliers bargaining power
• Threat of substitute products
• Traditional intraindustry rivals

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Steps to get started cont.

• Finding funds and going public
• - Internet incubators
• An internet incubator is a company that
  specializes in the development of Internet
  businesses.
• - Places to go
• www.raremedium.com, www.campsix.com,
  www.ecorporation.com, www.idealab.com,
  www.ehatchery.com

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Internet incubator Idealab
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IdeaLab.com
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Implementing Plan

• Getting a good domain name
• - Places to go
• www.domainit.com, www.register.com,
• www.networksolutions.com
• - Some examples
• www.deitel.com, www.microsoft.com, www.dell.com,
  www.fedex.com

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Domain name
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Register.com
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Implementing Plan cont.

• Finding a web-site host
• - Web hosting
• Web-hosting companies provide products, services
  and support for companies, organizations and
  individuals to help them create and maintain Web
  sites.
• - Places to go
• www.loudcloud.com, www.hostopia.com,
  www.dedicatedhosting.com, www.hostpro.com,
  www.globalcrossing.com, www.exodus.com

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Implementing Plan cont.

• What do you need from a Web host?
• - Room to do business
• - Business e-mail addresses
• - FrontPage server extensions
• - Technical Support
• - Marketing services
• - File transfer capability
• - Reliability

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Loudcloud.com
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Globalcrossing.com
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Implementing Plan cont.

• Design of a storefront
• - Have a well-designed, easy-to-navigate Web
  site
• - Update Web content regularly
• - Design consistency/uniformity among sections
• - User-friendly
• Enhancing the user experience
• - Searching capabilities www.freefind.com
• - Intelligent agents Amazon.com
• - Community-building features MyEvents.com
• - Product viewing technology www.mgisoft.com

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Freefind.com
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Myevents.com
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Implementing Plan cont.

• Protecting your e-Business
• - Privacy policy detailing the intended uses of
  consumers private information
• - Disclaimers provide users with the limits of
  companys products and services
• Streaming media
• - Provide consumers with effective Web pages
• Preparing for new technologies
• - Keep this in mind when designing your site

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Implementing Plan cont.

• Some other important issues
• - Online monetary transactions
• - Internet security
• - Payments taxes
• - Internet marketing
• - Customer relationship management
• - Political, legal, societal issues, etc.

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Buy, Lease, or Build?

• Option 1 Buy a ready-made solution
• - Intershop or IBM WebSphere
• Option 2 Rent space at an E-Commerce ASP
• - Yahoo Stores or Escalate Direct
• Option 3 Build the system from scratch to your
  specifications
• - Macromedias ColdFusion, Intershop 4,
• Microsofts Site Server Commerce Edition

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IBM WebSphere
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Escalate Direct
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Microsofts Site Sever
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e-Business Solutions

• End-to-end e-Business solutions
• - Offer services to build Web sites from
  conception to implementation.
• - Provide easy adaptation to back-end systems,
  fulfillment and data management.
• - End-to-end solution providers
• www.bcentral.com, www.webvision.com,
  www.roidirect.com, www.delleworks.com

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Webvision.com
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e-Business Solutions cont.

• Other e-Business solutions
• - Openair.com
• - ASPs offer small organizations the opportunity
  to operate with current technologies at
  reasonable costs.
• - Intacct provides online accounting and
  auditing services.
• - Content management www.allaire.com

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e-Business Solutions cont.

• Maintaining and monitoring Web site
• - A balanced scorecard
• - Outsourcing testing and monitoring services
• - Knowing your web sites capabilities
• - Mercury Interactive measures the capacity
• - Akamai provides content delivery service
• - iSharp.com provides Web-site testing,
  monitoring and consulting services
• - Holistix, Inc. offers two testing solutions

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e-Business Solutions cont.

• e-Commerce consulting
• - Guide developing e-businesses
• - Operate as advisors
• - Provide building and maintenance services
• - e-business consulting companies
• Andersen Consulting www.ac.com,
• Ernst Young www.ey.com/ebusiness
• SAP.com mysap.com, Sun Microsystems,
  www.answerthink.com, www.xpedior.com, etc.

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Ernst Young
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Some Links

• http//www.howstuffworks.com/ecommerce.htm
• http//hotwired.lycos.com/webmonkey/e-business/tut
  orials/tutorial3.html
• http//www.internetnews.com/ec-news/
• http//www.emarketer.com/
• http//www.ilr.cornell.edu/library/reference/guide
  s/ecommerce/
• http//www.brint.com/Elecomm.htm

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Questions???
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Questions for you

• How many business models are existing?
• There are three types businesses
• Bricks-and-mortar traditional stores
• Example Grocery stores
• - Virtual company pure internet company
• Example Amazon.com
• - Clicks-and-mortar combination of internet and
  traditional stores
• Example Barnes Noble

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Questions for you cont.

• 2. Whats an internet incubator?
• An Internet incubator is a company that
  specializes in the development of Internet
  businesses.
• Why should a web-site include a disclaimer?
• To protect the consumer and the e-business
• from misunderstandings and misinterpretations.

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Questions for you cont.

• 4. Name 2 companies that provide end-to-end
  e-business solutions.
• Microsoft bCentral www.bcentral.com, Webvision
  www.webvision.com
• List 2 Web-site hosting companies.
• LoudCloud www.loudcloud.com,
• Hostopia www.hostopia.com

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Thank you!