ACCENTURE THE ANDERSEN CONSULTING GRADUATE SEMINAR IN e-Business MBAM / MBAT 6600 INSTRUCTORS: Dipankar Chakravarti (Dipankar.Chakravarti@Colorado.edu, BUS 412, 303-492-1311) Ramiro Montealegre (Ramiro.Montealegre@Colorado.edu, BUS 443, 303-492-0416)

STUDENTS' BACKGROUND - NAME - DEGREE & MAJOR - WORKING EXPERIENCE - WHY REGISTERED FOR THE COURSE - EXPECTATION ABOUT THE COURSE

KEY ISSUES IN e-BUSINESS OBJECTIVES 1. PROVIDE ADVANCED LEVEL ANALYSIS OF KEY ISSUES IN e-BUSINESS 2. ALLOW STUDENTS TO LOG TIME ON AN e-BUSINESS SETTING TO ACQUIRE A TANGIBLE SENSE OF THE TRANSFORMATION THAT IS TAKING PLACE.

GRADING Class Participation 20% (attendance and contribution to discussions) Presentation on a class research topic 20 % Final Project 60 % ________ TOTAL 100 %

PROJECTS TimeWarner E-Billing Solution Qwest E-Procurement SignalSoft Mobile Commerce Level3 a. Portal Selection and Development b. CRM Usability Conceptual Proposal: 1/23 and 1/30 Checkpoint Presentations: 3/6 Final Presentations: May (week 1 and 2)

“Student-Centered” Teaching Approach Team, Companies, Consultants, & TAs Cases, Textbook and guests Research Topic, Team Discussions Group, and individualized discussions Collaborative work Student Project reports, presentations, final report Final Project Instructors - Marketing - IS

Team, Companies, Consultants, & TAs Cases, Textbook and guests Student Final Project Instructors - Marketing - IS

TOPICS TO BE COVERED - Framing e-Business market opportunities - E-Business models - The customer interface for e-Business - Communications and branding issues in e-Business - Legal and privacy issues in the Internet age - Logistical support for e-Business - Valuation of e-Businesses - Implementation of e-Businesses - Metrics for evaluating e-Businesses

HOW TO SUBSCRIBE TO THE DISCUSSION LIST FOR THIS CLASS Address a message to: listproc@lists.colorado.edu Write the following statement in the body of the message (nothing else is required): subscribe MBAT6600 YourFirstName YourLastName Send the message; you will get confirmation

HOW TO DOWNLOAD CLASS MATERIALS AND ANNOUNCEMENTS Use your browser to point to this address: http://bus.colorado.edu/courses/spring2001/MBAT6600

HOW TO SEND MESSAGES TO THE DISCUSSION LIST FOR THIS CLASS address your message to: MBAT6600@lists.colorado.edu The list provides an additional channel for communication on issues of interest to those in this class. The list can be used for announcements (e.g., of job opportunities, interesting things happening in the IS industry), discussion on class-related issues, detailed questions you forgot to ask in class or are too detailed for class, etc. Stay in touch via our list, as well as during class!

Percentage of the 2000 IT budget to be used for: Salaries / benefits New products / technologies Implementing E-business IT consulting services Research & Development Finishing Y2K conversions Other 5% 10% 20% 30% Source: InformationWeek, Jan 3, 2000

What is e-Business Technology-mediated exchanges between parties (individuals, organizations, or both) as well as the electronically based intra- or interoganizational activities that facilitate such exchanges. Rayport and Jaworski, 2000

How is e-Business Different from Traditional Commerce - Core strategic decisions are technology-based - A real-time competitive responsiveness - The store is always open - A technology-based customer interface - The customer controls the interaction - knowledge of customer behavior - Network economics

What if YOU are in charge of a new e-Business initiative - Which customer groups should I serve? - How do I provide a compelling “value proposition” - How do I communicate with customers? - What is the content, “look-and-feel,” community, and degree of personalization? - How should I structure my organization? - What are my potential partners? - How will this business provide value to shareholders - What metrics should I use to judge progress?

Where to Play: Online / Offline McDonnald’s Customer Interface Fulfillment Systems Yahoo! Bn.com Egghead Amazon.com Source: Rayport & Jaworski 2000

Framework for Market Opportunity Seed Opportunity in Existing/New Value Systems Uncover Opportunity Nucleus Identify Target Segment(s) Resource-Based Opportunity for Advantage Assess Opportunity Attractiveness Make “Go/No Go” Assessment Source: Rayport & Jaworski, 2000

Generic “Value Types” Trapped Value - More efficient markets - More efficient value systems - Ease of Access - Disrupt pricing power New-to-the World Value - Customize offerings - Extend reach and access - Build community - Collaboration of multiple people across locations/time - New functionality/experience

Segmentation Type Examples - Variables Geographics Country, region, city Demographics Age, gender, income Firmographics # of employees, company size Behavioral loyalty, prior purchases Occasion Routine occasion, (Situational) special occasion Psychographics Personality, lifestyle Benefits Convenience, economy, quality

TECH-WATCH: 2001 may mark the emergence of the Chief Strategy Officer, or CSO. The CSO's role is to ensure that an organization's e-business solutions are competitive. “An ideal CSO has a broad understanding of the marketplace and understands both technology and business needs. It could be someone who came up through the IT or marketing ranks. Ideally, it takes a jack-of-all-trades and a master of all of them to fill the job." TechRepublic, January 10, 2001

Priceline.com Segmentation Purpose Flexible Personal Business who In advance Flexible Last Minute Other Going home Student Retirees Vacation Retirees Family with child Other Low-mid income/ frequent flyer Mid-high Vacation All Other Trips Getaways Business Trips Last Minute Vacation Vacation Nonfamily Trips Groups Group Trips

Options for Evolving an E-Business Extend Launch a new business or add a new model Enhance Add functionality or improve product /service that is currently offered Extend Enhance Expand Expand Add products/services in existing line or enter a new market Exit Exit Drop a product/service or exit a business

The E-Business Value Framework Envision Shareholder Values Concept Economics Execute Capabilities & Community

Framing e-Business market opportunities TODAY’S TOPIC Framing e-Business market opportunities

Cases to be Analyzed - BET.com - Priceline Webhouse Club - Service and Value in e-Commerce - InSite Marketing Technology (A) - Webvan: Groceries on the Internet - Amazon.com: Exploiting the Value of Digital Business Infrastructure - Boston.com - Staples.com

Homework Due TOMORROW by 5:00 p.m. your TEAM criteria Due next session Subscribe to electronic list Prepare: BET.com Read: Chapters 1 & 2 + Articles