ELC 200 Day 12

Agenda Quiz 2 Corrected 10 A’s, 7 B’s and 2 C’s Very good results Extra credit ---the story of “bob.com” No one got it all right Next series of slides tell the story Question is being retired Today is a discussion on Launching a Business on the Internet

BOB.COM hints The first part of the story is in here BOB #2 BOB #3

Bob Antia (Bob #1) Original owner of BOB.com Founder of LeftBank now know as Cohesive Network Systems, Inc. Former Chief Master Architect for Exodus Communications (once the world’s largest ISP) Vice president of quality and risk at Waltham-based (MA) Guardant Inc Hosts a pig-roast every year in Lexington MA for the 100 most interesting people in the Boston Technology Circles http://www.domainhandbook.com/toc.html

Microsoft BOB (bob #2) Pictures from http://toastytech.com/guis/bob.html

Bob Kerstein (Bob #3) Traded Windows2000.com for bob.com with Microsoft http://www.scripophily.com/bob.htm

Chapter 16 Launching a Business on the Internet WWW

OBJECTIVES Introduction of E-Business Life Cycle Planning Launching a Business on Internet: Objectives OBJECTIVES Introduction of E-Business Life Cycle Planning Hardware, Software & Security Design Phase Marketing Fulfillment Maintenance & Enhancement

PLANNING (Phase 1) Strategizing Reality Value an internal “champion” Launching a Business on Internet: Introduction of E-Business Life Cycle PLANNING (Phase 1) Strategizing Reality Evaluate a company’s position & competition Set a course for years ahead Develop implementation plan Determine how to achieve goals Value an internal “champion”

E-BUSINESS vs. TRADITIONAL BUSINESS Launching a Business on Internet: Introduction of E-Business Life Cycle - Planning E-BUSINESS vs. TRADITIONAL BUSINESS Factor E-Business Traditional Barriers to Entry Time & Space Limits; Limited Financial Capital; Unique Products Location Requirements Basis of Competition Innovative Products Improved Products Basis of Control Customer Manufacturer

E-BUSINESS vs. TRADITIONAL BUSINESS (Cont’d) Launching a Business on Internet: Introduction of E-Business Life Cycle - Planning E-BUSINESS vs. TRADITIONAL BUSINESS (Cont’d) Factor E-Business Traditional Organization Specialized Teams Hierarchical Departments Marketing/ Sales Mass Personalization Mass Advertising Pricing Transaction Costs on a Sliding Scale Production Costs

Developing a Strategy (Phase 1) Know yourself, your product amd you environment 1. Who will buy the product? 2. How familiar the business is with the Internet? 3. Is the business planning to be a short-termer or a long-termer? 4. Who are the competitors? 5. How good will the product(s) look (online) ? 6. How will the business present the product offers? 7. How will one manage and process transactions? 8. How will the product be shipped? 9. How will the business handle unexpected change? 10. How will one get and use feedback?

STRATEGIZING (still phase 1) Launching a Business on Internet: Introduction of E-Business Life Cycle - Planning STRATEGIZING (still phase 1) Know Your Audience Become Internet Savvy Determine Long-term vs. Short-term Selling Define and Constantly Re-evaluate Your Competitors Evaluate Website Appearance Be objective!

STRATEGIZING (Cont’d) Launching a Business on Internet: Introduction of E-Business Life Cycle - Planning STRATEGIZING (Cont’d) Select Product Range Manage Transaction Effectively & Efficiently Design Shipment Process Be Prepared for Unexpected Changes

ULTIMATE STRATEGY Vision Resources Culture Launching a Business on Internet: Introduction of E-Business Life Cycle - Planning ULTIMATE STRATEGY Vision What is your business trying to achieve? Resources How much can your business afford to build the right Website? Culture Is your business politically amenable for coordinating efforts to support e-business?

DECIDING ON TYPES OF SITE Launching a Business on Internet: Introduction of E-Business Life Cycle - Planning DECIDING ON TYPES OF SITE Community http://www.ivillage.com Content http://www.cnet.com/ Commerce Business-to-business Back-end of e-commerce Business-to-consumer Front-end of e-commerce Consumer-to-consumer One consumer contacts another to transact business

PLANNING CONSIDERATIONS Launching a Business on Internet: Introduction of E-Business Life Cycle - Planning PLANNING CONSIDERATIONS Create & Maintain a Competitive Edge Reduce Operational Costs Improve Employee Communication & Satisfaction Find New Markets for Products & Services Improve relationships with Partners

PLANNING CONSIDERATIONS (Cont’d) Launching a Business on Internet: Introduction of E-Business Life Cycle - Planning PLANNING CONSIDERATIONS (Cont’d) Create Distinct Distribution Channels Ensure Customer Satisfaction Adopt Sense of Entrepreneurship Improve Supply-Chain Management

HARDWARE, SOFTWARE & SECURITY (Phase 2) Launching a Business on Internet: Introduction of E-Business Life Cycle – Hardware, Software & Security HARDWARE, SOFTWARE & SECURITY (Phase 2) Hardware Specifications Hardware / Software Pitfalls Security for Reliability

PROMOTING ONLINE SECURITY Launching a Business on Internet: Introduction of E-Business Life Cycle – Hardware, Software & Security PROMOTING ONLINE SECURITY Control access to web server Update server software & encoding security measures Use firewalls Monitor traffic & detect irregularities Assign a webmaster

DESIGN (Phase 3) Promote presence to customers Launching a Business on Internet: Introduction of E-Business Life Cycle - Design DESIGN (Phase 3) Promote presence to customers Secure site quality & effectiveness Keep website up to date

WEB STOREFRONT Enables customers to find products quickly Launching a Business on Internet: Introduction of E-Business Life Cycle - Design WEB STOREFRONT Enables customers to find products quickly 8-second rule Sends the order to fulfillment center securely Generates a printable receipt

WEB SITES PROGRAMS Database Server Store Administrator Catalog Builder Launching a Business on Internet: Introduction of E-Business Life Cycle - Design WEB SITES PROGRAMS Database Server Store Administrator Catalog Builder Shopping Cart Order-processing System

DESIGN CONSIDERATIONS Launching a Business on Internet: Introduction of E-Business Life Cycle - Design DESIGN CONSIDERATIONS User Control & Freedom Consistency & Standards Recognition Aesthetic Design Recovery Help Desk

MARKETING (Phase 4) Providing Good Services Advertising Launching a Business on Internet: Introduction of E-Business Life Cycle - Marketing MARKETING (Phase 4) Providing Good Services Advertising Knowing the Customers Selling Products & Services Following Up

MARKETING CONSIDERATIONS Launching a Business on Internet: Introduction of E-Business Life Cycle - Marketing MARKETING CONSIDERATIONS Focus on niche market Know your visitors Integrate online sales with other channels Provide a fast, easy payment process

FULFILLMENT (Phase 5) Packing up the merchandise Launching a Business on Internet: Introduction of E-Business Life Cycle - Fulfillment FULFILLMENT (Phase 5) Packing up the merchandise Shipping the merchandise Answering questions about orders Sending out bills Following up with customers Tax angle

INVENTORY ISSUES Product Availability Out of Stock Notice Back Orders Launching a Business on Internet: Introduction of E-Business Life Cycle - Fulfillment INVENTORY ISSUES Product Availability Out of Stock Notice Back Orders Processing Orders Controls

MAINTENANCE & ENHANCEMENT (Phase 6) Launching a Business on Internet: Introduction of E-Business Life Cycle – Maintenance & Enhancement MAINTENANCE & ENHANCEMENT (Phase 6) Maintenance Keeping a systems on course based on initial design Enhancement Implementing upgrades to improve system’s productivity Bottom Line – Customer Attraction & Retention

MANAGING CUSTOMER FEEDBACKS Launching a Business on Internet: Introduction of E-Business Life Cycle – Maintenance & Enhancement MANAGING CUSTOMER FEEDBACKS Set up FAQs Increase information access Avoid using large images Answer e-mail promptly

CUSTOMER SERVICE CONSIDERATIONS Launching a Business on Internet: Introduction of E-Business Life Cycle – Maintenance & Enhancement CUSTOMER SERVICE CONSIDERATIONS Order Update Order Status Look-up & Notification Technical Support Localization Customer Expectations

SWOT An analytic method used to determine competitive advantage Strengths Weakness Opportunities Threats

STRENGHTS Define areas you excel in What will your initiative do better than others? What are your core competencies (things you are good at)? Do you have a clear strategic direction? What resources do you have that competitors may not have?

WEAKNESSES Evaluate your liabilities Where are you weak in relation to your competitors? What skills and resources are you lacking? What needs to be improved in your initiative? Why were not able to improve the weaknesses you discovered?

OPPORTUNITIES Analyze your customers and market potential Identify favorable market conditions Identify emerging technologies in support of your initiative Identify changes in legislation and public policy that will have a supporting effect on your initiative

THREATS Analyze potential challenges What are your obstacles? What are your competitors doing? Identify changes in legislation and public policy that will have an adverse effect on your initiative.

SWOT Analysis