BUSINESS VALUE WEBS
Emerging Business Landscape BUSINESS VALUE WEBS Linking internal value web to other business webs
Relationship between AOL and Quicken.com-complex value web Quicken links its internal value web to other business webs AOL- a horizontal portal and ISP Operates 19 vertical portals called Web Centers Quicken.com and each of its individual financial services businesses (QuickenInsurance, QuickenLoans) is affiliate of AOL and its financial Web Center
Consequences Each time a visitor conducts business on the AOL/Quicken.com site AOL receives referral and transaction fee Some statistics for 1999: QuickenInsurance traffic volume 20% trough AOL 30% from Quicken.com
More Quicken.com and all of its businesses is also an exclusive financial services provider for businesses such as CBS Marketwatch, CNNfn, Motley Fool, The Wedding Channel, AutoWatch and more
Lessons learned Successful e/m-businesses shape and are shaped by the customers and business community Trough the process of evolution and adaptation new business models are emerging Value webs are essential
Web services Web services
Life Nowhere near the end of transformation
Life Comparing Two Titans IBM funneled $5.2 billion into research and development projects in 2001, but Big Blue spent a far smaller percentage of its revenues on it than did Intel, whose R&D spending amounted to $3.8 billion. Technology R&D as a percent of Revenues Intel Intel Intel14.3% 10.5% 8.6% 13.3%Intel IBM IBM IBM Source: Company reports Updated April 29, 2002
New generation of software An example of global strategic alliance
Assignment IV ABB Group serves global customers in power transmission and distribution; automation solutions; oil, gas, and petrochemicals; building technologies; and financial services. ABB historically has been one of the most successful decentralized businesses in the world economy, behaving like a federation of independent enterprises with local strength in each country. Now ABB is transforming itself into an integrated knowledge- and service-based company with an international image and international solutions. Point to By obtaining information from this web site conjecture What is business strategy of ABB? What is its technology strategy? What is its view of industrial IT?