1. Find Customer – Bind Customer
E-Business
The Relevance Principle
Prof. Dr. Tilo Hildebrandt

2. Services on The Internet
News
groups
Search
Engines
Chat
W W W
Filetransfer
Internet
Prof. Dr. Tilo Hildebrandt

3. Internet Characteristics
New Quality of Communication
Time-delayed communication
Actors with own computing facilities
Interaction between unknown partners
Minimal transaction costs (low entropy)

4. Exponential Growth of Value
Actors on the Internet
Exponential Growth of Value
Sender: 5 CP
Network: 15 CP
generally
CP = A CP = A2 –A
CP:= Communication Possibilities – A:= Actors

5. Service „Trade“ Production Costs for Seller Total Cost of Products
Transaction Costs of Seller
Internet Saving
Potential
Transaction Costs of Buyer
Prof. Dr. Tilo Hildebrandt