1. TODAY’S CLASS 5:00-6:00 Case discussion: Boston.com 6:00-6:15 Break
6:15-7:15 Final reflections on the course
7: End of semester celebration

2. END OF SEMESTER
CELEBRATION!
THURSDAY
6:00 PM
Nicks Sports Rock Cafe
th Street, Boulder

3. Should Boston.com “Upsell” Classified Ads?
PLUS
1. Revenue opportunity/
recapture revenue erosion
2. Online rates are lower
3. Educate customers about
value
4. Incentives to workforce
5. Show revenue before IPO
MINUS
1. Threaten biggest advantage:
number of listings
2. De-links online listings from
printed newspaper
3. Exacerbates internal conflicts

4. “Get Big Fast” Approach
- Online revenue expected over next few years
- Brand loyalties are malleable
- “Winner-take-all” dynamics
Network effect
Scale economies
Intrinsic ability to retain customers
- Lifetime value of customer exceeds acquisition’s
cost
- Risks of competitor preemption is high
- Can manage operational “growing pains”
- Capital market rewards market leaders

5. Boston.com: Hawk or Dove?
Hawkish Choices
- Separate physical location
- Separate brand
- Dedicated sale forces
- Separate management
- Separate reporting structure
Dovish Choices
- Sharing content
- Insider CEO
- Heavy cross-promotion
- Double commissioning
- Shared support systems

6. “Get it Right First” Approach
- Protecting quality and brand is paramount
- “Learning by doing” yields a big payoff

7. FOLLOW-UP Feb 2000 Began upselling recruitment ads
80% “compliance” rate
Globe staff sold online upgrades
Boston.com staff banners & sponsorship
May Created “Abuzz,” community of experts
Introduced new services:
- Restaurant reviews/reservations
- Travel services / ticketing
June Impact of Internet stock prices crash
still unclear

8. The Clicks-and-Mortar Spectrum
Integration
- established
brand
- shared
information
- purchasing
leverage
- distribution
efficiencies
Separation
- greater
focus
- more
flexibility
- access to
venture
funding
Strategic Joint In-house
Spin-off partnership venture division
Barnesand/ Rite Aid and Kbkids.com Staple.com
nobles.com Drugstore.com

9. Which Clicks-and-Mortar Approach?
Separation Integration
Brand extends to Internet
Different customer segment/product mix
Price differently online and in stores
Have Internet skills/experience
Willing to judge Internet different
Channel conflict
Threaten current business model
Distribution system translate well
IS a solid foundation to build
Are systems a competitive advantages
Having trouble attracting/retaining talent
Need outside capital to fund venture
Is a supplier, distributor, or other partner key
Brand
Management
Operations
Equity

10. Key Resources - Projects: Signal Soft, Time Warner Telecom, Level 3
- Cases: BET.com, Priceline Webhouse Club,
InSite Marketing Technology, Service and Value
in e-Commerce, eBricks.com, Webvan, Amazon,
Boston.com
- Speakers: Ed Gac, Mohanbir Sawhney, Paul Strupp,
Don Hazell, and Steve Harris
- Textbook and articles: Rayport and Jaworski, 2000
- Articles: Many..
- Support: Accenture Consultants, Project Sponsors,
and instructors

11. THE PRIMARY OBJECTIVES OF BOSTON.COM CASE STUDY WERE:
1) Discuss the threat and opportunity presented by
the Internet to traditional media players.
2) Explore the strategic, operational, and financial
questions an incumbent faces when implementing
a Web initiative.
3) Evaluate the tensions between pursuing a “Get
Big Fast” versus a “Get it Right First” implemen-
tation strategy for incumbents who faces
cannibalization.

12. The Balanced Scorecard Strategy Into Operational Terms
Financial
To succeed financially, how should we appear to our shareholders?
Customer
To succeed financially, how should we appear to our shareholders?
Internal Business Process
To satisfy our shareholders and customers, what businesses must we excel at?
Vision and Strategy
Learning And Growth
To succeed financially, how should we appear to our shareholders?
Source: Robert S. Kaplan and David P. Norton, “Using the Balanced Scorecard as a Strategic Management System,”
Harvard Business Review 74 (January-February): 76, 1996

13. The Performance Dashboard
Steps of Strategy
Market
Opportunity
Assessment
Business
Model
Customer
Interface
Branding and
Implementation
Evaluation
Opportunity
Metrics
Business
Model Metrics
Branding and
Implementation
Metrics
Customer
Interface and
Outcome
Metrics
Financial
Metrics
Performance Dashboard

14. Crossfire: Which is Better -- Online or Offline Data Sources?

15. TOPICS 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

16. “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

17. The Accenture Graduate Seminar in e-Business
Spring 2001
THANK YOU!!!