1. ELC 200
Day 12

2. 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

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

4. 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

5. Microsoft BOB (bob #2)
Pictures from

6. Bob Kerstein (Bob #3)
Traded Windows2000.com for bob.com with Microsoft

7. Chapter 16 Launching a Business on the Internet
WWW

8. 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

9. 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”

10. 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

11. 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

12. 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?

13. 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!

14. 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

15. 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?

16. DECIDING ON TYPES OF SITE
Launching a Business on Internet: Introduction of E-Business Life Cycle - Planning
DECIDING ON TYPES OF SITE
Community
Content
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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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

27. 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

28. 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

29. 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

30. 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 promptly

31. 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

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

33. 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?

34. 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?

35. 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

36. 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.

37. SWOT Analysis