1. 5:00-6:00 Case discussion: eBricks.com
TODAY’S CLASS
5:00-6:00 Case discussion: eBricks.com
6:00-7:00 CRM
7:00-8:00 Paul Strupp, Sun Microsystems
“Tools and techniques for Data
Mining”

2. GUEST SPEAKER
Monday, March 19
5:00 P.M. Room 224
Paul Strupp
Northwestern University
Topic:
“Strategy and the Start-Up Firm”..

3. Three Structural Characteristics of a Winner-Take-All Dynamics
1. Strong demand-related network effects
2. Significant cost-related scale economies
3 Intrinsically high customer retention rates

4. Liquidity Benefits Vs. Transaction Processing Cost Savings
- Willing to switch suppliers
- Basis for supplier differentiation
- High search cost
Transaction Processing
- Large in relation to order value
- Lack of EDI infrastructure
- frequent order, multi-item, and
high coordination
- Multiple approval layers

5. FOLLOW-UP Jan 2000 Merged with Blueline Online Renamed Cephren
Received $42M
May Cephren launched RFQ bidding
Oct 2000 Had 200 employees
12,000 online participants
Involved in 700 projects in 30 countries
Valuation $50 B

6. THE PRIMARY OBJECTIVES OF eBRICKS.COM CASE STUDY WERE:
1) Discuss structural characteristics that make
an industry attractive for B2B
2) Explore two main benefit offered by B2B:
increase liquidity and reduced transaction
processing costs.
3) Evaluate classical issues that B2B face:
- Accept equity from mayor buyers/sellers
- Penetrate into few vertical market or expand fast
- Horizontal integration decision

7. Homework due next session
Prepare Case: WebVan
Read two articles:
“Planning for the inevitable product recall” and “BW Special Report: Logistics”