1. Creating a Winning E-Business
Defining Your E-business Idea
Chapter 2

2. Learning Objectives Identify entrepreneurial abilities
Describe the entrepreneurial process
Understand the factors affecting e-business success
Identify ways to exploit e-business advantages

3. Entrepreneurial Process
Assumes the risks of starting and operating his or her own business
Must be able to lead others
Must believe in his or her business idea
Must have the self-confidence to accomplish business goals

4. The Entrepreneur E-business entrepreneur examples
Jeff Bezos, Amazon.com
Pierre Omidyar, eBay
Kelby Hagar, GroceryWorks.com and Digital Witness
Jason Zasky, Failure Magazine
What did all of these guys have in common?
The ability to see the future and challenge the status quo

5. Entrepreneurial Process
Entrepreneurial abilities
Leadership traits (Tribes attributes)
Good communication skills (Tribes attributes)
High-energy level
Self-confidence
Organizational skills
Ability to act quickly and decisively
Independent, goal-oriented, creative, competitive

6. Factors Affecting E-Business Success
The network effect
Total value of a product, service, or technology grows as more and more people use it
Telephone system example
Single telephone has no value; as more people join the telephone system, the value of each telephone increases
uBid online auction site example
As more people participate, the auction site becomes more valuable to buyers and sellers
Twitter

7. Factors Affecting E-Business Success
Innovative marketing ideas
Hotmail and viral marketing example
Hotmail users grew at a rapid rate because of electronic word of mouth coupled with the network effect
Electronic word of mouth (Godin one of first marketers wrote about this) or viral marketing spreads from user to user in the same way a human virus spreads from person to person

8. Factors Affecting E-Business Success
Scalability
Ability of a business to function well in the face of rapid growth
Systems and procedures meet customers needs
AllAdvantage e-business failure example
E-business idea: Paying for users to browse the Web and view advertising
Millions of customers signed on; advertisers did not
No scalability with rapid growth in customers

9. Factors Affecting E-Business Success
Ease of entry into electronic markets
Low-cost technologies make it easy to create new e-businesses
eBay and online auction example
Easy for consumers to interact at auction site
Web auction software is cheap and easy to install /maintain
E-businesses earn commissions without having to manage, warehouse, and distribute products

10. Factors Affecting E-Business Success
Ease of entry into electronic markets (continued)
Competitive barriers to overcome
Failure to secure first-mover advantage
Lack of name identification and name’s ability to sell the brand
Lack of customer loyalty

11. Factors Affecting E-Business Success
Ability to quickly adapt to marketplace changes
Rapid knowledge transfer
Need to make decisions quickly
Exploit new ideas and opportunities
Handle new challenges
Amazon.com is an example of ongoing evolution from a basic e-business idea

12. Exploiting E-Business Advantages
Use power of the Internet and Web to maximize customer relationships and improve responsiveness
Create customer loyalty
Stay in touch with customer needs
Build one-on-one relationships
Provide information to enrich customers’ online experience
JetBlue example