1. Internet Strategy Brad Wright

2. My Approach Lets have a discussion Questions and interruptions are welcome

3. Evaluating the Author  Dot-Com Era  Economics Background  Seems to have a business first focus rather than a customer focus

4. Why Many Dot-com Era Businesses Failed  Why?  Subsidized offerings  Buy.com  Experimentation of customers  Paypal.com  Inflated Earnings and Creative Accounting  IE basing success on Business Models  Price-only based competition

5. The Down Side to Internet Businesses Priced based competition Undermines a business’ sustainable advantage Limits barriers to entry Low switching costs Prevents competitive advantages Hyper Competition

6. What the Future has Shown The internet is inherently capitalistic Focuses on competition and free market Places emphasis on quality and quality

7. “Those who do not learn from history are doomed to repeat it” George Santanaya

8. My View Businesses were motivated by the “fear of loss” sales principal Abandoned wisdom that lead to their success in the first place We should be customer focused not big business focused Opportunities for entrepreneurship For traditional business models, allow the growth to drive the infrastructure Personal Example

9. Moving Forward Competitive Advantages must be created through Operational Effectiveness Less investment Difficult to maintain Strategic Positioning

10. Basically, the difference between profitability and growth 6 steps 1.Have the right goal - ROI 2.Have a good value proposition 3.Distinct Value Chain 4.Choose your trade-offs 5.Have coordinated efforts across the business 6.Have continuity in your direction

11. Two Models Internet-only businesses Facebook.com, myspace.com, twitter.com Traditional business models Fidelity

12. Internet-Only Models - Social Networking, Search Engines, Selling Space, Domains, etc Where is the value? Services Sold - Author Discusses Data

13. Value in the Data This has been a nebulous concept for many businesses No metrics to measure value, etc New Metric - Earnings Per Record

14. Opportunities in Data Advertising Focused advertising Complementary offerings Repeat sales Developing new strategies

15. Traditional - Internet is a Complement Comprises the majority of internet uses “Virtual activities do not eliminate the need for physical activities, but often amplify their importance” Fidelity, Bank of America, Walgreens

16. Issues to be Aware of When Introducing Internet Tech New Positions are often created Opportunity costs are always present See resume example A phased approach is best

17. How to Win Successful Internet Offerings will Include: 1.Strong internet technology 2.Distinctive Strategy and process 3.Create value and charge directly for it (as apposed to click-through’s etc) 4.Specialization through industry knowledge

18. Quesitons: Thank you for your time