1. Defining Your E-Business Idea
Chapter 2

2. The Entrepreneur
Someone who assumes the risks of starting and running their own business
An entrepreneur needs
Leadership abilities
High energy personality
Self-confidence
High levels of organizational skills
Ability to act
Will working for yourself allow you to work less?

3. The Entrepreneurial Process

4. E-Business Success Factors
The network effect
Scalability
Innovative Web marketing ideas
Ease of entry into (electronic) markets
Adaptability to change

5. The Network Effect
The greater the number of nodes (participants) the greater the value of the network
Telephone example
Internet example
Metcalf law of network power
Power of the network = number of nodes2 or N2
NetMind, NetZero, ThirdVoice

6. Scalability
The ability of your idea to continue to function regardless of size
Big problem, both technically and general business
Can refer to the ability of a server or
Internet service to support increased loads
AllAdvantage

7. Innovative Web Marketing Ideas
Use the power of the Web and Internet to leverage new ideas.
Hotmail gave away free accounts that used a Web interface and was linked to a site. (p. 46)
Viral Marketing

8. Hotmail

9. Ease of Entry Into Markets
The Internet opened up access to markets by lowering barriers to entry.
Good ideas can be cloned.
Advantage frequently goes to first mover (first to market).
Ebay was a “first mover.”

10. Ebay Auction Site

11. Adaptability to Change
Internet and Web Technologies facilitate rapid change in business models.
New products or services
New features
Amazon.com started in books, added other products and more recently added auctions to their product/service mix

12. Amazon.com

13. Exploiting E-Business Advantages
Expand the market
Acquire greater business visibility
Maximize customer relationships and improve responsiveness
Create new services
Reduce costs

14. Expand the Market Reach more customers Lower location and time barrier
Ticketmaster
Does your idea take advantage of the Internet to expand your market?

15. Acquire Greater Visibility
Early days, simply an online brochure
The Internet allows companies to get their name, products, or services exposed to more customers than ever before.
Use or outsource distribution to others.
Find distributors for eToys and Pier1
Half.com – what did they do?
How your e-business idea could use the Internet to gain greater business visibility?

16. Maximize Customer Relationships
Build one-on-one relationships with customers.
What are your regular sites? Why?
Use technology to build and sustain links with customers.
Southwest Airlines

17. Improve Responsiveness
Use technology to respond more quickly or effectively to customer needs and inquiries.
Use services such as parcel tracking and delivery confirmation
Allow for on-line purchases

18. Create New Services
The Web allows for expansion and refinement of traditional business
Add new products quickly
TrailBreaker – gone!
Does your business idea provide a new, unique or revamped product/service suited to the Internet environment?

19. Reduce Costs
The Internet can lower costs of doing business by lowering…
Distribution costs
Marketing costs
Reduce info gathering costs - $1 to 1 cent
Thoughts on info gathering (phone #, please?)
Tech support online

20. Foodlocker.com

21. Grocery Works.com