1. 1 C32– May 28, 2008 Business 54 - Introduction to eCommerce Spring 2008

2. 2 C32– May 28, 2008 Class Game Plan  Remaining Presentations?  Class Re-Cap.  Additional Questions / Topic Follow-up.  Exam Discussion.

3. 3 C32– May 28, 2008 3  The union of Buyer Side benefits and Seller side benefits creates a new business paradigm; the truly first ‘new’ one since Ford’s Model T and Mass Production:  The Virtuous Circle. Union of Buy and Sell Side

4. 4 C32– May 28, 2008 The union of Buyer Side benefits and Seller side benefits creates anew business paradigm; the truly first ‘new’ one since Ford’s Model T and Mass production: Convenience. Information Gathering. Anonymity. Price Comparison- Shopping. Walk Away Ability. Broader Reach. Lower Selling Costs. Supply Chain Management & Expansion. Reduced or (even ) Virtual Product inventories. Price Discrimination.

5. 5 C32– May 28, 2008 Business & Revenue Models Business Models  Business to Consumer.  Business to Business.  Business to Business to Consumer.  Consumer to Business.  Communities.  Exchanges-Marketplaces.  Governmental.  Peer to Peer.  Media. Revenue Models  Banner-Advertising.  Subscription.  Transactional.  ‘Begging’-Donations.  Middlemen.  Taxation.

6. 6 C32– May 28, 2008 6 The Internet – a Network of Networks

7. 7 C32– May 28, 2008 The Web Computing Complex The GUI The Data Warehouse(s) The Transaction Engine Back-Office

8. 8 C32– May 28, 2008 The Basic Open Source Web Technologies  LAMP.  Linux-Server Operating System.  Apache-Web Server Manager.  MYSQL-Database Engine.  PHP (/HTML)-Programming Language(s).

9. 9 C32– May 28, 2008 Keys of eMarketing  Traditional Marketing focuses on the 4 P’s: Product-What am I selling? Price-What am I charging? Placement-Where am I selling? Promotion-How do I make prospective buyers aware?  All of these are also important in the Web space, but there are some differences: Product is the same regardless of whether it is sold online or offline. Placement of the product is, by definition, on the Internet.  To the remaining 2 P’s we need to add 2 more to get to the 6 P’s of eMarketing: Personalization. Persistence. (Promotion). (Price / Price Discrimination).

10. 10 C32– May 28, 2008 eMarketing Guiding Principles  6 P’s of eMarketing: Product-What am I selling? Price / Price Discrimination -What am I charging? Placement-Where am I selling? Promotion-How do I make prospective buyers aware of my product? Personalization-What do I know about the Customer? Persistence-Who is the Customer?

11. 11 C32– May 28, 2008  The Web allows you to both Narrowcast and Broadcast at the same time.  Narrowcasting: One-on-One marketing & selling. Targeted audience(s).  Broadcasting: Global Reach. Large Product-Services Set. Appear bigger than you really are.  Smaller, and ruthlessly focused can be better than being big.  Successfully identify a web niche and exploit it: Meet an Unsatisfied Need. Become a Niche Player-Company. Compete on Emotion-image-brand. Higher Profit Margins / ROI. More Satisfying / Less Pressure. Price Mass Market Gaining Strategic Advantage through Specialization

12. 12 C32– May 28, 2008  Three Waves of the Internet.  Information Gathering – Users were on their own.  Search Engines: Editorial / Algorithm / Paid.  Introductions aka Lead Generation.  The Next Wave?: Assisted Lead Generation. Applying Web 2.0 to marketing. The Future of eMarketing is Lead Generation

13. 13 C32– May 28, 2008 eMarketing and Search  Paid and Free.  How Free search works.  How ‘Paid” Search works.  Google.  SEO.  SEM.

14. 14 C32– May 28, 2008  Types of eGov:  G2G.  G2C.  G2B.  G2V.  Mission vs. Profitability / NPV.  Automation, and not Re-Engineering or Webification. eGov

15. 15 C32– May 28, 2008 eLearning  Pseudo-Classrooms / Distance Learning.  Wiki’s.  Blogs and Chat Rooms.  Certification Programs.  Corporate Training.  Webcasts.  Podcasts.

16. 16 C32– May 28, 2008 eAuctions  Dynamic Pricing / Selling of Goods and Services.  Regular Auctions.  Dutch Auctions / Reverse Auctions.  Silent Auctions.  Sealed Bid Auctions.  C2C Auctions  B2B Auctions.  B2C Auctions.

17. 17 C32– May 28, 2008 Internet Security Confidentiality Availability Integrity Authentication Authorization Non-Repudiation

18. 18 C32– May 28, 2008  Four Waves of Flattening / Globalization.  The Romans: 100BC – 800AD  Columbus and The Age of Exploration: 1492 – 1800.  Western Europe and The Age of Colonialism: 1800-1989. Sun never sets on the British Empire.  Jim Barksdale and The Age of the Internet: 1989 to Today. Globalization

19. 19 C32– May 28, 2008  Modifying the site to met specific needs of a target DEMOGRAPHIC or GEOGRAPHIC group:  Content = Needs.  Linguistic.  Navigation.  Graphics vs. Text.  Cultural / Social.  Legal / Regularity.  Others? Globalization vs. Localization

20. 20 C32– May 28, 2008  The defining document for your eCommerce business.  Also applicable for corporate eCommerce initiatives.  Usually averages about 40 pages in length with tables-charts.  Consolidates-unifies your Business Strategy, Business Model and Revenue Model.  Your calling card for investors and corporate decision-makers / approvers.  Key Sections of the Business Plan include: Executive Summary Market Demographics Marketing and Product Strategy Staffing-Management Team Historical and Prospective Financial Statements and Investment Returns The Business Plan

21. 21 C32– May 28, 2008 Raising the Money  Also called the Money Chase.  Will consume the company and senior management until you achieve cash neutrality.  The single, most important job for Founder/CEO at this stage of company development.  The Money Chase has a number of progression steps and funding levels: Sweat Equity Friends and Family Dumb Money Angels Smart Money / Strategic Partners Venture Capitalists IPO  May not pass thru all levels. May skip some steps-levels.  Need to balance debt and equity fundraising.

22. 22 C32– May 28, 2008 Valuation  Valuation Models: Comparison. Financial: Revenue-based Cash Flow-based. Replicative.  Multiplier Effect.  Other Value Considerations.  The Validation Tension / Battle.

23. 23 C32– May 28, 2008 Communities  Collection of like-minded people who share attributes or hobbies-interests.  Think your local church group or alumni organizations or AOL.  Size / number of active community members is THE critical success factor.

24. 24 C32– May 28, 2008 Web 1.0 Web 2.0 DoubleClick-->Google AdSense Ofoto-->Flickr Akamai-->BitTorrent mp3.com-->Napster Britannica Online-->Wikipedia personal websites-->blogging evite-->upcoming.org and EVDB domain name speculation-->search engine optimization page views-->cost per click screen scraping-->web services publishing-->participation content management systems-->wikis directories (taxonomy)-->tagging ("folksonomy") stickiness-->syndication Web 2.0

25. 25 C32– May 28, 2008 Internet 2.0  Not-for-profit advanced networking consortium comprising more than:  200 U.S. universities;  70 leading corporations;  45 government agencies / laboratories; and  50+ international partner organizations.  Mission is:  providing increased network capacity and actively develop new technologies, including middleware, security, network research and performance measurement capabilities which are critical to the progress of the Internet.

26. 26 C32– May 28, 2008 EnterTech Movies:Games.

27. 27 C32– May 28, 2008 Online Games  Types of games:  RPG.  Sports.  Shooter.  Strategy.  Sports.  Massively Multiplayer Online Games (MMOGs aka The Micro-verse).  Most often played online games:  52% Puzzles, Board games, Game Shows, Trivia, Cards.  22% Action, Sports games, Strategy/Role-playing games.  9% Shockwave/Flash Browser-based mini games.  6% Persistent Multiplayer universe.  11% Other.

28. 28 C32– May 28, 2008 Non-Lloyd Class Questions……

29. 29 C32– May 28, 2008 Lloyd Class Questions…… (and maybe some) Answers

30. 30 C32– May 28, 2008 Additional Topics / Follow Up?

31. 31 C32– May 28, 2008 Exam Questions?

32. 32 C32– May 28, 2008 Thanks for taking the Class! Have a great Summer Vacation!