defining your e-business idea chapter 2. the entrepreneur someone who assumes the risks of starting...
TRANSCRIPT
Defining Your E-Business Idea
Chapter 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?
The Entrepreneurial Process
E-Business Success Factors
The network effect Scalability Innovative Web marketing ideas Ease of entry into (electronic) markets Adaptability to change
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
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
Innovative Web Marketing Ideas
Use the power of the Web and Internet to leverage new ideas.
Hotmail gave away free e-mail accounts that used a Web interface and was linked to a site. (p. 46)
Viral Marketing
Hotmail
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.”
Ebay Auction Site
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
Amazon.com
Exploiting E-Business Advantages
Expand the market Acquire greater business visibility Maximize customer relationships and improve
responsiveness Create new services Reduce costs
Expand the Market Reach more customers
Lower location and time barrier
Ticketmaster
Does your idea take advantage of the Internet to expand your market?
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?
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
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
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?
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
Foodlocker.com
Grocery Works.com