ecommerce institute © [email protected] (904) 3479250 “ebusiness knowledge for all!” 1...

Ecommerce Institute©

[email protected] (904) 3479250 “EBusiness Knowledge for All!”

1

ECommerce Institute, LLC

San Diego London Singapore Australia Trinidad&TobagoSan Diego London Singapore Australia Trinidad&Tobago

We do:

EBusiness:

Training, Education, Strategy,

Vision Formation & Articulation

Workshops, Seminars

Competency Certificate Programs

Organizational transformation

Online branding & marketing

Workforce talent development

Internet Data Centers

Selected Clients:

Deloitte, Touché & Tohmatsu

Ericsson -- Hong Kong, China

Telstra -- Australia

Lucent Technologies -- Indonesia

British Telecom -- UK

Hitachi -- USA

EDS -- Australia

Tait Electronics – New Zealand

San Diego State University -- USA

Visa International -- Singapore

Herman Miller -- UK

US State Department

Governments of Trinidad, Malaysia, Fiji, Mauritius



2

Building Brands in the Digital Economy:Building Brands in the Digital Economy:

EBusiness StrategyEBusiness Strategy

Dr. V. David Levitin, CEO ECommerce Institute, LLC

San Diego, California



3

Evolutionary Utopia

or . . .

The unpredictable

mutant



4

“An idiot with a computer is a

faster, better idiot“

Rich Julius



5 TECHNOLOGY SCITECHTECHNOLOGY SCITECH

World’s changes:World’s changes:

Finance, travel, weather, communications, education, religion, medicine…the rest of it!Finance, travel, weather, communications, education, religion, medicine…the rest of it!



6

The Why’s

...Social, political and economic systems change incrementally, but technology changes exponentially...

We used to treat technology as a critical tool for implementing

change.

Today, change originates with digital technology.



7

AwarenessAwareness

RetirementRetirementNegotiationNegotiation

OwnershipOwnership

FulfillmentFulfillment

OrderOrder

Awareness -- marketing, networking, catalogs

Negotiation -- emarkets, order, configuration, sales

Order -- procurement, payment processing

Fulfillment -- manufacturing, order processing, delivery

Ownership -- sales support, CRM

Retirement

ECI Value Matrix™

Knowledge

Base

NEW

TECHNOLOGY



8

What is the Key to a Successful Online National Brand?

1. Effective use of information

2. Superior product selection

3. Superb quality data

4. Brilliant sales effort

5. Innovative global marketing

6. Business process reengineering

7. Unconditional Government support and participation



9

Creativity Rules!Creativity Rules!

Business Model InnovationBusiness Model Innovation

Approaches not possible with “traditional” commerce Destroying old models of wealth creation

Shifting profits in most value chains



10

1. Your National Strategic Intent

What are the following companies/organizations/countries known for?

– Oracle– Microsoft

Seibel– Ariba– IBM– Charles Schwab– SAP– Intel– Saudi Arabia



11

Question

Five to twenty years from now, what will Lithuania be noted for?

MINING INTELLECTUAL OIL

What would it look like for Lithuania to produce “intellectual oil” and mine it successfully for the next century or longer?



12

Power Of A Strategic Intent

What company in the world’s leading copy machine manufacturer?

Who said in 1960:

“We’ll put a man on the moon by the end of the decade?”

What was the result?

CANNON

JFK



13

Strategic Intent

Animating dream, implying significant stretch for the organization

Gives a sense of direction– "Where," not "How"

Gives a sense of discovery– Is differentiated and competitively unique

Gives a sense of destiny– Demands respect and allegiance of every employee (ICT worker)– Embeds a sense of passion– Creates meaning for employees (ICT workers)– Spontaneously creates excitement– Is about building a legacy



14

To Do: Build Network Effects

Software Manufacturing– Which country in the world is the largest exporter of software?

Ireland!

(Source: OECD Information Technology Outlook 2000)



15

Question

What location in the US has the largest concentration of engineers per capita?

What cities in the US get the highest foreign investment per capita?

Spartanburg and Greenville, State of South Carolina



16

Competence Clusters: The Rise Of Location

Competence in manufacturing – “the autobahn”– Largest number of engineers per capita in the U.S.– Country’s lowest work-stoppage rate– Home to 215 companies from 18 countries

74 have U.S. headquarters there Michelin, BMW

Why: free, customized technical training of workers– EDUWEB

South Carolina– Network of 16 technical colleges– Rated among the best in the U.S.



17

EBusiness Or Communication Media?

Internet brands require thinking of Internet as a business– Create a new category in people’s minds– This is where marketing battles are waged

Did a content owner create the most powerful content directory on the web?

Which bookseller created the most successful Internet bookstore?

Who created the most successful auction site on the Internet?

Who is the most successful ISP?

What’s the message?



18

Reality!

Imitate Vs. InnovateImitate Vs. Innovate

Competing for the future– Path breaking vs. benchmarking– Leapfrog to the forefront

Internet 2 Grids Bioinformatics

Consider New Emerging Technologies…more…much more!



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Role Models?

“Governments worldwide, including the United States, are not using the full technological potential of the Internet.”

The World Markets Research Centre



20

YOUCompete for markets that don’t yet

exist!

Against more than one unidentified competitor!

C H A L L E N G E!

Who’s perfect? Humans?

ATTENTION and ITS SHORTAGE!ATTENTION and ITS SHORTAGE!

Human inability to focus attention on multiple subjects at once and shortage of attention

BRANDING…SCHMENDING!

17,000 new grocery store products are introduced each year

1,000 of advertising messages directed exclusively at each person in developed countries

One trip to supermarket exposes you to 10,000 marketing messages, one hour of TV adds forty more, one morning newspaper adds another hundred…should I continue?

Each consumer sees 1 million marketing messages a year, Each consumer sees 1 million marketing messages a year,

3000 a day3000 a day



23



24

Industry Convergence

Telecommunications Broadcast / Video

Computing/IT

Voicetelephony

Broadcast TV

Computing / LANS

DatacommsStoredmedia

Video-conferencing

Networkedmultimedia



25

Vertical Empires are Crumblingand Reassembling

Information specialization is shifting from form to function:

Form

Text Image Voice Data Video

PU

BL

ISH

ING

PH

OT

OG

RA

PH

Y

TE

LE

CO

MM

UN

ICA

TIO

NS

CO

MP

UT

ING

EN

TE

RT

AIN

ME

NT

Digitization

MarketDynamics

FU

NC

TIO

N

Create(Content)

Store(Databases)

Display(Devices)

Process(Applications)

Distribute(Transport)



26

“Virtual to Horizontal” Restructuring is Creating New Competitive Space...

Fu

nct

ion

Text

Create(Content)

Store(Databases)

Display(Devices)

Process(Applications)

Distribute(Transport)

FormImage Voice Data Video

“Ubiquitous Information Source”PublishingNewspaper

InformationDatabases

BroadcastNews

“Optical Storage”

InformationDatabases

BroadcastNews

PersonalComputer

TelevisionTelephone

“Teleputer”

“InteractiveMulti-Media” Computing

TelephoneNetwork- Telcos

Universe is made of . . .

Fire

Force

Energy

Matter



28

Universe as Bits of Information

“. . . every physical quantity, every IT, derives its ultimate significance from bits . . .”

John Archibald Wheeler



29

What Not To Do

Be general or vague– “Development of Knowledge Economy ”– “Digital Lithuania, Romania, Mongolia…” – “Improvement of business through computerization”

Be all things to all people– Compilers– Desktop software– CRM– Data mining– Financial services– ASP services– Etc.

…BE SPECIFIC…STICK TO YOUR CORE

COMPETENCY

BIOTECHNOLOGY!

LASER TECHNOLOGY!

What is: “Information Technology and Telecommunications!?”



31

Winning the Brand Game

Emblazon Your NameEmblazon Your NameIn The Prospects’In The Prospects’

MINDS!MINDS!



32

Internet Brands Require NEW Strategies

Will the following brands work online?– Forbes.com, fortune.com, nbc.com?– Ford.com, gm.com, toyota.com?– Barbie.com, levis.com, dockers.com?

““Some of the hottest brands in the offline world have no Some of the hottest brands in the offline world have no online value.”online value.”

Forrester Research

Will magazines and newspapers work online?– Will TV work online?– Did newspapers work on TV?



33

Treat The Internet As Different

What works and what doesn’t work on the Internet? If the Internet is a business

– Need a new strategy – New way of thinking– New actions– New name

Focus – do not ask your current brand to do multiple things at once

This well confuse your customers And dilute both endeavors

– Consistent with the nature of the Internet



34

The Internet As A Communication Media

Using your current brand name is OK– Complements or replaces TV, radio, periodicals, etc.– Treat the Internet as an electronic library

Much easier and faster to search Can move your whole brand to the Internet

– Dell– Cisco– Several stock brokers– Hoover’s publishing– HealthAxis.com – was Provident American– Homestore.com – bought homebid.com

Same name online as offline is OK– If you move the entire business– Best if the name is short



35

Having It Both Ways Will Fail

Merrill Lynch– “The do-it-yourself model of investing, centered on Internet

trading, should be regarded as a serious threat to Americans’ financial lives.”

John Steffens, CEO, Merrill Lynch Brokerage

– Trust and confidence? Compare to

– Amway and quixtar– Proctor & Gamble (pg.com) vs. reflect.com



36

What’s In A Name?Common and Proper Brand Names

“The kiss of death for an Internet brand is a common name.” Al Ries and Laura Ries

Name – crucial marketing decision– Flower.com Microsoft Amazon.com– Car.com Cisco Priceline.com– Law.com Ford Yahoo– Mail.com Disney AOL– Office.com Intel Monster– Buy.com Kodak eBay– Cooking.com Sony Expedia– Tickets.com Coca-Cola Bluemountain– Women.com McDonald’s iVillage



37

Where Does A Brand Exist?

Where does the battle of the brand take place?– Generic names are DOOMED.

These are “categories” Not associated with a company or it’s value proposition Too hard to differentiate in a buyer’s mind Or the remember



38

Process

… Dream

… Innovate

…Make it a business!



39

Your Technology Evolution is about changes in organization, market structures, government regulations, and . . .

NEW human experiencehuman experience

ecommerce institute © [email protected] (904) 3479250 “ebusiness knowledge for all!” 1...

Documents

ebusiness knowledge

ceo ecommerce institute

ebusiness strategy

california slide

mauritius slide

participation slide

value chains slide

technology changes