Review slides for eBusiness Principles part of the midterm exam

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Review slides for e-Business Principles part of
the midterm exam

• To be graded by Dr. Fish

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Essay Candidate No. 1

• According to Porter, what is required for a firm
  to be profitable?

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Thesis

• Porter states that for a firm to be profitable,
  1) it must achieve competitive advantage in an
  industry and 2) the industry should have good
  underlying structure
• Now use the generic strategies matrix and the
  competitive forces model (class notes from
  January 21st) to support the thesis

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Porter Strategy Model

• Key concepts
• There are only three basic strategies (assuming
  you combine low cost focused and differentiated
  focused into one category called focused or
  niche, otherwise there are four generic
  strategies)
• Each implies a different business model
• Firms can pursue only one strategy at the time

Possible Strategies
Differentiation
Cost
Niche

• Requires constant innovation and leadership on
  the benefits that matter most to the customer

• Focus on gaining competitive advantage on costs
  while maintaining parity level on differentiation

• Focus the business on a particular segment of
  the market and then pursue either differentiation
  or cost strategy

Business Model
Networked Economy Example

• Travelocity.com

• Lowestfare.com

• Lastminute.com

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Essay Candidate No. 2

• Discuss the components of an e-commerce business
  model.

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Thesis

• The development of an e-commerce business models
  requires making choices about four major
  components value cluster, marketspace offering,
  resource system and, financial model.

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Components of a Business Model
Developing a business model in the networked
economy requires four key choices on the part of
the senior management
Value Cluster

• Specify the value proposition or the value
  cluster for the business

Marketspace Offering

• Articulate the online product, service and
  information offer

Resource System

• Define how the company needs to align its
  resources to deliver the value proposition

• Define and select the most appropriate revenue
  model to pursue

Financial Model
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CarPoint Example
CarPoints value cluster offers benefits that
address multiple segments of customers
Target Segments
Key Benefits Offered
Unique Capabilities
Value Cluster


CarPoint

• The efficiency of the Internet makes selecting
  and purchasing your car easier

• Knowledge of the Internet
• Software development expertise

• Information about cars and their prices
• Help on how to deal with dealers (tactics used,
  etc.)

• The intimidated by the process

• The information seekers

• Microsoft brand name
• Network of partners

• Extensive information
• In different formats (3D views, pictures,
  videos)
• From different sources (i.e., Kelley Blue Book)

• Provides a one-stop source with all the
  necessary information to make a car purchase

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Egg Diagram for 1-800-Flowers.com

• Gift reminder service
• Holiday specials
• Everyday celebrations suggestions
• Special occasion suggestions

Ideas and Information

• Care and handling
• Do it yourself
• Special events and educational workshops held at
  stores

• Floral ideas
• Garden ideas
• Home ideas
• Gift ideas
• Gourmet ideas
• Store locator
• Recommendations by budget
• Bestsellers

Flower / Gift Decision Process

• Need Recognition

Product Offering
Gift Recommendations

• Education on Flowers and Decoration

• Search for Ideas and Offerings

• Gift guru
• Favorite gifts
• Gift frequency
• Gift impossible
• Gift baskets
• Corporate gift services

Post-Sale Support

• Order receipt e-mail
• eQA online customer service
• FAQ
• Customer service inquiry form

• Post-Sale Support and Perks

• Evaluation of Alternatives

• Product price
• Product picture
• Product description
• Delivery information
• Delivery availability

Perks

• Miles earned with flower purchases
• Free gifts
• Discounts at AOL BN.com with flower purchases
• Member specials

• Purchase Decision

• Message Selection

• Shopping basket
• E-commerce transaction
• Special shopping features
• Delivery outside US
• 1-800-lasfloras.com

• Gizmo fully-animated greeting cards
• Physical cards in gifts

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1-800-Flowers.com Resource SystemOnline and
Offline Integration
BloomNet Network
Strong Distribution Network
Third-Party Contractors
Address Book
Gift Recommend- ations
Fulfillment Center
Stores
Rich Content
Online Gift Center
Broad Assortment of Gifts
High Quality of Flowers
Gift Reminder
Personalization Capabilities
Popular Website
Garden Works
Integrated Partner Offers
Telephone
3,000 Affiliates
Plow Hearth
Online
Customer Service
Widespread, Easy Access
Great Foods
Multiple Contact Points
Franchise Stores
Catalog
Technology
Wide Reach to Customers
Strong Brand Name
Customer Service Centers
Snap
Starmedia
MSN
Integrated Online and Offline
AOL
Online Activities Assets
Offline Activities Assets
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Revenue Models
While firms can pursue a number of revenue
models, some are used most frequently
Advertising

• Advertising revenues can be generated through
  the selling of ads, site sponsorships, event
  underwriting, etc. (e.g., Yahoo, AOL,
  Business2.com)

Product, Service, Information

• Revenues can be generated from the sales of
  goods and services (e.g., Amazon, CDNow, Buy.com)

Transaction

• Revenues can be accrued from charging a fee or
  taking a portion of the transaction sum for
  facilitating a customer-seller transaction (e.g.,
  Schwab, eBay)

Subscription

• Website can gain revenues by offering
  subscription services for information (e.g.,
  FT.com, NYTimes.com)

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Essay Candidate No. 3

• Discuss the 7cs model as it pertains to the
  technology mediated customer interface.

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Thesis

• The 7cs model consists of context, content,
  community, customization, communication,
  connection and, commerce all of the cs must
  individually support the value proposition and
  business model, as well as, reinforce each other.

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The 7Cs of the Customer Interface
Context Sites layout and design
Content Text, pictures, sound and video that
webpages contain
Commerce Sites capability to enable commercial
transactions
Community The ways sites enable user-to-user
communication
Connection Degree site is linked to other sites
Customization Sites ability to self-tailor to
different users or to allow personalization
Communication The ways sites enable site-to-user
communication or two-way communication
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Fit and Reinforcement of the 7Cs
The success of a business depends on the extent
that all of the Cs work together to support the
value proposition and business model
Supporting Fit Do each of the 7Cs individually
support the business model?
Context
Content
Community
Customization
Communication
Connection
Commerce
Reinforcement Are each of the 7Cs consistent with
one another?
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The 7Cs of the Customer Interface
Context Sites layout and design
Content Text, pictures, sound and video that
webpages contain
Commerce Sites capability to enable commercial
transactions
Community The ways sites enable user-to-user
communication
Connection Degree site is linked to other sites
Customization Sites ability to self-tailor to
different users or to allow personalization
Communication The ways sites enable site-to-user
communication or two-way communication
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Form vs. Function The Design Context Frontier
The age old argument of form vs. function is
being changed by the Web
Integrated
High
Aesthetically Dominant
Aesthetic/ Form
Frontier is gradually moving outward as
technology advances
Low
Functionally Dominant
High
Low
Function
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The 7Cs of the Customer Interface
Context Sites layout and design
Content Text, pictures, sound and video that
webpages contain
Commerce Sites capability to enable commercial
transactions
Community The ways sites enable user-to-user
communication
Connection Degree site is linked to other sites
Customization Sites ability to self-tailor to
different users or to allow personalization
Communication The ways sites enable site-to-user
communication or two-way communication
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Dimensions to Content
Content refers to all digital information
included on the site. There are four key
dimensions to content, each carrying choices
about how to convey the sites content
Offering Mix
Appeal Mix
Multimedia Mix
Content Type
Dimension
Products
Cognitive functional, low price, availability, et
c.
Text
Current
Audio
Information
Image
Choices
Emotional humor, warmth, stories, etc.
Reference
Video
Services
Graphics
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The 7Cs of the Customer Interface
Context Sites layout and design
Content Text, pictures, sound and video that
webpages contain
Commerce Sites capability to enable commercial
transactions
Community The ways sites enable user-to-user
communication
Connection Degree site is linked to other sites
Customization Sites ability to self-tailor to
different users or to allow personalization
Communication The ways sites enable site-to-user
communication or two-way communication
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Focus vs. Interactivity
A number of hybrid communities can form by
combining interactivity and focus in unique ways
Non-equilibrium state Successfully managed
communities will move toward higher levels of
interaction
Contact Consortium.com
Games.yahoo.com
Broad
Bazaar
Focus
Theme Park
Bolt.com
VoxCap.com
iFilm.com
Trace.com
leonardodicaprio.com
Club
Womens Cancer Connection
Narrow
Shrine
Theater
Cafe
Interactivity
Limited
Extensive
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The 7Cs of the Customer Interface
Context Sites layout and design
Content Text, pictures, sound and video that
webpages contain
Commerce Sites capability to enable commercial
transactions
Community The ways sites enable user-to-user
communication
Connection Degree site is linked to other sites
Customization Sites ability to self-tailor to
different users or to allow personalization
Communication The ways sites enable site-to-user
communication or two-way communication
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Dimensions of Customization
Customization of a site can occur in many
different ways

• PERSONALIZATION
• Log-in Registration
• The site recognizes return users and configures
  itself accordingly
• Cookies
• Temporary files that track and gather data about
  users behavior
• Personalized E-Mail Accounts
• Provided free-of-charge to site users
• Content and Layout Configuration
• Users select layout and content based on their
  interests
• Storage
• Sites provide virtual hard-disk storage
• Agents
• Programs designed to perform simple tasks

• TAILORING
• Based on Past User Behavior
• Many sites adjust themselves dynamically based on
  a users past behavior and preferences
• Based on Behavior of Other Users
• With Similar Preferences
• Some sites make recommendations to the user based
  on preferences of other users with similar
  profiles

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The 7Cs of the Customer Interface
Context Sites layout and design
Content Text, pictures, sound and video that
webpages contain
Commerce Sites capability to enable commercial
transactions
Community The ways sites enable user-to-user
communication
Connection Degree site is linked to other sites
Customization Sites ability to self-tailor to
different users or to allow personalization
Communication The ways sites enable site-to-user
communication or two-way communication
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Dimensions of Communication
Communication between a site and its users can
occur in many different ways

• INTERACTIVE
• E-Commerce Dialogue
• Organizations and users trade e-mails regarding
  order placement, tracking and fulfillment
• Customer Service
• Organizations can provide customer service
  through trading e-mails or live online dialogue
• User Input
• User-generated content such as supplier ratings
  and user feedback to the site

• BROADCAST
• Mass Mailings
• Broadcast transmissions of large volumes of
  e-mail targeted at large audiences
• FAQs
• Answers to frequently asked questions
• E-Mail Newsletters
• Inform site subscribers of site changes, special
  offers, etc.
• Content-Update Reminders
• E-mail reflecting user interest in a particular
  content area
• Broadcast Events
• Events can be broadcast from a website (webcast)
  that allows limited user control over such things
  as camera angle

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The 7Cs of the Customer Interface
Context Sites layout and design
Content Text, pictures, sound and video that
webpages contain
Commerce Sites capability to enable commercial
transactions
Community The ways sites enable user-to-user
communication
Connection Degree site is linked to other sites
Customization Sites ability to self-tailor to
different users or to allow personalization
Communication The ways sites enable site-to-user
communication or two-way communication
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Intro to Six Connection Archetypes
Each archetype will be defined and an example of
each will be given
Destination
PATHWAY-OUT Links lead the user outside the
environment of the site links are absolute in
that the users click causes an exit from the
original website.
Hub
Portal
Affiliate
PATHWAY-IN Links are hybrid the users click
causes the retrieval of material from the same or
other sites without exiting the current website.
Outsourced Content
Meta-Software
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The 7Cs of the Customer Interface
Context Sites layout and design
Content Text, pictures, sound and video that
webpages contain
Commerce Sites capability to enable commercial
transactions
Community The ways sites enable user-to-user
communication
Connection Degree site is linked to other sites
Customization Sites ability to self-tailor to
different users or to allow personalization
Communication The ways sites enable site-to-user
communication or two-way communication
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Dimensions of Commerce
There are many tools that sites provide to
originate and facilitate commerce

• TOOLS FOR ENABLING COMMERCE
• Registration
• Allows the site to store information about users
  and user preferences
• Shopping Cart, One-Click Shopping
• Facilitates online shopping by making it more
  user-friendly
• Security, Credit-Card Approval
• Enables online transactions by allowing users to
  securely share credit-card information
• Orders Through Affiliates
• Sites must be able to track orders that come from
  and go to affiliates
• Configuration Technology
• Users can test product compatibility, and price
  trade-offs and product substitutions online.
• Order Tracking, Delivery Options
• Once orders are placed on the site, users can
  choose how they would like their products
  delivered and track those orders from the site to
  their front door.

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The 7Cs of Schwab.com
Context Schwab.com is largely functional the
only graphics used are those that display market
behavior.
Content Schwab.com is an information-dominant
site that generates all of its own material.
Commerce Schwab is essentially a broker with a
transaction-based revenue model. There are also
fee services that Schwab offers.
Community There is very little interaction among
Schwab.com users. The site focuses primarily on
the financial needs of the individual.
Connection Schwab.coms content and information
is largely generated in-house there are no links
to outside sites.
Customization Schwab.com is highly customizable.
Users can personalize the sites content, layout,
communication and access.
Communication Schwab.com provides e-mail news
alerts. User response is limited. Basically, the
site is a one-to-many, non-responding site.