E-Business Success Factors Igor Roitburg
The Entrepreneur • •
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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
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Scalability
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Innovative Web marketing ideas
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Ease of entry into (electronic) markets
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Adaptability to change
The Network Effect •
The greater the number of nodes (participants) the greater the value of the network
• Telephone example
• Internet example
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Metcalf law of network power
2 or N2
Power of the network = number of nodes •
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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
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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)
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Viral Marketing
Hotmail
Ease of Entry Into Markets •
The Internet opened up access to markets by lowering barriers to entry.
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Good ideas can be cloned.
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Advantage frequently goes to first mover (first to market).
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Ebay was a “first mover.”
Ebay Auction Site
Adaptability to Change
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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
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Acquire greater business visibility
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Maximize customer relationships and improve responsiveness
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Create new services
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Reduce costs
Expand the Market •
Reach more customers
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Lower location and time barrier
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Ticketmaster
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Does your idea take advantage of the Internet to expand your market?
Acquire Greater Visibility •
Early days, simply an online brochure
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The Internet allows companies to get their name, products, or services exposed to more customers than ever before.
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Use or outsource distribution to others.
• Find distributors for eToys and Pier1
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Half.com – what did they do?
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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?
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Use technology to build and sustain links with customers.
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Southwest Airlines
Thank You