E-Business StrategyE-Business Strategy

Yohan WismantoroYohan WismantoroManagement DepartmentManagement Department

Dian Nuswantoro UniversityDian Nuswantoro University

TopicsTopics

Introduction Introduction The original WWWThe original WWW Commercial beginningsCommercial beginnings A .com worldA .com world Marketing and technologyMarketing and technology

Siklus Sederhana untuk Siklus Sederhana untuk Pertumbuhan JaringanPertumbuhan Jaringan

Let’s look at how it works

Keterikatan Populer

Situs Web dan Isi Web

Akses Intenet Konsumen

Bisnis

A Dot Com WorldA Dot Com World

Pertumbuhan yg dramatisPertumbuhan yg dramatis– Consumer accessConsumer access– Internet usageInternet usage– Content onlineContent online

Aplikasi-aplikasi InovatifAplikasi-aplikasi Inovatif Perdagangan konsumen ke konsumenPerdagangan konsumen ke konsumen Pelanggan Sebagai PatnerPelanggan Sebagai Patner

Consumer Access

• The past five years have seen rapid growth in – Network size– Users on networks– Network activity

• Between January 1994 and January 1999, Internet hosts grew from 2.2 million to over 43 million

• A 46% growth rate in 1998

Figure 1.4

Online Access Growth in Net Hosts

Growth of World Wide Web Domains

0

10

20

30

40

50

Mill

ions

46% growth in 1998

Consumer Access• The Internet user base has

grown rapidly as well• Worldwide, the number of

users was estimated to be > 160 million in March, 1999

• Over 90% of the users on the Net have joined in the last 5 years

• More growth is possible, as < 4% of the world’s adult population is online

• 50% of users think the Net is a “necessity”

Figure 1.5

Worldwide Online Population – Continuing Fascination

The art of estimating the number of people online throughout the world is inexact. An “educated guess” as of May 1999 is 165 million.Source: NUA

HOW MANY ONLINE?

Consumer Access

• Spring 1998, the size of the Web was estimated at 300 million pages

• Growth rates in content exceed growth rates in Web access and the number of users

• From June 1997 to March 1998, Web content grew at 120%

• More importantly, the types and creativity of Web site content have blossomed

Figure 1.6

Rapid Growth in Web Content

1

16

28

42

35

90

125

2

25

30

80

100

160

200

2

35

33

100

110

195

275

0 50 100 150 200 250 300

Pages found in all 4engines

Infoseek

Excite

HotBot

Alta Vista

Pages found in at leastone of the four engines

Size of static web

Size in millions of distinct static pages

1997

1998

1999

Back

Innovative ApplicationsInnovative Applications

Stage I: Publishing sitesStage I: Publishing sites

Stage II: Databases and FormsStage II: Databases and Forms

Stage III: PersonalizationStage III: Personalization

Stage I: Publishing SiteStage I: Publishing Site

Info Links

http://www.france98.com/french/index.html

Pictures/Information

Stage IStage I

What makes this aWhat makes this a Stage I Stage I WebsiteWebsite ??

BroadcastsBroadcastsDisseminates InformationDisseminates Information

Stage II: Databases and FormsStage II: Databases and Forms

Figure 1.8

To find out the travel distances between the host cities:

Select your starting point

Select your destination

Bordeaux

Paris

Toulouse

Marseilles

Toulouse Marseille – 404km

Stage IIStage II

What Makes this aWhat Makes this a Stage II Stage II Website?Website?

Ability to retrieve information Ability to retrieve information to respond to user requeststo respond to user requests

Stage III: PersonalizationStage III: Personalization

Figure 1.11

If you area team WC98 member and are using a computer other than the one you originally joined WC98, enter your nickname and password now.

Stage IIIStage III

What Makes this aWhat Makes this a Stage III Stage III Website?Website?

More than ask-respondMore than ask-respondAnticipatesAnticipatesSuggestsSuggests Back

Consumer-to-Consumer CommerceConsumer-to-Consumer Commerce

Businesses deploy chat room technology Businesses deploy chat room technology – Enables consumers to interact directly with each Enables consumers to interact directly with each

otherother– Accelerates word of mouthAccelerates word of mouth– Facilitates consumer-to-consumer commerceFacilitates consumer-to-consumer commerce

eBayeBay Yahoo! AuctionsYahoo! Auctions

Consumer-to-Consumer CommerceConsumer-to-Consumer Commerce

Consumer-to-consumer sites must build trustConsumer-to-consumer sites must build trust– Systems that rate seller credibilitySystems that rate seller credibility– Verify identities of buyers and sellersVerify identities of buyers and sellers– Insurance against fraudInsurance against fraud– Escrow accounts to ensure products are shippedEscrow accounts to ensure products are shipped– Bans on sellers who bid on their own productsBans on sellers who bid on their own products– Bans on buyers who win, but don’t complete the saleBans on buyers who win, but don’t complete the sale

Successful auction sites blur the distinction between Successful auction sites blur the distinction between business and funbusiness and fun

Business-to-Business CommerceBusiness-to-Business Commerce

$ volume much larger than e-tailing, and more $ volume much larger than e-tailing, and more rapidly growingrapidly growing

Intra & extranets provide a seamless link between Intra & extranets provide a seamless link between businesses and their suppliersbusinesses and their suppliers

Companies create in-depth Web sites for their Companies create in-depth Web sites for their main customersmain customers– Special pricingSpecial pricing– Special configurationsSpecial configurations– Dedicated supportDedicated support

This builds loyalty and repeat purchasesThis builds loyalty and repeat purchases

Marketing Evolves as Technology ChangesMarketing Evolves as Technology Changes

Technological innovation brought about the factory Technological innovation brought about the factory system & enabled mass productionsystem & enabled mass production– Marketing emphasis was on logistics & supply chain Marketing emphasis was on logistics & supply chain

managementmanagement Radio enabled national roll-out of brandsRadio enabled national roll-out of brands

– Marketing emphasis was on selling Marketing emphasis was on selling Television coincided with the product & brand Television coincided with the product & brand

management system of marketingmanagement system of marketing Mainframe computers enabled new methods of Mainframe computers enabled new methods of

segmentation & customer managementsegmentation & customer management The Internet enables mass customizationThe Internet enables mass customization

Back

An Internet FrameworkAn Internet Framework

The Web is The Web is fundamentally about fundamentally about individualsindividuals using a using a network network to access to access digital digital products products

Figure 1.15

Marketing

Technology Economics

Internet Marketin

g

Digital

Networked

Individuals