Transcript Document
Marvin Tanner Faculty, Graduate School of Business University of Phoenix Executive, Silicon Networks Author Effective Strategies for Building e-Business in 2003 Marvin Tanner • Teaching Networks Engineering on Solaris Unix, Cisco, MCSA, CompTIA A+, Network+, Linux+ • Teaching e-Business for undergraduate and graduate school • Taught workshops at Small Business Administration (SBA) Business 101 • Less Than Five Percent of New Businesses Survive Five Years E-Business 101 • There Are Millions of Online Businesses • Very Few Are Profitable • E-Business is The Great Equalizer Life of Internet (Very Beginning) • • • • • • • 1960 - There is no Internet... 1961 - Still no Internet... 1962 - The RAND Corporation begins research into robust, distributed communication networks for military command and control. 1962 - 1969 The Internet is first conceived in the early '60s. Under the leadership of the Department of Defense's Advanced Research Project Agency (ARPA), it grows from a paper architecture into a small network (ARPANET) intended to promote the sharing of super-computers amongst researchers in the United States. 1968 - First generation of networking hardware and software designed 1969 - ARPANET connects first 4 universities in the United States. Researchers at four US campuses create the first hosts of the ARPANET, connecting Stanford Research Institute, UCLA, UC Santa Barbara, and the University of Utah. 1970 - 1973 The ARPANET is a success from the very beginning. Although originally designed to allow scientists to share data and access remote computers, email quickly becomes the most popular application. The ARPANET becomes a highspeed digital post office as people use it to collaborate on research projects and discuss topics of various interests. Life of Internet Telenet Is Born • • • • • 1971 - The ARPANET grows to 23 hosts connecting universities and government research centers around the country. 1972 - The InterNetworking Working Group becomes the first of several standards-setting entities to govern the growing network. Vinton Cerf is elected the first chairman of the INWG, and later becomes known as a "Father of the Internet." 1973 - The ARPANET goes international with connections to University College in London, England and the Royal Radar Establishment in Norway. 1974 - Bolt, Beranek & Newman opens Telenet, the first commercial version of the ARPANET. 1974 - 1981 The general public gets its first vague hint of how networked computers can be used in daily life as the commercial version of the ARPANET goes online. The ARPANET starts to move away from its military/research roots. Internet Is Born TCP/IP Is Born • • • 1982 - The term 'Internet' is used for the first time. 1982 - 1987 Bob Kahn and Vint Cerf are key members of a team which creates TCP/IP, the common language of all Internet computers. For the first time the loose collection of networks which made up the ARPANET is seen as an "internet", and the Internet as we know it today is born. The mid-80s marks a boom in the personal computer and superminicomputer industries. The combination of inexpensive desktop machines and powerful, network-ready servers allows many companies to join the Internet for the first time. Corporations begin to use the Internet to communicate with each other and with their customers. Cyberspace Is Born Virus Is Born • • • • • 1983 - TCP/IP becomes the universal language of the Internet 1984 - William Gibson coins the term "cyberspace" in his novel "Neuromancer." The number of Internet hosts exceeds 1,000. 1988 - Internet worm unleashed 1988 - 1990 By 1988 the Internet is an essential tool for communications, however it also begins to create concerns about privacy and security in the digital world. New words, such as "hacker," "cracker" and" electronic breakin", are created. These new worries are dramatically demonstrated on Nov. 1, 1988 when a malicious program called the "Internet Worm" temporarily disables approximately 6,000 of the 60,000 Internet hosts. WWW Is Born • • • 1990 - A happy victim of its own unplanned, unexpected success, the ARPANET is decommissioned, leaving only the vast network-ofnetworks called the Internet. The number of hosts exceeds 300,000. 1991 - The World Wide Web is born! 1991 - 1993 Corporations wishing to use the Internet face a serious problem: commercial network traffic is banned from the National Science Foundation's NSFNET, the backbone of the Internet. In 1991 the NSF lifts the restriction on commercial use, clearing the way for the age of electronic commerce. Mosaic Is Born eBusiness Is Born • • • • 1991 – 1993 At the University of Minnesota, a team led by computer programmer Mark MaCahill releases "gopher," the first point-and-click way of navigating the files of the Internet in 1991. Marc Andreesen and a group of student programmers at NCSA (the National Center for Supercomputing Applications located on the campus of University of Illinois at Urbana Champaign) will eventually develop a graphical browser for the World Wide Web called Mosaic. 1994 - The Rolling Stones broadcast the Voodoo Lounge tour over the M-Bone. Marc Andreesen and Jim Clark form Netscape Communications Corp. Pizza Hut accepts orders for a mushroom, pepperoni with extra cheese over the net, and Japan's Prime Minister goes online at www.kantei.go.jp. Backbone traffic exceeds 10 trillion bytes per month. Netscape VS Internet Explorer NS / IE • Mozilla. In October, 1994, Netscape released the the first beta version of their browser, Mozilla 0.96b, over the Internet. On December 15, the final version was released, Mozilla 1.0, making it the first commercial web browser. The open source version of the Netscape browser released in 2002 was also named Mozilla in tribute to this early version. • Internet Explorer. On August 23rd, 1995, Microsoft released their Windows 95 operating system, including a Web browser called Internet Explorer. By the fall of 1996, Explorer had a third of market share, and passed Netscape to became the leading web browser in 1999. Yahoo, AOL, and eBay are born • • • • • • 10/89 AOL service launched for Macintosh and Apple II 02/91 DOS version of AOL launched 01/93 Windows version of AOL launched 11/24/98 AOL announces acquisition of Netscape, strategic partnership with Sun Microsystems Yahoo was created in April 1994 by two Ph.D. candidates in Electrical engineering named David Filo and Jerry Yang at Stanford University in California. eBay was founded in Pierre Omidyar's San Jose living room back in September 1995. Electronic Commerce • Definition of e-business – Technology versus e-business – e-Business versus e-Commerce – e-Business and the Internet Impact of e-business • Business strategies • Processes • Functions Business Strategies •Impact of e-business • Driving forces of e-business • e-Business’s value • Business models • External technology enablers • Technical infrastructures • Application to organizations • Research methods Marketing Strategies • • • • Segmentation Target markets Marketing mix Media mix Measuring Results • Cost • Effectiveness • Metrics Manufacturing: • Business processes • Technology applications • Procurement and distribution • Business processes • Technology applications Administration • Business Processes • Technology Applications • Marketing • Business Processes • Technology Applications Sales growth versus profits • Short-term Savings Versus • Long-term Investment • Funding Alternatives Legal, Regulatory, and Ethical Issues • Intellectual Property • Security • Privacy/Censorship • Internet Decency • Taxation • Contracts The Challenges for 2003: • Market Fragmentation • Market Segmentation • Customer Resistance • Advertising Methodologies • Funding Sources Market Fragmentation • Today There Are More Suppliers Than Customers • Suppliers Must Offer Differentiated Products, Manufacturing Versatility, and Process Innovation • Perceived Value Creates Value Add Market Segmentation • Products and their brand names are newsmakers themselves • Understanding the complexities of a brand identity • Include: Wendy's hamburgers, WB20 Customer Resistance • Is There A Large Potential Customer Base? Can The Customer Afford The Purchase? Does the Offering Solve Customer Needs? • Is There Market Static? Does Your Message Reach the Consumer? • Does The Impression Stay With the Consumer? Advertising Methodologies The Challenge for 2003: • To Filter Market Place Noise and Reach the Consumer – Banner Ads, Pop-Ups are Annoying – Search Engines Are Ineffective – Indexing A Full Time Proposition • Search Engines Deliver Thousands of Responses • Work Smarter-Reach Consumers More Effectively Funding Sources Conventional Funding Banks Mortgage Bankers Brokerage Firms Small Business Administration General Requirements Venture Capital Limited Access To Funds Prefer Second Round Funding Bottom Line • • • • • Many Suppliers Few Customers Fragmented Market Access To Customer Limited Noise In Marketplace High The Need for Market Intelligence • • • • Clear Access To Customers Qualified To Purchase Products Demographics Intelligent Database Year 2003 • • • • • • Profitability Return On Investment (ROI) Solid Accounting Practice Customer-Center Design Overall Customer Satisfaction Sustainable Business Model Marvin Tanner [email protected] 408-206-5389 888 WEB4LESS 888-WEB4LESS [email protected]