Internet Business Strategies A strategic view of the various options and connectivity levels available to business through the Internet. Copyright 2011 SPMI / Online Development

Internet Business Strategies u The Internet now connects more than 40 million people in virtually all countries around the world, with the number projected to exceed 100 million in u The growth of the Internet offers businesses many new opportunities and techniques for accessing customers and markets.

Internet Business Strategies u The widely varying Internet connection options range from simple Electronic Mail boxes to a dedicated Web server costing $100,000 or more. u As connectivity, functionality, and volume increase, so do the associated costs.

High-Level View Internet Business Strategies - High-Level View Cost Function Trade-off between Cost and Internet Functionality

Connection Options Internet Business Strategies - Connection Options Cost Function A business can start out with a simpler Internet presence, and build on this foundation as more capabilities are needed.

Connection Options Internet Business Strategies - Connection Options Cost Function The following are five sample Internet strategies, combining the appropriate function and technology at each level.

Connection Options Internet Business Strategies - Connection Options Cost/Function Line u Five Sample Connection Options Electronic Mail Only Dial-up Client Access Contracting for Server Space On-demand Local Area Network Access Build a Dedicated In-house Server

Only Internet Business Strategies - Only Cost/Function Line 1 1 u Capabilities Exchange with everyone connected to the Internet Subscribe to Internet Mailing Lists Distribute product and service information to customers and potential customers

Only Internet Business Strategies - Only Cost/Function Line 1 1 u Advantages Provides access to over 40 million Internet- connected users Have an address at very low cost Simple start-up and operation

Only Internet Business Strategies - Only Cost/Function Line 1 1 u Disadvantages No access to advanced protocols such as the World Wide Web No capacity to publish company material in multimedia formats

Dial-up Client Access Internet Business Strategies - Dial-up Client Access Cost/Function Line 2 2 u Capabilities Includes , Usenet News, File-Transfers, Gopher, and World Wide Web access Distribute company information through E- mail and Newsgroups Ability to browse multimedia Web sites

Dial-up Client Access Internet Business Strategies - Dial-up Client Access Cost/Function Line 2 2 u Advantages Complete access to everything the Internet has to offer, including forms and commerce sites Very low start-up and operation costs Fairly simple set-up and operation

Dial-up Client Access Internet Business Strategies - Dial-up Client Access Cost/Function Line 2 2 u Disadvantages Response time through dial-up modem is relatively slow “Client-side” functionality only Does not include ability to publish World Wide Web pages or documents

Server Space Rental Internet Business Strategies - Server Space Rental Cost/Function Line 3 3 u Capabilities Allows your company to publish its multi- media material on the World Wide Web Create mailing lists for automated distribution of company and product information Solicit feedback, requests for information, and even process orders through your Web site

Server Space Rental Internet Business Strategies - Server Space Rental Cost/Function Line 3 3 u Advantages Makes you a provider, rather than a consumer, of Web graphical information Low costs, moderate skill requirements Wide variety of rental sites available Can also use File Transfer, other protocols

Server Space Rental Internet Business Strategies - Server Space Rental Cost/Function Line 3 3 u Disadvantages Dependent on rules, architecture, and support applications provided by server space provider Need to carefully select space provider to insure reliability, control over material

On-demand LAN Internet Business Strategies - On-demand LAN Cost/Function Line 4 4 u Capabilities Connects an entire office or workgroup to the Internet Full Client-side access to all Internet protocols Dial-up or ISDN line gives on-demand connect and disconnect from your access provider

On-demand LAN Internet Business Strategies - On-demand LAN Cost/Function Line 4 4 u Advantages Can use ordinary telephone line and modems, or choose a faster ISDN connection Lower costs/complexity than dedicated lines Allows centralized set-up and management of group Internet access

On-demand LAN Internet Business Strategies - On-demand LAN Cost/Function Line 4 4 u Disadvantages Not as fast as a full-time dedicated line Requires additional hardware (a “router”) vs. single-user access with single modems Still requires separate server space rental for Web publishing

Dedicated Server Internet Business Strategies - Dedicated Server Cost/Function Line 5 5 u Capabilities In-house server gives you total control over hardware resources, operating system, etc. Full server-side use of all Internet protocols, depending on server software installed May rent server space to other companies to spread operating costs

Dedicated Server Internet Business Strategies - Dedicated Server Cost/Function Line 5 5 u Advantages Total control over development and implementation of all World Wide Web, File- Server, other materials Control over speed and capacity of Internet access lines More advanced use of Web and tools

Dedicated Server Internet Business Strategies - Dedicated Server Cost/Function Line 5 5 u Disadvantages Most costly Internet strategy - requires full- time dedicated connection & systems Requires in-house skills for development, testing, and technical support

Getting Started Internet Business Strategies - Getting Started u Selecting a Strategy Begin with your business requirements Select technology based on business objectives and strategy Start with modest goals, then grow Focus on competitive advantage

The Netstart Program Internet Business Strategies - The Netstart Program u Benefits of using Netstart program Netstart allows a basic early implementation, adding capabilities as you need them. Our flexible approach adapts to your business requirements. Your development work is professionally planned and managed. Knowledge, skills, and tools can be transferred to your internal resources.

Next Steps Internet Business Strategies - Next Steps u Where to go from here? We customize the Netstart Internet Task Plan based on your business requirements. Prepare to evaluate service provider options. Assess and plan technical environment. Select and acquire Internet tools. Begin development of your customized Internet Business Presence.