Business 54 - Introduction to eCommerce Spring C1- February 11, 2008

2 Class Game Plan C1- February 11, 2008  Introductions / Students and Faculty.  Course Structure, Syllabus and Course Review.  What is Electronic Commerce?  History of eCommerce.  eBusiness Models.  eRevenue Models.

3 C1- February 11, 2008 Course Evaluation  Course evaluation will be based on overall performance in exams, assignments, projects, home works, presentations, written reports and class participation. Home Page Design 6Points Class Cases / Exercises (6) 24Points Business Plan Concept 5 Points (Team) Site Design Flow / Site Map 10Points (Team) Business Plan Paper 15Points (Team) Business Plan Presentation / Site Demo10Points (Team) Final Exam 20Points Active Class Participation 10Points Points100Points

4 C1- February 11, 2008 Introductions  Who are you?  What do you know about eCommerce?  What do you want to learn about eCommerce?

5 C1- February 11, 2008 Course Goals  Understand the history and development of e-Commerce.  Have a general understanding of the Internet and its technologies.  Be able to define the requirements for development of e-Commerce capabilities in a company  Assess the current state of electronic commerce and explain how electronic commerce can be used to create a strategic competitive advantage for an organization.  Understand the legal and regulatory policy issues that affect e-Commerce.  Analyze the impact that electronic commerce is having and will likely have on key sectors of the economy and assess the strategic implications this analysis holds for an organization.  Understand current and future obstacles for eCommerce.

6 C1- February 11, 2008 Course Structure  Combination of lecture, hands on learning and projects.  Individual and team Assignments / Course Work.  Only 30 class meetings.

7 C1- February 11, 2008 Why do we call it eCommerce?  What is eCommerce?  Difference between eCommerce and eBusiness is……  Why isn’t there a T-Commerce or F-Commerce?

8 C1- February 11, 2008  The union of Buyer Side benefits and Seller side benefits creates a new business paradigm; the truly first ‘new’ one since Ford’s Model T and Mass Production:  The Virtuous Circle. Union of Buy and Sell Side

9 C1- February 11, 2008  The union of Buyer Side benefits and Seller side benefits creates a new business paradigm; the truly first ‘new’ one since Ford’s Model T and Mass Production:  The Virtuous Circle. Union of Buy and Sell Side

10 C1- February 11, 2008  The Internet Sales Channel provides five key benefits to Surfers: Convenience. Information Gathering. Anonymity. Price Comparison-Shopping. Walk Away Ability. Union of Buy and Sell Side

11 C1- February 11, 2008 Broader Reach. Lower Selling Costs. Supply Chain Management & Expansion. Reduced or (even Virtual) Product inventories. Price Discrimination.  The Internet Sales Channel provides five key benefits to Sellers:

12 C1- February 11, 2008  The union of Buyer Side benefits and Seller side benefits creates anew business paradigm; the truly first ‘new’ one since Ford’s Model T and Mass production: Convenience. Information Gathering. Anonymity. Price Comparison- Shopping. Walk Away Ability. Broader Reach. Lower Selling Costs. Supply Chain Management & Expansion. Reduced or (even Virtual) Product inventories. Price Discrimination.

13 C1- February 11, 2008 Traditional and eCommerce Business Models  Business to Consumer.  Business to Business.  Business to Business to Consumer.  Consumer to Business.  Communities.  Exchanges-Marketplaces.  Governmental.  Peer to Peer.  Media.

14 C1- February 11, 2008  You are no longer in perfect control.  The history of Business on the web is one of partnerships, alliances and affiliations: You may not have a physical presence or store. You may not have any inventory. You may not have any employees.  You have no (hopefully) legacy business practices or systems or other ‘baggage’. Business Model Differences

15 C1- February 11, 2008  Banner-Advertising.  Subscription.  Transactional.  ‘Begging’-Donations.  Middlemen.  Taxation. Overview of Revenue Models

16 C1- February 11, 2008  It is Narrow-Casting or One-to-One Marketing.  Can easily price discriminate, and do.  Revenue can be generated for a number of sources --- not just your web site visitors: Affiliates. Traffic Routing. Web Circles. Volume is low, but Margins are high. Lots of Nickels & Dimes. Revenue Model Differences

17 C1- February 11, 2008  The best 4 Web Verticals to be in are: Adult. On-line Gaming / Casinos. Medicine / Prescriptive Sites. Niche eTailing.  Advantages and disadvantages to each.  Advantages: Quickly get to Cash Neutrality. Still room to grow / Room for New Ideas.  Disadvantages: Adult = Working Environment Gaming = Legality Issues for Americans Medicine = Import-Export eTailing= Competition The Best eCommerce Verticals

18 C1- February 11, 2008 Business & Revenue Models Business Models  Business to Consumer.  Business to Business.  Business to Business to Consumer.  Consumer to Business.  Communities.  Exchanges-Marketplaces.  Governmental.  Peer to Peer.  Media. Revenue Models  Banner-Advertising.  Subscription.  Transactional.  ‘Begging’-Donations.  Middlemen.  Taxation.

19 C1- February 11, 2008 Questions…… (and maybe some) Answers