1. Fall 2000MGTO 321 (L1, L2) -- Dr. JT Li1 Lecture #23: Case Discussion:VerticalNet Lecture #23: Case Discussion:VerticalNet Readings: 1. Case: VerticalNet (on reserve) 2. Case Summary and preparation questions (on web) Key activities of the class: 1. Group presentation of the case (Soft copy due) 2. Class case discussion (summary, update, lessons learnt) 3. Written group reports due

2. Fall 2000MGTO 321 (L1, L2) -- Dr. JT Li2 Business Description: VerticalNet (November 2000) Three strategic business units: VerticalNet Markets, VerticalNet Solutions and VerticalNet Exchanges. VerticalNet Markets: 57 industry-specific digital marketplaces designed as online vertical trading communities Act as industry-specific comprehensive sources of information, interaction and electronic commerce.

3. Fall 2000MGTO 321 (L1, L2) -- Dr. JT Li3 Business Description: VerticalNet (November 2000) Offer product information, industry news, requests for proposals, directories, classifieds, job listings, discussion forums, a variety of e-commerce opportunities for buyers and sellers, and other services, such as on-line professional education courses and virtual trade shows. Individually branded, focuses on a single business sector and caters to individuals with similar professional interests.

4. Fall 2000MGTO 321 (L1, L2) -- Dr. JT Li4 Business Description: VerticalNet (November 2000) Designed to attract technical and purchasing professionals with specialized product requirements and purchasing authority or influence. VerticalNet Solutions integrates the technologies of VerticalNet Markets with recent technology acquisitions. Build digital marketplaces for industry alliances, independent Net market makers and global 2000 enterprises.

5. Fall 2000MGTO 321 (L1, L2) -- Dr. JT Li5 Business Description: VerticalNet (November 2000) Offer an open platform solution that includes community, content and market design tools, multiple market mechanisms and transaction types, multi-party system interaction and a broad range of buy-and sell- side services. Provide an end-to-end solution that supports auctions, catalogs, exchanges, RFPs, RFQs and structured negotiations.

6. Fall 2000MGTO 321 (L1, L2) -- Dr. JT Li6 Business Description: VerticalNet (November 2000) Offer customers a complete set of professional service offerings, including front-end design, implementation, and integration services and back-end market hosting. VerticalNet Exchanges focuses on trading electronic components and hardware in open and spot markets (NECX). Act as a third party intermediary, purchasing electronic components and hardware from various vendors for resale to foreign and domestic companies.

7. Fall 2000MGTO 321 (L1, L2) -- Dr. JT Li7 Business Description: VerticalNet (November 2000) Match buyers' and suppliers' needs, providing a solution to inventory imbalances that result from over- capacity or shortages within existing contractual relationships. Have overseas sales operations in Sweden, Ireland, Japan and Korea that serve European and Asian exchange customers.

8. Fall 2000MGTO 321 (L1, L2) -- Dr. JT Li8 Sources of Revenue (VerticalNet, November 2000) From three sources: e-enablement and e-commerce; advertising and services; and exchange transactions. E-enablement and e-commerce revenues include storefront and e-commerce center fees, Web site development fees and e-commerce fees. E-commerce fees are generated through auctions, education services, bookstores and e-commerce centers.

9. Fall 2000MGTO 321 (L1, L2) -- Dr. JT Li9 Sources of Revenue (VerticalNet, November 2000) Additionally, offer auction sites with direct and indirect goods posted by inventory liquidators. Advertising and services revenues include buttons and banners, newsletter sponsorship revenues, and fees from strategic co-marketing agreements. Exchange revenues from NECX operations are generated from the traditional off-line and on-line sale of electronic components and hardware.