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About the Speaker EDUCATION BACKGROUND Doctor of Business Administration from University of
the City of Manila, Intramuros, Philippines Master of Business Administration from Leicester
University, Leicester, United Kingdom Master of Applied Computer Science from Harvard
University, Massachusetts, United States Bachelor of Science from ITS Surabaya, Jawa Timur,
Indonesia ACADEMIC ACTIVITIES Chairman, Perbanas School of Computing and
Information System, Jakarta, Indonesia Faculty Member of Graduate School of Information
System Management, Master of Information System Management Program, Bina Nusantara University – Curtin University, Jakarta, Indonesia
Faculty Member of Graduate School of Computer Science, Master of Information Technology Program, University of Indonesia, Depok, Indonesia
Faculty Member of Graduate School of Economic and Management, Master of Management Program, Atmajaya University, Jakarta, Indonesia
Faculty Member of Jakarta Institute of Arts, Undergraduate Program of Performing Arts, Jakarta, Indonesia
Faculty Member of Graduate School of Management, Institut Pengembangan Manajemen Indonesia – Monash University, Jakarta, Indonesia
Lead Lecturer of Graduate School of Management, Institut Manajemen Global Universal, Ujung Pandang, Indonesia
Guest Lecturer of Industrial Technology Faculty, Surabaya Institute of Technology, Surabaya, Indonesia
Vice President of Veritas Computing School and Professional Development Center, Cibubur, Indonesia
PROFESSIONAL RESEARCH Chairman of Renaissance Center, Perbanas School of
Computing and Information System, Jakarta, Indonesia Consultative Member of National Defence Division,
Lembaga Ketahanan Nasional (Lemhannas), Jakarta, Indonesia
Vice President of National Management System Division, Lembaga Ketahanan Nasional (Lemhannas), Jakarta, Indonesia
Member of Indonesian Cyber Policy Club Member of National Acreditation Board Advisory Board of Indonesian Internet Business
Community
WORK EXPERIENCE Current: Chief Executive Officer of Computer-Aided Training
Center Chief Executive Officer of PT Prima Mitranata President Director of PT Renaissance Sentra Indonesia President Director of PT Mitra Humanika Persada Director of PT Veritas Informasi Prakarsa Director of PT Peta Akses Cakrawala
Past: President Director of PT Mitra-Artec Prima Sejati Information System Director of PT Macro-Data Internusa General Manager of Training and Consulting, Jakarta
Consulting Group, Jakarta, Indonesia Business Manager of Prosys Bangun Nusantara,
Jakarta, Indonesia Associate Director of Information Technology, Balai
Lelang Indonesia, Jakarta, Indonesia Corporate Advisor, Rodamas, Jakarta, Indonesia Consultant in Information Technology, Price
Waterhouse, Jakarta, Indonesia
Agenda for Today
DotCom Characteristics
The business entity is represented by .com type of domain Commercial transactions (business
model) is done by using the internet as the main communication medium Most of the resources (internal and
external) are in the digital format Typically do not have a brick-and-mortar
complementary resources
2000 – The DotCom Bubble Bursts !
The Demise of Dot Com Retailers. Weak financials, intense competition, and investor flight will drive many of today's online retailers out of business in 2000. Those that survive must refocus funding on building hard assets to achieve scale, service, and speed.
Wall Street will run out of patience. Financial markets exasperated with non-existent online profits will turn a deaf ear to persistent "investment mode" rhetoric and soundly punish merchants who bleed red ink. Recent stock disasters like Value America and eToys -- whose market caps as of January 11, 2000, are down $3.1 billion and $7.7 billion respectively from 1999 highs -- serve as bad omens for online stores that lack a unique approach or technology.
The revenge of the brick-and-mortars will begin. The narrowing of the playing field in 2000 will rationalize but not resolve online retail competition. It will usher in a new era characterized by a few large players that exploit deep customer relationships and a presence across multiple channels to entrench themselves. To measure their success, these firms will ditch new economy platitudes in favor of unfashionable old metrics like margins, profits, and customer retention costs.
Forrester Research, 1999-2000
Four Models of Internet Usage
Corporate Enhancement Old Company plus Internet
DotCom
Start from Scratch in Internet Extended Supply Chain
Upstream Connection through Internet (Suppliers) Customer Relationship
Downstream Connection through Internet (Customers)
1
2
3
4
The Hype Cycle of Global eBusiness
IT in the Crossroads
Where are we ? – The end of the beginning – Technology more advanced than application – Transformative critical mass
Where are we going ? – A future with greater choice and higher expectations – A future increasingly interdependent – A future clouded in unpredictability
How do we get there ? – Best business practices – Leveraging resources – Delivering value to customers
Forecasting is a tricky business…
The Increasing Trend
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
198919901991199219931994199519961997199819992000200120022003200420052006
hosts mobiles?
Mobile Solutions Spending by Government
0
500
1,000
1,500
2,000
2,500
2000 2001 2002 2003 2004 2005Year
($M
) GovernmentIndustry Average
Non-Stop Technology
The Challenge…
The Everywhere Use of the Technology
The Lifestyle
Ten Emerging Technology…
The Ongoing Research…
Very Long-Range Factors
Next Generation of Internet
The Requirements…
Beyond the Earth…
+
+
+
The Mars Network
Interplanetary internet
Future Technology Enablers
DNA Computing
From the Gartner’’s Table
By 2004, B2B e-commerce will reach $7.3 trillion, representing 6.9 percent of the total global economy (0.7 probability).
By 2005, 70 percent of all product and service-based industries will be dominated by virtually integrated enterprises (0.7 probability).
By 2005, investments in e-business applications and infrastructure will drive average IT spending (in North America) beyond 10 percent of revenue (0.8 probability).
By 2003, the central IS budget will represent only 40 percent of total IT spending for large enterprises in North America, and only 50 percent in Europe (0.7 probability).
By 2010, at least 50 percent of the corporate capital budget will be devoted to IT for large enterprises (0.8 probability).
From the Gartner’’s Table continue
Global 2000 companies that are e-business-transformed before 2002 will have 10 percent fewer workers on their payrolls than today’’s levels by 2005 (0.7 probability) and 30 percent fewer by 2010 (0.6 probability).
Through 2002, 70 percent of traditional enterprise e-business initiatives fail, by creating ““quick-fix”” Web sites that minimize the disruption of current operations (0.8 probability).
Through 2003, 75 percent of enterprises will under budget e-business transformation costs by 50 percent or more, especially when trading-partner-related (0.7 probability).
Through 2005, only 20 percent of companies will have correctly evaluated e-business projects based upon market and technical risk assessment, commercial payback and fit to the mission of the enterprise (0.8 probability).
From the Gartner’’s Table continue
By 2005, more than 500,000 companies will participate in marketspace as buyers and/or sellers (0.7 probability).
By 2004, at least 75 percent of B2B e-market maker revenue will be derived by transactions, subscriptions, services, data-mining and software sales/rentals (0.8 probability).
By 2005, three dominant e-marketplace business models will survive: business services, commodities, and integration services (0.8 probability).
By 2003, market markers wil need to remain technologically agnostic, as no single vendor will be able to provide all of the components necessary for success (0.7 probability).
The worldwide ASP market will grow from $1 billion in 1H00 to $20 billion by YE03 – with Global 2000 enterprises representing at least 50 percent of ASP revenue (0.6 probability).
By 2004, 90 percent or more of the ASPs that exist today will disappear, either by consolidation or business model failure (0.8 probability).
From the Gartner’’s Table continue
Through 2005, application deployment to support e-business transformation will be at least twice as complex as yesteryear’’s ERP environment (0.8 probability).
Through 2005, no single packaged application source will represent more than 40 percent of a company’’s application requirements (0.8 probability).
By 2003, 30 percent of demand for enterprise application functionality will be met through ASP channels (0.7 probability).
By YE02, collaboration enabling will become the primary – and a required – value proposition of B2B e-business marketplaces (0.7 probability).
By 2004, 80 percent of ERP users will have shifted the focus of their application integration investments from synchronizing internal data to enabling trading partner collaboration (0.7 probability).
From the Gartner’’s Table continue
By 2003, 50 percent of e-business project initiatives will be based upon consensus-seeking committees – minimizing their business impact and value (0.8 probability).
By 2002, the most successful e-business efforts will be czar-driven, but only when enterprise revenues are at severe risk and when the czar has unqualified, direct access to the CEO (0.7 probability).
By 2002, the primary focus of IT management shifts from operational efficiency and effectiveness to information exploitation and extraenterprise operability (0.7 probability).
By 2002, more than 60 percent of large enterprise CIOs are sourced from ““the business”” or ESPs, facilitating business/IT fusion and e-process innovation (0.7 probability).
By 2003, 75 percent of Type A and 40 percent of Type B enterprises will have integrated IT planning and governance as key elements of their mainstream management processes to implement strategic business goals (0.7 probability).
After Crossing the Bridge…
OLD ECONOMY
DIGITAL ECONOMY
New Phonemena
The Nature of Business
Temptation to Digitalize Everything
10010001 atom bits
text audio video image voice data knowledge information process
real things abstract things
Bits characteristics: - easy to duplicate - cheap to produce - fast to restructure - good to represent
unlimited resources digital economy
The Early Warning
““Field of Dreams”” Syndrome Inadequate architecture Putting lipstick on a bulldog Islands of webification ““Me too”” strategies One-time-effort mentality Thinking too small
About the Cost Transparency
Avoid from having a high profit margin Change the product into commodity Weaken customer loyalty to brand Decrease company reputation due to
unfair pricing
Minimum Requirements
Understand the principles of new economy
Have a good vision Excellence in working stamina Able to cope with change Can manage people Collaborate to compete Combine professional with entrepreneur
Lack of Sustainable Business Model
Difficult to maintain competitive advantage
Compete with a great number of players Operate within a free market
environment Work with other business partners Require good competencies and skills
Opportunities = Threats
1. Power Shift to Customer 2. Global Sales Channel 3. Reduced Costs of Buying
and Selling 4. Converging Touch Points 5. Always Open for
Business 6. Reduced Time-to-Market 7. Enriched Buying
Experience 8. Customization 9. Self-Service 10. Reduced Barriers of
Market Entry 11. Demographics of the
Internet User
12. Power Shift to Communities-of-Interest
13. Cybermediation 14. Logistics and Physical
Distribution 15. Branding: Loyalty and
Acceptance Still Have to be Earned
16. When Most Markets Behave Like the Stock Market
17. Auctions Everywhere 18. Hyper-Efficiency
Why Fail? (Deloitte and Touche)
1. People 2. Product 3. Technology 4. Alliances 5. Market 6. Customer 7. Financing 8. Competition 9. Structure 10. Time
1. People
Visionaries who can’’t stop – After launch date – Constant focus on new market opportunities
There’’s no substitute for management depth and experience
The COO must manage Structured minds hate chaotic environments Lack of focus can blur the landscape No sense of urgency… but everything’’s at webspeed Human resource issues are not the last problem to
resolve
2. Product
Marketing myopia Intuition should support the research, not replace it Getting them used to a rhythmic release strategy Launch date is not the finish line Release strategies are made to be adhered to Narrow, non-competitive vs. bundled, diverse offerings Lack of understanding or experience in the marketplace
– B2B players don’’t understand how industrial buying really works
3. Technology
Architectural flaws are fatal in high availability businesses
Poor project management & QA – a recipe for failure Bifocal technology strategies – short term growth / long
term flexibility Ready, fire, aim Speed & specificity vs. generality Volume / load testing Demonstrate your security Lack of scalability Redundancy means more than backups Not everyone uses IE5.0 Bad software development practices breed contempt Document everything
4. Alliances
Building the imputed stock value through credibility? Long term alliances must bring value:
– Intellectual Property – Capital – Skills – Credibility – Customers
Poor partners made in haste – Quality and value – Integrity of character
Managing Expectations No risk & profit sharing model
5. Market
Where’’s the market research? Value Proposition – elevator pitches are about the
customer Understanding the difference between:
– Sales Force Strategy – Branding & Awareness Strategy – Marketing Strategy
No hybrid (traditional/cyber) approach Inexperienced help doesn’’t help at all Strong reliance on few channels Inability to migrate up the market The VP of Marketing doesn’’t work for the CFO
6. Customer
Customer experience management Reacting to feedback – more than having a ‘‘thick skin’’ Losing control of the customer contact points ‘‘24x7’’ means human availability Limited knowledge of the customer The investor is not a customer Advertising dollars buy awareness but certainly not
loyalty
7. Financing
A formal business plan is a living document Detailed financial projections Sensitivity analysis Poor positioning Shopping the idea Ongoing financial monitoring seems to be a rare event The best stock option models may not be the most
practical Investors like new ideas, not old ones re-packaged If it doesn’’t make cents… it doesn’’t make sense
8. Competition
We’’re the only one doing this Differentiation analysis Understand the substitutes as well as the competitors Build the IP fast Understand the barriers to entry Incumbents see the Internet as an enabler not a threat
9. Structure
No structure is not the same as a flat corporate structure No bricks… no clicks Adopting the Fortune 500 structure Communicate, collaborate and eliminate the silos A common vision does not equal common goals Manual processes are ‘‘bottlenecks’’ A complete website is not a back office Recognize an e-Business is ‘‘inside out’’
10. Time
Internet time waits for everyone Re-writing history takes time and patience Time to market is no excuse for poor business discipline First mover advantage is meaningless unless you’’re
ready Learning e-Business is easier than learning Business Incumbents get to mess it up many times, start-ups only
once
News from Information Week
Where Do You Wanna Go ?
AA: Traditional ““invest for future”” going- concern success
AB: Dark Model Profitless growth, war of corporate attrition
AC: Black Hole Massive company generates negative
cash flow, never recovers
Break Even
Top 10 eBusiness Success Imperatives
#1: Never Plan More than 24 Months Ahead #2: Do Not Develop an E-Business Strategy Independent of the Full Business Strategy #3: Use Separate Strategies According to Industry, Geography and Culture #4: During Analysis, Give Equal Weight to the Internal and External Processes #5: Obtain Total Buy-In From the Board #6: Deliberately Execute Alternatives to Buy, Spin Off or Transform the Business Model #7: Play By the ““New”” Rules #8: Enhance or Eliminate Distribution Channels Based on Their Power and Value #9: Establish a Metrics Program That Measures the True Effectiveness of the E-Business Initiative #10: Speed and Ruthless Execution Are Everything
Test the Initiatives
Form the
Idea
Determine Business Objective
Develop Business
Model
Resource Gathering
Setting the
Stage
Start the
Business
1 2 3 4 5 6
The Success
New Business (products/services) New Market (customers) New Revenue (business model) New Company (business transformation) New Image (business community) New Wealth (paradigm shift)
Etc.
Key Points: From ““nothing”” to ““existing”” From ““existing”” to ““creating”” From ““creating”” to ““improving”” From ““improving”” to ““growing”” From ““growing”” to ““performing””
The Failures
Loss market share (products and services) Loss revenue (customers) Loss competitive advantage (business model) Loss trust (business community) Loss resources (competition) Loss opportunity (cost)
Etc.
Key Points: From ““performing”” to ““stopping”” From ““stopping”” to ““decreasing”” From ““decreasing”” to ““surviving”” From ““surviving”” to ““eliminating””
Shifting to the Net Phase II
CHARACTERISTICS NET-PHASE 1 NET-PHASE 2
Ideal company Thin float IPO, all-new online standalone start up
Second generation bricks ‘‘n clicks hybrid with compelling market proposition
Foundation investor/shareholders
Individual online investor, buying anything in current Cant Miss sector on dips
Institution, adapting value investment principles to volatile internet
Key player Startup originators, early stage angles, VC, top IPO investment bankers
Killer model developers, secondary (mainstream) financiers
Primary management focus
Positioning: Being in the right sector
Viable business plan that ensures survival today, segment leadership tomorrow
Presence Participation Domination (40/40)
Shifting to the Net Phase II continue
CHARACTERISTICS NET-PHASE 1 NET-PHASE 2
Positive cash flow in the future
Communicated via ““perceptions management””
Through specific forecasts and commitments
Net-Brand development Reliance on high risk, low-yield, high-cost traditional media
Extending the few highly successful key net nameplates and bricks ‘‘n clicks hybrid nameplates leveraging on traditional market presence
Mergers and acquisitions emphasis
Cross-Dot-Com commercial contracts with spin as special alliances
Industry group strategic alliance announcement: overpromise
Market share capture strategy
Bottom up Top down
From Place to Space Business Models
1. Direct to Customer 2. Full-Service Provider 3. Whole of Enterprise 4. Portals, Agents, Auctions,
Aggregators, and Other Intermediaries
5. Shared Infrastructure 6. Virtual Community 7. Value Net Integrator 8. Content Provider
Knowledge
Digitization
Virtualization
Molecularization
Integration/Internetworking
Disintermediation
1
2
3
4
5
6
Convergence
Innovation
Prosumption
Immediacy
Globalization
Discordance
7
8
9
10
11
12
Paradigm Shifts in New Economy
THEME ECONOMY ORGANISATION
Knowledge Knowledge becomes an important element of products
Knowledge work becomes the basis of value, revenue, and
profit
Digitization Products and services’ forms are transformed into ones and
zeros format
Internal communication shifts from analog to digital
Virtualization Physical things (institution and relationship) can become
virtual
The business transformation into virtual corporations type
company
Molecularization Replacement of the mass media into molecular media
End of command-and-control hierarchy, shifting to team-
based, molecular structures
Internetworking Networked economy with deep and reach interconnections of
economic entities
Integration of modular, independent, organizational components for network of
services
Disintermediation Elimination of intermediaries and any stand between
producers and consumers
Elimination of middle managers, internal agents, etc. who boost the communication
signals
Paradigm Shifts in New Economy continue
THEME ECONOMY ORGANISATION
Convergence Convergence of computing, communications, and content
Convergence of organizational structures responsible
Innovation Innovation becomes the key driver of business success
The only sustainable advantage is organizational
learning
Prosumption Gap between consumers and producers blurs in a number of
ways
Consumers of information and technology become producers
Immediacy It is a real-time economy that occurs at the speed of light
Required a new real-time enterprise that can adjust to changing business conditions
Globalization Knowledge knows no boundaries, there is only a
world of economy
The new enterprise enables time and space independence
Discordance Massive social contradictions are arising
Profound organizational contradictions are arising
Paradigm Shifts in New Economy continue
Formula 40/40
40%
60%
16%
24%
Total Demand, All Channels
First 40% Critical Market Penetration as Online Sector for That Service Has or Will Achieve Around 40% Penetration of Overall Demand from All Channels and Sources.
Second 40% Key Consideration is the Percentage of the Online Share Commanded by That Specific Company. Target: 40%.
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The Indrajit Matrix
The Market Potential
Population
Internet Users
Internet Business
B2B
B2C
C2C
1
2 3
PHYSICAL WORLD of value chain
Business on the 80s-90s
Business after the year of 2000
VIRTUAL WORLD of value chain
+
Clicks ‘‘n Bricks
1. Flow of Physical/Digital Products 2. Flow of Money/Financial Data 3. Flow of Documents/Information 4. Flow of Services and Other Resources
Key Success Factors
FIRM INFRASTRUCTURE
HUMAN RESOURCE MANAGEMENT
TECHNOLOGY DEVELOPMENT
PROCUREMENT
INBOUND LOGISTICS OPERATIONS OUTBOUND
LOGISTICS MARKETING AND SALES SERVICE
FIRM INFRASTRUCTURE
HUMAN RESOURCE MANAGEMENT
TECHNOLOGY DEVELOPMENT
PROCUREMENT
INBOUND LOGISTICS OPERATIONS OUTBOUND
LOGISTICS MARKETING AND SALES SERVICE
FIRM INFRASTRUCTURE
HUMAN RESOURCE MANAGEMENT
TECHNOLOGY DEVELOPMENT
PROCUREMENT
INBOUND LOGISTICS OPERATIONS OUTBOUND
LOGISTICS MARKETING AND SALES SERVICE
FIRM INFRASTRUCTURE
HUMAN RESOURCE MANAGEMENT
TECHNOLOGY DEVELOPMENT
PROCUREMENT
INBOUND LOGISTICS OPERATIONS OUTBOUND
LOGISTICS MARKETING AND SALES SERVICE Industry Based Value Chain
Best Practice Oriented Software/Application Minded Physical Flow of Goods
The Physical Value Chain
Gather
Organize
Select
Synthesize
Distribute
Operation Mechanism: Info Based Process Flow of Bits Bit Restructuring Digital Asset
The Virtual Value Chain
Opportunity in the eBusiness
The Value Matrix
Parallel Approach
P1 Purchasing
and Inbound Logistic
P2 Production
and Operation
P3 Outbound
Logistic and Distribution
P4 Sales and
Marketing
P5 Customer
Supports and Services
P1 V1 Gather
P1 V2 Organize
P1 V3 Select
P1 V4 Synthesize
P1 V5 Distribute
P2 V1 Gather
P2 V2 Organize
P2 V3 Select
P2 V4 Synthesize
P2 V5 Distribute
P3 V1 Gather
P3 V2 Organize
P3 V3 Select
P3 V4 Synthesize
P3 V5 Distribute
P4 V1 Gather
P4 V2 Organize
P4 V3 Select
P4 V4 Synthesize
P4 V4 Distribute
P5 V1 Gather
P5 V2 Organize
P5 V3 Select
P5 V4 Synthesize
P5 V5 Distribute
P1OB P2OR P3OB P4OB P5OB
P1OC P2OC P3OC P4OC
Po5C
PiV1OB
PiV2OB
PiV3OB
PiV4OB
PiV5OB
PiV1OC
PiV2OC
PiV3OC
PiV4OC
PiV5OC
P1IB P2IB P3IB P4IB P5IB
P1IC P2IC P3IC P4IC P4IC
Business
Consumers
The Indrajit Model
Customers
Customers
Enterprise A
Enterprise B
Enterprise C
Enterprise D
The Internetworking
P1 Books
Publisher
P2 Inventory
P3 Distribution
P4 Physical
Bookstore
P5 Courier Services
P1 V1 Gather
P1 V2 Organize
P1 V3 Select
P1 V4 Synthesize
P1 V5 Distribute
P2 V1 Gather
P2 V2 Organize
P2 V3 Select
P2 V4 Synthesize
P2 V5 Distribute
P3 V1 Gather
P3 V2 Organize
P3 V3 Select
P3 V4 Synthesize
P3 V5 Distribute
P4 V1 Gather
P4 V2 Organize
P4 V3 Select
P4 V4 Synthesize
P4 V4 Distribute
P5 V1 Gather
P5 V2 Organize
P5 V3 Select
P5 V4 Synthesize
P5 V5 Distribute
C U S T O M E R S
C U
S T O M
E R S P
A R
T N
E R
S
Example 1 Amazon.com
P1 Subjects & Contents
P2 Online
Training
P3 Formal Exam
P4 Retake Exam
P5 Certificate Deliverable
P1 V1 Gather
P1 V2 Organize
P1 V3 Select
P1 V4 Synthesize
P1 V5 Distribute
P2 V1 Gather
P2 V2 Organize
P2 V3 Select
P2 V4 Synthesize
P2 V5 Distribute
P3 V1 Gather
P3 V2 Organize
P3 V3 Select
P3 V4 Synthesize
P3 V5 Distribute
P4 V1 Gather
P4 V2 Organize
P4 V3 Select
P4 V4 Synthesize
P4 V4 Distribute
P5 V1 Gather
P5 V2 Organize
P5 V3 Select
P5 V4 Synthesize
P5 V5 Distribute
C U S T O M E R S
C U
S T O M
E R S
P A
R T
N E
R S
C
U S
T O
M E
R S
Example 2 Brainbench.com
P1 Freeware & Shareware Warehouse
P2 Components
Download
P3 Software
Demo
P4 Purchasing
P5 Full
Download
P1 V1 Gather
P1 V2 Organize
P1 V3 Select
P1 V4 Synthesize
P1 V5 Distribute
P2 V1 Gather
P2 V2 Organize
P2 V3 Select
P2 V4 Synthesize
P2 V5 Distribute
P3 V1 Gather
P3 V2 Organize
P3 V3 Select
P3 V4 Synthesize
P3 V5 Distribute
P4 V1 Gather
P4 V2 Organize
P4 V3 Select
P4 V4 Synthesize
P4 V4 Distribute
P5 V1 Gather
P5 V2 Organize
P5 V3 Select
P5 V4 Synthesize
P5 V5 Distribute
C U S T O M E R S
C U
S T O M
E R S
P A
R T
N E
R S
Example 3 Download.com
P1 List of Used
Goods
P2 Auction
Registration
P3 Auction Session
& Winner
P4 Payment
& Settlement
P5 Goods
Deliverable
P1 V1 Gather
P1 V2 Organize
P1 V3 Select
P1 V4 Synthesize
P1 V5 Distribute
P2 V1 Gather
P2 V2 Organize
P2 V3 Select
P2 V4 Synthesize
P2 V5 Distribute
P3 V1 Gather
P3 V2 Organize
P3 V3 Select
P3 V4 Synthesize
P3 V5 Distribute
P4 V1 Gather
P4 V2 Organize
P4 V3 Select
P4 V4 Synthesize
P4 V4 Distribute
P5 V1 Gather
P5 V2 Organize
P5 V3 Select
P5 V4 Synthesize
P5 V5 Distribute
C U S T O M E R S
C U
S T O M
E R S C
U S
T O
M E
R S
Example 4 Ebay.com
The Business Model: Who Wins ?
10 Driving Principles
1. Matter 2. Space 3. Time 4. People 5. Growth
6. Value 7. Efficiency 8. Markets 9. Transactions 10. Impulse
Recipes from eEntrepreneurs
How to transform traditional media players into "clicks & mortar" companies
Strategies for and management of transformation
How to integrate traditional and new business models
Development of new substantial business
How to re-build the organization to ensure sustainable advantages – real time adaption
Solid implementation of business innovation
How to utilize and and motivate human resources to transform the organization
HRM, leadership and corporate culture: success factors in the transformation process
In a Nutshell …
In Five Years …
Ed Barton, ““Futurist””, stated at the NOAA Constituent Workshop that -
““To stay current with technology, industry must re-invent 20% of their business every year. This means that in 5 years, successful companies have totally changed the way they do business.””
About the Economic Revolution
“There is one economy, all of it being transformed by information technology. What is happening is no dot.com fad that will come and go – it is a profound economic revolution.
Tony Blair
11 September 2000
Some Final Thoughts
The dot.com era is over… the Internet era has only just started The real Internet companies have not yet arrived Disintermediation is not a threat when the customer becomes king Software companies and consultancies got it… both ways Pure-plays are becoming very ‘‘physical’’ The network effect only works in true Internet businesses Its almost nearly impossible to institutionalize entrepreneurship Decide whether you are in it for the company or the cash Dot.coms will change their spots… to become invisible Everyone will become an internal e-Business consultant The ““e”” will soon be gone
““There won’’t be any Internet companies. All companies will be Internet
companies, or they’’ll be dead”” Andy Grove - CEO, Intel Corporation
What will you do ?
If every person in the world have a free access to internet,
If every person in the world likes to do the transaction through the internet,
If the money transaction is secure, If any initiative is well protected by the
appropriate law,
WHAT TYPE OF BUSINESS YOU ARE TRYING TO PROMOTE ?
Summary: Let’’s Get Started !
1. Even after the start-up-mania is over, net economy offers tremendous opportunities especially for established players
2. The levers for successful transformation seem all too clear –
new instruments need to be utilized
Innovation cells to be implemented as – speed boats to quickly adapt your business with innovative ideas/
models – pacemaker for full scale e-transformation!
In parallel, (e-)transformation of the whole corporation must be supported by the "classical" transformation levers (but with "new" contents/tools)
3. After all: There are no conceptual, but mindset and implementation deficits to overcome – so let's get started!
Who will ruin the world…
The New Economy and the Old Economy Go Climbing …
Once upon a time,
Thank You
References
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