Sheffield Business School 26/10/00 So what's new in the 'new So what's new in the 'new economy'? economy'? 5 myths of e-business 5 myths of e-business Phil Shankland Oasys
Jan 06, 2016
Sheffield Business School 26/10/00
So what's new in the 'new So what's new in the 'new economy'?economy'?
5 myths of e-business5 myths of e-business
Phil ShanklandOasys
Sheffield Business School 26/10/00
So what's new in the 'new So what's new in the 'new economy'?economy'?
5 myths of e-business5 myths of e-business
what do we mean by the ‘new economy’ ? characteristics of the new economy examples dotcom failures why companies fail 5 myths 5 hits conclusion – new acronyms
Sheffield Business School 26/10/00
So what's new in the 'new So what's new in the 'new economy'?economy'?
Phil ShanklandOasys – e-strategy/e-marketing
1,500 web enquiries per month300 new/used car sales per month£2m turnover per month
80,000 prospects in 70 countries650 stock machines – ‘live’ database30,000 fax/email shots per month
Sheffield Business School 26/10/00
So what's new in the 'new So what's new in the 'new economy'?economy'?
mybands.com£5.5m music infomediary –
web/wireless/DTV
Sheffield Business School 26/10/00
What do we mean by the ‘new What do we mean by the ‘new economy’?economy’?
2 views:
the e-vangelists the e-conomists
Kevin Kelly :(publisher ‘Wired’)
New Rules for the New Economy –
10 Ways the Network Economy is Changing Everything
Amazon sales rank: 3,421
Carl Shapiro and Hal Varian:(professors)
Information Rules –
A Strategic Guide to the Network Economy
Amazon sales rank: 286
Sheffield Business School 26/10/00
What do we mean by the ‘new What do we mean by the ‘new economy’?economy’?
the e-vangelists the e-conomists
Pierre Omidyar:(founder of Ebay.com)
"What I wanted to do was create a marketplace where everyone had access to the same information."
(Oct 2000 – 19m registered users)
Allen Morgan:(Mayfield Venture Capital)
“There aren’t any new business models.”
Johan Konings :(Pythagoras Participations)
“There’s no such thing as a New Economy, it’s about creating value propositions.”
Sheffield Business School 26/10/00
Characteristics of the new economyCharacteristics of the new economy
Knowledge creation sharing exploiting IP
Charles Leadbeater:Living on Thin Air – the New Economy
"Knowledge is our most precious resource.”
Communication global instant/interactive low cost
Kevin Kelly:New Rules for the New Economy
“Communication is the foundation of society, of our culture, of our humanity, of our own individual identity, and of all economic systems.”
Business models B2B/B2C/P2P portals infomediaries
John Hagel III, McKinsey:Net Worth
“…custodians, agents and brokers of information, marketing it to businesses on customers’ behalf whilst at the same time protecting their privacy.”
Sheffield Business School 26/10/00
Characteristics of the new economyCharacteristics of the new economy
‘old’ ‘new’
Knowledge products content
Communication/ physical electronicdistribution
Market place on-line
Sheffield Business School 26/10/00
Characteristics of the new economyCharacteristics of the new economy
‘old’ ‘new’
Marketing mass one-to-one
Selling brand brand
Supply chain fragmented integrated
Sheffield Business School 26/10/00
Characteristics of the new economy e.g. Characteristics of the new economy e.g. musicmusic
‘‘old’old’ ‘‘new’new’
Knowledge CD subscription
Communication/ record co. web/wirelessDistribution distributor digital TV
Market retailer anytime/ anywhere
Sheffield Business School 26/10/00
Opportunities in the new economyOpportunities in the new economy
Knowledge content Time-Warner
Communication/ infrastructureAOLdistribution
Market broadband ‘always on’
Sheffield Business School 26/10/00
Examples of ‘new economy’ Examples of ‘new economy’ companiescompanies
B2B B2C P2P
Portal – horizontal
Portal –vertical
Infomediary ??
Sheffield Business School 26/10/00
If the ‘new economy’ is so hotIf the ‘new economy’ is so hot how come it’s gone how come it’s gone cold?cold?
Sheffield Business School 26/10/00
If the ‘new economy’ is so hotIf the ‘new economy’ is so hot how come it’s gone how come it’s gone cold?cold?
Sheffield Business School 26/10/00
A to Z of dot com failures including:A to Z of dot com failures including:
• auctions.com• boo.com• boxman.com• clickmango.com• ……• worldspy.com• xenote.com…… next?
Sheffield Business School 26/10/00
companycompany reasonreason
boo.com poor financial control
boxman.com poor sales
clickmango.com poor customer service
Q: are these ‘new economy’ reasons?
Sheffield Business School 26/10/00
Are there any new reasons to fail?
• the slow fail – inflexibility/sticking to the plan
• the chasm trap – vendor promise/market acceptance
• the tornado dive – first mover/value chain lag
• the dead zone – modest gain/high pain
Geoffrey Moore
Sheffield Business School 26/10/00
No surprises:
• new idea
• new business model
• unproven market
• new management
• speed to market
• cash burn
Sheffield Business School 26/10/00
“In high-tech ventures, you can expect to fail many, many times. That's part of the deal.”Geoffrey Moore, Chasm Group
Sheffield Business School 26/10/00
“The combination of weak financial structure, mounting competitive pressures and investor flight will drive most US Web retailers out of business by 2001.”
Forrester Research, April 2000.
Sheffield Business School 26/10/00
Myth #1Myth #1
“There are new rules for the new economy.”
x
Sheffield Business School 26/10/00
Myth #2Myth #2
“In order to succeed you need first mover advantage.”
x
Sheffield Business School 26/10/00
Myth #3Myth #3
“In order to attract users you need to burn cash.”
x
Sheffield Business School 26/10/00
Myth #4Myth #4
“Achieving scale is more important than making money.”
x
Sheffield Business School 26/10/00
Myth #5Myth #5
“Disintermediation will see the end of the middleman.”
x
Sheffield Business School 26/10/00
5 hits of e-business #15 hits of e-business #1
B2B e-commerce
“Ecommerce in Europe is set to go into ‘hypergrowth’ in the next two years, according to a new report published by Forrester Research. It predicts that worldwide Internet commerce will hit $6.9 trillion in 2004, with West European e-commerce reaching $1.5 trillion.
http://www.forrester.com
Sheffield Business School 26/10/00
5 hits of e-business #25 hits of e-business #2
Supply chain – B2B exchanges
“E-procurement could save UK manufacturers millions of pounds according to a new report commissioned by MRO.com. But they found that UK manufacturers are lagging behind other sectors - such as banking and finance - in taking advantage of e-procurement. Half of UK manufacturing companies surveyed will have some type of e-procurement system in place by 2001.”
www.mro.com
Sheffield Business School 26/10/00
5 hits of e-business #35 hits of e-business #3
Wireless internet
“Europe will lead the US in the growth of m-commerce over the next year, states the Patricia Seybold Group. It its predictions for 2000 - Looking Ahead to the Year 2000 - it says that the growth of broadband wireless will outpace cable deployment outside the US. It also predicts that merchandise returns will plague e-tailers with inventory management becoming a major ebusiness roadblock.”
www.psgroup.com
Sheffield Business School 26/10/00
5 hits of e-business #45 hits of e-business #4
Personalisation
“Personalisation is by an order of magnitude the single most important factor in the future success of mobile commerce.”
Patrick Neil - Vodafone
Sheffield Business School 26/10/00
5 hits of e-business #55 hits of e-business #5
Infomediaries
• a trusted holder of consumers’ personal preferences
• a deliverer of specific value added services across multiple vendors to a consumer
• permission, relationship and trust based
• high initial build cost, long term asset value becoming more valuable over time
• the link between vendors and consumers
Sheffield Business School 26/10/00
Conclusions – new acronyms Conclusions – new acronyms
B2B “back to basics”
B2C “bending to customers”
P2P “path to profitability”
Sheffield Business School 26/10/00
So what's new in the 'new So what's new in the 'new economy'?economy'?
5 myths of e-business5 myths of e-business
Questions