Business Design for e-commerce. Schedule. Date Topic Readings
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1 MGT Fall 2000 Richard C. Dorf Mon. 1:40-4:30 p.m. Business Design for e-commerce Course Description: The objective of this course is to explore the various business models used for e-commerce and determine the design of appropriate models that lead to productivity and profitability. Schedule Date Topic Readings 1. Oct. 2 The Digital Economy Tap: Ch 1 Networks Rules: Ch 1 Mass, Time, Space The B-Web Value Innovation Case: Webvan Part I 2. Oct. 9 Business Models New Models of Wealth Tap: Ch 2 Creation: Agoras Rules: Ch 2 Pricing Information Case: B & N vs. Amazon Part I Guest: Maury Gallagher, Flynn & Gallagher 3. Oct. 16 Models: Aggregations Tap: Ch 3 Versioning Information Rules: Ch 3 Site Analysis due Case: B & N vs. Amazon Part II Guest: Lynn Upshaw, Upshaw & Assoc. Brand Consulting 4. Oct. 23 Value Chains Tap: Ch4 Rights Management Rules: Ch 4 Case: Electronic Commerce at Air Products Guest: Chris Soderquist, e-venture Lab 5. Oct. 30 Alliances Tap: Ch 5 Recognizing Lock-In Rules: Ch 6 Case: On Sale Part I Guest: Randy Lintecum, Reality Plus Online 6. Nov. 6 Distributive Networks Tap: Ch 6 Managing Lock-In Rules: Ch 6 Case: On Sale Part II Guest: Chris Ewing, Shari's Berrys.com
2 7. Nov. 13 Relationship Elements Tap: Ch 7,8 Networks and Feedback Rules: Ch 7 Case: Hotmail Guest: Ed Canale, Sacramento Bee 8. Nov. 20 Weaving a Web Tap: Ch 9 Cooperation Rules: Ch 8 Case: e-bay Guest: Collin Sheldon, MotorAuction.com 9. Nov. 27 Harvesting Tap: Ch 10 Standards Rules: Ch 9 Presentations of Reports Guest: Todd Brockman, Webvan 10. Dec. 4 Information Policy Rules: Ch 10 Presentation of Reports Required Textbooks: 1. Information Rules Shapiro (Rules) 2. Digital Capital Tapscott (Tap) Recommended 1. e-business Kalakota 2. Net Ready Hartman
3 Class Requirements 1. Teams of 3-4 persons will be formed on the first day of class. There will be 7 teams. Your assignments for presentation will be set by team number as shown on the schedule grid enclosed. 2. There are 7 cases including two cases with a Part I and Part II. A specified team presents the history of the case and the issues. Then the team leads a discussion of the issues. Every team will submit a 1-2 page analysis of each case - due on the discussion date. 3. Site Analysis: Each team will prepare a site analysis for a site of their selection. Selected teams will present their analysis. All reports due Oct. 16. Report is 2-3 pages. 4. Industry Analysis: Each team will prepare an industry analysis - due on Oct. 30. Selected teams will present. This analysis describes the transition to e-commerce in the industry of your choice. 5. Team Project: Each team will prepare a project report and present it. The goal of the project is to prepare an e-commerce business for a specific company or a hypothetical company. The team selects the project which should include a business model and a site model. Show how this business will be profitable and when this might occur. A brief statement outlining the team e-commerce project is due on Nov. 6. The final reports are presented on Nov. 27 and Dec. 4. The written report is due by Dec. 8. Note: All team members should be involved in the project presentation. Divide the other presentations (site or industry) and the case presentation among the team members.
4 Case Questions 1 B& N vs. Amazon Part I 1. Describe the business model for B & N bookstore and Amazon.com 2. Based on your own experience of traditional bookselling and your exploration of online bookselling, compare your willingness-to-pay for books supplied by these two business models. How important is price? 2 B& N vs. Amazon Part II 1. Assess Barnes & Noble's response to the substitution threat from Amazon. How did Amazon respond in turn, and to what net effect? 2. Who will be the online leader? Will it ever make much money selling books (as opposed to selling stock)? 3. Visit Barnes & Noble.com and describe their offering relative to Amazon noting any differentiators. 3 Hotmail 1. Describe Hotmail's business model. 2. Test Hotmail's offering and discuss its strength and viability. 3. Discuss the latest evolution of Hotmail and describe its successes and opportunities. 4 Onsale Part I 1. When Kaplan created the original Onsale auction format, he called it a "new form of retailing that exploited the unique characteristics of the net." Do you agree or disagree with this statement? More generally, how is Onsale's auction model different from traditional retail models? 2. Discuss the evolution of Onsale to its latest form. 3. How well is Onsale's auction model working? What are the benchmarks for success in this market? 5 Onsale Part II 1. What's the "secret" to Onsale's success. What have they done right? What have they done wrong? How scalable is the auction model? 2. Who is the typical Onsale customer? 3. Kaplan claims that the AtCost model is going to "create a revolution between the retailer and the customer." Is this true? What are the arguments in favor of adding this new model to Onsale's website? What are the risks?
5 6 Air Products 1. Describe Air Products network approach to the value chain. 2. Investigate the specialty chemicals industry and compare the Air Products and BOC Group offerings on the Internet. 3. Study Chemical Week magazine for comments on e-commerce in this industry. 7 e-bay 1. Describe e-bay's business model. Is this a sustainable business? 2. Describe Amazon's competitive business model. 3. Which firm will succeed and be profitable in this business?
6 Elements of a Commercial Web Site for a Site Analysis 1. Richness of Information 2. Speed of movement across site 3. Stickiness - repeat customers 4. Graphics 5. Affiliation - alignment of interests with customer Elements of an Industry Analysis 1. Describe the industry - narrow it to a clearly defined industry - e.g., specialty gases and chemicals. 2. List the 3 largest companies in the industry. 3. Describe the business models of each company. 4. Describe the e-commerce strategy of each company. 5. Describe the current trends and the emerging e-commerce leader for the industry.
7 Schedule Grid Team Case Site Analysis Industry Analysis Project Presentation 1 B&N vs. Amazon X Nov. 13 Dec. 4 Part I Oct. 9 2 B&N vs. Amazon X Nov. 6 Nov. 27 Part II Oct Hotmail Nov. 13 Oct. 23 X Dec Onsale Part I Oct. 30 Oct. 16 X Nov. 27 AirProducts Oct. 23 X Oct. 30 Dec. 4 6 e-bay Nov. 20 Onsale 7 Part II Nov. 6 X Nov. 6 Dec. 4 Oct. 16 X Nov. 27
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