Copyright 2006, Thomson South-Western, a division of the Thomson CorporationInternet Marketing & e-CommerceWard Hanson Kirthi KalyanamRequests for permission to copy any part of the material should be addressed to: PERMISSIONS DEPARTMENT THOMSON BUSINESS and ECONOMICS 5109 Natorp Boulevard Mason, OH 45040 Phone: (800) 423-0563 Copyright 2006, Thomson South-Western, a division of the Thomson CorporationPart Two: Chapter 11 Innovation and the Net “Nothing endures but change.”Heraclitus (540-480 BC) Copyright 2006, Thomson South-Western, a division of the Thomson CorporationCompetition and the Need for Speed Traditional business rivalries have been bitter, enduring battles Coke vs. Pepsi on the front lines of the Cold War SOURCE: Bettman/CORBIS: Vice President Richard Nixon and Soviet Premier Khrushchev share a Pepsi, 1959 Copyright 2006, Thomson South-Western, a division of the Thomson CorporationCompetition and the Need for Speed In high-tech markets, rivalries burn bright but fast IBM vs. Apple in personal computers Digital vs. Data General in minicomputers Most prominently: the Browser Wars Microsoft vs. Netscape in late 1990s Now, Microsoft vs. upstart(暴發戶的)Firefox Copyright 2006, Thomson South-Western, a division of the Thomson CorporationCompetition and the Need for Speed On “Internet Time” marketers face strain of creating new products at the moment of new opportunity Copyright 2006, Thomson South-Western, a division of the Thomson CorporationCompetition and the Need for Speed On “Internet Time” marketers face strain of creating new products at the moment of new opportunity Time-to-market influences profitability Copyright 2006, Thomson South-Western, a division of the Thomson CorporationCompetition and the Need for Speed On “Internet Time” marketers face strain of creating new products at the moment of new opportunity Time-to-market influences profitability Swiftness signals innovativeness Copyright 2006, Thomson South-Western, a division of the Thomson CorporationCompetition and the Need for Speed On “Internet Time” marketers face strain of creating new products at the moment of new opportunity Time-to-market influences profitability Swiftness signals innovativeness Early arrivals draw partners and alliances Copyright 2006, Thomson South-Western, a division of the Thomson CorporationCompetition and the Need for Speed On “Internet Time” marketers face strain拉緊 of creating new products at the moment of new opportunity Time-to-market influences profitability Swiftness signals innovativeness Early arrivals draw partners and alliances Market leaders can set industry or product standards and gain dominance Copyright 2006, Thomson South-Western, a division of the Thomson CorporationCompetition and the Need for Speed Copyright 2006, Thomson South-Western, a division of the Thomson CorporationStandards Marketing Open Standards: Formed by process of official debate and consensus(一致) Widespread adoption and innovation, but also greater competition Example: WiFi Copyright 2006, Thomson South-Western, a division of the Thomson CorporationStandards Marketing Open Standards: Formed by process of official debate and consensus Widespread adoption and innovation, but also greater competition Example: WiFi De Facto (事實上的)Standards: Based on market acceptance, but proprietary (專屬的) Harder to establish, but more profitable Example: Xbox and Playstation Copyright 2006, Thomson South-Western, a division of the Thomson CorporationStandards MarketingGrowth in certified Wi-Fi product types, according to the Wi-Fi Alliance Copyright 2006, Thomson South-Western, a division of the Thomson CorporationProduct Development Online Understanding the Idea Funnel漏斗 Dual goals of identifying unmet needs and weeding雜草 out costly ideas early in process Few ideas make it through the funnel, but process still can be costly Copyright 2006, Thomson South-Western, a division of the Thomson CorporationProduct Development OnlineThe Idea Funnel for event-driven new products Copyright 2006, Thomson South-Western, a division of the Thomson CorporationProduct Development Online Understanding the Idea Funnel Dual goals of identifying unmet needs and weeding out costly ideas early in process Few ideas make it through the funnel, but process still can be costly Improving the Idea Funnel Online market research screens concepts Virtual setting facilitates consumer- assisted design Copyright 2006, Thomson South-Western, a division of the Thomson CorporationProduct Development Online Not all products fit easily into preexisting product categories Copyright 2006, Thomson South-Western, a division of the Thomson CorporationProduct Development Online Not all products fit easily into preexisting product categories Simulation and digital environments offer realistic market research settings Copyright 2006, Thomson South-Western, a