Chapter 16Launching a Successful Online Business and EC Projects 2008 Pearson Prentice Hall, Electronic Commerce 2008, Efraim Turban, et al.Learning ObjectiveslUnderstand the fundamental requirements for initiating an online business.lDescribe the process of initiating and funding a start- up e-business or large e-project.lUnderstand the process of adding EC initiatives to an existing business.lDescribe the issues and methods of transforming an organization into an e-business.lDescribe the process of acquiring Web sites and evaluating building versus hosting options.2Learning ObjectiveslUnderstand the importance of providing and managing content and describe how to accomplish this.lEvaluate Web sites on design criteria, such as appearance, navigation, consistency, and performance.lUnderstand how search engine optimization may help a Web site obtain high placement in search engines.3Learning ObjectiveslUnderstand how to provide some major support e-services.lUnderstand the process of building an online storefront.lBe able to build an online storefront with templates.4Starting a New Online BusinesslAn E-Start-Up Is a Start-UplAn e-start-up is basically a start-up and, as such, must consider all the issues faced by a physical start uplGuidelines to avoid dot-com failures:lThe growth rate of the market you plan to enterlThe timing of your market entrylThe revenue flowlWhat cycle a market is in5Starting a New Online BusinesslSteps in Creating a New Company or Adding an Online ProjectlIdentify a consumer or business need in the marketplacelInvestigate the opportunitylDetermine the business owners ability to meet the need6Starting a New Online BusinesslFive “secrets” to help you come up with the next big thing:lDo your homeworklAim for excitementlWhittle, shape, iterate, repeatlGet reallAvoid creating a gizmo7Starting a New Online BusinesslOnline Business Planninglbusiness plan A written document that identifies a companys goals and outlines how the company intends to achieve the goals and at what costlbusiness case A document that justifies the investment of internal, organizational resources in a specific application or project8Starting a New Online BusinesslFunding a New Online BusinesslFirst round of initial fundinglangel investor A wealthy individual who contributes personal funds and possibly expertise at the earliest stage of business developmentlincubator A company, university, or nonprofit organization that supports businesses in their initial stages of development9Starting a New Online BusinesslSecond round financinglventure capital (VC) Money invested in a business by an individual, a group of individuals (venture capitalists), or a funding company in exchange for equity in the businesslAdditional funding: A large partnerlThe initial public offering (IPO)10Adding E-Commerce Initiatives or Transforming to an E-BusinesslAdding EC Initiatives to an Existing BusinesslThe most common additions are:lA storefrontlA portallE-procurementlAuctions and reverse auctionslOther initiatives11Adding E-Commerce Initiatives or Transforming to an E-BusinesslTransformation to an E-BusinesslWhat is organizational transformation?lHow an organization can be transformed into an e-businesslBusiness process reengineeringlBusiness process management (BPM)lSoftware tools for facilitating transformation to e-businesslChange management12Adding E-Commerce Initiatives or Transforming to an E-Businesslbusiness process management (BPM) Method for business restructuring that combines workflow systems and redesign methods; covers three process categories people-to-people, systems-to-systems, and systems-to-people interactions13Building or Acquiring a Web SitelClassification of Web Siteslinformational Web site A Web site that does little more than provide information about the business and its products and serviceslinteractive Web site A Web site that provides opportunities for the customers and the business to communicate and share information14Building or Acquiring a Web Sitelattractors Web site features that attract and interact with visitors in the target stakeholder groupltransactional Web site A Web site that sells products and serviceslcollaborative Web site A site that allows business partners to collaborate15Building or Acquiring a Web SitelSteps in Building a Web SitelSelect a Web hostlRegister a domain namelCreate and manage contentlDesign the Web sitelConstruct the Web site and testlMarket and promote the Web site16Web Site Hosting and Obtaining a Domain NamelWeb Hosting Optionslstorebuilder service A hosting service that provides disk space and services to help small and microbusinesses build a Web site quickly and cheaply17Web Site Hosting and Obtaining a Domain NamelA pure hosting servicelWeb hosting service A dedicated Web site hosting company that offers a wide range of hosting services and functionality to businesses of all sizeslmirror site An exact duplicate of an o