So what s new in the new economy 5 myths of e business
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So what's new in the 'new economy'? 5 myths of e-business. Phil Shankland Oasys. So what's new in the 'new economy'? 5 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

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So what's new in the 'new economy'? 5 myths of e-business

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So what s new in the new economy 5 myths of e business

So what's new in the 'new economy'?5 myths of e-business

Phil Shankland

Oasys

Sheffield Business School 26/10/00


So what s new in the new economy 5 myths of e business1

So what's new in the 'new economy'?5 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 economy

So what's new in the 'new economy'?

Phil Shankland

Oasys – e-strategy/e-marketing

1,500 web enquiries per month

300 new/used car sales per month

£2m turnover per month

80,000 prospects in 70 countries

650 stock machines – ‘live’ database

30,000 fax/email shots per month

Sheffield Business School 26/10/00


So what s new in the new economy1

So what's new in the 'new economy'?

mybands.com

£5.5m music infomediary – web/wireless/DTV

Sheffield Business School 26/10/00


What do we mean by the new economy

What do we mean by the ‘new economy’?

2 views:

the e-vangelists

the e-conomists

Carl Shapiro and Hal Varian:

(professors)

Information Rules –

A Strategic Guide to the Network Economy

Amazon sales rank: 286

Kevin Kelly :

(publisher ‘Wired’)

New Rules for the New Economy –

10 Ways the Network Economy is Changing Everything

Amazon sales rank: 3,421

Sheffield Business School 26/10/00


What do we mean by the new economy1

What do we mean by the ‘new economy’?

the e-conomists

the e-vangelists

Allen Morgan:

(Mayfield Venture Capital)

“There aren’t any new business models.”

PierreOmidyar:

(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)

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 economy

Characteristics of the new economy

Sheffield Business School 26/10/00


Characteristics of the new economy1

Characteristics of the new economy

‘old’

‘new’

Knowledge products content

Communication/ physical electronic

distribution

Market place on-line

Sheffield Business School 26/10/00


Characteristics of the new economy2

Characteristics of the new economy

‘old’

‘new’

Marketingmass one-to-one

Selling brand brand

Supply chain fragmented integrated

Sheffield Business School 26/10/00


Characteristics of the new economy e g music

Characteristics of the new economy e.g. music

‘old’

‘new’

Knowledge CD subscription

Communication/ record co. web/wireless

Distribution distributor digital TV

Market retailer anytime/

anywhere

Sheffield Business School 26/10/00


Opportunities in the new economy

Opportunities in the new economy

KnowledgecontentTime-Warner

Communication/ infrastructureAOL

distribution

Marketbroadband ‘always on’

Sheffield Business School 26/10/00


Examples of new economy companies

Examples of ‘new economy’ companies

?

Sheffield Business School 26/10/00


If the new economy is so hot how come it s gone cold

If the ‘new economy’ is so hothow come it’s gone cold?

Sheffield Business School 26/10/00


If the new economy is so hot how come it s gone cold1

If the ‘new economy’ is so hothow come it’s gone cold?

Sheffield Business School 26/10/00


So what s new in the new economy 5 myths of e business

  • 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


So what s new in the new economy 5 myths of e business

reason

company

boo.compoor financial control

boxman.compoor sales

clickmango.compoor customer service

Q: are these ‘new economy’ reasons?

Sheffield Business School 26/10/00


So what s new in the new economy 5 myths of e business

Geoffrey Moore

  • 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

Sheffield Business School 26/10/00


So what s new in the new economy 5 myths of e business

  • No surprises:

  • new idea

  • new business model

  • unproven market

  • new management

  • speed to market

  • cash burn

Sheffield Business School 26/10/00


So what s new in the new economy 5 myths of e business

“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


So what s new in the new economy 5 myths of e business

“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 1

Myth #1

“There are new rules for the new economy.”

x

Sheffield Business School 26/10/00


Myth 2

Myth #2

“In order to succeed you need first mover advantage.”

x

Sheffield Business School 26/10/00


Myth 3

Myth #3

“In order to attract users you need to burn cash.”

x

Sheffield Business School 26/10/00


Myth 4

Myth #4

“Achieving scale is more important than making money.”

x

Sheffield Business School 26/10/00


Myth 5

Myth #5

“Disintermediation will see the end of the middleman.”

x

Sheffield Business School 26/10/00


5 hits of e business 1

5 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 2

5 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 3

5 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 4

5 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 5

5 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 economy 5 myths of e business2

So what's new in the 'new economy'?5 myths of e-business

Questions

Sheffield Business School 26/10/00


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