Transcript Internet Business Strategies

Internet Business Strategies
A strategic view of the various options
and connectivity levels available to
business through the Internet.
Copyright 2011 SPMI / Online Development
Internet Business Strategies
 The
Internet now connects more than 40
million people in virtually all countries
around the world, with the number
projected to exceed 100 million in 1998.
 The growth of the Internet offers businesses
many new opportunities and techniques for
accessing customers and markets.
Internet Business Strategies
 The
widely varying Internet connection
options range from simple Electronic Mail
boxes to a dedicated Web server costing
$100,000 or more.
 As connectivity, functionality, and volume
increase, so do the associated costs.
Internet Business Strategies - High-Level View
Cost
Trade-off
between Cost
and Internet
Functionality
Function
Internet Business Strategies - Connection Options
Cost
A business can start out with a
simpler Internet presence, and build
on this foundation as more
capabilities are needed.
Function
Internet Business Strategies - Connection Options
5
4
Cost
3
2
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The following are five sample
Internet strategies, combining the
appropriate function and technology
at each level.
Function
Internet Business Strategies - Connection Options
 Five
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Sample Connection Options
Electronic Mail Only
Dial-up Client Access
Contracting for Server Space
On-demand Local Area Network Access
Build a Dedicated In-house Server
Cost/Function Line
Internet Business Strategies - E-mail Only
 Capabilities
• Exchange E-mail with everyone connected to
the Internet
• Subscribe to Internet Mailing Lists
• Distribute product and service information to
customers and potential customers
1
Cost/Function Line
Internet Business Strategies - E-mail Only
 Advantages
• Provides access to over 40 million Internetconnected users
• Have an E-mail address at very low cost
• Simple start-up and operation
1
Cost/Function Line
Internet Business Strategies - E-mail Only
 Disadvantages
• No access to advanced protocols such as the
World Wide Web
• No capacity to publish company material in
multimedia formats
1
Cost/Function Line
Internet Business Strategies - Dial-up Client Access
 Capabilities
• Includes E-mail, Usenet News, File-Transfers,
Gopher, and World Wide Web access
• Distribute company information through Email and Newsgroups
• Ability to browse multimedia Web sites
2
Cost/Function Line
Internet Business Strategies - Dial-up Client Access
 Advantages
• Complete access to everything the Internet has
to offer, including forms and commerce sites
• Very low start-up and operation costs
• Fairly simple set-up and operation
2
Cost/Function Line
Internet Business Strategies - Dial-up Client Access
 Disadvantages
• Response time through dial-up modem is
relatively slow
• “Client-side” functionality only
• Does not include ability to publish World
Wide Web pages or documents
2
Cost/Function Line
Internet Business Strategies - Server Space Rental
 Capabilities
• Allows your company to publish its multimedia material on the World Wide Web
• Create mailing lists for automated distribution
of company and product information
• Solicit feedback, requests for information, and
even process orders through your Web site
3
Cost/Function Line
Internet Business Strategies - Server Space Rental
 Advantages
• Makes you a provider, rather than a consumer,
of Web graphical information
• Low costs, moderate skill requirements
• Wide variety of rental sites available
• Can also use File Transfer, other protocols
3
Cost/Function Line
Internet Business Strategies - Server Space Rental
 Disadvantages
• Dependent on rules, architecture, and support
applications provided by server space provider
• Need to carefully select space provider to
insure reliability, control over material
3
Cost/Function Line
Internet Business Strategies - On-demand LAN
 Capabilities
• Connects an entire office or workgroup to the
Internet
• Full Client-side access to all Internet protocols
• Dial-up or ISDN line gives on-demand
connect and disconnect from your access
provider
4
Cost/Function Line
Internet Business Strategies - On-demand LAN
 Advantages
• Can use ordinary telephone line and modems,
or choose a faster ISDN connection
• Lower costs/complexity than dedicated lines
• Allows centralized set-up and management of
group Internet access
4
Cost/Function Line
Internet Business Strategies - On-demand LAN
 Disadvantages
• Not as fast as a full-time dedicated line
• Requires additional hardware (a “router”) vs.
single-user access with single modems
• Still requires separate server space rental for
Web publishing
4
Cost/Function Line
Internet Business Strategies - Dedicated Server
 Capabilities
• In-house server gives you total control over
hardware resources, operating system, etc.
• Full server-side use of all Internet protocols,
depending on server software installed
• May rent server space to other companies to
spread operating costs
5
Cost/Function Line
Internet Business Strategies - Dedicated Server
 Advantages
• Total control over development and
implementation of all World Wide Web, FileServer, other materials
• Control over speed and capacity of Internet
access lines
• More advanced use of Web and E-mail tools
5
Cost/Function Line
Internet Business Strategies - Dedicated Server
 Disadvantages
• Most costly Internet strategy - requires fulltime dedicated connection & systems
• Requires in-house skills for development,
testing, and technical support
5
Cost/Function Line
Internet Business Strategies - Getting Started
 Selecting
a Strategy
• Begin with your business requirements
• Select technology based on business objectives
and strategy
• Start with modest goals, then grow
• Focus on competitive advantage
Internet Business Strategies - The Netstart Program
 Benefits
of using Netstart program
• Netstart allows a basic early implementation,
adding capabilities as you need them.
• Our flexible approach adapts to your business
requirements.
• Your development work is professionally
planned and managed.
• Knowledge, skills, and tools can be transferred
to your internal resources.
Internet Business Strategies - Next Steps
 Where
to go from here?
• We customize the Netstart Internet Task Plan
based on your business requirements.
• Prepare to evaluate service provider options.
• Assess and plan technical environment.
• Select and acquire Internet tools.
• Begin development of your customized
Internet Business Presence.