By Nick Earle
It could not final forever?and it did not. eventually, ratings of e-businesses that when loved astronomical capitalization despite their obscure company plans, modest revenues, and shortage of earnings were referred to as at the carpet. The experimental first period of e-business is over and now its time for the subsequent, while businesses will bring shopper worth and make a revenue or disappear altogether. Nick Earle, Hewlett-Packard's leader strategist for e-services, and Peter willing, a revered process and company advisor, map the way forward for on-line company and describe the six key drivers that businesses needs to grasp that allows you to continue to exist the following period of e-commerce.
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Extra info for From .Com to .Profit: Inventing Business Models That Deliver Value and Profit
Or else: you risk being disintermediated—bypassed by customers who migrate to hubs that add value for them. The six imperatives overlap, of course, in leading companies' business models. Companies like Dell are exemplars in perfecting logistics, cultivating customer relationships, transforming capital and cost structures, and harmonizing channels, for example, and their success in each one of these feeds into the others. The skilled logistics company improves its capital and cost structures by reducing inventory (and hence working capital costs) and reducing overhead.
Priceline Auto Service: Option to specify the price you want to pay and how far you are willing to travel to pick up the car, guidance in making bids that are likely to be accepted by a dealer. No financing. Rating: very good. • StoneAge: Locating the best price, auction service, help in applying for loans, leases, and insurance. Rating: Excellent. • UAutoBid: Auctions: Dutch auctions, where the price drops until someone bids. Rating: average. In this instance, the business models for the competing companies largely focus on channels—dealer relationships, financial intermediaries, and delivery mechanisms.
Imperatives imply an "or else" and an urgency. Here's our summary of why each value imperative is vital and urgent, plus what happens without attending to the imperative—the "or else": Perfect your logistics because the leaders have shown that a company can transform its entire supply chain and related administrative processes to a degree that would have been unbelievable just five years ago. Or else: you won't be in the competitive game. You literally won't be able to afford to play. Cultivate your long-term relationships because that is the only way to create the revenue base and margin base that makes you viable as the online economy becomes more and more the business mainstream.
From .Com to .Profit: Inventing Business Models That Deliver Value and Profit by Nick Earle