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Home Account Network and CheckFree Sign Distribution Agreement for


									Creating and Setting Strategy:
      Some New Plays

       Miklos A. Vasarhelyi
     Some strategy alternatives
 Create  new technology
 Affiliate yourself or get affiliates to market
  for you
 Focus on improving internal processes or
  fully revamping them
 Outsource all EC related activities
 Eliminate intermediaries
            Strategies (cont.)
 Become   an intermediate (re-intermediate)
 Focus on customer interface improvements
  in particular e-care reinvention
 Cannibalize yourself out of existence
 Change the industry your are in
  – Nibble at the edges of your industry
Intel Invests in Belgian Speech Technology
  (Lernout & Hauspie Software Company)

   Development of easy-to-use voice technology for e-
    commerce and telecommunications in various
   Ordering of merchandise over the internet by voice
   L & H‟s software products allow for speech
    recognition in German, Spanish, Italian and French
   Voice to be produced sounds more natural than
   Venture combines Intel‟s expertise in computer
    systems with L & H‟s speech and language software
   Ownership is 51% by Intel, and 49% by L & H
    Record Label Will Distribute Music Online

   Universal Records invests in technology to sell and distribute music
    over the internet by the end of the year
     – Working with Intertrust Technologies Corporation of Sunnyvale
        to develop software to securely store, sell and distribute their
        music online
     – Plans to have a pilot version running by the end of the year
           Success of pilot version determines the rollout of full service

   First major record company to publicly announce digital
   Recordings will be sold as labels that arrive on a customer‟s
    computer hard drive, not on CDs or cassette tapes

 Demand is available
 Much of this demand is being filled by illegal content (made possible
   by MP3 - the free music technology for delivering music online) and
   independent labels and Corporate Express, Inc.
  Accelerate Online Corporate Buying

 A solution for streamlining purchasing
  processes for corporate buyers in two markets

Customer Benefits
 Access to Corporate Express‟ E-Way(R) office
  supplies internet ordering system and ImageX
  online printing center(TM): greater value to
    Transnational Financial Corporation Uses Electronic
    Commerce to Allow Brokers to Process Loans Via the

   This Technology Will Allow Brokers to Inform
    Potential Borrowers Their Loan Status in
   TFN in „Preferred Partner‟ status with Contour
   Aim: to speed up loan approval process by 80%
   Contour‟s technology - WebIT (Web Integrated
    Technology), is an internet and e-commerce
    solution designed for wholesale lenders
   Loan applications to be submitted by brokers in
    California and six other states through
    Transnational‟s web site
           Transnational Financial Corporation (II)

   Brokers‟ Benefits
     – acceleration of transactions
     – reduced amount of work needed to complete
     – minimization of errors due to data entry mistakes
     – reduction in the cost of each transaction
     – Increase in origination productivity
   Transfer of data is made directly into the Automated
    Underwriting system of Transnational
     – its „artificial intelligence‟ will allow the broker to
       receive an approval in minutes, with a minimum of
       documents and efforts
Marketing Plays
Wowstores Joins Dell in the World of
      Electronic Commerce
, Inc. joined Dell Computer
    Corp. by joining in the Dell affiliate program
    – now linked to through text
      links, banner ads, or virtual storefronts
      on the Wowstores site.
    – earns 1% of qualifying revenues
         an advantage since Dell‟s average
          system price exceeds PC industry
     AdCast Announces Broadcast
     Model For Internet Advertising
   AmeriComUSA, Inc., announced the availability of the AdCast and
    TrueManagement systems
     – allows internet advertisers to effectively implement marketing and
         advertising campaigns using non-scrollable e-billboards that stay on
         screen for a set time duration
            controls the number of times a web site displays any advertisement
             (by day, month or campaign)
                – advertisers have the ability to control advertising expenditures
                   and closely monitor results
            based on a broadcast model

            support higher bandwidth media since they are a space seen by the
             browser independent of the web pages
            Available play time run between 15 and 90 seconds

                – allow for rich messaging
     – eliminates the waste factor currently being experienced with banner
   Provide a solution to advertisers enabling them achieve quantifiable results
   When the advertiser controls the length of the message, rich media is
    delivered in its entirety
   Improved effectiveness compared to today‟s traditional internet banner ads.
Preview Systems’ Digital E-Commerce Technology
 Enables NetSales to Deliver 2,500 Electronically
         Downloadable Software Titles
   Netsales adopted Preview‟s Ziplock(R) Electronic Software Distribution (ESD)
    technology and integrated it into their existing e-commerce services
     – More than 2,500 software titles are now available for digital download
        through Netsales‟ two-tiered distribution network
   This technology allows NetSales distribute digital goods to its customers
    through branded e-business sites
                         Preview Systems (II)

   NetSales now offers software publishers and resellers one source for:
     – electronic software packaging
     – digital downloads
     – commerce site hosting
     – transaction processing
     – customer support
     – license management
     – sales reporting
     – fraud control
     – rights management
     – marketing support
   Preview‟s ESD technology provides complete support for multi-tier
    distribution and secure dowloads
E4L Inc. and Form New
   Global E-commerce Superstore
   Contributions by E4L
     – Branding and promotions within E4L television and radio media
     – its online revenues from the sale of its “As seen on TV” products
     – a commitment for up to $10 million of additional financing
     – executive management expertise
   Contributions by BuyItNow
     – The new entity will operate under BuyItNow brand and will be
       managed by the current BuyItNow(R) team
          additional e-commerce assets will be added to this new entity
            through mergers, acquisitions and strategic joint ventures
     – A spectacular e-commerce platform, including an infrastructure that
       allows online chatting with separate store managers and customer
       service specialists
        E4L Inc. and (II)

   Majority interest to be owned by E4L
   Shares will be available through an initial public offering at a
    later date
   The transaction between both companies is subject to a
    definitive agreement, approval of the BuyItNow shareholders,
    and regulatory approvals
      LGS Launches New E-Commerce Business
    Unit:Integrates Internet, Telephony and Security
            Technologies for the First Time (I)
  LGS: One of Canada‟s largest information technology and
   management consulting firms
 E-Commerce business unit: „Ecommerce+‟, built using reusable
 Recent acquisition of companies specializing in internet
   (Ecommerce), telephony (CallPro) and security technologies (Domus)
 Merging of the various capabilities, including LGS‟s consulting,
   systems integration and project management abilities, into one
 A unique, integrated and broader approach to e-commerce
    – Improved relationship of organizations with their customers due
       to secure internet and telephony solutions
    – Reduced transaction costs
    – Customers conduct business in a most convenient way: with the
       choice of multiple channels of access
    LGS Launches New E-Commerce Business
  Unit:Integrates Internet, Telephony and Security
         Technologies for the First Time (II)

Some of the solutions offered by ‘Ecommerce+’
 CommerceCentre(TM) - a fully integrated call center
  with multimedia capabilities, allows organization to
  conduct business regardless of the medium used
 Track & Trace(TM) - allows customers to monitor
  online with suppliers for procurement of products
  and services
 Eprocurement(TM) - Enables organizations to
  interact online with suppliers for procurement of
  products and services
 Trade Xchange(TM) - a web-based system to support
  trading of products and services
Mercantec SoftCart Delivers Fully-Integrated
        Electronic Commerce Solution (I)

   Mercantec, Inc.‟s SoftCart software to provide the
    solution to the growing number of service providers
    relying on the internet for commerce, ERP and other
    business-critical services
   Announcement were made in support of Sun
    Microsystems‟ Initiative (which
    incorporates a new business unit, and a new set of on-
    demand, business enhancing products and services)
     – this initiative is designed to empower service
       providers to create stronger, more flexible and more
       profitable business models for the network-based
                       Mercatec (II)

SoftCart Qualities
 Offers merchants the ultimate tool for building and
  maintaining their online store with high levels of ease,
  functionality and security
    – designed to be compatible with a merchant‟s existing
      business systems: open, API-based architecture that
        the widest range of databases, web servers and
        order delivery options

        tax and shipping models

        payment systems

        allows the web site designer to tie SoftCart‟s
         capabilities into the merchant‟s web site at any stage
         in the site‟s evolution
Dollar Bank Joins with Edify and TransPoint to Offer
One-Stop Electronic Bill Payment and Presentment

   Dollar Bank, Pittsburgh, intends to be the first financial institution
    to use Edify‟s Electronic Banking Systems (EBS) to pilot
    TransPoint‟s Internet Bill Delivery and Payment (IBPD)
     – Dollar Bank licensed Edify‟s recently introduced Electronic Bill
        Payment and Presentment (EBPP) suite
     – It will use that as the foundation for presenting both internal
        and external bills to its customers, providing them with a
        comprehensive web portal for all their financial transactions
   Goal & Advantages:
     – To help customers maximize the number of bills they present by
        connecting into bill consolidators like TransPoint
     – Reduced cost to Dollar Bank (estimated cost for financial
        institutions to send and process internal bills = $.30 to $.50, a
        total of $2.9 billion in check processing and internal billing)
   57% of the leading billing industries already offer or have
    investigated EBPP options
   Home Account Network and CheckFree Sign
Distribution Agreement for Electronic Bill Payment
                 and Presentment

Terms of Agreement
 Home Account integrates CheckFree‟s E-Bill billing and
  payment services into its product offering for banks,
  brokers and other financial institutions

Advantages to Home Account Network
 Provision of advanced bill payment and presentment
  services to customers
   – enhanced ability of customers to effectively compete in
     the market place
 Attraction of consumers to Internet Financial Services
    Home Account Network and CheckFree (II)

Advantage to CheckFree
 Expansion of CheckFree distribution channels
  to reach a wider customer audience

Advantage to Customers
 A highly cost-effective option to present and pay
  bills via the internet
Other Patents Business Method

 Name-your-price products and services in the travel, automotive and
  personal finance categories
 Allows airlines, rather than customers, to select flights and routing
  after customers agree to make purchase
 Priceline’s stock price rockets
    – Fear of being replicated by other companies online
 Patenting of company’s sales methods
    – 1st patent covers methods underlying its demand collection
    – 2nd patent covers the type of airline tickets sold by the company Patents Business Method (II)
More Patents Have Been Applied For
 Patented methods invented by intellectual property laboratory Walker
 Assigned to as part of a joint licensing agreement
 Walker Digital has applied for 20 U.S. and international patents related
  to business
    Yahoo! Boosts Small Biz E-Commerce
               Offerings (I)
   Yahoo! added services targeted at small businesses in search of entry-
    level e-commerce solutions
   Indicates the company’s emphasis on e-commerce driven revenue as a
    major part of its business development strategy
     – It recognizes the need for a set of services for the growing number of
       small businesses who wish to sell their goods and services online
   Yahoo!’s expanded e-commerce lineup includes
     – Yahoo! Site: For $29.95 a month, individuals can create a web site and
       immediately begin marketing their business online, also includes a suite of
       tracking and reporting tools
     – Yahoo! Store: offers merchants the ability to instantly create, publish and
       manage secure online stores to market and sell goods for $100 to $300 per
       month depending on their inventory size
Yahoo! Boosts Small Biz E-Commerce
           Offerings (II)
 – Yahoo! Business Express: a one-time fee of $199 offers the inclusion of
   online stores in the main Yahoo!. It also offers a $500 package which
   provides each store with a one-week promotional text link
 – Yahoo! Connected Office: small companies create their own internal
   communication hub and intranet, also these businesses now have a
   password-protected location on the web where employees can interact
 – Yahoo! Small Business: provides useful tools and relevant information for
   small business owners e.g. package tracking for airborne express, federal
   express and UPS, industry news and business coverage, tips and weekly
   highlights relevant to small business, etc.
      Watch, Listen…Buy@Once
RealNetworks joins with @Once (SanFransisco) and EC Direct to develop
 To provide streaming audio and video contents in e-mails that will
   enable a customer make a purchase without clicking to a web site
 Allows web merchants to deliver the right offer to the right place at the
   right time
 Customers’ disdain for being bombarded with the cyber equivalent of
   TV and radio commercials
Strategy to Overcome this Downside
 Service will be targeted based on individual’s web preferences, not
   blind, unsolicited pitches.

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