Creating a New Internet Business:
Here is a list of new businesses that could benefit from using the Web, listed. Select one of the businesses from this list and develop an Internet strategy for that business. You will need to identify the Internet business model to be pursued, use the Internet to research and analyze markets and competitors, and design part of the Web site for that business. To prepare for this project, review the Internet business models described in Table below. Visit a Web site representing each business model. Explore the Web site so that you have a clear idea of how that business uses the Web for electronic commerce. Selecting an Internet Business Model and Designing a Web Strategy The four businesses described are fictitious but are based on real-world scenarios. Review each of them. Then select one business, research in detail and answer the following questions:
Question 1: Define and explore this business both internally (possible business units, business interactions and technology) and externally (environment, Porter’s five forces, value chain, integration requirements with potential external systems)
Question 2: What Internet business model would be appropriate for the company to follow in creating a Web site?
Question 3: In what ways can the company benefit from a Web site? How would it provide value to the firm? What functions should it perform for the company (marketing, sales, customer support, internal communications, etc.)?
Question 4: In what other ways might the company use the Internet for its own benefit?
Question 5: Prepare functional specifications for the company’s use of the Web and the Internet. Include links to and from other sites in your design.
Question 6: Discuss design requirements of such a web site and related business requirements for your selection.
Question 7: Identify other critical information systems within such a company. Define and explain their linkages and connections with company’s Internet business model.
Question 8: Draw general workflows and interactions within business units, functions and web site. Discuss in detail.
Question 9: Write and deliver your work as a research report.
Question 10: Prepare a presentation of your work and present it in the class.
Business 1: InfoInc.
InfoInc. is a start-up company that would like to provide a service by offering easy access to needed information in specialized fields such as accounting, finance, or medicine. Although its business plan calls for moving into a number of fields, InfoInc. would like to begin addressing the needs of people in the accounting and tax fields. Its first two target groups are accounting professionals and the general public. For the general public, the plan is to provide a Web site with advice on various issues such as tax laws and Individual Retirement Account (IRA) savings rules. The site would also contain links to other sites where visitors will be able to obtain advice on such issues as how to establish a new business. For accounting professionals, such as certified public accountants (CPAs) and corporate financial officers, InfoInc. would like to offer more detailed information services. In addition, the company wants to provide capabilities that might help the CPAs and financial officers manage their email, voice mail, and fax.
Business 2: Aerospace Metal Alloys
Aerospace Metal Alloys is a distributor of exotic steel, aluminum, and titanium alloys to the aerospace industry and to other specialty industries. These metals, such as kovar and inconel, must meet exceptionally exacting standards because they become parts in airplanes, rockets, industrial furnaces, and other high-performance products. Aerospace sells raw materials produced in the form of bars, sheets, rings and forgings. In turn, Aerospace customers use these materials to fabricate their final products. Many Aerospace customers are actually parts suppliers to end-product assemblers such as Boing Aircraft. Aerospace Metal maintains a sales staff to sell these metals, and the company stores its products in seven warehouses throughout the USA. They obtain their products from steel and metal manufacturers throughout North America. If a customer requests a product not carried by Aerospace, the company will special-order it from an appropriate supplier.
Business 3: Columbiana
Columbiana is a small, independent island in the Caribbean. It is underdeveloped and is also off the tourist path for most visitors to that area despite its many attractions. The island has a unique history with Indian ruins dating back 800 years and with many historical buildings, forts, and other sites built during its centuries as a British colony. A few first-class hotels have been built along some of its beautiful white beaches and less expensive accommodations are also available along beaches in several towns and near several fishing villages. Its rain forests, rivers, striking mountains, and volcano cone all could be of interest to tourists. In addition, it has many restaurants that specialize in native dishes and fresh fish. The government not only wants to increase tourism but it also wants to increase trade by developing new markets for its tropical agricultural products. In addition, leaders hope to attract investment capital so that many of the unemployed residents can find jobs. Two major airlines have regular flights to Columbiana as do several small Caribbean airlines. The 3 island is on tourist itinerary of only one cruise ship company. The Web site will not transact any business, but it will offer information and links to other appropriate sites.