Creativity and the Business Idea

1. Hisrich
Peters
Shepherd
Creativity
and
the Business Idea
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

2. 4-2
 E-business is any process that a business
organisation conducts over a computer-
mediated network.
 Business-to-business (alibaba.com)
 Business-to-consumer (aliexpress.com)
 Intranet
 E-commerce is any transaction that is
completed over a computer mediated
network which involves the transfer of
ownership or rights to use goods or
services.
E-commerce and Business Start-up

3. 4-3
 E-commerce offers entrepreneurs an
opportunity to be creative and innovative.
 Factors that facilitate a high-growth in
electronic commerce:
 Widespread use of personal computers.
 Adoption of intranets in companies.
 Acceptance of the Internet as a business
communications platform.
 Faster and more secure systems.
E-commerce and Business Start-up

4. 4-4
 Entrepreneurs starting an Internet
commerce venture need to address
the same strategic (Strategy defines
or outlines the desired goals and why
you should go about achieving them)
and tactical questions (Tactics are
the specific actions you take in
implementing your strategy) as any
other entrepreneur.
Using E-Commerce Creatively

5. 4-5
 Entrepreneurs have to decide to:
 Run Internet operations within the
company or
 Outsource these operations to Internet
specialists.
 Another option is to use the
packages for e-commerce.
Using E-Commerce Creatively
•Internet
operations-
company primary
business
•Availability of
resources –web
professional

6. 4-6
 Two major components of Internet commerce are:
 Front-end operations.
 Back-end operations.
 Integration of front-end and back-end operations
 represents the greatest challenge for doing Internet
business.
 provides the opportunity for developing a sustained
competitive advantage.
Components of Internet Commerce
The biggest mistake of many companies on the internet is
believing that an attractive & interactive website will
secure success- leads to underestimating the importance
of end operations

7. 4-7
 Keys to a good Web site:
 Ease of use (info product/services)
 Structure and organization of
information
 Visibility
 Search capability
 E-mail response system
 Speed.
 Technical aspects
 Should work properly in different
browsers and platforms.
 Should appear in all marketing
materials.
Web Sites- connection btw Company & its
Customers
profession
al design
Indicator
of
legitimacy
Shopping
cart- credit
card
payments
Advertise-
search engines,
banner ads,
email
Secure servers
https

8. 4-8
 Database:
 Tracks activity of the:
 Industry
 Segment
 Company
 Supports personal marketing, targeted at individual clients.
Allows to capture customer attention with customized one-
to-one marketing.
Tracking Customer Information

9. 4-9
 To do business through the Internet:
 Products should be delivered economically and conveniently.
 Products need to interest a wide market
 Company must be ready to ship the product outside its own
geographical location.
 Online operations have to bring significant cost reductions as
compare to brick & mortar operation
 Company must possess the ability to economically draw
customers to its website.
Doing E-Commerce as an Entrepreneurial
Company
Fresh fruits &
vegetables ?

10. 4-10
Story of the week......“Steve jobs”
Occupation Co-founder,
Chairman, and
CEO,
Apple Inc.
Co-founder and
CEO,
Pixar
Founder and
CEO,
NeXT Inc.
Net worth US $8.3 billion