e-entrepreneurship - multimedia marketing · e-entrepreneurship chapter 1 basics of ... faculty of...

1

E-Entrepreneurship

Chapter 1

Basics of the Net Economy

Faculty of Computer Sience, Profesship Business Infomatics, esp. Multimedia Marketing

Outline

1 Basics of the Net Economy1.1 Characteristics of a foundation of an enterprise1.2 Areas of a foundation of an enterprise1.3 Players of a foundation of an enterprise1.4 Success factors of a foundation of an enterprise1.5 Development stages of a foundation of an enterprise

2 Ideas Generation2.1 Conditions and requirements of the founder2.2 Methods of limitation, the identification and evaluation of the idea2.3 Identification and specification of processes2.4 Identification of market presence and market structure2.5 Base of corporate finance and the possibilities of pre-seed financing

Folie 2 von 65

2

1 Basics of the Net Economy1.1 Characteristics of a foundation of an enterprise

• terms of the concept of a foundation of an enterprise are in the literature avariety of related issues known: start-ups

dependent formation

derivative formation

original formation

different types of formation:

derivative original

dependent transformation of a company formation of a company

self business start-up foundation of an enterprise

Folie 3 von 65

• Foundation of an enterprise

creating an original and independent legal economic entity

the companys founder offers specific products

innovative formation: new combination of input factors

imitated formation: follows existing an well-know business concepts andund cied the use of input factors or takes slight modifications


Folie 4 von 65

3

• Net Economy economically utilized area of electronic data (E-Business) allowed on different electronic platforms a direct or indirect handling or

manipulation of information, communication and transaction processes

• three key areas of employment: E-Procurement E-Shop E-Marketplace

• two other platforms are part of the expanded group of E-Business: E-Community E-Company


Folie 5 von 65

• Which of the following companies belong to the Net Economy and how theycreate value added?


Folie 6 von 65

4

• in addition to the product with an electronic value added are for thefoundation of an enterprise in the net economy following issues of relevance: management with specific skills on the links in the network economy

risk regarding future developments of information technology andacceptance on the customer side

Net Economy and its underlying technology is a key growth area

investment in information technologies require capital for their initialdevelopment and/or establishment and because of the constant changesand developments


Folie 7 von 65

• E-Entrepreneurship

creating an original and independent legal economic entity in the NetEconomy (E-Venture)

the companys founder offers specific products

• E-Venture

Is a young company founded with an innovative business idea within theNet-Economy.

It offers an electronic platform in its data products and/or services on the basis of a purely electronic value added.

This offer has been made possible by the developments in information technology.


Folie 8 von 65

5

Examples of foundations of an enterprise in the Net Economy

• What are the underlying their business ideas? What value added is realized? What is the current value?


Folie 9 von 65

1.2 Areas of a foundation of an enterprise

• development and content of the Web 1.0, Web 2.0 and Web 3.0• Web 1.0: application systems

Application-oriented information, communication and transactionprocesses in the Net Economy, where the starting point of the offeror orthe offer on object-oriented databases is.

processes:• eCooperation• eOffer• eSales• eTrading

electronic platforms:• E-Company (cooperation)• E-Procurement (purchase)• E-Shop (sale)• E-Marketplace (commerce)

Folie 10 von 65

6

• Web 2.0: networking systems Describes member-oriented information, communication and transaction

processes in the Net Economy, where the starting point in the profile-oriented databases is.

processes:• eNetworking

electronic platforms:• E-Community (contact)


Folie 11 von 65

• Web 3.0: demand systems describes demand-driven information, communication and transaction

processes in the Net Economy the starting point is the demand by means with individual identification

and specification systems

processes:• eRequest• eCustomization• eService

electronic platforms:• E-Desk (query)


Folie 12 von 65

7

1.3 Players of a foundation of an enterprise

Entrepreneur

• first company’s with business concepts in the Net Economy in the mid-90s

• during the period from 1997 - early 2000 in Germany, there were almost13.000 new foundations of an enterprise, including about 3.000 E-Ventures

• even after the bankruptcy wave in March 2000 is still 2.000 e-venturecompanies, each with 10-15 staff in place

• selected major Web 2008, according to founder www.deutsche-startups.de:

Hamburg-Area: xing.de, cellity.com, bigpoint.de, tipp24.de

Berlin-Area: zanox.de, studiVZ.de, myphotobook.de, panfu.de

Köln-Area: HRS.de, spickmich.de, mixxt.de, sevenload.de

München-Area: billiger.de, hotel.de, lokalisten.de, utopia.de

Folie 13 von 65

• problem of young firms: it is missing at the beginning of the necessaryfinancial resources

• looking for outside investors they provide venture capital

• uncertainty of the return on capital employed is extremely high

• collaterals are often only available to a limited extent

• no regular financing with debt closing the equity gap


Folie 14 von 65

8

• characteristics of E-Ventures:

the company based on an innovative technology or a technology-oriented business with an electronic value added

the company has only been for a short time it has no long tradition

the decision-making processes are supported by the entrepreneurstrongly influenced

the company is a dynamic, constantly changing environment exposed

financial and human resources are scarce

high building investments in intangible assets

the company still generates a negative cash flow and no profits

external investors include the equity gap, and often have a centralinfluence


Folie 15 von 65

Investor

• venture capital as a form of corporate finance for the Net Economy evolved from the second half of the 90s

• range of institutional investors for Web-founders:

Hamburg-Area: Pricap Venture Partner, Zeit Verlag, Lycos, Bertelsmann

Berlin-Area: HP Ventures, SevenOne Intermedia, PEPPERMINT

Köln-Area: MediaVenture, DuMont Venture, T-Venture, iSteps

München-Area: Burda, Sixt e-Ventures, Computec Media, Premiere


Folie 16 von 65

9

• characteristics of e-finance ventures:

the individual investor is usually a minority stake

there is often a time-limited commitment

financial commitment has the full nature of risk capital

it will control and influence for the investor agree

financial commitment is a management function accompanied


Folie 17 von 65

1.4 Success factors of a foundationof an enterprise

management

financeprocesses

product/service

market/network

• Net Economy-Know-How

• industry knowledge /experience

• communication skills

• organization skills

• management skills

• marketing

• sales

• cooperations

• multiplier

• public relations

• cash-flow-guidance

• liquidity planning

• controlling/reporting

• corporate investment management

• investor relations

• idea/concept

• technology

• business model

• unique position

• customer benefits /-value

• workflows/planning

• organization structure

• project management

• process management

• crisis management

Folie 18 von 65

10

Module: Management

• founder person is at the center

• technical, social and methodological skills of the founder, are essential forthe establishment phase

• high load limits, the pressure to succeed, self-confidence and risk awarenessin the design and implementation phase

• to build an e-Ventures include: industry experience, knowledge ofinterrelationships in the Net Economy and experience in business operations

• negative case : rogator.de

• positive case: guideguide.de


Folie 19 von 65

Module: Product

• affects the performance and configuration of an offer E-Ventures

• the central question: Will the customer demand for electronic services?

• goal: power on the output value for the customer to the competition toachieve

• the majority of business ideas and business models is often only after acertain habituation effect

• negative case : boo.com

• positive case: dell.com


Folie 20 von 65

11

Module: Processes

• quickly the critical stage of informal and uncontrolled activities leave

• core processes must be established and stable with the organizationalharmonize

• however, not too many activities simultaneously initiate

• reasonable project- and process management important

• negative case: tiscali.com

• positive case: trimondo.de/ibxeurope.de


Folie 21 von 65

Module: Market Access

• not only realize the market entry and establish the product, but customersand their needs

• focus: How can I achieve my customers providing product information?

• through its own activities rather problematic

• cooperations can contribute to the successful market entry to increase

• core mission: protecting existing resources and adding new resources

• negative case: m-otion.com

• positive case: cc-chemplorer.com


Folie 22 von 65

12

Module: Finances

• financial planning and liquidity planning is often a major weakness

• two important considerations :

high investments in technology and business structure

however, cash flow may not be too adversely affected

• funding from a mix of private equity and participation in different types

• negative case: beyoo.com insolvent

• positive case: immobilienscout24.de


Folie 23 von 65

1.5 Development stages of a foundation of an enterprise

matrix of a foundation of an enterprise in the net economy

Early StageExpansion

StageLater Stage

ideas generation

ideas formulation

ideas implementation

ideas intensification

ideas of continuation

managementcheck

foundercustomize

manager

productdevelopconcept

reviewbusiness

processesto copy sth.disposition

establishorganisation

market entryplan

isolationensure

cooperation

financesappreciate

ownermonitor

shareholder

Folie 24 von 65

13

Factor: Management

• in the first phase, consider whether the players on the requirements of afounder in the Net Economy meet

• with the idea of formulating the precise skills, credibility with customers,partners and investors to generate

• implementation idea: missing in management positions to fill and the skillsto meet the requirements of the business to complete

• in the later stages adjustments in management

• across all phases : transformation from a founder to a manager


Folie 25 von 65

Factor: Product

• begin development of a viable idea must be in a second phase specificallyspecified, evaluated and described in Businessplan (idea formulation)

• implementation idea: the idea is a product that the market must be offered

• further adjustment of the product to market needs

• over all phases conversion of a concept to a lasting and viable business


Folie 26 von 65

14

Factor: Processes

• idea: Identification of the necessary work procedures in the closestconnection with the product idea is

• within the idea of this formulation must then be structured

• implementation idea: not only the product is placed on the market, but alsothe associated processes are introduced

• ensuring the stability of the internal and external processes establishmentof processes

• over all phases of the acts are characterized by a disposition to anorganization


Folie 27 von 65

Factor: Market Entry

• in the first step: Planning of product sales depending on the product idea

• Planning must be completed within the idea of formulating concrete and beprepared for subsequent realization of the product launch

• in the later stages of development: Ensuring market access and marketdevelopment

• over all phases, this area is characterized by the isolation of a conversion toa cooperative

• “Market access" plays a special role


Folie 28 von 65

15

Factor: Finance

• idea: estimate of future capital needs

• within the formulation of the idea: the budget is detailed forecast

• by the first experience within the idea of implementing a concrete costestimate with actual data are made

• Idea Implementation: Updating the calculation and monitoring of cash flows

• goal: Ensuring the company's liquidity

• over all phases of the acts are characterized by a tendency of transformationfrom the general holder to one or more partners


Folie 29 von 65

E-Entrepreneurship

Chapter 2

Ideas Generation

Fachbereich Informatik, Professur „Multimedia Marketing & IT-Servicemanagement“

16

2.1 Conditions and requirements of the founder

Conditions to the entrepreneurs in the Net Economy

• personality, motivation and skills

• personality

control belief

independence

problem orientation

risk appetite

resilience

emotional stability

enforcement readiness

social adaptability

Folie 31 von 65

• motivation

push factors pull-factors

features motives features motives

current situation is perceived as unattractive

(threat of) unemployment

self-employment is perceived as attractive

can determine

negative meaning to the person

dissatisfaction with previous working conditions

positive meaning for the person themselves realize

triggers in theenvironment

dissatisfaction with previous job content triggers in the person stimulus of the task

present based

independence of friends or family members

salary cuts

future-oriented

curiosity to try something new

financial incentive


Folie 32 von 65

17

• skills

qualification „Sum of existing and/or selectable gain knowledge, skillsand behaviors, which in socialization and education processes arepurchased by individuals“

competencies of successful entrepreneurs are reflected in soft skillsrather contradictory

„No“ can say

dealing with errors

stress management

leadership

communicative competence

strategic competence


Folie 33 von 65

Requirements of entrepreneurs in the Net Economy

• technical and specialized knowledge

computer science

business informatics

business administration

• Team skills

integral part of the founding

especially in the Net Economy has been the most cases

most prominent example : google.com


Folie 34 von 65

18

business idea platform founder teamsize

foundingyear

google.comdeveloping a search engine

technologyE-Community Larry Page,

Sergey Brin 2 1998

webmiles.com online bonussystem E-Community

Loretta Würtemberger,

Patrick Boos, Dominik von Riibentrop

3 1999

delticom.detires and

automobile spare parts trade

E-ShopRainer Binder, Dr. Andreas Prüfer, Timon Samusch

3 1999

pixum.de online-photoshop E-ShopDaniel Attalah,

Christian Marsch, Michael Ziegert

3 2000

mobile.de trade in used cars over the Internet E-Marketplace

Ralph Prehn, Rüdiger Bartholatus, Vijay Sapre, Thorsten

Schmidtke

4 1996


Folie 35 von 65

2.2 Methods of limitation, the identification and evaluation of the idea

Factor of success „product“: Limitation of methods to search idea

• business opportunities for the new company for the following situations ariseout :

unexpected changes in the environment of firms (successes / failures)

identification of gaps or inconsistent

demand gaps or requirements solve

information gaps, information gain or information advantage

Folie 36 von 65

19

• promising business opportunity must

interesting, timely and sustainable

based on a product that an additional benefit for customers

• How can the know-how potentials are determined to build a competitiveproduct innovation to create?

Competence analysis

• search of new business ideas is based primarily on the basis of their abilitiesthe founder or founding team

• Step 1: Know-how of the founder, to determine potential


Folie 37 von 65

• competences: skills and abilities that form the basis of problem-solving potential in the enterprise

• core competencies are bundled or individual abilities and skills

the access to a wide range of (new) product applications and markets,

the significant contribution to the objective merits of a productapplication provide and

accordance with objective criteria to the company over the competitioncan provide an advantage

• central question: What can we really better future than our competitors?


Folie 38 von 65

20

Scenario technique

• goal: based on different assumptions, development of alternative images ofthe future to develop

As a future situation will gradually come about?

What alternatives exist at every step to ensure the progress of a processto prevent or him in a different direction?

• peculiarity of the scenario technique: processing of quantitative andqualitative information and inclusion of interference in reflection


Folie 39 von 65

• Benefits of the scenario technique :

• steering of attention to a greater variety of possibilities for futuredevelopments into account

• dealing with unknown and highly dynamic environment subject

• interdependencies between different environmental factors to understand

• identify problems and issues that are often forgotten or overlooked


Folie 40 von 65

21

Factor of success „product“: Methods for identification of the idea

• previously: setting the strategic direction of the search for new businessideas

• now: find the concrete idea

Creativity techniques

• represent heuristics that by the hit probability can be increased

• four basic principles in creative thinking:

Association principle

Decomposition principle

Principle of abstraction

Analogy principle


Folie 41 von 65

Expert Interviews

Interview Preparation

Interview conduct

Post Interview

Initiation of the interviewProfessional

Preparation for the interviews

Development of an interview guide

Opening of the Intervies(objectives, benefits)

Extraction of information (questions, counter

questions, descriptions, ...)

Conclusion of the interview (summary, open issues, the

way forward)

Analysis of the interview

Evaluation of the informations

Documentation ofinformation

Formal completion of the interview


Folie 42 von 65

22

Factor of success „product“: Methods for evaluation of the idea

• the aim of the idea generation: generate as many innovative ideas

• idea of assessment is an outstanding importance

• discussion of two assessment procedures

scoring Model

economic analysis

The scoring model

• first assessment of the business, how they called K O. criteria

• usually have a dichotomous nature, or with certain minimum requirementsassociated


Folie 43 von 65

• scoring models: point assessment, which the e-venture idea, based onpredefined characteristics using numerical values of assessed

• at a high level of abstraction can first evaluation carried out a business idea

• the evaluation criteria used may vary depending on the purpose of thescoring model to be flexible

• the particular importance of the criteria for success is determined by theappropriate weighting parameters recorded


Folie 44 von 65

23

• scoring models only lead to reliable results when the application subject toconditions to be, that

used the appropriate criteria and complete,

the criteria are independent of each other,

the criteria than can be balanced or the criteria were weighted in anappropriate manner,

the appraisers as risk neutral can be described and

the distances between the point values of the respective assessors asequal in size to be interpreted


Folie 45 von 65

The economic analysis

• provides information on whether the remaining business ideas also undereconomic aspects should be pursued further

• at the time of brainstorming made estimates of the cost-effectiveness inparticular two aspects:

Is there a market? If yes, which offers the sales potential new productand how will the revenues over time to develop?

What costs are associated to the actual formation and what cost is intime for the launch and marketing to?

• for e-ventures should be due to market uncertainty in two directions arecalculated:

first estimate of the best-case scenario

then the calculation of the Worst-Case Scenarios


Folie 46 von 65

24

• Distinguishing between two cost units:

the first block contains the estimate of the start-up costs directly relatedto the constituent connected

the second block contains the estimate of the cost of doing business andthus the revenue and expenditure of continuing operations


Folie 47 von 65

• starting from the infrastructure and transaction partners is to clarify theelectronic value for the customer is

• relevant aspects of the electronic value:

overview

selection

mediation

settlement

cooperation

exchange


Folie 48 von 65

25

The electronic value creation process

• electronic value creation process: describes the information activities and thesequence of information activities, which together made an added value forour customers

• core processes: have real value

• service processes: support the processes in the value chain

• ideal typical value-added process :

collection of information

processing of information

transmission of information

2.3 Identification and specification of processes

Folie 49 von 65

Examples of the electronic value chain

collection ofinformation

processing of information

transmission of information

Google.com Data to web pages and queries (= input)

Matching search terms and web content

List of suitable sites (= Output)

Webmiles.deData about products,

customers, and websites (= input)

Awarding bonus points for use of the web

Points information, customerinformation (= Output)

Delticom.de Data on tires and customer requests (= input)

Matching of supply and demand

List of matching offers and online ordering (= Output)

Guenstiger.de Data on product prices and customer inquiries (= input)

Structuring of product prices, From line of inquiry and offer

Product information, pricing information, customer information (= Output)

Travelchannel.deData to target travel, booking and travel

opportunities (= input)

Matching of supply and demand, structuring of travel

offers

Offers trips, information about the destination,

reports on trips (= Output)


Folie 50 von 65

26

Specification of processes in the Net Economy

• refined development and presentation of the concrete processes of work

• parallel design of business processes in enterprises

• business processes: implementation of electronic commerce value chain withthe help of real resources in an e-venture

• variety of business models in the Net Economy is based on the exploitationof “economies of scale-effects “


Folie 51 von 65

• errors within electronic processes impact greatly on the success of theenterprise

• the quality of the process also influences the usage behavior of customers

• the customer is assessed according to its process safety

The event-driven process chain

• in the process initially restricted to the essential, value-added processes

• for the identification and description of core processes, there are a numberof computer-based tools

• a form of process description Concept of "event-driven process chain"


Folie 52 von 65

27

• basic principle of event-driven process chain consists of a number ofelements to which certain attributes are assigned to description:

results (When should something be done?)

functions (What should be done?)

organizational unit (Who should do something?)

property information (What information is this necessary?)


Folie 53 von 65

The customer-driven process chain

• definition of contact points with the customer within the Net Economy is veryimportant

• without information input by the user / customer, many services are notpossible autoscout24: no inquiry = no matching

• internal structure and identification of business processes and workflows canalso extend beyond the customer/user shall

• the objective of the customer oriented process:

distortion-free transfer of information between customer and company

identifying and overcoming weaknesses


Folie 54 von 65

28

2.4 Identification of market presence and market structure

Identification of market presence in the Net Economy

• Company or brand name is often reflected directly in the resist webaddress(web.de; amazon.com; yahoo.de etc.)

• Domain is the brand name of the company

The brand and domain name

• first, the brand name is an integral part of the domain will be this is theidentification with the company

• this approach is in many e-Ventures to observe, e. g. web.de, mobile.de orgoggle.de

• Counter-example : reifen-direkt.de companie is delticom; ere rupturebetween trademarks, business and domain names

• How does the brand discovery process held in the Net Economy?

Folie 55 von 65

• incorporating the following aspects of the election to the domain namefinding :

length of domain

product Name or Company Name

reference to the region

creations

wording

• pursuing different strategies to brand on the Internet :

single brand strategy


Folie 56 von 65

29

multi-brand strategy

brand family


Folie 57 von 65

The company positioning

• temporal appearance of the E-ventures on the market can be done twoways:

founders put in a market already established business idea and imitatethese more or less (imitator)

introduction of an entirely new business system (Innovator)

innovator busy with a new business idea or market must first developthis

• two risks are to be observed :

market too early: development or the occurrence of risk

late entry: high opportunity costs of missed market opportunities


Folie 58 von 65

30

• imitator can on the market developments of the build innovators

• allegation in the market as a successor can be successful if the imitation withinnovation which is further

• imitative company must own path of growth to define

• following strategic approaches are possible :

adjustment (adaptation), with improvement

imitation

deceptively genuine replica (clone)

counterfeiting or piracy


Folie 59 von 65

Identification of market structure in the Net Economy

• market participants and multipliers can be e-Venture at the entry to supportor enable

Market participants

• be considered depending on the founding idea of different technology andservice partners

• power supplier: assume for the subsequent realization of the idea of aparticular function

• assistance: in the environment

the technological infrastructure,

the transaction and

market communication


Folie 60 von 65

31

Multipliers

• refer to the support of contacts with know-how, customers and other marketparticipants

• multiplier function, mostly through the Internet portals, or communitiescovered

• core aspect of the communities: communication from user to user, but thisregularly to exchange information on a virtual platform meet

• relevant government portals and communities:

Bundesministerium für Wirtschaft und Technologie (www.bmwi.de)

Statistisches Bundesamt Deutschland (www.destatis.de)

Statistische Landesämter (www.statistik-sh.de)


Folie 61 von 65

2.5 Base of corporate finance and the possibilities of pre-seed financing

Base of corporate finance

• distinctive in two key funding models

strategy-determining

strategy-fulfilling

Folie 62 von 65

32

Startegy-determining financing

• founder accept their limited financial resources as a given

• they opt for a business that in the context of the opportunities can berealized

• registration: congestion in the financing adversely affects the freedom ofthe founder, and influenced the design of the founding idea of a massive

• financing models : „No-Budget-Modell“ or „Low-Budget-Modell“

further distinction in pure self-financing for non-existing equity (selffeeding business) and

self-financing with the existing equity (boot-strap financing)


Folie 63 von 65

• establishment „No-Budget-Modell“:

free-lance web designer

information Broker

smaller agencies

• establishment „Low-Budget-Modell:

company guenstiger.de has less than 500 € invested in marketingactivities

acquisition of own risk clarifies one's own conviction about the validity ofthe business dell.de started his business in this context


Folie 64 von 65

33

strategy-fulfilling financing

• founder develop their business, regardless of their financial ability

• foundation funding is a strong trust

• start-up projects can only be used with the predefined equipment resources(financial, management team composition, input of knowledge, existingrelationships in the market, etc.)

• financing model: „Big-Budget-Modell“

activities of the company are "top-down” design

derivation of financial planning with capital requirements businessplan or investment summary

negotiations for Venture Capital pure equity financing

Immobilienscout24.de investment from Wellington Partners VentureCapital


Folie 65 von 65

e-entrepreneurship - multimedia marketing · e-entrepreneurship chapter 1 basics of ... faculty of...

Documents