From .com To .profit: Inventing Business Models That Deliver Value And Profit

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It couldn't last forever?and it didn't. Finally, scores of e-businesses that once enjoyed astronomical capitalization in spite of their vague business plans, modest sales, and absence of profits have been called on the carpet. The experimental first era of e-business is over and now its time for the next, when companies will deliver customer value and make a profit or disappear altogether. Nick Earle, Hewlett-Packard's chief strategist for e-services, and Peter Keen, a respected strategy and business consultant, map the future of online business and describe the six key drivers that companies must master in order to survive the next era of e-commerce.

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BusinessCulinaryArchitecture ComputerGeneral Interest ChildrenLife SciencesBiography AccountingFinanceMathematics HistorySelf-ImprovementHealth EngineeringGraphic Design A p p l i e d S c i e n c e s Psychology Interior DesignBiologyChemistry WILEYe BOOK WILEY JOSSEY-BASS PFEIFFER J.K.LASSER CAPSTONE WILEY-LISS WILEY-VCH WILEY-INTERSCIENCE From .com to .profit From .com to .profit INVENTING BUSINESS MODELS THAT DELIVER VALUE AND PROFIT Nick Earle President, HP's E-Services.Solutions Peter Keen Chairman, Keen Innovations Foreword by Ann Livermore Copyright © 2000 by Jossey-Bass Inc., 350 Sansome Street, San Francisco, California 94104. Jossey-Bass is a registered trademark of Jossey-Bass Inc., A Wiley Company. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 750-4744. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 605 Third Avenue, New York, NY 10158-0012, (212) 850-6011, fax (212) 850-6008, e-mail: [email protected] Jossey-Bass books and products are available through most bookstores. To contact Jossey-Bass directly, call (888) 378-2537, fax to (800) 605-2665, or visit our website at www.josseybass.com. Substantial discounts on bulk quantities of Jossey-Bass books are available to corporations, professional associations, and other organizations. For details and discount information, contact the special sales department at Jossey-Bass. Manufactured in the United States of America on Lyons Falls Turin Book. ISBN 0-471-43760-3 This title is also available in print as ISBN 0-7879-5415-2 For more information about Wiley products, Visit our web site at www.Wiley.com first edition HB Printing CONTENTS FOREWORD ix Ann Livermore PREFACE xiii ACKNOWLEDGMENTS ABOUT THE AUTHORS xix xxiii PART ONE THE WORLD OF INTERNET BUSINESS 1. 2. 3. 1 THE VALUE PATH FROM .COM TO .PROFIT 3 POSITIONING FOR THE .PROFIT ERA: GAINING THE BUSINESS MANAGEMENT ADVANTAGE 21 DELIVER VALUE TO CUSTOMERS AND PROFIT FOR THE FIRM THROUGH RELATIONSHIP, COLLABORATION, AND COMMUNITY 41 PART TWO THE VALUE IMPERATIVES OF THE INTERNET SPACE 4. CRAFT THE BUSINESS MODEL THROUGH THE VALUE IMPERATIVES 61 5. 6. PERFECT YOUR LOGISTICS 59 74 CULTIVATE YOUR LONG-TERM CUSTOMER RELATIONSHIPS 92 vii viii 7. CONTENTS HARMONIZE YOUR CHANNELS ON THE CUSTOM
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