New x (Economy +Business Rules + Business Models )

1. New x (Economy +Business Rules + Business Models) Şule Özmen Marmara University, Istanbul, TURKEY Department of Business Administration sozmen@marun.edu.tr ozmens@yore.com.tr URL:www.feas.marun.edu.tr/business/homepages/suleozmen 2001 International Conference Istanbul - Turkey

2. AGENDA • Are they really new? • What has changed and what has not changed in new economy? • Generic objectives – Marketing, production and finance • Comparison of old and new economy with respect to: • Business value of generic objectives • What extent the objectives are considered • Strategy formulation and implementation • Business tasks performed – planning, execution and control Sule Ozmen 2001 International Conference Istanbul - Turkey

3. The New Economy –Digital Economy Information economy * • First stage (based on computers) • Data processing, spreadsheets, word processing • Second stage ( based on networks) • Connectivitiy, networks and teradata *Stan Davis & Cristopher Meyer; (1998); Blur: The Speed of Change in the Connected Economy; Perseus Books, New York Sule Ozmen 2001 International Conference Istanbul - Turkey

4. Business Rules in New Economy • Time –Speed • Time between business processes gets shorter • real time responses • Space - Distance • Connectivity decreased the importance of locations • Value – Intangibles • Economic value shifted from tangibles to intangibles value is added by information (CRM,SCM) Consumers are empowered Sule Ozmen 2001 International Conference Istanbul - Turkey

5. Digital Economy Customers Became number one Empowered customers 2001 International Conference Istanbul - Turkey Sule Ozmen

6. Who is your customer in digital economy? • Who doesn’t buy every product or service you offer like in “old good days” • Equipped with information Less brand loyal, runs away to your rival by a click But when? If not satisfied ! 2001 International Conference Istanbul - Turkey Sule Ozmen

7. Market Adoption Sequence: Traditional and Internet Life Cycles Source: Patel, McCarthy; 2000; Digital Transformation; Mc Graw Hill 2001 International Conference Istanbul - Turkey Sule Ozmen

8. MARKETING PROCESSNew and Traditional Identifying the needs, wants, desires Buyer Seller Product / service design Search promote Order and payment Delivery 2001 International Conference Istanbul - Turkey Sule Ozmen

9. E-conomy, e-business e-commerce, e-competition New • Sense • Process • Respond Traditional • Make • Sell HOW ????? By e-commerce, by e-business, by new business models CRM, SCM, ERP, Data Warehousing 2001 International Conference Istanbul - Turkey Sule Ozmen

10. Goal of making money ROI Efficiency Effectiveness The way of doing business Strategy formulation procedures Performing the business tasks Planning Executing Monitoring What has not changed What has changed The way of doing business through the extensive use of computer and internet technologies 2001 International Conference Istanbul - Turkey Sule Ozmen

11. Marketing Production Finance Planning Execution Controling Generic ObjectivesBusiness Tasks • Business value of objectives • To what extent considered • Strategy formulation and implementation 2001 International Conference Istanbul - Turkey

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15. Technology is enabler now • Collect teradata amounts of data to know, understand and identify your customers and their needs. Current and potential needs. • Offer the products or service faster through alternative distribution channels • Receive orders and accept payment through internet • Follow your customer after delivery • Don’t lose contact with your customer once interacted you • Communicate with your customer on the basis of the knowledge obtained from the data warehouse 2001 International Conference Istanbul - Turkey Sule Ozmen

16. It is now possible to • Know who your customers are and who your best customers are • Stimulate what they buy or know what they won’t buy • Know the time when and how they buy • Learn customers’ preferences and shape the offer accordingly • Formulate strategies to make your customers loyal customers and to keep your customers for many years • Define characteristics that make up a great/profitable customer • Model channels best to address a customer’s need • Predict what they may or will buy in the future 2001 International Conference Istanbul - Turkey

17. Key success factors • Vision, leadership, • Commitmentof Senior management • Strategy and management • People at work It is both cheaper and profitable to absolete yourself than it is to let your competitor do it for you Peter Drucker 2001 International Conference Istanbul - Turkey Sule Ozmen

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19. New x (Economy +Business Rules + Business Models) Şule Özmen Marmara University, Istanbul, TURKEY Department of Business Administration sozmen@marun.edu.tr ozmens@yore.com.tr URL:www.feas.marun.edu.tr/business/homepages/suleozmen 2001 International Conference Istanbul - Turkey