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Evolution of Basic Portal Concept

Evolution of Basic Portal Concept. Where users would link to all manner of Internet services and activities (search, content, personal authoring, transaction, and social-interactive sites) Advertising income: more than cover the cost of maintaining the portal

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Evolution of Basic Portal Concept

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  1. Evolution of Basic Portal Concept Where users would link to all manner of Internet services and activities (search, content, personal authoring, transaction, and social-interactive sites) Advertising income: more than cover the cost of maintaining the portal To keep them in the Portal, and coming back. So advertisement and sales increase. “Attract, engage, entice, and entrap.”

  2. Characteristics of Web Portal - Data from multiple sources and in multiple formats organized into a single, easy-to-use menu. - Incorporate triggers that alert users or run an application when a specific event take place. - Allow users conduct business transactions. - Web-based services, such as: chat rooms, searches, free-password-protected email, FTP,bulletin boards, live moderated events, hosted discussion forums, news, entertainment, and retail services.

  3. Mergers, Acquisitions, and Partnerships in the Portal’s Arena Yahoo! GeoCities and Fox @Home Networks Excite USA Networks Lycos Disney Infoseek NBC Snap AOL Netscape

  4. Competitive Positioning What business are we in? Product/Service Market What is our position? Competition Value Are we creating value for all stakeholders ECONOMIC POSITIONING How will we make money? Revenue model Cost of designing, developing Cost model delivering, and maintaining Asset Model each product/service? Are we building and safeguarding assets? Business Performance Operating margins Operating Performance Budget performance Process performance Goals accomplishment Corporate Performance Financial performance Market share Attract qualified employees, Stakeholder loyalty partners, and investors Image, and reputation Enterprise Design Structure Is the extended enterprise Processes designed for: People & Culture - efficiency in decision making/action Technology - successful execution of strategy Resources - quick response to change

  5. Economic Positioning • Revenue Model • How does (or will) the company achieve revenues from its products and services? • Product sales Advertising Subscription fee • Membership fee Commission Transaction fee • Service/consulting fee • Cost Model • How much does it cost to operate the company and execute its strategy? • People Advertising/Marketing/Sales Fees • IT infrastructure Materials and supplies Physical infrastructure • Asset Model • Are we building and safeguarding assets? • Financial assets • Physical assets • Intangible assets: Relationships Knowledge and expertise • Agility Strength of brand

  6. Enterprise Portals: Latest step in the evolution of Intranets From sites that offer mostly static job-supported and human resources data... into The starting point for managers and knowledge workers to access real-time and historical information from internal applications, legacy databases, and the Internet (all from their browsers).

  7. Enterprise Portals: Some of the Latest Technologies Available Plumtree Software, Inc. Corporate Portal Server Sqribe Technologies Corp. ReportMart Portera Systems, Inc. Service-Port InfoRay, Inc. X-Ray IBM Enterprise X-Span PeopleSoft PS Business Network In the works… Nextel Communications Inc. (with Netscape) Open Market, Inc.

  8. The “Harvest” Decision Advantages Disadvantages - Access to short- & long-term capital - Lose of operating confidentiality - Future offerings to fund growth - Cost of public auditing, reporting - Establish market value and shareholder fiduciary responsibility - Controls to protect shareholders and and from shareholders - Image management more serious - Info controlled to prevent inside trading - SEC limits timing and amount of stock insiders may sell - Founders get money immediately - Key managers/employees needed to keep - Acquiring company assumes all risks. core employees - Non-compete clauses limit expenditure . - If sale through stock exchange, founders receive a fraction of the purchase price - Access to resources required to grow - Synergies do not materialize - Increase scale, scope and market share - Clash of cultures, operations, or system - Management continues to be involved - Lack of freedom to operate the company Public offering Outright sale Merger, acquisition or partnership

  9. FOLLOW UP - IIS continues to ramp up its life and auto insurance offerings. - It has not yet generated profits or significant revenues… …but, policy applications per month grew 66% in 1999. Life insurance: real time quotes from 10 national carriers Auto insurance: quotes available in 33 states. Purchase from 3 carriers in 24 states. - Fees received from implementation, annual participation, and transaction-bases as well as for administrative services. - Main problems: complexity of connecting multiple insurance carriers with various computer systems, and regulations in 50 states.

  10. THE PRIMARY OBJECTIVES OF • INTERACTIVE INSURANCE SERVICES CASE STUDY WERE: • 1. TO EXPLORE A FUNDAMENTAL SHIFT IN THE ECONOMICS OF • INTERNET BUSINESS MODELS THAT IS UNDERWAY –A SHIFT • THAT IS LESS ABOUT ANY NEW TECHNOLOGY THAN ABOUT A • NEW BEHAVIOR THAT IS REACHING CRITICAL MASS—THE • POSITIONING OF WEB SITES AS A PORTAL. • 2. TO EXAMINE THE CHALLENGES FACED BY THE FOUNDERS OF • AN INTERNET START-UP AS THEY ATTEMPT TO POSITIONING THE • COMPANY AS A PORTAL PLAYER WITH THE INSURANCE INDUSTRY. • 3. TO EXPAND OUR FRAMEWORK ON BUILDING INTERNET BUSINESS • MODELS TO INCLUDE THE ECONOMIC POSITIONING DIMENSION.

  11. FOLLOW UP Oct. 99 Over 500,000 visitors/month 3Q99 Processed 225,000 auto-insurance quotes 3,400 life insurance applications Dec. 99 IIS became profitable Jan 2000 IIS linked 55 insurance carriers Exclusive Insurance broker on: Quicken.com, AOL, Excite, Prodigy, CBS, CNNfn, Mootley Fool, AutoWeb, and Auto Trader. Aldrich named Quicken.com General Manager Initial move: 5 year agreement with AOL to be exclusive EBPP

  12. FOLLOW UP IIS’S MAIN COMPETIORS InsWeb: Launched in June 1999 $75 M marketing campaign Main partners: Microsoft and Yahoo! eCoverage: Launched in September 1999 An Internet “pure play” Backed by a prestigious list of investors

  13. THE PRIMARY OBJECTIVES OF • QUICKEN INSURANCE CASE STUDY WERE: • 1. TO EXPLORE B2C INTERNET BUSINESS MODELS • –A SHIFT THAT IS LESS ABOUT TECHNOLOGY THAN • ABOUT A NEW BEHAVIOR THAT IS REACHING • CRITICAL MASS • 2. TO EXAMINE DIFFERENT EMERGING E-BUSINESS • MODELS: MARKEPLACE, AGREGATOR, VERTICAL • PORTAL, AND HORIZONTAL PORTAL • 3. ANALISIS OF THE TRANSFORMATION OF THE • INSURANCE INDUSTRY.

  14. Emerging Business Models Model Examples Key factors Revenue model Markeplace Aggregator Vert. Portal Hor. Portal QuickenIns. InsWeb Quicken.com Yahoo! E-Loan AutoWeb.com Heltheon AOL Controlling No inventory Deep content Provides access; inventory; and solutions partners and selling affinity groups Transactions; Transactions; Transactions; Advertising; service fees; adverstising; commissions; affiliation fees; commission marketing fees advertising; subscription affiliation fees or access fees

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