Internet Business Strategies A strategic view of the various options and connectivity levels available to business through the Internet. Copyright 2011

Internet Business Strategies

A strategic view of the various options and connectivity levels available to

business through the Internet.

Copyright 2011 SPMI / Online Development


The Internet now connects more than 40 million people in virtually all countries around the world, with the number projected to exceed 100 million in 1998.

The growth of the Internet offers businesses many new opportunities and techniques for accessing customers and markets.


The widely varying Internet connection options range from simple Electronic Mail boxes to a dedicated Web server costing $100,000 or more.

As connectivity, functionality, and volume increase, so do the associated costs.

Internet Business Strategies - High-Level ViewHigh-Level View

Cost

Function

Trade-off between Cost and Internet Functionality

Internet Business Strategies - Connection OptionsConnection Options

Cost

Function

A business can start out with a simpler Internet presence, and build on this foundation as more capabilities are needed.


Cost

Function

11

2

3

4

5

The following are five sample Internet strategies, combining the appropriate function and technology at each level.


Cost/Function Line

Five Sample Connection Options• Electronic Mail Only• Dial-up Client Access• Contracting for Server Space• On-demand Local Area Network Access• Build a Dedicated In-house Server

Internet Business Strategies - E-mail OnlyE-mail Only

Cost/Function Line

11

Capabilities• Exchange E-mail with everyone connected to

the Internet• Subscribe to Internet Mailing Lists• Distribute product and service information to

customers and potential customers


Cost/Function Line

11

Advantages• Provides access to over 40 million Internet-

connected users• Have an E-mail address at very low cost• Simple start-up and operation


Cost/Function Line

11

Disadvantages• No access to advanced protocols such as the

World Wide Web• No capacity to publish company material in

multimedia formats

Internet Business Strategies - Dial-up Client AccessDial-up Client Access

Cost/Function Line

22

Capabilities• Includes E-mail, Usenet News, File-Transfers,

Gopher, and World Wide Web access• Distribute company information through E-mail

and Newsgroups• Ability to browse multimedia Web sites


Cost/Function Line

22

Advantages• Complete access to everything the Internet has

to offer, including forms and commerce sites• Very low start-up and operation costs• Fairly simple set-up and operation


Cost/Function Line

22

Disadvantages• Response time through dial-up modem is

relatively slow• “Client-side” functionality only• Does not include ability to publish World Wide

Web pages or documents

Internet Business Strategies - Server Space RentalServer Space Rental

Cost/Function Line

33

Capabilities• Allows your company to publish its multi-media

material on the World Wide Web• Create mailing lists for automated distribution of

company and product information• Solicit feedback, requests for information, and even

process orders through your Web site


Cost/Function Line

33

Advantages• Makes you a provider, rather than a consumer, of

Web graphical information• Low costs, moderate skill requirements• Wide variety of rental sites available• Can also use File Transfer, other protocols


Cost/Function Line

33

Disadvantages• Dependent on rules, architecture, and support

applications provided by server space provider• Need to carefully select space provider to

insure reliability, control over material

Internet Business Strategies - On-demand LANOn-demand LAN

Cost/Function Line

44

Capabilities• Connects an entire office or workgroup to the

Internet• Full Client-side access to all Internet protocols• Dial-up or ISDN line gives on-demand connect

and disconnect from your access provider


Cost/Function Line

44

Advantages• Can use ordinary telephone line and modems,

or choose a faster ISDN connection• Lower costs/complexity than dedicated lines• Allows centralized set-up and management of

group Internet access


Cost/Function Line

44

Disadvantages• Not as fast as a full-time dedicated line• Requires additional hardware (a “router”) vs.

single-user access with single modems• Still requires separate server space rental for

Web publishing

Internet Business Strategies - Dedicated ServerDedicated Server

Cost/Function Line

55

Capabilities• In-house server gives you total control over hardware

resources, operating system, etc.• Full server-side use of all Internet protocols, depending

on server software installed• May rent server space to other companies to spread

operating costs


Cost/Function Line

55

Advantages• Total control over development and implementation

of all World Wide Web, File-Server, other materials• Control over speed and capacity of Internet access

lines• More advanced use of Web and E-mail tools


Cost/Function Line

55

Disadvantages• Most costly Internet strategy - requires full-

time dedicated connection & systems• Requires in-house skills for development,

testing, and technical support

Internet Business Strategies - Getting StartedGetting Started

Selecting a Strategy• Begin with your business requirements• Select technology based on business

objectives and strategy• Start with modest goals, then grow• Focus on competitive advantage

Internet Business Strategies - The The NetstartNetstart ProgramProgram

Benefits of using Netstart program• Netstart allows a basic early implementation,

adding capabilities as you need them.• Our flexible approach adapts to your business

requirements.• Your development work is professionally

planned and managed.• Knowledge, skills, and tools can be transferred

to your internal resources.

Internet Business Strategies - Next StepsNext Steps

Where to go from here?• We customize the Netstart Internet Task Plan

based on your business requirements.• Prepare to evaluate service provider options.• Assess and plan technical environment.• Select and acquire Internet tools.• Begin development of your customized

Internet Business Presence.

Documents

Internet Business Strategies A strategic view of the various options and connectivity levels available to business through the Internet. Copyright 2011