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eCommerce-Selling New Value: Creating Business Cases in an Uncertain Environment.

These components are generally the same whether one is assessing traditional or eCommerce opportunities. Generally, the development of the business case team requires that the business model already be defined to an appropriate level of detail (depends on stage of opportunity assessment). The team will need to understand the particulars of the business model in detail. The bulk of the team’s effort, however is in building the financial model and obtaining the data. | eCommerce-Selling New Value Creating Business Cases in an Uncertain Environment Session Objectives Review the key components of an eCommerce business case Discuss steps needed to build a persuasive analysis Examine a case that demonstrates the complexities of eCommerce business case development A business case generally consists of three components. Business Model Financial Model Data and Assumptions A business strategy specifying the primary approach and rationale for pursuing an eCommerce opportunity The financial analysis of a proposed business model consisting of baseline projections, revenue and expense estimates and valuations The data, analysis and assumptions which support the financial model These components are generally the same whether one is assessing traditional or eCommerce opportunities. Generally, the development of the business case team requires that the business model already be defined to an appropriate level of detail (depends on stage of opportunity . | eCommerce-Selling New Value Creating Business Cases in an Uncertain Environment Session Objectives Review the key components of an eCommerce business case Discuss steps needed to build a persuasive analysis Examine a case that demonstrates the complexities of eCommerce business case development A business case generally consists of three components. Business Model Financial Model Data and Assumptions A business strategy specifying the primary approach and rationale for pursuing an eCommerce opportunity The financial analysis of a proposed business model consisting of baseline projections, revenue and expense estimates and valuations The data, analysis and assumptions which support the financial model These components are generally the same whether one is assessing traditional or eCommerce opportunities. Generally, the development of the business case team requires that the business model already be defined to an appropriate level of detail (depends on stage of opportunity assessment). The team will need to understand the particulars of the business model in detail. The bulk of the team’s effort, however is in building the financial model and obtaining the data. Do not confuse a business case with a business plan. The plan is much more extensive in its analysis and is supported by a detailed business case. Several common eCommerce business models exist and new ones emerge continually. Portal Content Provider Shopping/ Commerce ISP/ Web Host Auction Site Community Software Provider Security Services Consulting Advertising Describe a few of the models and ensure the group is familiar with these terms. Ask the group to name a player from several of the alternatives. A look at leading eCommerce players’ business models yields interesting results. Amazon.com and Priceline.com are examples of pure-play shopping or commerce sites. America Online and Excite@Home, on the other hand, are both ISPs and portals. Increasingly, the business cases we develop will .