Updated edition No. 16 | February 2006 e-f @ cts Innovation policy, information society, telecommunications Information on E-Business Focus There are some special features for e-business start-ups, which - of course - with the peculiarities of electronic-related ventures. 3 from Page 1 Facts & Figures + E-Business Entrepreneurs All the special features of e-business start-ups relate primarily to the business concept, the founders and founder in a business plan should summarize. Therefore, the following information by the subject of a business sorted. While gründer person with the most births of founders and the founders especially readiness, work experience or knowledge is required ampersand, it is to build an e-business increasingly on industry experience and knowledge of the relationships in the Internet economy. Where these skills are lacking, it is early to experienced managers or consultants apply. The main product of many e-business start-ups is: Its offerings are virtual. The less those concerns, the real products (eg used cars) via Internet, but especially start-ups, technical innovation (for example, a new accounting software) want to sell. Precisely these innovations are often difficult to explain. The result is that potential clients of the bid value remains (unfortunately the lenders usually well). What is important is the Internet's founders, the language of their customers speak. The schedule delay offer benefits and accept customers often only after a certain familiarity effect. Any delays should be - for development and marketing - Scheduling. It is important, again feedback from customers and users to receive and for the other (perhaps modified) planning into account. To some benefit, the customers never see. That means suppliers must be on the floor of the market and must remain its adaptability (to the greatest hype developments) are not overestimated. 3 from Page 2 E-Business ABC Affiliate programs, customer relationship management, e-business applications 3 from Page 4 Practice & Technology E-Business Financing 3 Page 6   2 Focus + E-Business Entrepreneurs Content There is some focus specificities of e-business start-ups, which - of course - with the peculiarities of electronic-related ventures. 3 from Page 1 Facts & Figures investments into account in this context, the Internet founders know that the technology progresses rapidly and the "decay time" of innovations is much shorter than in other industries. Offers quickly become obsolete, trends pass. The need for related investments for new technological development, any e-business foundation in their business plan and also later in the ongoing operation into account. Just competing Internet founders have in their business planning to market in great detail and light on a demarcation of competitors to think. This applies to both the online and offline for the competition. A young company may be primarily by the quality of its products from among its competitors stress. That's why you should have at an early stage of planning and construction companies a comprehensive and powerful build quality. Thus can be seen in the first customer contacts document that is a reliable partner. Essential part of such an approach is a strategy that deals with issues such as customers and within a defined time to be resolved. Furthermore, when one of its own supply planning must always take into account that, and how easily competitors could copy an offer (eg auction platforms). Suppliers drawback in Business plans issue may be whether the company which was selected as a supplier, the longer will exist. This is especially for young e-business company is a risk that a (perhaps highly specialized) supplier companies 3 from Page 2 E-Business ABC affiliate programs, customer relationship management, e-business applications 3 from Page 4 Practice & Technology E-Business Financing 3 Page 6 That is the Internet % of Internet users (from 14 years) 2004 76 e-mails targeted search for offers 51 surfing 45 home banking 37 Download File 19 online auctions discussion forums 18 / chats 16 audio files to listen to 11 online games 11 online shopping 10 online videos 7 Internet radio 6 Source: ARD-/ZDF-Online-Studie, Monitoring Information Economy 2005   e-f @ cts / I nformation to the E-Business Updated edition No. 16 | February 2006 3 short or medium term again disappears from the market. This would be the foundation on which we entrepreneurial decisions of great significance building collapse. Just distribution of technical innovation suffer (naturally) including, potential customers that they are not known. The advantage is a matter of building distribution partnerships. Separate sales activities cost a lot of time, resources and money. A portion of these costs can be saved if one's own products (preferably famous) sells partners (through reciprocal linking = affiliate programs). Partners should and can be established on the market companies whose offerings complementary to its own product or service are their own. A young company with an innovative product should try a well-known companies, even with its products and services for quality and market success is to use his product to gain and so happy to provide that the name of this company as a (first) reference must be specified. Financing The financing and liquidity planning is a typical weakness of many e-business start-ups. The reason is often a lack of realism. Some e-business was founded and is with great commitment, enthusiasm and euphoric sales forecasts started. Moreover, the investment often underestimated. Here is a careful and realistic planning is essential, alone for donors to loans or investments to motivate. The dotcom crisis has unfortunately led to donors tend to be cautious in the financing of e-business ventures have become. In addition, IT products just very difficult to explain. Nobody will be money for a project to provide that he does not understand. At the same time, high capital requirements require businesses in the area of e-business sometimes comparatively much seed capital for product development and the establishment of marketing and sales activities to be financed. Even the individual building contacts with potential customers and participation in trade fairs, etc. require a stable financial base. Development plan with milestones, founder and (young) entrepreneurs must, therefore, the financing of their company to make sure. A financing strategy involves more than mere money. To ensure sufficient acceptance of donor money for a product to win, which is still in development, must e-business or business inside-founder therefore a plausible and realistic development plan with milestones, which then also in the E-business founders and founders have a plausible and realistic development plan with milestones present. Purchased online goods and services million in 2004 Books 9.5 Bahn-/Flugtickets 8.3 Travel 7.7 hotel reservations 6.7 Theater-/Konzertkarten 6.1 CDs 6.1 Computer hardware 4.5 clothes, fashion, shoes 4.4 videos, DVDs 4.1 Telecommunications Products 2 , 9 games 2.6 music downloads 2.1 Source: Institute for demo copy Allensbach 2004   4 Focus + E-Business Entrepreneurs E-Business ABC Affiliate programs (including affiliate programs, associate programs, affiliate networks) are virtual distribution networks and create the basis for a novel form of cooperative advertising on the Internet. Customer Relationship Management (CRM) CRM is used throughout the company more customer-oriented to help. That means information from all departments of an enterprise customer together: from sales, marketing, call center, customer service, etc. To this end, the market-specific software programs. The implementation phase as accurately as possible is respected. To the interest of donors to win, they should have a longer-term development sleeve, which is already possible use of realistic options for the future contains. Three points they should be particularly noted: 3 innovation by donors as a return chance. Research, development and production structure are unavoidable risks on the road to the market. With the business plan submitted financing plan should be a small risk in research, development and production structure indicate. 3 The objectives for the market with innovative products should be clear and comprehensible. 3 already in business must be (for planned investments) for both the financing requirements as well as the return expectations of the donor participation into account. (see Practice & Technology, p. 6) Start-ups in e-Business Germany has become the largest e-commerce market in Europe. The Internet as a major economic factor that has created major foundations. The prospects that this market continues to grow, and for the development of innovative e-commerce solutions are good. The reason: the growing acceptance of e-business and e-commerce for small and medium-sized enterprises. More and more companies support entrepreneurial tasks and processes through e-business solutions. The aim of the federal government is that by 2008 more than 40 percent of all corporate e-business solutions for the entire value chain to apply: from the planning of a product on the purchase and its production to distribution. This is also supported by appropriate measures: 3 Prozeus serves the promotion of e-business expertise specifically for small and medium-sized enterprises (SMEs) to participate in global procurement and sales markets through integrated processes and standards (www.prozeus.de). 3 In electronic commerce network advises a series organized for excellence in building its own SME solutions in electronic commerce (www.ec-net.de). 3 With the knowledge media projects were selected reference models developed to strengthen the existing potentials in SMEs through the use of knowledge more efficiently (www.wissensmedia.de). 3 The Internet award honors outstanding annually Internet developments of small and medium-sized enterprises (www.internetpreisdeutschland.de). 3 The German broadband initiative supports the establishment and development of a powerful technical basis for electronic commerce (www.breitbandinitiative.de). DSL penetration in Europe Connections per 1,000 inhabitant in 2004 Denmark 104 Sweden 85 Norway 83 Germany 81 France 78 Switzerland 73 Finland 72 Italy 69 Spain 62 UK 55 Source: EITO / Infra Test 2005   e-f @ cts Information on E-Business Updated edition No. 16 | February 2006 5 The business idea rapid development of Internet use offers good opportunities for growing businesses with an emphasis in e-business. This also contributes to that in Germany in international comparison a significantly higher proportion of enterprises and Internet users have very powerful access options such as ISDN and DSL offers. Opportunities for businesses in the area of e-business there are many. This enables business models to the Internet via communication channels in the fixed, increasingly, but also via mobile connections such as WLAN or UMTS in the near future, to goods and services. Promising approaches are also mobile applications over short distances to realize (eg Bluetooth). Is also expected P2P (peer-to-peer) communications via cellular networks. This makes it possible to "location-based services (LBS)" build the users with the very personal customer information. Marketing and sales can be quite new, some not yet imaginable strategies. Improve business processes but also concepts, which aim to improve business processes and new ways of cooperation in the company, between companies and between the provider and its (end-) customers benefit from the diversity of already available and usable in future communication channels. The Renner are (according to a study of the Essen economy professor Tobias Kollmann) currently business ideas around the theme of "cost reduction". Suppliers long time, it was the goal of medium-sized companies with as few selected suppliers to maintain business contacts. The world-wide communications with the help of the Internet means that companies with just a little effort a disproportionately larger part of the (global) markets look can also be beneficial to find suppliers. To make use of opportunities you need, however, tools with which purchases can be easily settled. The field of the required solutions is very broad: 3 electronic catalogs from which the customer is all needed information can pull out (online calculation tools, individual bids, mix of materials and manufacturing costs) 3 interchange formats (XML) to the borders of each installed software solutions able to overcome 3 Logistics Management under the involvement of partners needed for storage, transportation, packaging 3 billing and payment systems Affiliations adaptable work is to support cooperation between enterprises. Chains are always Continued on Page 7 E-Business ABC E-business applications Here are all kinds of business processes meant that electronically can be completed. This concerns such as communicating with clients via e-mail, the sale via the Internet shop, online banking, etc. Electronic Payment or Electronic Cash The general term for electronic payment systems on the Internet and online services. Top-10-Industries In% of all births Business services 17 retail, automotive repair 13 research, computer, Internet 9 Manufacturing 7 Health and Welfare 7 Personal Services 7 Construction 7 Culture, Sports, Entertainment 6 wholesale 5 Hospitality 4 Source: KfW founding Monitor 2004   6 Practice & Technology Overview: E-Business Financing Funded e-business start-ups increasingly through a mix of equity and equity capital. E-Business ABC Electronic Procurement (e-procurement) Electronic procurement or exchange of goods between enterprises on intranet, extranet or the Internet. Efficient Consumer Response (ECR) Literally translated: Efficient response to consumer needs. The focus of the ECR-classical model, the increased efficiency of the flow of goods across the entire value chain from the manufacturer on precursors to the dealer, always taking into account the wishes of customers. A crucial role is played by the seamless flow of information from the branches of the participating merchants back into the core systems of trade and from there into the manufacturer. The objective of ECR is more flexible, faster and more focused on changes in customer demand response. Enterprise Resource Planning (ERP) Fully integrated software solutions. They support all areas of a company (production, finance, logistics, personnel, project, distribution, etc.) and consist of a series of modular and easy to introduce possible components. Equity sources (KfW SME Bank) may be: 3 3 3 Entrepreneurs capital - ERP capital for entrepreneurial start-up capital - ERP capital for entrepreneurial growth capital - for working capital and investments MORE INFORMATION: BMWi-assisted database www.bmwi.de Potential equity investors are: 3 Banks and industrial companies, but also private financiers to take over holdings from about 250,000 euros, but only if high yields (more than 25 percent) are in prospect. Private equity capital (venture capital companies) They are involved mostly with higher amounts in companies, without influence over the operations to take. Their goal: with a correspondingly high return on the commitment back off. For more information: www.bvk ev.de-sized holding companies are self-help institutions of the economy, are publicly funded and are not primarily yield-oriented. They also offer investment opportunities with smaller amounts of targeted specifically at small and medium-sized enterprises and entrepreneurs are tailored. For more information: www.bvk-ev.de KfW SME Bank and the KfW bank group to participate in small and medium-sized enterprises, in addition to equity investment companies, small and medium enterprises equity available. For more information: www.kfw.de High-Tech Start-Up Fund Management Ltd. The High-Tech Fund founder of High-Tech Start-Up Fund Management Ltd. invests venture capital in young technology companies. With the help of a "seed funding" to the ups and research and development projects to provide a prototype or a "proof of concept" or for the market lead. For more information: www.high-tech gruenderfonds.de Business Angels Network of Germany (BAND) Business angels are private individuals or entrepreneurs who not only equity capital available, but also with its founders experience side. For more information: www.band.de (existing) partners, you can market clients, customers or partners. About framework agreements can also arrange a secure sales. 3 3 3 3 3 3   e-f @ cts Information on E-Business Updated edition No. 16 | February 2006 7 Continued from Page 5 important: Increasingly, products only directly to the customer's demand, made to storage to avoid possible individually to respond to customer needs, but also the capital tied to a minimum. To this complex value chains into action, for example, have production planning and control systems of several companies may be linked. There are appropriate tools needed to cross-company planning processes possible. Such tools could (and should) young e-business enterprises. A virtual business opportunity for midsize enterprises is large and comprehensive skills requiring contracts to jointly acquire and edit. Such "virtual companies" need for efficient communication and decision-making processes and the development of process chains also (more) technical support. Marketing: Sales of goods and services via the Internet to make and sell, not only provides for Women Entrepreneurs and founder, but also for companies that already have traditional distribution channels to their customers out occur, good chances. Users save time and costs as a distribution via the Internet are usually inexpensive to implement. Especially personnel and expenses intensive tasks such as warehousing and shipping to specialized service providers can be transferred. The networking is also needed on the Internet. The quality of e-business sales, and coincide with the hardware and software that is available to the respective partner, so most vendors and customers, effectively and reliably together. Technical developments, the contributions to the solution here still existing deficits can provide a good basis for a business: for example in the field of Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), Supply Chain Management (SCM) or Mobile Business. E-Business ABC Supply Chain Management (SCM) Provides for the flow of information, goods and finances throughout the value chain between suppliers, manufacturers, wholesalers, retailers and customers. The objective of SCM software is a flow of information without media breaks between all partners in a common process, from procurement of raw materials to delivery to the end customers. The ultimate goal is, in both the value chain to reduce costs and increase efficiency. Mobile Business transaction processing, for example, by mobile phone. Holistic value chain: from planning a product and its precursors on the purchase and its production to distribution. Workflow Management System software, the company projects coordinated and cross-enterprise business processes automated. BMWi-founder portal The ministry founder portal offers a wealth of information and assistance around the theme "Entrepreneurs": www.existenzgruender.de • Gründungs-Know-how/Management-Know-how downloads (BMWi print publications to start a business) • Software (BMWi software package) • Information for successors (www.nexxt.org) Expert Forum • • • Aid tools and checklists and summaries • Funding Database • Exchanges • Directory Events Calendar • • • Lexicon founder contests, initiatives, StartUp links • • • Information services hotlines • Audio • Service • Founder stories expert interviews • Information for migrants • Information for Women Entrepreneurs • • Information for local information for consultants and lecturers Gründerquiz • • Corporate Citizenship   8 Focus + E-Business Entrepreneurs Imprint Editor: Federal Ministry of Economics and Technology (BMWi) Public 11019 Berlin info@bmwi.bund.de www.bmwi.de Editors: Bernd Geisen, Regine Hebestreit PID work for science and public GbR Menze Berg 9, 53604 Bad Honnef Tel: 02224 90034 -0, Fax: 02224 90034-1 info@pid-net.de employees this issue: Gisela Kiratli, Aachen Competence Center - Electronic Commerce Professor Tobias Kollmann, Chair of e-business and e-Entrepreneurship, University of Duisburg-Essen Ben Schlüßler , Kompetenzentrum Electronic Commerce, Schleswig-Hostýn, Kiel large tungsten, VDI / VDE-IT, Teltow Holger Schneider, Electronic Commerce Competence design and manufacturing Ruhr: PRpetuum GmbH, Munich Credit: MEV, Photodisc pressure: pressure point offset GmbH, Bergheim edition 10,000 focus of the next edition: "EB communications and spam" If you have questions or suggestions or questions about other topics of ef @ cts, please contact: Bernd Geisen, Regine Hebestreit PID work for science and public GbR Marketing communications users reach new customers and offer these products through detailed, useful background information and a high customer value. About the local area also allows customers to supra-level structure with the offer be made known: especially important for products in lucrative niche markets where the local environment are not enough customers are present. Moreover, the number of customers who appreciate it, even outside the established closing time information or shopping, continues to grow. The communications and security communications between supplier and customer, but also between enterprises must be safe. The transfer of data must be accurate and done without interruptions. Moreover, the communications confidential and before the access of third parties and are protected from tampering. Particularly high importance, the issue of security in e-business wherever payments over the Internet should be. Here are innovative, reliable and secure solutions a chance. This includes procedures for ensuring Partner Communications doubt can be identified. Communications and Mobile Business The expansion of broadband technology and the associated economic exploitation, the business communications fields in the coming years could significantly influence. These "broadband applications" are great potentials predicted. These include one stationary applications such as DSL and CATV, but especially a number of wireless and mobile applications. Supply and demand for those services, which are under the term "mobile business" summed can evolve rapidly. Even the "normal" users available communications devices such as GSMMobiltelefon, handheld computer (PDA), wireless interfaces such as Bluetooth or WLAN lead to numerous advanced services and Services provided at each site can be used: for example, in tourism (For information on hotels, sightseeing, shopping or leisure activities) or even in the operating environment (manufacturing, warehousing, transportation, etc.). Approaches for start-ups, there is along the entire value chain, from building and the provision of local channels of communication to the development of specific content. However, the well-known classic from PC Tools such as screen, keyboard and mouse is difficult to transmit mobile use. Therefore, the devices available today only a limited user comfort. This is therefore a high potential idea, possibly using voice technology. Above all, Employees Trade and Industry can no longer easily afford to staff or staff for external training lawsuits. Are therefore increasingly demanded accompanying learning activities, the employees "on demand" use. The development and provision of e-learning offerings, therefore increasing importance. Help from Electronic Commerce Network The funding measure electronic commerce network of the Federal Ministry of Economics and Technology (BMWi) will be small and medium-sized enterprises and handicraft enterprises in the introduction to the use of e-business support. Contact: www.ec-net.de