No.9   July 1, 2000   Becoming an E-Company:A Strategy for Doing Net Business   Hiroshi MATSUNO        In the United States, the home of net business, dot-coms have made big money by exploiting the inefficiencies of existing companies in areas such as information intermediation, credit intermediation and infrastructure provision. Companies that are only capable of adding value as part of a value chain in the traditional way risk losing their sources of revenue before they realize what is happening.    Such "t-companies" ("t" standing for "traditional") can try to prevent intermediaries from stealing their business by using the Internet to make their product development, procurement, physical distribution and administrative operations much faster and more open and by being more innovative. In addition, they need to reconsider their market position and aim to become service aggregators that can become involved at any stage of the value chain. For t-companies, net business represents both a threat and a major opportunity. They need to enter the market and establish a brand identity as soon as possible and become so-called "e-companies"--companies that are responsive enough to be constantly updating their business model. Contents I How "T" Can Become "E" 1 The Information Paradox 2 How a T-Company Can Become an E-Company II Understanding the Net Business 1 Defining the Net Business 2 Business Models as Profit Mechanisms 3 Factors Behind the Success of the Net Business 4 Proven US Business Models 5 Need for Business Models to Develop III Where Can Money Be Made in the Net Business? 1 The Rise of the Dot-Coms 2 B2C Infomediaries and B2B Agents IV Becoming an E-Company 1 Drawing a Line Between Rationalization and the Battlefield 2 Net Business Threats 3 Net Business Opportunities 4 Repositioning on a Changing Battlefield 5 Become an E-Company! GO to PDF