It looks like a load of these web sites are dropping into a financial abyss--that's what I read, anyway. You're close to this business, Dave? If so, what is your understanding of the current situation that has come about for so many internet companies? What are your insights?
I am not Dave but may have an answer or two. It is really a complex issue. The assumptions these dotcoms make in their business process rules are not valid in a bigger context. They miss simple items. I can give to tons of examples. 1. This company is sitting on a gold mine. Yet stock fell at 50 to one ratio. Turns out the CFO was counting the beans, could not see past his nose. The sales department did not have experience. They spend a lot of money on IT but hired cheap labor. So what could have finished in 3 months took 12 months. Even then, poor design caused and still causing a lot of headaches integrating between systems.Marketing sucked. Finally the new team is on board for 3 months now (CEO, VP-Sales, VP-Operation). The solution is very simple, under their noses but they can not see it.
In my opinion, these companies are failing because their business models were dreamed up in the minds of business school graduates who generally have no understanding of the technology. The only reason they ever got funding was because of the mad IPO rush that happened. If you look at the companies that are doing well and succeeding, they were very often started by industry insiders and academics (computer scientists, that is). Companies like Yahoo, Lycos, Inktomi, Google were all founded by academics who understand the technology. It is always gratifying when genuine knowledge prevails, especially in this day and age of vanity and frivolity. Another problem, as pointed out by the CEO of General Electric, is that these dot-coms really have no idea how to run a real business. So much of real business (what little I understand of it), or perhaps more specifically engineering-driven business, is the process. Companies who have solid processes and are able to execute effectively are in the long run the ones who survive. This is largely because the process is a way to maintain institutional intelligence and knowledge even when there is human turnover. Dot-coms very often have very poor processes because of their youngness. It's also becoming apparent that business on the internet isn't fundamentally different than business anywhere else. The business challenges that large corporations have perfected over the years are being encountered for the first time by dot-com upstarts and these business-school idiots^H^H^H^H^H^Hgraduates aren't able to cope. Anyways, that's my take on it all. I really have little experience with real business. I'm an academic and a content person. Of course, the content business is much tougher than selling crap. There's no advertising money out there anymore, so a large number of content companies are having extreme trouble staying afloat. But then, do you really need a staff of hundreds to publish a few stories? (I could rant about my solution to the mindlessness of today's worker, but I'll spare you the pain).
Hmm, I favored the e-tailor for the advantage it offers--I was spared the pains of traveling to the mall and swimming through the crowds. The bargains were always questionable, considering that there is always a shipping charge tacked onto the purchase; but still, shopping online is a convenience. I'm a little curious about the way that many of these online shops have folded. I really thought there was a big future online for selling products, but I suppose that the consumer prefers brick and mortar, which I can understand when there is need for prompt service. Anyway, Thanx for both comments. I'm glad I didn't invest any money into those high-flying stocks over these past years. ------------------ It's all very large.
posted February 08, 2001 07:32 PM -------------------------------------------------------------------------------- quote: -------------------------------------------------------------------------------- Originally posted by DaveW: Watch your mouth, Jehovah. -------------------------------------------------------------------------------- I apologize for my past disruptive and blatantly vulgar statements and, that I would further assure to you that my "Vulgarity Restriction Collar" is now in place and, that it was my original intention to impress upon the atheist (infidels), the illogical rationale of a supposed civilized people, who do not believe in God, yet have no tolerance for literal curses.......... If my "BARROOM" literalogy has caused a level of Shock, I again appologize. I did not expect the fear of words....from those who have negative Barism's to the defiliation of the very principles, which "WE" now call civility .......(tears tiassa). Closings..............Sir. I assure you and all (including tiassa), that I will offer no vulgarity during any future posts by me. ((((((((((((I WILL TYPE NO MORE 21ST CENTURY (OR EARLIER) VULGARITIES TO THOSE WHO CURSE THE IDEAs OF TRUTH AND GOODNESS)))). As a gentlemen, ............you have my word.,................................ j
