Defining the Online Venture
Simply put, online ventures are companies that primarily conduct their business online. They are distinct from other companies who might have an online presence, but still conduct business primarily through traditional offline channels. What distinguishes an online venture is not so much the features and functions of its website, but the business needs the site serves and the requirements for its success. While virtually every company can benefit from having a website (at the very least for serving promotion, marketing, and communications needs), an online venture differs in that its success or failure is directly tied to the success or failure of its website.
Furthermore, online ventures require more than just the development of an effective website; they require the building of an entire company (as in the case of a start-up) or the re-engineering of an existing business in order to meet the operating needs of an online marketplace and customer-base. In addition to the online piece, they also require many of the standard components of a traditional business (business plan, marketing strategy, distribution/fulfillment strategy, etc.).
An online venture's needs and functions (at the highest level) include the following:
- Business Strategy (revenue model, marketing, content, fulfillment, customer service, etc.)
- Market Analysis
- Technology Strategy
- Experience (Design) Strategy
- Brand & Corporate Identity Creation or Evolution
- Organizational Development
- Recruitment Needs
Online ventures can use any of several components to build a business around, including:
- Marketing/Communications
- Commerce and Transaction Systems
- Communities
- Customer Service Centers
- Publishing Systems
- Events and Online Entertainment
- Intranets
- Extranets
An online venture is more than merely an "electronified" version of any one of these components. Successful ventures are stand-alone businesses that focus on meeting customer needs through online media and likely use a combination of these components. These components, as a result, require the most advanced solutions, functionality, interaction, and financial resources. All of these components are described in more detail below.
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