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#3 DCI Report from Tom Vassos and Jacqueline Fortin
Here's a summary of what's in this report:
1. Marc Andreessen, VP Technology, Netscape Corporation
2. Jay Tenenbaum, CommerceNet
"CommerceNet: Spontaneous Electronic Commerce on the Internet"
3. Gary Bolles, "The Next Wave of the Web"
4. Matthew Cutler, Director, net.Genesis Corp.
"Creating an Effective WWW Presence"
Tom Vassos notes:
Keynote Presentation:
Marc Andreessen, VP Technology, Netscape Corporation
marca@netscape.com
"Instant Gratification: Internet Online Commerce in 1995"
This was by far the most popular session at the DCI conference.
There appears to be about 1,000 people in the room waiting for the
presentation to begin. ...pause...pause...pause...
Sorry about the delay, there's a slight problem with the lavalier
mic which should be fixed shortly. More people filing in...make
that about 1,100 people. Mic still not fixed...the tension
mounts...(have I made you feel like you're right at the
conference yet?...Hey, what do you expect without photos,
sound, and video.)
Ok, here's the introduction: "Marc led the development of
the Mosaic browser and co-founded Netscape Corporation."
Marc:
"I haven't seen this many people since the last Rolling Stones
concert."
Netscape now has about 170 employees. Netscape has many
partners such as DEC, SUN, SGI, Apple, Novell, MasterCard, Wells
Fargo and some Japanese companies like Hitachi.
Netscape has a creative distribution model called "Marketware".
The Navigator is free for education, non-profit and evaluation
use. This model is used to try to capture a large market share.
Their browser currently has about 75% of the market.
Netscape has several server products such as a communications
server, a commerce server, a proxy server and a news server.
Their commerce server is being used by NetworkMCI.
The proxy server allows you to tie the Internet with an internal
LAN.
The News server will be used to run threaded discussion groups.
It provides support for moderated groups, replication across
several servers, etc.
Netscape Internet Applications include a Merchant System, IStore,
a Publishing System and a Community System.
Go to http://www.internetmci.com/ to see this in use.
The software handles several merchants and products, secure
transactions, etc.
The publishing System includes support for things like metered
billing, user interest profiles, etc.
Secure Sockets Layer (SSL) is the security protocol used
by Netscape (layered between TCP/IP and the application-
level protocol). SSL has several strengths for providing
secure transactions, authentication, etc. There are several
SSL implementations on the market including those from
Netscape and other companies. SSL supporters include
several companies (long list given...computer companies,
banks, etc.)
Netscape also supports S-HTTP. SSL and S-HTTP are
complementary. S-HHTP is designed by Terisa systems.
"In fact, we liked S-HTTP so much that we bought part
of the company." (...a rumble of laughter is heard in the
crowd)
Question from the Audience:
Why don't you return my calls?
Sorry about not being able to return your calls. We're
getting thousands of calls and 3,000 e-mail messages per
day.
What's your approach to client side applications like HotJava?
We provide the APIs to help make this work properly.
Do you have a special relationship with Oracle?
Well we support their software and have several former
Oracle employees, but our implemention model is to fully
support industry standards...e.g., support for standard SQL calls.
What's the impact of the privatization of the Internet backbone?
There are actually parallel backbones which are being set up
which is encouraging. This will help drive the prices down.
A question was raised about the agreement with Adobe
Acrobat...how will this affect HTML?
I believe this will be a parallel and complementary offering
to what's happening on the HTML side. HTML is positioned
for ease of use, but Adobe Acrobat offers more high end
functionality.
Note from Tom Vassos:
I was fortunate enough to be able to interview Marc following his
keynote presentation. Below is a partial transcript from that
interview. These are not exact quotes from Marc, but my attempt
to try to summarize the points and positioning he was trying to
convey:
Vassos: "Marc, consider this scenario. Netscape implements
several proprietary extensions to HTML. A year goes by. The
HTML 4.0 standard goes in a direction which is not compatible
with Netscape's direction. Will this not begin to splinter the
market and have a negative impact on the worldwide explosion
of the Web?"
Andreessen: Absolutely not. Because we will fully support any
new release of HTML standards, this will never happen. Customers
come to us with features that they want. To meet these market
demands, we then try to build products that meet user requirements.
We believe we can continue to meet customer requirements as
well as meeting all the relevant standards.
Vassos: "Some sites have begun to use Netscape extensions
which are not part of the emerging HTML standards. In some
cases, this requires users to use a Netscape browser or they
cannot view the site. Does this not go against the basic
principle of the Web providing open access to global information
for any user?"
Andreessen: I don't know of any Netscape feature that would make
a particular piece of html unreadable for users with other browsers.
We support the html 3.0 standard to a greater extent
than anyone else. We include support for features such as tables,
backdrops, image alignment, centering, text around graphics, etc.
It would be crazy to try to head off in a proprietary direction with
our offering. This would backfire. The only approach that will
work is to fully support the html standards as they emerge.
Vassos: Are you rich yet?
Andreesen: No. Still poverty stricken but I do have stock in
the company which is not liquid. If we go public, then my
stock would have to be vested, and the lockout period would have to
pass, and the company would have to be worth something,....then I
might be rich...
Vassos: Is there anything else you would like to say to the
members of the Online-News, INET-marketing and MARKET-L
forums.
Andreessen: Yes, I'd like to comment on the huge blowup that
has occurred surrounding the issue of security standards. This has
been blown out of proportion. The reality is that both S-HTTP and
SSL can interoperate and in fact both will likely coexist for some
time to come. (S-HTTP is higher in the protocol stack than SSL.)
This issue will not slow down the development of secure transactions
and commerce on the Internet.
Vassos: "Thanks for taking the time to meet with me."
Note from Tom: I may have an opportunity for some follow
questions for Marc over the Internet. If you have any additional
questions you'd like to ask Marc, please send them to me at
vassos@vnet.ibm.com in the next couple of days and I'll try to
get them answered.
Afternoon Keynote Speaker:
Jay Tenenbaum, CommerceNet
"CommerceNet: Spontaneous Electronic Commerce on the Internet"
http://www.commerce.net/ (This site has many pointers to
several other sites providing info regarding commerce on the Internet.)
Or for more information, send a note to: info@commerce.net
Benefits of Commerce on the Internet include:
Lower costs. The U.S. government is using the Internet to
solicit bids and then announce the winner (including their price)
over the Internet. This has had the effect of a cost reduction
of 5-10%.
In the longer term, entire distribution chains will be revamped
and there will be major winners and major losers in this
upheaval.
Small business will be empowered. Small niche global
companies will be possible.
The biggest opportunity is going to be in a whole new information
industry that will spring up from this trend. They are the companies
that will make this whole new environment work: companies that
provide directory services, referral services, better business
services, etc.
Limitations of the Internet include difficulties in accessing it
and using it.
The goal of CommerceNet is to kickstart the industry to make
online commerce a reality. Their founding members provide
starter kits (Internet access, browsers, etc.), directories (classified,
alphabetic, referral services, etc.). There will be thousands of
very specialized directories.
CommerceNet is providing a leadership role for security solutions
(authentication, encryption, digital signatures, etc.) to provide the
basis for spontaneous commerce on the Internet.
Different payment alternatives include digital credit cards, debit
cards and cheques.
S-HTTP provides comprehensive security for the WWW. Different
countries have different rules about what type of cryptography can
be allowed.
Terisa systems was bought by Netscape, IBM, AOL, Prodigy and
Compuserve. This ends the dilemma of multiple emerging
security standards. Netscape has provided Terisa with a
master license for their SSL technology.
The Internet Shopping Network positions themselves as a
computer superstore (http://www.internet.net). They sell
hardware and 20,000 software titles in stock (although they actually
don't carry any stock). They also provide reviews from the
computer magazines. They operate with only a handful of
employees, and each transaction only costs less than $1
(compared to about $5 per transaction for telephone operators).
They are moving towards actual software distribution via the
Internet as well.
Pro (Internet Profiles) is attempting to provide a Nielsen-like
rating information about the Internet.
Component shopping on the Internet: PartNet is a company that
has been set up to provide parts from several different companies.
They,in effect, have a virtual catalogue. They also try to provide
value-added services in addition to the catalogue services.
The Internet can be used to set up a virtual value added network.
For example, auto companies need to deal with thousands of
suppliers. The advantage of using the Internet however, is that
you can quickly move to other suppliers that you haven't dealt
with in the past...suppliers with lower prices, better products,
quicker delivery, etc.
CommerceNet has working groups working on Payments, Internet
EDI, Collaboration Tools, Security, Network Services, etc.
CommerceNet has launched the world's first online authentication
system. Macey's can issue transactions which go through
CommerceNet to its suppliers. CommerceNet is not trying to get
into this business, they are simply launching this as a pilot to
provide leadership for other companies to do the same thing.
1995 Initiatives:
Small business outreach
National and international chapters
Industry and sector affiliates
Advanced technology
Their intent is that their members will help get small
businesses onto the Internet and able to do transactions.
Use CommerceNet as a test bed for helping to launch unique
technologies to assist in commerce on the Internet. CommerceNet
also sponsors research at Stamford.
"There has never been a more exciting medium for doing
global marketing."
Gary Bolles
"The Next Wave of the Web"
Many Web sites are skunk work projects in companies.
This is the "lemonade stand" phase of Web development
(or the "hobby" phase -- This is Joe's Home Page).
Much of the info on the Web is simply re-purposed from
other sources. Much of the most compelling content on the
Web however, has been created from scratch for this environment.
This is a new medium. Take advantage of its capabilities.
The mentions of the Internet and the Web in the common
media has gone up exponentially in the past 2 years. The
online environment has been a 24 hour per day food fest for
the media which is already enthralled with anything related to
"information".
The Web is still not the place to accomplish your business
objectives...it's a cool and hot place to be.
One popular approach to Web sites seems to be putting up
a map which allows people to click on different components
of the map to see different things.
The key to a successful site is matching content to your
audience. Combine the advantages of traditional publishing with
online publishing. i.e., if putting up a brochure on the Web, you
should do more than just transfer the hardcopy to online.
Just putting up a Web site will no longer get the publicity it
used to. You need to have something very compelling.
The Web is reducing Online Publishing barriers such as 1. access
and 2. entry. Electronic publishing on the Web A. Removes some
barriers such as distribution, B. Retains other barriers such as
staffing, and C. Creates new barriers such a Ubiquity. Not
everyone is online.
The average person online is male, early technology adapter, etc.
If this is not your target market, then this may not be the ideal
venue for you. However, the demographics are rapidly changing
so it may make sense to enter as a learning experience.
Massive entry barriers for online publishing include list generation,
acquiring readers and the retention of readers. This is where
the online service providers (like Prodigy, Compuserve, AOL, etc.)
are positioning themselves...as a viable mechanism for providing
you with readers and potentially the ability to retain them.
Wave #2: Commerce and Customers. The next wave requires
a large base of customers, not just the early adopters.
New Barriers: If all of the people wanting your product are located
in far off countries, this may still be a major barrier for you
(physical distribution of your product, etc.). Bandwidth is another
barrier on the Web (we will never catch up). 14.4 baud modems
will be a bottleneck for years to come. Consider alternatives like
distributing much of your Web content on a CD. Initial access
for users is also still a barrier.
The innovation occurring on the Web is incredible. Some users
are going to the extent of creating their own TV channel on the
Web...all done without the traditional barriers of entering this field.
As part of these channels they are attaching things like discussion
groups to try to build a community.
www.cd.com has one of the biggest collections of CDs for sale on the
Internet. All they did was connect their backend database containing
all of this information to the Web. This is a great example of
leveraging your existing business to capitalize on a new market.
There is a great opportunity to re-purpose your info in several
ways in order to target your markets very directly...a detailed
version for technical types, another version focusing on
benefits for the banking industry, a synopsis for people in a
hurry, etc.
Re-purpose your content to meet the needs of users with a
wide range of bandwidth capabilities...slow modems, ISDN,
cable, etc. Eventually the browsers will be smart enough to
automatically re-purpose the content based upon the bandwidth
capabilities of the user.
Consider a wide range of pricing alternatives. Base information
for free, base info for free if you provide some demographic info
about yourself, $20 for this offering if you don't want to provide
any info about yourself, etc.
Alternate Views: Allow for drill-down, alternate presentations,
personalized adaptability, concentric communities.
Pricing models are quickly changing. Yahoo is allowing advertising.
Wave #3: Move from considering constituencies to micro-
constituencies. Present the information exactly as users want
to see it.
In the Age of high bandwidth in the future, each of us can become
players in the content-providing business.
There are questions about who really is a publisher. If your Web
page is just a pointer to everyone else's pages, are you really a
publisher. The market for these types of sites ("filtering" sites
which specialize in one very focused area) is growing.
Matthew Cutler, Director, net.Genesis Corp.
mcutler@netgen.com
http://www.netgen.com/
"Creating an Effective WWW Presence"
Hanes Underwear decided to participate in some Internet
forums. They received hundreds of complaints from women
who said the tags on Hanes' underwear are too scratchy and
therefore they refused to buy Hanes underwear. But...they
loved the underwear and if this was fixed they would buy
them. This type of market research is invaluable for a
company.
Your Web site must keep up with changes in corporate
image, new developments and acquisitions, and internal
influences. You should also modify your Web site based on
customer feedback, marketing data and new customer
requirements.
Matthew suggests that at any point in time, 20-25% of
all hyperlinks on the Internet are invalid (note from Tom:
that number sounds too high to me).
Web development costs include network access, hardware,
software and tools, content generation, technical maintenance
and consultant fees.
Question: Do you recommend NT or Unix as a Web development
platform? There isn't much development occurring on NT
although interest seems to be growing. UNIX is the most
popular choice today.
That's all for today folks.
Tom Vassos Jacqueline Fortin
***********************************************************************
TOM VASSOS, B.E.S., M.B.A., Part-time Instructor, University of Toronto
Internet Writer, Educator, Speaker: Call for courseware, keynotes, etc.
Manager, Internet Marketing Strategies, IBM Software Solutions Division
E-MAIL: vassos@vnet.ibm.com PHONE: 416-448-2189 FAX: 416-448-2893 (c)
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Subject: IPA Online Advertising Index -- Need Your Help! From: "TOM VASSOS (M.B.A., B.E.S.)" Date: Fri, 21 Apr 1995 08:01:26
How the Web Was Won
Subject: IPA Online Advertising Index -- Need Your Help!
From: "TOM VASSOS (M.B.A., B.E.S.)"
Date: Fri, 21 Apr 1995 08:01:26