THE TECHNICAL BUSINESS PLAN or
MODEL within NAME’s OPERATIONAL
STRATEGIES and MARKETING TACTICS
LEVEL - 10 SECURITY CLEARANCE ONLY
The undersigned acknowledges that Nascent Applied Methods & Endeavors has
furnished to the undersigned potential Investor ("Investor") certain proprietary data
("Confidential Information") relating to the business affairs and operations of NAME for
study and evaluation by Investor for possibly investing in NAME.
It is acknowledged by Investor that the information provided by NAME is confidential;
therefore, Investor agrees not to disclose it and not to disclose that any discussions or
contracts with the NAME have occurred or are intended, other than as provided for in the
It is acknowledged by Investor that information to be furnished is in all respects
confidential in nature, other than information which is in the public domain through
other means and that any disclosure or use of same by Investor, except as provided in this
agreement, may cause serious harm or damage to NAME, and its owners and officers.
Therefore, Investor agrees that Investor will not use the information furnished for any
purpose other than as stated above, and agrees that Investor will not either directly or
indirectly by agent, employee, or representative, disclose this information, either in
whole or in part, to any third party; provided, however that (a) information furnished
may be disclosed only to those directors, officers and employees of Investor and to
Investor's advisors of their representatives who need such information for the purpose of
evaluating any possible transaction (it being understood that those directors, officers,
employees, advisors and representatives shall be informed by Investor of the confidential
nature of such information and shall be directed by Investor to treat such information
confidentially), and (b) any disclosure of information may be made to which NAME
consents in writing. At the close of negotiations, Investor will return to NAME all
records, reports, documents, and memoranda furnished and will not make or retain any
Name (typed or printed)
This is a technical business plan. It does not imply an offering of securities.
CONFIDENTIAL BUSINESS DOCUMENT
Table of Contents
Technology-related business services are among the fastest growing industries in the
world. The explosion of the use of computers and the Internet in virtually every
consumer and business setting has provided unprecedented opportunities to companies
providing support and services for Electronic Commerce Applications (ECA), Enterprise
Work Architectures (EWA), Electronic Data Interchange (EDI), and Distributed
Artificial Life Programming Strategies (DALP). Because these fields are relatively new,
market leaders have not yet emerged, and customer loyalty has not yet been established.
This enables a well-conceived and well-executed company & network such as NAME to
secure a leading position in these fields.
Nascent Applied Methods & Endeavors (NAME), is a California-based company &
network providing EDI/EWA/ECA and DALP technologies through the distributed-
database strategy of Employment Related Educational Research & Development, in the
greater Los Angeles, California, area. Properly structured & managed electronic
commerce technology-based business services, are among the most marketable and
healthiest firms in the global information economy, and NAME intends to capitalize on
the opportunities in this area by being the first company to introduce a truly internet-
based operating system using human genetics.
The Company’s Mission
Nascent Applied Methods & Endeavors views its mission as increasing the individual
and global corporate community’s productivity by helping them to realize the maximum
benefit from their personnel or computers through Internet technologies. NAME is
dedicated to building long-term relationships with its customers through quality
education & support, and through being known as the premiere electronic commerce
company within the greater World Wide Web. The goal is steady expansion, and
becoming profitable within the first two years of operations.
Products and Services
The company’s service provides, for example, an emphasis on the use of engineering
informational designs & analysis that would strive to maintain a balance between
research and application. The Enterprise Work Architecture (EWA) for instance, will
cover: (1) Computational Intelligence in Industrial Engineering, (2) Consumer Product
Design, (3) Economic Engineering & Cost Estimation, (4) Facilities Design & Location,
(5) Information Systems, (6) Maintenance Engineering and Management, (7) Materials
Handling, (8) Performance Analysis & Simulation, (9) Production Systems Design,
Planning and Control, (10) Productivity & Business Strategies, (11) Project
Management, (12) Technology Management & Transfer, (13) Total Quality Management
& Quality Technology, (14) Work Measurement & Methods Engineering, (15) Industrial
Ergonomics & Safety, (16) Applied Operations Research, (17) CAD/CAM, and (18)
Other Topics of Interest in the Industrial Engineering Fields.
Additionally, NAME’s product lines includes a genetic Internet-Based Operating System
(IBOS), an Integrated Autonomous Office Application (IAOA), a generic designer
software formula called Managerial Applied Numerics (MAN), and a programming
strategy titled Distributed Operating System Architecture (DOSA). Which are the study
of the design & implementation of computerized software agents that can make decisions
on their own and in interaction with a user or other software agents over a
personal/corporate intranet or the World Wide Web. Software agents interact with users
or act autonomously and rationally in time-constrained, open, multi-agent environments.
Case in point, the aim of our company’s Distributed Artificial Life Program (DALP) is
to bring together the micro & macro aspects of these emerging technologies through
virtual biological cloning, of which shall facilitate the implementation of artificially
induced scenarios used in developing real-time problem resolutions.
Moreover, these products of NAME addresses the issues of: agent specification via
information retrieval theories, modeling of computer agents, decisions of and in
IBOS/DOSA/IAOA multi-environments, development of coordination strategies in
distributing information, digital negotiation mechanisms, technical conflict detection &
resolution strategies, communication protocols, and mechanisms whereby computerized
software agents can maintain autonomy while still contributing to overall system
effectiveness. The company’s software system(s) will also explore computer agent shell
architectures, methodologies for realizing compatible or viral agents, agent decision-
making theories, inter-agent communication, end-user natural language discourse, and
software engineering tools for programming and experimentation with other autonomous
Marketing and Sales Strategy
Nascent Applied Methods & Endeavors differentiates itself in the market by first aiming
its products and services toward subcontractors or distributors through the company’s
Seller Assisted Marketing Plan, and then focusing its overall products & services toward
actual customers. The company does this by emphasizing education in systems
technologies that increase customer productivity, and by providing an ongoing
comprehensive support infrastructure and follow-up to the customer. Sales are secured
predominately through the Internet or face-to-face solicitation.
No market leaders have yet emerged in this electronic commerce field, and what
competition that does exists is diverse and uneven, creating substantial market
opportunities. NAME maintains the following advantages over any existing competition:
the ability to develop over 4 billion internet-based software platforms from a single
autonomous agent programming strategy, an ongoing support mechanism for customers,
a strong marketing emphasis on increasing customer productivity, a coordinated
marketing program, professional image, qualified management, consistent quality of
education, and the availability of the NAME training centers & simulations on the World
Nascent Applied Methods & Endeavors operates in the greater Los Angeles area, but
targets individuals and small, medium & large-sized businesses with high computer use
in the emerging electronic market- place all over the world. Since the Internet or World
Wide Web is a large and diverse electronic vehicle, it is estimated that its community
consists of over 300,000,000 users to date, both individuals and businesses alike.
Founder and owner William E. Fields, brings significant technology-related management
skills to his position in NAME. Immediately prior to establishing NAME, Mr. Fields
completed a sixteen-year research & development project in genetic internet-based
operating systems, integrated autonomous office applications, and distributed artificial
life programming. His experience in this area brings to the company the knowledge &
technologies necessary to make it a success, as well as insuring its long-term
In 2010, Nascent Applied Methods & Endeavors plans to initiate an integrated system for
the planning, delivery and management of employment related educational products,
programs & services through the use of advanced subcontractural telecommunication
services (instructors). NAME will delivers its technologies & training from a series of
instructor-led computerized autonomous agents toward individuals & businesses at
remote sites located throughout the world. The customers can interact with the instructor
(agent) and each other through the use of multi-media and the Internet as if they were
together in the same classroom setting.
Typically, the client’s past & current job related performance and task analysis leads to
the identification of the educational needs, which are either being met by current ad-hoc
instructional strategies, are not being met satisfactorily, or are not being addressed at all
because of various constraints. The effort is then to focus on the educational needs that
are not being met satisfactorily or not addressed at all.
Stage of Development
Nascent Applied Methods & Endeavors is in the planning and entrepreneurial stages of
its development, and plans to initiate its marketing plan & services in the early part of
The financial strategy of NAME emphasizes the reinvestment of income for growth
during the first few years of operation, with the company reaching profitability in the
first few months. The combined minimal revenue projections for the first five (5) years
under marketing plans 1 - 10 are $39,028,319; for 2010, $154,159,300; for 2011,
$233,998,152; for 2012, $238,247,375; for 2013, and by the year 2014, $178,685,531 or
approximately $844,118,677 in distributed income by the end of the initial education and
service cycle of NAME and the A-Square Technology Group.
The company is currently seeking to disperse numerous $441,000 contract awards toward
solicited network solution providers with an additional income and benefits package, and
investment capital from twelve network investors or investment groups for a sizable
return in equity over an initial 5 years, as well as a seat on the Board of Representatives.
The investment capital will be used for operational activities, including the establishment
of new electronic markets, the hiring of new staff, and increasing marketing activities.
Long-term plans calls for the company to either develop diversified network operations
or expand to become a C-Corporate Entity.
Nascent Applied Methods & Endeavors is a California-based company providing new
software technologies and educational services on the World Wide Web and the
emerging electronic markets within it. Business headquarters and our host Internet site
are located in Los Angeles, California.
NAME is a networking, communications, educational & procedural development
company that utilizes its ideas in systems development to provide cost effective, strategic
profiles for individuals and businesses. The company has developed a unique & powerful
set of infrastructural information technologies that enables the creation of over 1.2 billion
individually engineered software platforms.
The Company’s Mission
NAME is an innovator in developing new electronic markets. Its primary focus to date
has been on developing the electronic markets of informational products and services to
extend the ranges of Local and Wide Area Networks. The company also uses distributed-
database technologies to provide low costs, easy-to-install network hardware devices for
office & community-based computer networks.
The company has taken a new approach to the challenge of developing procedural &
educational networks. Its success will lead the way in many different disciplines, all
focused on the objective of providing a host of multi-media products through the Internet
and World Wide Web. NAME’s products and services enable its customers to use
existing networks & software applications, rather than having to install new systems to
achieve the same infrastructural goals.
NAME is applying its technology to the large emerging electronic markets, such as high-
speed information retrieval systems in the business world, and the delivery of high-speed
Internet access & interactive services to consumers. This technology’s distinctive cost
advantages has the power to accelerate the development of these global markets, creating
exciting growth opportunities for both NAME, its subcontractors, and its customers.
NAME’s business strategy is to provide solutions at several levels of systems integration.
NAME will develop complete product solutions, such as self-replicating autonomous
software programs, where appropriate to do so. These programs and services are
marketed by NAME’s in-house telemarketing systems, subcontractors, business
representatives, and distributors & manufacturers with specific horizontal market
In other markets NAME will work with technology partners to develop artificial life
programming and networking strategies as part of its complete network solutions. In the
electronic markets, for example, NAME will provide true Internet access to all network
suppliers, contractors, subcontractors and consumers, for full incorporation into their
The company is also pursuing a similar strategy in its public agency networking services,
working with key systems vendors and systems operators to integrate its technology into
successful systems solutions.
Products and Services
Since 1985, NAME has been developing a comprehensive library of technical
programming strategies that have wide ranging implications for the global electronic
economies. The main emphasis of this technology is centered on the ability to control the
dominant limiting factors in artificial life programming systems that use genetic
algorithms, biological suffix trees, and a host of other information retrieval strategies. Of
these factors, the most difficult is the self-replication of autonomous agents. In this area,
NAME’s technology is able to deliver an order of magnitude improvement over other
commercially available products and services. This dramatic increase represents a
significant breakthrough in the design, development and implementation of enhanced
artificial intelligence programs & services. The highlights of NAME’s strategic systems
and technology base are summarized below:
Fundamental - Can be Developed and Used in Many Networking Applications
Because NAME’s technology resolves the problems associated with the development of
accurate information retrieval systems, it can be applied to systems ranging from high-
speed local area networks (LAN) to long distance video & information-on-demand
networks (WAN) over installed distributed-database systems.
Simple - Low-cost Products and Services
NAME has developed a fundamentally different approach to the problem of providing
multi-media based educational programs than other companies that are addressing these
electronic markets. NAME’s confidential techniques are dramatically simpler and
superior, so that products & services can be developed and tested much more quickly and
cost much less.
Economical - Uses the Customers Installed Communication Products and Services
NAME’s programming technologies allows most customers to upgrade to the next
generation networks without having to change their own operational and networking
By integrating a network’s operational programs through the Internet into the operational
network of NAME, a customer’s computer system can be upgraded in a matter of
minutes at fraction of the costs associated with the formal replacement or retraining of
personnel. To deliver interactive video or high speed Internet (or other on-line) access to
a home or business, one dedicated computer system and one at a distributed location or
ONU (local distribution point), will make it possible to use existing networks to deliver
multiple channels of high-quality video & lightning-fast computer downloads.
Adaptable - A Standards Insensitive Implementation
NAME’s systems technology is transparent to the evolving software engineering
standards being developed for new educational networks. Because NAME’s technology
is independent of unstructured complex procedural algorithms, it is easily adaptable to
many standards being developed now and those likely to be developed in the future.
NAME upon initiating its services will become the world’s leading developer of artificial
life software products and services. The company’s primary objective is to provide
information processing applications & development tools for object-oriented
technologies and to also provide innovative solutions to end-users, resellers, and systems
NAME facilitates a complete application development environment for creating &
deploying informational analyses programs, such as human resource planning systems,
manufacturing planning & control systems, and distributed-database networks. NAME’s
inference engines and graphical tools enable our developers to rapidly create and deploy
high-performance information retrieval applications, while using high-level
programmatic systems such as Keynet.
This approach enables both the novice and experienced application developers to create
sophisticated, high-quality computer AL applications, without writing a single line of
code. NAME’s comprehensive set of software programs eliminates the need to reinvest
in additional development tools or third-party software packages to develop complete
processing applications, which, in turn, reduces the inconvenience of having multiple
sources of support and service.
NAME’s family of products and services meets the AL application development needs of
manufacturing, wholesaling, retailing, electronic publishing, financial services, service
bureaus, and home-based businesses. NAME’s products and services will be available
through the Internet and an international network of distributors in North America,
Europe, the Pacific Rim, Latin America, and the Middle East. The company also shall
establish strategic alliances with vendors of computer hardware & software systems and
services, and secure continuing training contracts with its staff, subcontractors, vendors
and targeted customer base. This will produce revenues of approximately $12,095,903
through its Seller Assisted Marketing Plan, and $39,028,319 to $844,118,679 through its
customer base in the next five years following the implementation of its products and
The company projects no operational deficits for the first few years of its operations,
with income reinvested for expansion. We anticipate that the company will maintain its
profitability throughout its operation. In the years following the implementation of our
products and services, our goal is to become the premiere AL facilitator in the greater
global economies. Trends in marketing, however, are toward globally known and
marketed providers, so the company anticipates either joining or starting an international
association by the first year.
Development to Date
With its original concepts founded in 1983, NAME first began its initial research &
development processes in artificial life programming (ALP) in 1985, and completed its
scientific investigation in the early part of 1996. NAME is now using its procedural
technologies to provide engineered information products and services for the fast
growing electronic markets. In addition, the company is developing educational networks
to provide improved strategical job skills to individuals and businesses using their
existing information technologies, thereby substantially reducing the cost of introducing
this new technology and service.
Legal Status and Ownership
Nascent Applied Methods & Endeavors is a sole-proprietorship under the laws of the
State of California, and the United States of America and its territories. All products and
services are wholly owned and operated by the Owner & General Contractor of Network
Operations William E. Fields; subcontracting business units are solely owned by their
subcontractors of network operations.
The original funding of the company will come from the personal income of Mr. Fields
and from the income generated form its Seller Assisted Marketing Plan. The company is
now seeking additional funding from twelve individual investors or investment groups,
in return for a sizable interest income over a five-year period and a seat on the Board of
Representatives of general network operations. These funds will be used to solidify the
Seller Assisted Marketing Plan of the company, and to initiate its networking operations
in the emerging electronic markets.
Nascent Applied Methods & Endeavors is more than well positioned to take advantage of
the significant opportunities presented by the rapidly expanding electronic markets of
computer-related business services.
Electronic Commerce and Markets on the Rise
Electronic commerce can be defined as “the buying and selling of information, products,
and services via computer networks.” We can extend the definition by including the
“support for any kind of business transactions over a digital infrastructure.” This matches
with the broader use some companies do of electronic commerce. For instance, Silicon
Graphics, a global manufacturer of high-end computer equipment, uses its presence on
the World-Wide-Web as a way to provide information to its customers (e.g. access to
product brochures and price lists), as a marketing tool (e.g. allowing a customer to
contact a sales office), as a sales channel (e.g. on-line ordering of software products) and
as a support line (e.g. making available software patches and frequently asked questions
& answers). Another example is the recent introduction by the Bank of America of
financial data exchange transactions over the Internet.
Seen from a buyer-seller perspective, and using a life-cycle model, electronic commerce
can be used in all the phases of a commerce transaction:
Identify Find Arrange
Buyer: need source terms
Exchange: & goods
Seller: Arrange Find Arrange Fulfill Support
to provide customer terms order customer
Features of Electronic Commerce Systems
Electronic commerce systems can be of significant value as a lever for new customer
management strategies, mainly because they;
• directly connect buyers and sellers
• support fully digital information exchange between them
• suppress time and place limits
• support interactivity & therefore can dynamically adapt to customer behavior
• can be updated in real-time, therefore always up-to-date.
The electronic service market or Internet as whole will grow at a phenomenal rate in the
coming years. For instance, in mid-1993, the ANN group, one of the pioneers of
electronic marketing, announced the development of the Industry.Net Online
Marketplace to serve the needs of buyers specifiers of products and services purchased &
specified by industry professionals. By late 1994, the Industry.Net Online Marketplace
had grown to include hundreds of companies who began using it to announce new
products, provide customer support information and, in general, promote their companies
through electronic marketing programs. With the enormous growth of the World Wide
Web. ANN created a Web site for Industry.Net in late 1994 and began promoting it
through the Internet and to its database of over 150,000 industry buyers and specifiers.
Today, the Industry.Net Online Marketplace is the largest industry-focused Web site on
the Internet, including over 10,000 new products (1,000 more are added every month),
company catalogs, seminar schedules and other marketing materials from over 450 of the
industry leading companies. A recent article in the Wall Street Journal stated,
“Industry.Net has emerged as perhaps the most popular network for the manufacturing
Users are now visiting the Industry.Net Online Marketplace by the thousands. Current
visits by qualified buyers and specifiers are now running at over 40,000 per month and
its expected to have traffic exceeding 1 million buyers and specifiers this year. At the
click of their mouse, users can instantly see all the new products of a given type
announced within the past 6 months (computers, valves, controls, machine tools,
software, etc.) and instantly interact with the manufacturer. In addition, they can visit
trade shows on-line and get information from exhibitors who are Industry.Net
participating companies-all from their personal computers anywhere in the world. Along
with the global nature of today’s business, Industry.Net reports that 18% of buyers and
specifiers visiting its online marketplace are from foreign users located in over 26
countries throughout the world. In addition to including information directly in the
Industry.Net Online Marketplace, companies can also create their own Web site in the
Marketplace with a unique Internet address.
Newly Developing Electronic Markets
The World Wide Web was the brainchild of Tim Berners-Lee while working at CERN,
the European high-energy physics laboratory in Geneva. It was originally conceived in
1989 as an idea that information should be accessible through a simple interface on any
kind of computer, anywhere on a network.
Once it became publicly available in 1991, the Internet community jumped on it
immediately. In 1993, the Web got a phenomenal boost with the release of Mosaic-a
graphical user interface called a Browser that now runs in virtually any personal
computer. That gave the Web a look and feel of a Macintosh or any Windows-type
Armed with an interface that anyone could use and a graphical presentation that appealed
to millions, the Web has experienced phenomenal growth-more than any other computer
application through late 1993 and 1994. In just that short period of time, usership has
grown exponentially-world wide-to over 5 million users today-and continues to grow at a
rate of over 40% per month!
The field of electronic commerce is relatively new, and as such little statistical data or
empirical research is available. Therefore, this business plan will formulate this
framework as a set of brief propositions, which are based on examples from pioneers in
the field. These propositions should certainly be validated by future research, which will
also help refine them (e.g. how sensitive they are to a specific industry).
Business Value Framework
This section presents a framework detailing the value of electronic commerce, especially
the World-Wide-Web component (Web) of the Internet, for commercial organizations
dealing with end-customers. A common way to evaluate the value of the Web is to look
at the potential of selling information, products and services on-line. However, as we’ll
demonstrate, restricting the value of electronic commerce to direct sales only ignores a
major part of the business value.
Making money from direct sales is certainly the first way of getting value out of
electronic commerce. Nevertheless, there are many others. The following table describes
the components of that business value:
The Organizational Source of Business Value
Improve it - product promotion
- new sales channel
- direct savings
- time to market
- customer service
- brand image
Transform it - technological and organizational learning
- customer relations
Redefine it - new product capabilities
- new business models
Let’s describe these ten components of business value in turn.
Proposition 1: Through a direct information-rich and interactive contact with customers,
electronic commerce can enhance the promotion of products and services.
The first use of electronic commerce is to provide product and service information to
customers, through on-line electronic brochures or buying guides. This can be seen as an
additional marketing channel, allowing businesses to reach a maximum number of
customers. The advantages of electronic commerce as a way to deliver product and
service information is its availability anytime, anywhere, provided the customer has the
right infrastructure (e.g. PC, modem, online service) to access this information. But using
an electronic medium also allows for interactivity and customization.
In a world with products and services being increasingly harder to differentiate shrinking
life-cycles, an abundance of traditional media messages and customers having too little
time, electronic commerce offers an opportunity for new promotion strategies, enhancing
the branding of products and services.
New Sales Channel
Proposition 2: Thanks to their direct reach to customers and their bi-directional nature in
communicating information, electronic commerce systems represent a new sales channel
for new or existing products and services.
Electronic commerce strategies are of primary value in markets where information is of
significant added value to the products and services being bought, rather than in the
commodity markets. For instance, in the wine industry, information on the winery, the
type and quality of the wine or the food it goes well with are of significant value to
customers, and usually hard to get through the traditional sales channel (e.g.
supermarkets, liquor stores, etc.). Centralizing this information digitally is therefore of
significant value for customers.
In the case of information products and services, the electronic commerce medium
actually becomes the delivery medium. As such, an electronic newspaper does not use
paper anymore & can be fully delivered digitally. In some cases, (for instance ZDNet a
service reporting on the computer industry), there is actually no paper version of the
service. In another case, Software.Net, a company selling software, currently sells more
than 300 packages, which can be delivered digitally and used literally minutes after
buying them. By extending the notion of selling “informated” products and services, we
see new product and service categories emerging. For instance, the section below refers
to the four ways of making money on the Web, the two last ones being new forms of
products and services:
• direct selling (i.e. selling products)
• content selling (i.e. selling information)
• advertising (i.e. giving out information such as news or directories for free, to
drive traffic and sell it to advertisers)
• transaction & links (i.e. charging a fee in exchange for a transaction, such as
selling an airline ticket on-line or charging to link with a service provider, as in a
yellow pages service).
Proposition 3: By using a publicly shared infrastructure such as the Internet, and by
digitally transmitting and reusing information, electronic commerce systems can lower
the cost of delivery information to customers.
By using automated systems and a digital transmission architecture, personnel, phone,
postage, and printing costs can therefore be reduced. This is of especially high
importance in the service industries, where the cost of customer service usually exceeds
the product costs (e.g. for banks, credit cards, information brokers or telecommunications
companies). Checking order status, getting a usage statement or a bill are examples of
activities, which can be delivered much more cheaply using electronic commerce. In
each case, the customer value is also higher, through a quicker reporting, or through the
added information value (e.g. delivering not only a statement, but also historical statistics
or graphics, adding advice to reduce some of these costs, etc.)
Time to Market
Proposition 4: Due to their instantaneous nature, electronic commerce systems allow to
reduce the cycle time in producing and delivering information and services.
In some markets or for some products and services, the ability to distribute or receive a
product or service as soon as its been created is of primary importance. This is obviously
the case of information distribution. A company such as Newspage, for instance,
distributes information on hundreds of topics using electronic mail or the Web, to make
sure it reaches its targets (usually decision makers in corporations) as soon as it is
Proposition 5: Through intelligence built into systems and the extended availability of
intelligent support systems, electronic commerce systems can enhance customer service.
The ability to provide on-line answers to problems, through resolution guides, archives
of commonly encountered problems, electronic mail interaction (and in the future audio
& video support), and all that 24 hours a day, 365 days a year, builds customer
confidence and retention. Monitoring how customers use this support information also
provides insights on improvement areas in current products & services, and the list of
issues encountered with products and services can be a significant source of product and
services feedback for the design of new products and services. As consumers start using
these systems in growing numbers, industries other than software manufacturing will
take note of these opportunities and deliver online customer service. Today, the Wells
Fargo & the Security First Network Bank are two examples of banks offering on-line
statements and answering electronic mail queries on bank accounts.
Two likely developments in this area are:
• products which diagnose themselves and use an on-line connection to call a
support specialist which can arrive on-site with the full knowledge of the problem
• knowledge-based systems, which assist customers in finding solutions for their
Brand or Corporate Image
Proposition 6: Electronic commerce systems will become one of components of a brand
or corporate image, especially while targeting technology-friendly customer segments.
This might be one of the most intangible aspects to measure, but building a brand or
corporate image is of prime interest in some industries, those with commodity products
or high competition. For instance, in the soft-drinks industry Coca-Cola and Pepsi spend
huge amounts of money to try to differentiate basically similar products.
Both of these brands use their Web presence as a way to affirm their corporate identity
and their brand image, in addition to providing product information.
Technology Learning and Organizational Laboratories
Proposition 7: Rapid progress in the area of electronic commerce will force companies
to adapt quickly and offer them an opportunity to experiment with new products, services
If what was mentioned in this section is true, it will have a large and durable impact on
the strategies of most organizations. Therefore, it is critical that these organizations
quickly become familiar with the technology. The learning curve of mastering such
technologies, and understanding their power to reshape customer relationships, is steep
and can’t be achieved overnight. It is very often an iterative process, requiring
organizations to trial new offerings, and tweak them according to customer feedback.
In a similar fashion, new technologies require new organizational approaches. For
instance, the structure of the group dealing with electronic commerce might have to be
different from the one typically used in the organization, in order to be more flexible and
responsive to the market, or new processes might have to be put in place, for instance to
deal with the authorization of publishing corporate information on the Internet. This type
of corporate change needs to be planned & managed, and before getting it right,
organizations might have to struggle with different experiments.
Proposition 8: Electronic commerce systems will allow to be built, more personalized
relationships between suppliers and their customers, thanks to their ability to collect
information on customer’s needs and behavioral patterns.
According to Rayport & Sviokla “in today’s world of overcapacity, in which demand,
not supply, is scarce” there needs to be a shift from supply-side to demand-side thinking,
and organizations need to “sense and respond” to the customer’s desires rather than
simply make and sell products and services. The focus is therefore on establishing
relationships with customers, based on learning their needs and desires, proposing the
right products and services, and keeping this relation active throughout the years.
The role of technology in learning about customers is its ability to record every event in
the relationship, such as customers asking for information about a product, buying one,
requesting customer service, etc. Throughout all these interactions, either over the phone,
in person or on-line, the needs of the customer are identified and will feed future
marketing efforts. For example, if we use the example of the on-line travel agency, its
ability to store and remember customer habits (e.g. always flies out of this specific
airport, likes window seats and requests vegetarian meals) and particular data (e.g.
frequent flyer numbers, preference for a particular rental car company, etc.) will establish
a relation where the customer feels particularly comfortable in dealing with this
particular travel agency.
What electronic commerce brings as a lever to such a situation is the automation of the
customer profile, his needs, buying patterns, etc. All that data can then be analyzed
through computer applications and the right answer chosen. Therefore, personalized
service strategies, which were before only achievable with a small number of customers,
suddenly becomes possible on a wide scale.
New Product Capabilities
Proposition 9: The information-based nature of the electronic commerce processes
allows for new products and services to be created or existing ones to be customized in
A large source of the business value electronic commerce can provide comes from
changing the products and services themselves, in addition to the way they are
advertised, ordered and delivered. This is mainly due to the potential of collecting
information, which will be used to customize products and services.
Mass customization has been used for time now; it endeavors to create specific products
and services for each customer based on his or her’s exact needs. The key to mass
customization is the ability to store customer preferences, then use a flexible
manufacturing technique to adapt a product or service to their particular needs and
operate a network of suppliers which will join together to manufacture and deliver a
product or service. Finally, another opportunity in mass customization is to have the
customers design part of the product or service themselves.
New Business Models
Proposition 10: Changing industry structures and electronic commerce systems allow
for new business models, based on the wide availability of information and its direct
distribution to end-customers.
Going further than new ways of selling existing products or services and the opportunity
for new products or services, there are also new business models emerging. Key among
these new business models are new forms of intermediaries, or information brokers.
Although it is true that electronic commerce will disintermediate some industries, by
directly connecting buyers and sellers, new opportunities are envisioned for actors
(NAME) repackaging information. The early examples are currently the directory
providers or search engines, such as Yahoo & Lycos. Also, in the car industry, Dealernet
offers comparisons between any type of car, with pictures, product specifications and
Nascent Applied Methods & Endeavors is obviously about to engage in a relatively new
industry and market, an outgrowth of the phenomenal expansion of the Internet. The
industry and market is still in a state of flux, with relatively no market leaders, nationally
known providers, or widely recognized programs. Individual educational programs do
offer similar employment related educational products and services, but unique to NAME
is its ability to customize it services and it is this issue of customization that will make
NAME an industry leader.
Open Competitive Environment
Currently, the level of service NAME is offering in the market is broadly uneven, and
similar providers enter and leave the field rapidly. Generally, other firms are not present
or marketed on the Internet in any continuing, professional manner. They are not
perceived in the marketplace as “businesses” but simply Web sites, and quality and
pricing are widely uneven.
NAME in the Electronic Commerce
and its Competitive Advantage
After looking at the sources of value of electronic commerce for NAME, this section
shall explore the effects of electronic commerce and its potential to achieve a competitive
advantage. NAME will use its seminal work on industrial analysis as a framework, and
map our business value components to these factors:
1. three generic competitive strategies for the company;
2. new entrants and substitute products;
3. value system analysis, with the pressures from suppliers and
A discussion in more detail will then focus on a few interesting issues such as
intermediation, pure price competition and strategic disadvantage (e.g. barriers to entry).
Barriers of entry:
* economies of scale
* capital requirements
* access to distribution channels
* product differentiation
* switching costs
* cost disadvantage (e.g. experience
3 generic strategies
Suppliers * cost leadership Buyers
NAME will formulate here nine propositions of the effect of electronic commerce on the
competitive dynamics in its industry. We group these propositions according to three
The first axis focuses on the generic strategies of NAME to get a competitive edge, the
second looks at the potential for new entrants in the industry and for substitute products
and services, while the third axis emphasizes the pressures of customers and suppliers on
the value system, and looks at the potential of electronic commerce for disintermediation
within the industry as well as the notion of NAME’s strategic disadvantages (barriers).
NAME’s Generic Competitive Strategies
NAME’s three generic strategies are cost advantage product or service differentiation and
focus. Focus means concentrating on one segment of customers and providing them with
an extremely well-targeted set of products, excellent service, etc. Our company’s three
propositions show’s that NAME’s electronic commerce systems can support such
strategies. We refer here to our 10 business value propositions by naming them pn (e.g.
p1 is product promotion).
Using electronic commerce systems on the Internet (NAME’s similar systems)…
proposition A1: … offers a cost advantage through less expensive product promotion
(p1), cheaper distribution channels (p2) and direct savings (p3).
proposition A2: … helps our company to differentiate itself not only through price but
also through product and service innovation (p9), time to market (p4) and actual
customer service (p5).
proposition A3: … allows for customer focus strategies through better customer
New Entrants and Substitute Products & Services
Using electronic commerce systems on the Internet (or NAME’s similar systems)…
proposition B1: … allows easier entry for NAME in most electronic markets,
traditionally harder to access, thanks to easier product and service promotion (p1), new
sales channels (p2) and reduced capital requirements (p3).
proposition B2: … allows our company to raise the entry barriers in NAME’s electronic
markets through extensive customer learning (p8) (which makes switching information
or service vendors more expensive), product and service differentiation (p4, p5, p9) and
proposition B3: … helps introducing NAME’s products and services into the electronic
markets thanks to product and service innovation (p6).
NAME’s Intermediation and Strategic Disadvantage
Using electronic commerce systems on the Internet (or NAME’s similar systems)…
proposition C1: … makes it easier to suppress a competitive intermediary in a
distributed-database network, thanks to direct customer contact (p2) and the use of a
publicly shared infrastructure.
proposition C2: … makes it easier to become a new intermediary in this company’s
industry, by providing an added value service through information management, such as
the integration or
re-packaging of more basic services.
Proposition C3: … makes it possible for NAME to catch up with competitors thanks to
the maturity of some technologies and learning experiences (p7), and are critical in not
losing ground as market dynamics shift.
NAME’s Impact on Intermediation
The change in the distribution structure of this industry is an interesting one, in particular
the impact on intermediaries. These were traditionally providing an infrastructure such as
a sales network (physical places such as shops, specialized personnel, etc.) and were
managing the complexity of handling customer request. Electronic commerce can replace
some of the functions traditionally performed by these intermediaries.
NAME believes that its advance forms of information intermediaries (agents) will soon
emerge as a procedural technologies leader thanks to the integration capacity of
electronic commerce applications.
Barriers to Entry
The high costs of purchasing current computer equipment and continually updating
expensive training materials and infrastructures makes it difficult for most
undercapitalized companies to enter or stay within the complex field of procedural
systems design. Moreover, the key to the success of this company lies in its ability to
provide a customer adaptation platform of its technologies.
The following figure shows some of the factors linked to the adoption of NAME’s
technologies by consumers (the factors adversely affecting adoption are in italics).
*nee d for an infras tr uctur e to s uppo rt the technology
*perceived is sues w ith the technology
*learning cur ve
Su pplie rs Te chnology * renewal ra te o f
* willin gness to in vest su bstituted prod ucts , if a ny
* perceived benefits
* direct costs * relu ctance to change
*fragmentatio n of s upplier ’s
* indirect costs (e.g . training ) * past exp er ience with
market s hare
similar pr oducts
Alt ernative solut ions
* c ompeting tech nologies
Factors Affecting New Technology Adoption
The reluctance of people to change is certainly a key issue here, as is the availability of
technological platforms in every home. The emergence of the low-cost “Internet
Computer” and of interactive television will undoubtedly change the marketplace. As
with most new technologies, adoption is linked to the supply of the right products and
services, rather than demand. This is because customers not familiar with the new
technologies cannot define their needs, and will understand the technology possibilities
only through innovative products and services.
Thus, the long-term outlook for the industry is to develop regionally, nationally and
globally known companies, as is currently the case with other business services, such as
accounting or employment services. These companies will be able to develop revenues
and market share sufficient to sustain the high overhead. National and international
franchises or affiliations will make it possible to share infrastructural materials and other
As noted in previous sections of this business plan, many companies and government
agencies use electronic commerce applications to facilitate internal operations and interact
seamlessly with their trading partners. While a wide variety of informational transactions
occur electronically already, the performance of electronic commerce applications usually
requires highly structured, previously established arrangements, and for the most part,
dedicated lines and/or Value-Added-Networks (VANs). The resulting costs and necessary
lead-times frequently create barriers to investment in and widespread use of electronic
commerce applications by some small and medium-sized companies, and inhibit the
expansion of electronic commerce beyond large companies and their major trading
Despite these barriers, the electronic market place is forming at a rapid pace. By the end
of 2005, more than 1,500,000 effective companies will be offering information and
services for sale over a combination of Internet and VAN (NAME) service providers.
Their ranks are expected to swell to 3,000,000 by 2006 and 10 million by 2010. In
addition, the Internet connects some 70 million users in over 130 countries, and at
current growth rates it will link to an additional 140 million users by 2007. While the
Internet is useful for electronic mail, bulletin boards, and file transfer, it has a number of
limitations that must be overcome before it can be deemed suitable for commerce. Some
commonly expressed concerns include reliability, security, scalability, and ease-of-use.
These problems could be more easily addressed if the Internet was ran as a business
enterprise; the enterprise would be accountable to customers from whom it would receive
payments for specified goods and services rendered.
NAME Can Develop a Strong Position in the Region and the World Wide Web
The current lack of industry leaders represents an exceptional opportunity for NAME to
develop a dominant presence in the Artificial Life Programming (ALP) arena in the
greater Los Angeles area, and the World Wide Web. The company will then be well
situated to take advantage of national and international affiliations, either with
subcontractors, national & international associations, or network providers.
Nascent Applied Methods & Endeavors operates in the greater Los Angeles, California,
area, targeting world-wide those large, medium and small-sized businesses, as well as
individuals or groups with a need to improve their day-to-day operations. The geographic
area includes the incorporated cities of;
• North America
• Central America
• South America
Immediate Market Size and Trends
Los Angeles, with its surrounding communities, is a large and economically healthy area.
The city of Los Angeles has a population of approximately 15,000,000, according to
1992 census figures, making it the 2nd largest city in the United States. The Los Angeles
Metropolitan Statistical Area (MSA) has an overall population approaching 18,000,000.
The business climate has been consistently strong and less affected by downturns in the
national economy due to its diverse economic base. The Los Angeles (MSA) includes a
number of county seats and is the home to numerous government offices. Also located in
the greater Los Angeles area are:
• An international airport.
• The regional processing centers for numerous nation-wide insurance companies
• The world’s largest shipping port.
• A few state universities and numerous colleges and trade schools.
• Numerous medical facilities.
The economic base has been expanding, and recently the city has announced that it is
going to expand its economic base by developing what it calls the San Pedro Corridor
over the next few years.
The breakdown of employment by industry is approximately:
• _33_ % retail and wholesale sales
• _17_ % government
• _23_ % manufacturing
• _27_% education, health, and services
The businesses Nascent Applied Methods & Endeavors targets for its services have these
• Over 2 or more employees
• Low, medium and high computer use (data processing and retrieval, financials)
• Relatively low, medium and high employee turnover; expanding number of
• Insurance Firms
• Accounting Firms
• Colleges and Universities
• Law Firms
• Engineering Firms
• Hospitals and Other Medical Facilities
The Los Angeles Chamber of Commerce estimates that of the more than 6966 companies
and institutions with more than 50 employees in the area, at least 213,000 are in the
industries listed above.
Management personnel in these industries generally view themselves as responsible and
professional. They prefer to deal with service companies that present a stable,
conservative image. They are generally more sensitive to quality than price and can be
considerably influenced by the fact that similar companies will already use the services
Nascent Applied Methods & Endeavor’s General Contractor of Network Operations
(GCNO) conducted a market survey with a selection of targeted individuals and
companies. This survey indicated the particular patterns of these individuals and
companies in relation to their operational needs:
• _67_% indicated a need for employees trained in computer use.
• _ 9_% indicated some need for an Enterprise Work Architecture (EWA).
• _31_% indicated a need for specialized information retrieval systems.
• _43_% indicated a need for continuing training programs.
The survey also revealed that such individuals and companies currently spend funds on
improving their day-to-day operations and skills:
• _38_% specifically have “informational and operational training” budgeted for the
• _22_% of these individuals and companies have a “training” amount allotted in
their current year’s budget.
• _73_% have purchased operational consulting and training services in last year.
• _87_% indicated they would purchase more consulting and training than at present
if better-quality, more reliable consulting and training were available.
Fully _62_% of those using current information retrieval and operational formats said
they were either highly unsatisfied or somewhat dissatisfied with their currently
organizational and informational arrangements. The level of dissatisfaction is
substantially higher than the satisfaction level with other business services (_33_%
average dissatisfaction level with services such as accounting and legal).
Enterprise Work Architectural design and training services in these companies will be
overwhelmingly purchased, recommended, or approved by either the individual
employer and employees or the Human Resource/Personnel Director (_31_%), providing
a clear target for marketing efforts.
National surveys show an increasing percentage of individuals and businesses relying on
computers to maintain, analyze, and retrieve information. A high percentage of
businesses in the Los Angeles area are in fields with significant dependence on
Clearly, there is a real need for NAME’s services in the Los Angeles area, an ever
expanding and healthy market, and an identifiable way to reach the market. This provides
a substantial opportunity for NAME to fill a void in the provision of ALP, EWA, EDI
and ECA technology design and services
Competing with Nascent Applied Methods & Endeavors to provide Employment Related
Research and Development services to the targeted market (individuals and businesses
with substantial use and need of procedural & organizational technologies) are these
categories of systems providers:
• Individualized organizational development companies.
• Local systems analysis groups.
• National information providers.
• Software developers
• Computer network designers.
• Programmers from within the targeted companies themselves.
• Business consultants in organizational management systems.
NAME does not intend to compete with the personal and business development services
provided by local, state, and federal government agencies. Specialized educational and
development programs held by university and community college classes are generally
not competitive in the electronic marketplace; classes are held during the day and are at
least adequate, and are not comprised with the knowledge necessary to bring a customer
to the fore-front of organizational and informational technology.
An unknown number of individual consultants provide a service similar of that of
NAME’s, but are not listed in any formal or traditional manner. Overall, only three
individuals have developed a substantial presence in the targeted electronic and
traditional markets; Thomas Ray, Richard Belew and C. J. “Keith van Rijsbergen. These
individuals have performed extensive research in the areas of Artificial Life
Programming (ALP) and Enterprise Work Architectures (EWA) in the past few years. To
date, only NAME has planned and developed a working commercial plan, product and
Only a selected few (individuals and/or companies) have conducted the research and
development necessary to acquire the end-products and services that are housed within
the operational programs of NAME, therefore the list of competitors can only be
speculated at best. Those individuals or organizations that have similar products and
services can be found on the Internet, but are either located outside the state of California
or the boundaries of the United States. Lesser known individuals and companies also
provide similar products and services, but with out-dated technologies and business
In-house educational and procedural development services taught and implemented by
employees of the targeted individual employers and companies varies widely in content,
form, and quality. Very few companies have “professional systems developers;” most
training and development is provided on an ‘ad hoc’ basis from internal personnel. A
conservative interpretation of NAME survey results indicates at least _38_% of such
training and development would be contracted out if satisfactory products and services
could be obtained.
Market Share Distribution
In response to a NAME survey, targeted individuals and organizations currently
conducting Artificial Life Programming and Enterprise Work Architectures utilize
providers as indicated by the pie chart below:
Current total market share distribution for Employment Related Educational
Research and Development in Los Angeles, California, the United States
of America, and the world.
Share at 6-¾% Los Angeles
at 5 ¾%
Share at 12-½
Share at 75%
Advantages Over Competition
Generally, the advantage NAME has in relation to its competitors are:
• Centralized, as opposed to decentralized operational, methods.
• Ongoing support and repetitive upgrades, as opposed to those with no support
services or any service of this type at all.
• Add-on “high productivity” systems and education for customers to realize the
maximum potential from employees, computer, networks and the electronic
markets; rarely offered by competitors, if at all.
• Coordinated, consistent marketing and sales programs.
• A professional, business-oriented image.
• Systems-oriented, rather than traditional or hierarchical management.
• Status as a “Leader in ALP, EWA, ECA and EDI Applications” through network
technology, giving credibility and reliability.
• High-quality, professional staff and subcontractors.
• Availability of centralized sources of information and training via the Internet.
• Consistent, high quality information standards.
This is how Nascent Applied Methods & Endeavors ranks the strength of its competitors:
1. Individual AL Programmers (e.g. Thomas Ray, Richard Belew, C. J. “Keith van
2. Individualized organizational development companies.
3. National information providers.
4. Computer network designers.
5. Local systems analysis groups.
6. Other software designers.
7. Business consultants in organizational management systems.
8. Programmers from within the targeted companies themselves.
Thomas Ray, Richard Belew and C. J. “Keith van Rijsbergen are positioned to be the
strongest competitors, due to their current knowledge and client base, their personality,
and their potential to associate with international network operations. However, their
current knowledge and research materials are of inconsistent quality, when viewed from
a socio-systematic point-of-view. Moreover, Thomas Ray, Richard Belew and C. J.
“Keith van Rijsbergen appear to lack sufficient technic and capital for effectively
marketing their knowledge and skills through internet technology bases. No other
individual or company has either the financial or personnel resources plan necessary to
adequately respond to a well-organized, sufficiently funded competitor.
NAME will begin negotiating with a number of strategic partners in-order to obtain a
sizable market share of potential customers, since it is apparent that no other independent
network contractor has a substantial client base or adequate resources to respond to new
competition (e.g. Seller Assisted Marketing Plan).
Other local & national information and network strategists market their software
programs and services either through traditional advertising methods or the Internet, and
have little or no ongoing contact with their customers. Their customer base is neither
loyal nor particularly satisfied with their programs or service.
Barriers to Entry
It is relatively difficult for new competitors to enter the Electronic Commerce and ALP
field. Substantial start-up costs and research are involved with developing &
implementing an Electronic Commerce Application and Artificial Life Programming
strategy. Moreover, most individuals and businesses are increasingly selective about
which individuals and companies they will allow to access their secured information.
However, the long-term outlook for the industry points to global-based ECA & ALP
companies. This represents the most substantial threat. Recognizing this infrastructural
evolution, NAME plans to affiliate with the highest-quality subcontractors (e.g., ISPs
and Educational or Network Solution Providers) through its comprehensive Seller
Assisted Marketing Plan (SAMP) as soon as practical.
Current developments indicate that ECA & ALP strategies amount to an enabling or
facilitating technology that challenges established forms of labor division (esp. among
different sectors - e. g. trade, logistics and finance) and induces organizational
innovation. The demand for new services and infrastructures initiates the development of
industries. As the demand for the co-ordination of inter-organizational issues or
electronic data transactions increases, new institutions emerge such as standardization
bodies and user groups or established institutions extend their activities, e. g. Chambers
of Commerce taking over the role as trustworthy third parties in the area of key
management and authorization.
• Newly introduced ECA & ALP strategy based services such as product or service
enhancement programs change distribution in service oriented industries, e. g.
insurance, transport, and grocery wholesale. ECA and ALP strategies are an
integral part of the development and proliferation of information logistic services
(including for example, reservation, trade and financial information services),
which are provided by players from diverse backgrounds-members of existing
industries, telecommunication companies, VANS (NAME) - within new
infrastructures. As the example of airlines reservation system illustrates, these
services amount to an increasingly important source of competitive advantage.
• The role of intermediaries- wholesalers, information brokers, sales agents,
insurance agents and so forth - is changing. Whereas some are losing their
previous functionality, thereby facing the possibility of being forced out of
business, others are able to secure and extend their footing by focusing on
customer relations and detail customer information.
• Electronic trade networks, reflecting the migration from the traditional trading
cycle to the electronic sphere are becoming increasingly influential, yet in the
same instance, increasingly difficult to govern. There are - for example - plans to
encompass trade-related financial information, thus endangering the position of
the banking industry if improperly designed and implemented.
Furthermore, the market for ECA and ALP services is highly dissatisfied at present as
shown by a survey of target industries. The industry level of satisfaction with current
service arrangements is shown below:
Highly satisfied 8%
Somewhat satisfied 18%
Somewhat unsatisfied 43%
Highly unsatisfied 31%
This unusually high dissatisfaction level with current service providers represents a
unique opportunity for NAME in a rapidly expanding electronic market.
Nascent Applied Methods & Endeavors distinguishes itself from its competitors by better
understanding the needs of its customers. Other electronic commerce companies in the
Los Angeles area market their products and services through electronic means as if their
customers were just bits of data over the Internet. NAME, on the other hand, knows that
the customers are actually human beings with human values, with individual and social
Nascent Applied Methods & Endeavors Meets Customer’s Needs
Employers have slightly different motivations than the employees themselves. Although
the employer, as well as the employee, wants high quality, easy-to-understand electronic
commerce applications and artificial life programs, their mutual involvement within their
related business activities may also require:
• Increased overall productivity.
• One network to deal with for all of their electronic commerce needs.
• Ongoing educational support for all operational personnel.
• The convenience of not having to disrupt the customer’s workplace while
implementing an ECA, EWA and ALP strategy.
These customers want to deal with an ALP, EWA and ECA company with which they
can have an ongoing relationship.
NAME incorporates reassurance and a relationship in all of its marketing efforts. The
slogan “Let MAN Be the NAME of Your GAME” is designed to imply not only that the
services will be comprehensible, but also that NAME is able to maintain ongoing
communications with its customers. Also, as a play on the word “NAME,” the title is
designed to be memorable, with the implication that the company is instantly
recognizable in its dealings with EDI, ECA, EWA and ALP.
Nascent Applied Methods & Endeavors Emphasizes Education and Electronic
NAME emphasizes high-productivity training and electronic market applications. This is
accomplished by not only selling the company’s products and services at the
introductory, basic user-level, but additional, advanced products and services to
substantially increase the benefits to the client. This additional training expands the
number of services NAME can sell to each customer, and increases the revenues
produced from each sale.
Since the average service contract is projected at between $43,000 and $1,019,516 per
client and educational session, and the goal is to target individuals and companies for
regularly repeated sessions, most of the marketing will be done by both the Internet, and
by face-to-face solicitation. An outside sales force to consists of the network
representative subcontractors - of whom shall have global experience in selling to the
targeted market - will call on entrepreneurs, sole proprietors, and individual business
personnel to introduce the company and make sales presentations. Appointments are
generally made by the network representative marketing chiefs, except in those cases
where the General Contractor of Network Operations has existing relationships with
Organization of Sales Team
All company personnel and network operatives are considered members of the sales
team. The company or network registrars, who takes electronic registrations, is educated
in corporate manners and order solicitation, and shall be given incentive gifts for
registering targeted numbers of clients for services rendered. Even the systems
programmers themselves will participate in monthly sales meetings. All employees and
network operatives receive financial education bonuses if the network as a whole reaches
its overall sales goals.
Quality printed and downloadable sales material has been prepared (see the Appendices)
to support personal sales calls and for mailing in responses to electronic request. (The
Network Registrars are trained to attempt to set up personal sales presentations for larger
business clients phoning in). In the first few months of operations, funds are budgeted to
produce a computerized video presentation (multi-media) to augment the printed materials
and enhance the sense of professionalism and computer expertise.
Multiple Web Site Program Key
Multiple websites are the key in the company’s marketing. A description of NAME’s
services & programs are maintained through the network’s subcontracted websites and
are targeted at potential customers. Once a month, the web sites are updated to reflect
any changes in NAME’s programs, prices or service.
The company’s advertising is aimed at supporting its other marketing and sales efforts
rather than just securing actual sales. Two main vehicles are used: the traditional methods
of advertising through the company’s representative networks, (e.g. newspapers, t. v.,
radio, etc.), and through the multiple web sites of this company’s subcontractors.
Cooperative Marketing Plans
A number of cooperative marketing activities are planned with the company’s network of
subcontractors. These include advertisements through the company’s seller assisted
marketing plan, and sponsoring events to introduce business customers to network
The goal of such efforts is to give NAME added exposure to potential customers and
increased stature through being associated with a host of information providers.
The company will soon be negotiating with a number of network providers (e.g.
subcontracted providers of information, equipment and services), so that the company
may benefit from their established client base.
Nascent Applied Methods & Endeavors will also become a member of the Los Angeles
and Orange County Chamber of Commerce and will participate in the Chamber’s
sponsored trade shows, which features providers of business services and products.
At the core of Nascent Applied Methods & Endeavors strategic concepts is the
implementation of Employment Related Educational Research & Development.
NAME is made up of a network of electronic marketing subcontractors working together
to provide consultation and educational services. The NAME network includes technical
and educational representatives from a number of diverse backgrounds according to their
The NAME network draws on the expertise of its members to provide customers with the
latest information in ECA, EWA & ALP strategies. We can assist the client in research
and development, engineering, manufacturing, and logistics. NAME specializes in
automated business practices, including business process re-engineering, information
management, electronic data interchange, and electronic commerce. There will also be
other globally located Electronic Commerce Resource Systems, each having a different
specialty to best meet the customer needs;
1. Automated Business Practices
3. Outreach and Consultation
4. Strategic Evaluation
6. Situation and Procedural Mapping
Automated Business Practices
Automated Business Practices (ABP) are techniques that streamline business functions
through the use of computers, machines and skilled human resources. NAME serves as a
facilitator of automated business practices, providing explanations, training, and
demonstrations of information management, and electronic commerce (EC). NAME also
serves as a point of contact for explaining different methods of information management
(IMS), electronic data interchange (EDI), and electronic commerce (EC).
Nascent Applied Methods & Endeavors is actively addressing the technical issues
affecting the customer. These include:
• Automated Business Practices: using appropriate automation as a tool in decision
making and information handling. The goal is to use new technologies to their
fullest extent to achieve a business advantage. Such technologies include: Bulletin
Board Systems, Value Added Networks (VAN), Local Area Networks (LAN),
Wide Area Networks (WAN), the Internet, Fax and Electronic Mail (E-Mail).
• Electronic Commerce and EDI: bringing to the globe new markets and trading
partners through EDI by helping the customer apply electronic commerce
• Scanning and Conversion: transforming hard copy data into an electronic form so
it can be used more efficiently and cost effective.
NAME maintains a common database of past experiences, and lessons learned in relation
to automated business practices. This database provides a valuable resource in identifying
solutions to client issues. The subcontractors of NAME are globally located and all have
various specialties. These specialties include: networking technologies, scanning and
conversion, information technologies, automated manufacturing, automated design and
Adopting EC & EDI can require a business to change its corporate culture, giving up old
ways of doing business and old expectations. This century has produced many such
changes already, as phone calls replace office calls and faxes replaces couriers and mail.
Each such change occurred where it made business sense - and that is the recognition
required of business. EC & EDI can make good business sense and businesses must be
open to that responsibility.
Substantial returns can reward businesses which interests are well considered toward
change. EC & EDI offer competitive advantages, improved cash flow, expanded markets,
and greater profitability for companies that implement them wisely.
Outreach and Consultation
In addition to promoting, and facilitating automated business practice initiatives within
industry, government, and academia, NAME can:
• Provide demonstrations of electronic commerce, enterprise work architectures,
and related technologies.
• Perform studies and analyses to identify how electronic commerce and
information management can improve both performance and profits.
• Conduct a business case analysis of a customer organization to determine the
functional and economic impact of implementing EC technologies.
• Assemble a team of business and technical specialists to address a customer’s
situation in depth.
• Assist the customer in developing prototype solutions using ABP and business
NAME offers help in the technical areas concerning automated business practices. Such
• The use of on-line and network data sources to support our clients.
• Database tools for the collection and analysis of lessons from previous
consultations with people and businesses across various industries.
• Helping customers focus on important hardware and software features to assists
in making “smart” purchasing decisions.
• Hands-on experience with ABP through evaluating and incorporating them into
NAME’s business operations.
• The latest developments in ABP.
• EDI, EWA and ALP software, hardware, and implementation.
• Database design and implementation.
• Electronic document management.
• Scanning and conversion.
• Local area networks (LAN) and wide area networks (WAN).
NAME provides seminars on information management, business process re-engineering,
and electronic commerce. These seminars are available at both an NAME production site
and at the customer’s facility. The available classes include:
• Electronic Commerce/EDI Orientation
• VAN Orientation
• Business Needs Analysis
• Process Management in a Technology Environment
• Data In a Business Environment
Costs and Time Effective Programs
Nascent Applied Methods & Endeavors has developed a comprehensive plan containing
specific time-phased recommendations, options, and actions including estimates of
required resources. The plan’s purpose is to achieve the most rapid implementation of an
electronic commerce application within a customer’s operational domain. The plan will
address significant issues prioritized by the estimated cost to resolve them and specific
initiatives to publicize and educate the customer on ECA contracting activities; and
provides a two-year execution as directed by the General Contractor of Network
Operations (GCNO). NAME’s plan offers benefits to both Government and Industry.
The government and industrial procurement community, including their trading partners,
face declining budgets, reductions in manpower and shrinking business bases. Survival in
this challenging environment requires re-thinking traditional procurement methods, with
emphasis on reduced inventories, and increased operational efficiency and effectiveness.
EDI’s inherent benefits are well documented. Therefore, rather than duplicate the results
of previous studies, NAME performed an integrated assessment of the specific benefits
that a customer will realize from implementing an ECA/EDI. These benefits for both
individuals and industry are identified and categorized under mutual and governmental
benefits, and mutual reengineering opportunities. The categories of programs and the
applicable benefits are as follows:
• Mutual Benefits
1. Significantly increases visibility of requirements and requiring activities.
Such visibility will expand the trading partner’s market from two perspectives; both in
accessibility to a larger volume of items and access to more customer purchasing offices.
Increased visibility of requirements should increase the trading partner’s opportunities to
market their goods and services to the network. The visibility of the network’s small
purchase requirements will expand exponentially for the trading partner’s as the number
of company buying offices transitioning to EDI/EWA & ALP increases. This allows the
network trading partners greater opportunities to quote and compete. Also, a vendor will
now have the opportunity to see the results of the proceeding procurement of an item or
service because the network will be electronically posting the award results of all its EDI
solicitations. This information will allow the company (network) trading partners to
compare and analyze their knowledge of their competitors and their prices. This greater
market visibility and new analysis will improve the network’s trading partners abilities to
adjust to an improving or declining network business base.
2. Single point registration.
The deployment of EDI/EWA and ALP will establish a single point registration that will
allow the company trading partners to register one time for all network-buying offices.
3. Electronic payment processing.
EDI’s automation of data required to support the payment process will allow for better
information flow across the network procurement and logistics functions to the company.
The automation of this data will greatly increase the sorting and compiling capabilities
within the company. In addition to the payment cycle timesavings within the company,
the trading partners will benefit from reduced mailing time of the pay related documents.
EDI’s simple departure from the paper based payment process will increase the ease and
speed with which payment data can be handled.
• Network Benefits
1. Greater buyer productivity.
Historically, the network would have been inundated with clerical functions associated
with the processing of Subcontractural Request for Quotes (SRFQ). This redundant
repetitive operation would have been compounded over time due to the increases in the
procedural requirements of the documentation associated with SRFQs and Purchase
Orders (POs). Further impact to the contracting community would have been exacerbated
by the reduction or increase in personnel within the network and governmental
customers, particularly the clerical sector of the workplace, which historically performed
these duties for the buyers and contracting officers.
Savings in processing times will be realized in a more efficient execution of SRFQs,
responses back from the General Contractor and subsequent POs. This electronic
transmission of these documents will eliminate many of the repetitive and redundant
clerical entries such as a significant reduction in reproduction, mailing, handling,
telephone contracts, and repetitive data entry to legacy systems. With this capability, the
network will be able to process more SRFQs, in an efficient manner and with higher
quality, thereby allowing time for the more complex decision process required by the
network. The contract writing system’s ability to collect SRFQs and automatically
abstract the required quotes for the network will additionally enhance the network
productivity, as well as provide proper analysis based upon a subcontractor’s
performance, and quality items and services procured for the company (network).
2. More complete picture of requirements to Industry.
The visibility of the company small purchase requirements will expand exponentially for
the trading partners as the number of network customers transition to EDI/EWA/ECA
and ALP. This allows the network trading partners greater opportunities to quote and
3. Lower item prices.
Through the expansion of the awareness of NAME’s requirements to subcontractors
(trading partners), the present initiatives have indicated a reduction in item and service
prices to the network as a whole. This is probable when the competitive items and
services are basically advertised to all potential offerors through ECA/EWA/EDI and
ALP versus the process that primarily is within the local area of the base installation. In
addition, there will be new business opportunities for all, local area subcontractors will
have access to all network requirements, and subcontractors not collocated with an
installation will have the same information. It is projected that there will be an initial
reduction in competitive item and service prices in stock or procedural classes, and it is
probable that this reduction will level off after a period of implementation. The last
purchase price of the item or service will be available for the subcontractor’s review
prior to the submission of a SRFQ. This will circumvent the quoting on items and
services in which the subcontractor is not competitive. Additional opportunities will be
afforded to the subcontractors to expand their product and service lines on required items
or services that historically have limited quotes received, or no quotes received at all.
4. Reduced lead times.
A reduction in lead-time has been experienced through the utilized of EC/EDI in
contracting through the network’s existing initiatives. This primarily attributed to the fact
that the requirement to process the SRFQ through an administrative area, than through
the postal system to the subcontractor has been eliminated. The availability of NAME’s
execution of the transmission of the SRFQ from the workstation from one to one, one to
many, or one to all, is at the touch of the keyboard. In addition, the subcontractor
receives the SRFQ immediately, if they were on the original source list, or a
subcontractor may request the solicitation, via the computer, without expending
additional resources. The execution of NAME’s implementation plan will provide this
improved process to more sites and will further reduce the administrative lead times
associated with the processing of SRFQs. In addition, it is speculated that upon the
completion of the four year implementation plan, the period of time the solicitation is
required to be open for quotes could be substantially reduced.
5. Reduced inventories.
Our present systems will generate requirements from the using organizations, and due to
the elongated processing times, often require the using organization to request
procurements that will provide a substantial inventory of the service or item. The
warehousing of these items or services until they are requisitioned out of stock or used is
very expensive. As we move into a full implementation of EC/EDI in contracting, with
the reduced administrative lead-times, we can anticipate a lesser need for large
inventories. As Contracting Officers established contractual instruments for repetitive
required items and services, and provide the inter-connectivity to their customers, an
additional reduction in lead-time will be experienced, as well as reduced inventories.
Depending upon the availability of the item or service, a “Just-In-Time” procurement
will facilitate the user, thus, eliminating the need for an inventory.
• Mutual reengineering opportunities
1. Reduced administrative workload and the use of multi-use databases.
A generic small purchase of an educational item or service routinely requires an
extensive network file to document the purchase and support payment of a transaction.
This multiplied by almost 11million purchases and delivery orders made by the network
adds up to over 100,000 reams of paper. Normal distribution of these actions consumes
an additional 500,000 reams of paper. EDI/EWA & ALP will automate this collection
process and provide for databases that can be shared by the separate functional
workstations. Electronic storage of this data will also facilitate less expensive archiving,
retrieval, and audit and analysis of the small purchase data.
2. Automated linkage from the company’s acquisition systems to the network’s
trading partner systems.
From the trading partners perspective, the automation of the network’s purchase orders
provides an opportunity to interface directly with the trading partner’s other internal
automated systems that support the order fulfillment process. This can reduce the
administrative burden associated with invoicing, payment, transportation, and restocking.
Depending on the sophistication of the network’s material requirement planning system,
EDI/EWA and ALP will even support an automated interface. Such interfaces enhance
accurate reporting of sales/orders to the network’s host CPUs.
3. Electronic ordering and bar coding.
Measurements of EDI/EWA & ALP implementation recommended by NAME focuses
on macro process improvements that impact every network component. Initially, the
GCNO explored the possible use of more than 50 measures to capture both the impact of
the technology deployment and its associated cost savings, as well as the depth of this
new technology’s employment in the procurement process. NAME eliminated most of
these measures for the following reasons.
First, the decision to deploy and invest will have already been made. That decision is
based upon a substantial experience base both in the public and private sector, that EDI,
its peripheral processes and opportunities, has conclusively proven to merit the
investment provided normal reasoning is used in its application. This makes the
measurement of the savings redundant in proving, once again, that the application of this
technology saves money. Second, regardless of the findings, a manager cannot manage
sunk costs, which is what the implementation and new equipment costs represent once an
EDI & ECA are implemented. Third, many of the current measures used by the
procurement managers will provide insight to the impact of EDI on customer
productivity and procurement lead-time; therefore the recommendation of new measures
is unnecessary. Finally, the procurement workload continues to increase. The addition of
new measures should be kept to the absolute minimum and only in areas where current
automated collection techniques can be used.
Additional key measures required to determine the extent of ECA/EDI/EWA and ALP
implementation are as follows:
• percentage of total actions - EDI;
• percentage of SRFQs receiving no responses;
• percentage of total purchase dollars - EDI; and
• number of active EDI trading partners.
As discussed, analysis performed by the General Contractor of Network Operations
showed that EDI would increase the efficiencies and effectiveness of the procurement
process. Improvements will increase, over time, as procurement processes are re-
engineered and more subcontractors and customers utilize this method of contracting for
products and services.