Speakers:

Lucas Donat, Chief Marketing Officer, MatchCraft (Santa Monica)

Timothy Koogle, Chairman and Chief Executive Officer, Yahoo (Santa Clara)

Michael Mandel, Economics Editor, Business Week (New York)

Mark Resch, Chief Executive Officer, CommerceNet (Cupertino, CA)

Adam Schoenfeld, Vice President and Senior Analyst, Jupiter Research (New York)

George T. Shaheen, Chairman and Chief Executive Officer, Webvan Group, Inc. (Foster City, CA)

Gerald Storch, Vice Chairman, Target Corporation (Minneapolis)

Moderator:

Matthew Toledo, President and Publisher, Los Angeles Business Journal (Los Angeles)

Summary:

It is year ten of the "Internet revolution" and while a relatively calm skepticism has replaced the initial irrational exuberance, the search for a clear definition of the viability of the Internet as a business vehicle continues. Such was the topic of the day for a knowledgeable and diverse panel that tended to agree that the primary asset of the Internet rested within its inherent ability to provide a means of communication and information dissemination. Most on the panel concluded that while the many of the early Internet pioneers may have faltered or failed, those that have learned how to create value in their business through the Internet will lead the next round of growth. As Timothy Koogle summarized it, "It′s the early bird that catches the worm, but the second mouse that gets the cheese."

The group discussed the importance of the Internet as a marketing tool and whether a company could add value through branding on the Web. Michael Mandel was skeptical about the ability of a company to add value simply by marketing on the Internet, indicating instead that value is created by providing a top quality product. As a counterpoint, Lucas Donat related that the Internet provides an extremely unique opportunity to listen to and communicate with one′s consumers facilitating a relationship that helps to ensure the customer will continue to purchase the particular product.

Another issue that was addressed was whether Internet based retailers such as Amazon and Webvan would be able to develop as profitable and stable companies. Adam Schoenfeld felt that such companies would have great difficulty doing so because the demand for their products would likely never grow to the point where they were able to support the expansive infrastructure necessary to operate such a niche business. Others felt that while the current Internet businesses may not solve the online retail riddle, someone will bring a solution to light.

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