things: Using 10,000 networked compt Enhanced evaluation is a capability that it searches 3 billion Web pages in an average adds value to the process of selling products of 500 milliseconds. To do the same search or manufactured goods. Many Internet busi manually by thumbing through nesses, according to digital business experts pages at the rate of 1 minute per page, would Ming Zeng and Werner Reinartz, could take 5, 707 years. This ability has made Goo- improve their performance by making a gle an essential tool for many businesses. As stronger effort to help buyers evaluate pur a result, Google has built a powerful adver- chases. Even so, only certain types of products tising business. Mark Kini, who runs a small can be evaluated on-line. products such as limousine service in Boston, spends 80 per- CDs that appeal primarily to the sense of cent of his advertising budget on Google and sound sell well on the Internet. But products other search engines. " Its how we survive that appeal to multiple senses are harder to the recession, says Kini evaluate on-line. This explains why products Thus, enhanced Internet search capabil such as furniture and fashion have never been ities make it possible for firms to find critical strong on-line sellers. It's one thing to look at a information much more rapidly and have leather sofa, but to be able to sit in it and touch greatly increased the possibility that one firm and smell the leather on-line is impossible can be located by another firm or by custo- mers wishing to conduct business with it Problem-Solving Activities Evaluation activities Problem-solving refers to the process of iden tifying problems or needs and generating Evaluation refers to the process of consider- ideas and action plans to address those needs ing alternatives and comparing the costs and Whereas evaluation is primarily product benefits of various options. On-line services related, problem-solving is typically used in that facilitate comparative shopping, provide he context of services. Customers usually product reviews, and catalogue customer have unique problems; such problems, there- evaluations of performance have made the fore, are typically handled one at a time. For Internet a valuable resource. For example, example, on-line travel services such as Tra- bizrate. com offers extensive product ratings velocity help customers select from many that can help evaluate products. Sites such as ns to form a u travel packa CNET that provide comparative pricing have problem-solving often involves helped lower prices even for quality pro- providing answers immediately(compared to ducts that have traditionally maintained pre- he creation of a new product). Firms in indus- mium prices. Opinion-based sites such as tries such as medicine, law, and engineering epinions.comandplanetfeedback.compro-areusingtheInternetanddigitaltechnologies vide reports of consumer experiences with to deliver many new solutions. Some of these various vendors are quite remarkable. Exhibit 1 describes how Exhibit 1 Eli Lilly: Virtually Seeking Solutions-Worldwide In 2001, pharmaceutical giant Eli Lilly was anticipating a big drop in sales. That was the year the patent expired on its blockbuster drug Prozac, which accounted for 34 percent of Lilly's annual sales. But rather than launch a new drug, Lilly launched an Internet business--InnoCentive, LLC InnoCentive, as the name implies, provides incentives for innovation. It does so by providing a platform for scientists from around the world to work in virtual communities to solve complex problems. The effort does not just benefit Lilly, but provides a virtual, open source research and development(R&D)organization that any member company can usethings: Using 10,000 networked computers, it searches 3 billion Web pages in an average of 500 milliseconds. To do the same search manually, by thumbing through 3 billion pages at the rate of 1 minute per page, would take 5,707 years. This ability has made Goo￾gle an essential tool for many businesses. As a result, Google has built a powerful adver￾tising business. Mark Kini, who runs a small limousine service in Boston, spends 80 per￾cent of his advertising budget on Google and other search engines. ‘‘It’s how we survive the recession,’’ says Kini. Thus, enhanced Internet search capabil￾ities make it possible for firms to find critical information much more rapidly and have greatly increased the possibility that one firm can be located by another firm or by custo￾mers wishing to conduct business with it. Evaluation Activities Evaluation refers to the process of consider￾ing alternatives and comparing the costs and benefits of various options. On-line services that facilitate comparative shopping, provide product reviews, and catalogue customer evaluations of performance have made the Internet a valuable resource. For example, bizrate.com offers extensive product ratings that can help evaluate products. Sites such as CNET that provide comparative pricing have helped lower prices even for quality pro￾ducts that have traditionally maintained pre￾mium prices. Opinion-based sites such as epinions.com and planetfeedback.com pro￾vide reports of consumer experiences with various vendors. Enhanced evaluation is a capability that adds value to the process of selling products or manufactured goods. Many Internet busi￾nesses, according to digital business experts Ming Zeng and Werner Reinartz, could improve their performance by making a stronger effort to help buyers evaluate pur￾chases. Even so, only certain types of products can be evaluated on-line. Products such as CDs that appeal primarily to the sense of sound sell well on the Internet. But products that appeal to multiple senses are harder to evaluate on-line. This explains why products such as furniture and fashion have never been strong on-line sellers. It’s one thing to look at a leather sofa, but to be able to sit in it and touch and smell the leather on-line is impossible. Problem-Solving Activities Problem-solving refers to the process of iden￾tifying problems or needs and generating ideas and action plans to address those needs. Whereas evaluation is primarily product￾related, problem-solving is typically used in the context of services. Customers usually have unique problems; such problems, there￾fore, are typically handled one at a time. For example, on-line travel services such as Tra￾velocity help customers select from many options to form a unique travel package. Furthermore, problem-solving often involves providing answers immediately (compared to the creation of a new product). Firms in indus￾tries such as medicine, law, and engineering are using the Internet and digital technologies to deliver many new solutions. Some of these are quite remarkable. Exhibit 1 describes how Exhibit 1 Eli Lilly: Virtually Seeking Solutions—Worldwide In 2001, pharmaceutical giant Eli Lilly was anticipating a big drop in sales. That was the year the patent expired on its blockbuster drug Prozac, which accounted for 34 percent of Lilly’s annual sales. But rather than launch a new drug, Lilly launched an Internet business—InnoCentive, LLC. InnoCentive, as the name implies, provides incentives for innovation. It does so by providing a platform for scientists from around the world to work in virtual communities to solve complex problems. The effort does not just benefit Lilly, but provides a virtual, open source research and development (R&D) organization that any member company can use. 163