Extreme Descent Snowboards

Activity 2:

Electronic Commerce & Intranets

Background

**EDS – Fictional Company

EDS - Overview and History

EDS has been in business for over 5 years. During those 5 years, EDS has experienced
phenomenal growth as a result of the company's pledge to build the most technically advanced
and highest quality snowboards in the industry. Since everyone who works at EDS rides, we are
committed to offer you the finest and most beautifully designed board at a price that won't break
your wallet.

About 5 years ago, EDS was founded by Matt Brandy and Kellie Onn. Matt grew up in
West Seneca, New York and began as a park skateboarder when he was 10. By the time he was
14, Matt was considered one of the top 10 vertical skaters in North America. With the skills he
learned in a shop class in high school, Matt began making skateboards for himself and his friends
using his dad's tools in his parent's basement.

Kellie was born near the ski slopes of Innsbruck, Austria where she learned to ski just after
she learned to walk. Kellie became one of the best skiers around and was an alternate on the
1992 Austrian Olympic team.

Kellie and Matt met and became good friends while studying business at the University of
Colorado. Their friendship grew and it was inevitable that their personal interests would lead them
to try snowboarding in the Rockies. Matt and Kellie became hooked on the sport and both began
competing in various snowboarding events throughout the Rockies.

Soon Matt became interested in building his own snowboards for himself, Kellie, and a
few close friends. Kellie put her artistic talents to good use and began creating some eye-catching
artwork for the boards. After much trial and error (as well as talking to some of the best snowboard
builders in the industry), Matt and Kellie began creating boards that were superior in design,
construction, and beauty to anything on the market. Soon, Matt and Kellie began getting more
and more requests from people to design and build a snowboard for them.

The reality of graduation from school made Matt and Kellie think about their future
careers. What started out as a hobby was now becoming some serious business as Matt and
Kellie began getting more and more requests for a custom board. With some borrowed money
and a crazy idea, Matt and Kellie formed E xtreme D escent S nowboards, Inc. in
1994. EDS began in Matt's garage, but now is headquartered in a state-of-the-art manufacturing
facility in Steamboat Springs, Colorado. With about 20 employees, EDS sells snowboards
primarily over the World Wide Web to customers in over 100 countries.

Although EDS takes up a lot of their time, you can see Matt and Kellie still carving turns
on the slopes. Don't believe them when they tell you that they're "product testing" or doing
"research and development" - they're out there having fun!

Scenario 1

As you walk into the Executive Suites, Kellie Onn, the Chief Executive Officer (CEO)
of EDS, greets you with a warm smile and a firm handshake. She ushers you to a chair next to a
dark cherry wood table with several snowboarding magazines arranged neatly next to a server
with coffee and tea. As you look around her office, you think to yourself that you could get used
to an office like this.
Kellie offers you some coffee or tea and settles into the chair across from you. She pours
herself a cup of tea and begins to tell you about Extreme Descent Snowboards.
EDS was founded by Matt Brandy and Kellie Onn about five years ago. Matt and Kellie
became good friends while attending college together in Colorado. Kellie is an expert skier who
earned an alternate spot on the 1992 Austrian Olympic team. Matt, an avid skateboarder rider
and builder, became interested in skiing as a result of his friendship with Kellie. Kellie laughs and
says it was only natural that their mutual interests would lead them to try snowboarding. As their
passion for snowboarding began to grow, Matt and Kellie became interested in building
snowboards as a way to make a little extra spending money. Soon, word of mouth led to more
and more requests which eventually convinced them to start their own company. The company
has developed a strong regional sales base but there is a desire to expand their sales globally
using the Internet
A knock on the office door interrupts the conversation. Kellie’s administrative assistant
pops her head in the door and announces that Kellie must leave soon if she is to catch her
afternoon flight to Innsbruck. Kellie apologizes and tells you that she must end her meeting with
you since she has to be in Switzerland for the EDS team’s European exhibition. She hands you
a folder and bids you goodbye and good luck on your first assignment. As you walk out the door,
you open the folder and begin reading the contents.
Questions:
Management at EDS is very interested in the further development of their Web site and
Corporate Intranet. Visit and explore the EDS Internet and Intranet sites. You will then
prepare and submit a report to your instructor that addresses the following questions
and issues:
1. Computerworld has a Web site dedicated to electronic commerce. Statistics contained
in this site strongly suggest that electronic commerce applications will continue to grow.
Why is electronic commerce becoming the new frontier for business? Why
should EDS consider further development of the their Internet site?
2. A recent poll of Datamation readers reported that 60% of the respondents had not yet
implemented an electronic commerce system and had no plans to do so within the next
three years. Do you think these readers are missing a great opportunity? Or are there
reasons for EDS to be cautious?
3. Find and visit the Web sites of three companies that are in the same industry. Provide
the Web site address (URL) and a short review for each site. Which company do you
think has the most effective Web site for selling their product or service? Discuss your
rationale for choosing this company. Based upon your observations, suggest some
ways EDS could get more people to purchase snowboards via its Web site.
4. What is the difference between the Internet and a Corporate Intranet? Why are Intranet
applications becoming increasingly popular? Describe one other Intranet application that
could be developed for one of the EDS departments.