| Innovations
Without Compromise:
E-business Solutions on Internet Time
Currently, there is relatively modest
E-business being done by Fortune 2000 companies.
Much of the hype about the Internet continues as pioneer E-business
enterprises such as Dell, Cisco, and Amazon.com make headlines on Wall
Street. Since most businesses
do not directly sell to the customer/consumer, there is little business
lost because of the Web. Business-to-consumer
(B2C) business is being done by intermediaries; however, the evolution of
channels will define and redefine business-to-business (B2B) commerce.
E-business
as Commerce
The holistic use of the Internet will
drive the success of an organization.
This means empowering groups to make the smart changes required for
integrating E-business into commerce activities.
The greatest roadblocks to this change are organizational and
cultural issues. The greatest
challenge is taking an E-business task force, empowering them to reinvent
the business, and then executing the implementation of the reinvention
successfully.
There is no one magical E-business
model for success and therein lies the challenge.
The chief financial officer (CFO) wants to see a return on
investment (ROI). Often
external consultants tell you what you already knew about your
organizational barriers/shortcomings.
Extending enterprise resource planning (ERP) takes a gradual
approach from the inside out. The
ROI model is a tactical cost savings approach that must “work” for
your customer. Making the
electronic link with the customer is an experience the customer must like,
enjoy, and adopt as a business transaction behavior.
Customer
Relations Management (CRM) and the Internet
As a cost savings, E-business is only a
place to begin. Unlike supply
chain management where your business is in the driver’s seat, customers
are demanding and wanting to do business on the Web.
This puts customers in the driver’s seat as they become the party
that must be satisfied. With
customers, your enterprise must react in a timely manner and devise
Internet customer relations management (ICRM).
In the next 18 months as it gains greater usage, the Web becomes
critical as a vital channel for customer interaction.
Customer relations management (CRM) has
the attention of the chief executive officer (CEO) because the value of a
relationship with customers is skyrocketing.
It costs from six to seven times more to acquire a new customer
than it does to retain one. Marketing
costs continue rising as the competition for customers intensifies and
enterprises match their competitors’ efforts.
The justification for making the investment in the Internet comes
with the metrics of cost savings, better customer service, and increased
sales revenue. Customer
relationships on the Web are an essential factor that can grow new
customers; however, continued profits come from retained customers.
Long-time, repeat customers are less likely to switch to the
competition provided good relations exist so it pays to show them ongoing
attentiveness and service. Unlike
B2B vendor relationships that can be monitored by Web comparisons of other
vendors, the consumer relationship has no such mechanism for loyalty.
Consumer
Convenience and Complete Solutions
Today, there is a growing trend towards
consumer convenience and complete solutions.
Enterprises that provide one-stop shopping solutions will win
customer loyalty. Customers
want the whole solution provided from one place because there is always
more money but not more time. The
typical customer is time pressed and wants fewer relationships to manage
and work with.
Partner relations management (PRM) is
important to enterprise viability. Factor
in the cost of relationship management into overall business expenses.
Both customers and employees comprise channel partnerships.
Leverage channel partnerships whenever possible.
The real threat for enterprises comes
from how business is changing and what customers will be demanding.
Determine where profits come from, clearly define what your
strategy is, set your strategy, and then make it happen.
There are attackers that kill existing channels.
There are defenders that leverage existing channels.
The jury is yet undecided as to what E-business practices will
prevail and be victorious. Distribution
companies are forming portals for their industries while middle supply
chain companies are trying to become intermediaries that create value. Eventually, E-business will become just another business
outlet. Until then, start
E-business small, take baby steps, continually refine it, and reiterate
that relationships power commerce in the long run – not E-business.
E-business
as a High Level Management Decision
As a disruptive technology, the
Internet is a force to be dealt with proactively rather than reactively.
Today, high level management decides what E-business will become
because it spearheads the rapid transference of vast wealth.
E-business is more holistic than E-commerce because it relies upon
customer retention and not merely the single commercial transaction of
E-commerce. E-business is no
longer the purview of a part-time webmaster making a web site on the side
but is becoming a growing part of how “regular” business is
transformed and transacted.
E-business
as Part of “Regular” Business
Connecting all the pieces together to
create an E-business solution is the hard job.
Often the hardware/software services can not be found in one place.
The return of network computing makes every personal computer (PC)
a network computer while servers direct data.
Middleware supports and drives E-business.
The backend gets added as needed in a phased-in approach, not built
all at once. Management of the web site should be engineered into the
system. Web site testing must
not be overlooked. This and a lot more must be plugged into “regular”
business transactions and seamlessly shape the customer experience.
The leading E-business sites are not using
packaged solutions. Competitive
advantage comes from tying into backend fulfillment and/or being first
mover. While URL means
universal resource locator, it can also mean ubiquity now, revenue later
as many dot.com companies have yet to show profits.
In the meantime as a survival tactic, packaged applications have
become more open and amenable to tweaking.
System
Innovators and One-stop Shopping for E-business Solutions
The solution life cycle has not changed but its
speed and how it integrates and relays information has.
Vendors can help create seamlessness, but one-stop shopping for
E-business infrastructure is the big wish.
Enterprises are looking for the whole solution and economies of
scale where interoperability between all the pieces of the solution exist.
As an example, IBM can singlehandedly provide the hardware,
middleware, and its dot.com capabilities as solution components.
However, Oracle offers just the database component and would be
unlikely to survive or thrive with such a limited solution as its
competitive repertoire.
When making your E-business entry, there is a
demand for setting a web strategy and working from that into actual
electronic presence. A new
breed of system innovators is taking part ownership of E-business
development instead of monetary compensation for services rendered.
They take an equity stake in the enterprise that directly relates
to how well they bring meaningful online presence and E-business to their
clients and their customers. Solutions
must have working technologies that are amenable to ease in integration
and change.
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