Internet technology

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To build an effective strategy, business leaders must involve may parts of the business. This helps to ensure that the e-business solution is tightly integrated into the business and business strategy. Some things that should be considered when building the strategy

What are the core business objectives of the e-business initiative (including an examination of what competitors are doing and what lies ahead in the market place)?

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Which of the companys products and services will be involved in the e-business initiatives?

Which processes can be improved by applying internet technology?

What customers does the company wants to attract and serve?

What do customers and partners expect and demand in terms of customer care and service?

What level of financial and personnel support can the business commit?

What new issues will the company face once their e-business site is running (security, privacy, regulatory, etc)?

According to the Gartner Group, Enterprises that have implemented e-commerce as part of a business strategy have been more successful in reducing business cycle times, improving cash flows, reducing inventories, decreasing administrative costs, and opening new markets and distribution channels.

Developing an effective e-business strategy isnt always good enough by itself. In order to be truly effective, the company must have the right characteristics to successfully implement the strategy. Some of the characteristics of companies that have developed and implemented successful e-business strategies are

They are willing to change,

They have adaptive strategies,

They understand and focus on partnerships, and

They look at the market differently.

Define the vision

Probably the most important step in defining an e-business strategy is defining the vision and goals for the business. To do this, the company must think about why they want to be on-line. Are they going on-line because being on the internet is the latest and greatest place to do business, or because some expert has told them to go online? Many business who have done poorly on the internet have done so because they ignored the question of why.

Before beginning to layout their vision, companies should spend some time doing research. Their research should focus on two areas understanding what the internet provides and what are competitors doing. An understanding of what the internet technology can provide is important foundation of the e-business strategy. An understanding of what competitors are doing in their e-business systems will help the company formulate their strategy with an eye towards what customers expect from the current market.

The next question that needs to be addressed is what opportunities are available? As we have seen, there are a large number of opportunities available on the internet. Three of these opportunities include

1. Selling products directly (most people think of this first…) In this case, the company has to decide if their products and services are appropriate for the net. Some products, like automobiles and homes, require high levels of customer service and personal attentions, and may not be appropriate for internet sales. Other products, however, like books, music, and consumer electronics, may be much more suited for the internet.

. Providing information, or brochureware. In this case, no immediate revenue may be recognized, but it can educate customers and direct them to offline outlets, or help build an off-line (or on-line) brand

. Improving business processes. In this case, the company can utilize the internet to enhance the supply chain with an eye towards streamlining processes and cutting costs.

If the major goal of the strategy is to target customers, then the business must decide whether they are going to focus the system on new customers, existing customers, or both. Each type of customer has its own set of considerations that affect the strategy

New customers - how are you going to get them to the site, and once they are there, how are you going to keep them, and get them to return? If this is the focus, then lots of marketing collateral available on the site.

Existing customers - focus on functionality, like reporting and inventory management. There isnt much of a need to spend time talking about the value of a product if they are already a customer. Instead, talk about how to help them manage the use of the product or their inventories.

Both - content for new customers and private access to special functions for customers and partners.

Initially, the vision should focus on high-return, high-profile alternatives. Since the internet is a revolutionary technology, the team that is developing the vision and goals should be encouraged to think out-of-the box when reviewing alternatives.

Finally, once the vision has been developed, it must be documented and used to guide the development of the e-business strategy.

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