A Strategic Approach to e-BusinessWritten by Bob MacAvoy
Web technology can be seductive. It is all too easy to install a Web server, generate some flashy graphics and, bingo, you have an electronic version of your core business operations. Unfortunately, successfully transitioning your company to e-business a lot more complicated than that. E-business is not just about developing a Web site but rather changing your business model to adapt to new economy. Simply grafting a snazzy front-end on your current business is unlikely to take full advantage of opportunities offered by e-business revolution and may in fact be a prescription for disaster.The problem with this approach is that it doesn't address important issue of whether your current business model can be improved to take advantage of new e-business opportunities. For example, suppose you have regional distribution centers across country. Without a doubt, Internet can speed communications between these distribution centers. But that overlooks possibility that Web may make it possible to serve country from far fewer distribution centers or even that you need don't need regional centers at all any more. The nonstrategic approach to e-business also leaves a free path for a new market entrant to develop a more efficient channel structure that blows you out of water. What you should be doing instead is to first develop a macro level business strategy that provides a road map for adapting your business to era of e-business. Just like developing a business strategy for old economy, your e-business strategy should start by considering your current position in market including strengths and weaknesses, products and distribution channels, challenge posed by competition, new opportunities in market, etc. But at same time you need to consider opportunities and challenges posed by Internet, such as potential to interact directly with customers to streamline distribution channels as well as competitive threat posed by new market entrants leveraging Internet. The next step is mapping a path to implement that strategy while putting primary emphasis on delivering a positive experience to your customers, channel partners and others with whom you interact. Trying to avoid going down blind alley of making incremental improvements to your existing business. For example, business units, with each targeting specific products and markets, may organize your company. In that case, individual business units are doubtless thinking about how they can optimize their own piece of pie rather than effect of e-business revolution on entire company. Chances are, many of these units may be performing same business processes in slightly different ways. In that case, there are probably serious opportunities of scale across those business units, such as using same technology to perform processes such as sales order processing, inventory or customer service. Taking advantage of these opportunities will require a big-picture perspective that requires involvement of top management to serve as an integrating force. It's important that your e-business strategy focus not on needs of fiefdoms within your own company but rather on experience of user of your system, whether it's a customer, general partner or employee that is interacting with you. One of most important areas is segmenting your strategy to address individual needs of different users. For example, a human resources Intranet should be subdivided so that employees are able to quickly get information on their benefits and compensation while human resources professionals are able to obtain much more complex information that they need to do their jobs.
| | TURN YOUR BROWSERS INTO BUYERSWritten by Heather Reimer
The day is coming soon when every web wanderer goes shopping online without a care. A day when nobody hesitates for even a microsecond before entering their credit card information and clicking on "BUY". But at moment, only 40% of all Internet users are doing so. The other 60% still want to have their purchases firmly in hand at cash register before opening their wallets. So how do you, as an Internet entrepreneur, overcome ultimate e-challenge? How do you reach out and comfort nervous and hesitant? The answer is surprisingly simple and inexpensive, but rarely used to its best effect: communication. Specifically, things you communicate to your customers about your service/product and WAY you express them. Think about atmosphere that makes you feel comfortable when you go shopping... how staff treat you at your favorite store... how did they win your trust and your business? Most online shoppers are attracted by a casual style of information presentation. Imagine how you would pitch your product if client were seated right in front of you. Actually trying this with a friend or coworker can help clarify your thoughts. Then write it that way (preferably without ums and ahs!) Get text proofread carefully... nothing diminishes respect like a page full of spelling mistakes! Want to really connect with your visitors? Introduce yourself or another key person in company by using a real name and photograph. This brands site as belonging to a real, live person and creates a subtle bond. An "About Us" page is perfect place to build on that feeling. Here's where you explain what compelled you to start your e-business, what your goals are, your business ethic and why customers should deal with you instead of your competition. In fact, a short 3- or 4-line version of that same text can be displayed on bottom of each page of your site as a sort of signature. And never forget best free confidence-builder ever invented: testimonial. Include as much information as you can about source of testimonial: first and last names, city of residence, business name or URL if applicable. (Get permission first) This lends much more credibility than, for example: "Loved your online underwater basket weaving course!" JB, USA. Then put those quotes in high traffic locations. Don't make your customers search high and low for them because most won't bother. Brag a little... If your site is affiliated with or has been recognized by other organizations, get permission to use their logo on your index page. Same goes for any awards you've received. Those little official-looking buttons and logos breed trust because they ARE official looking and because respected institutions stand behind them!
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