Net Retailers Face 45 Percent Growth in Market

Written by Rob Spiegel

Onrepparttar day I write this column, Spaceworks, another promising Internet company has closed its doors. The fever that once encouraged business writers to claim dot coms would quickly overcome and obliterate traditional businesses, is now burning against Net companies. Now it's fashionable for journalists to scoff at Internet enterprises, ridiculing excesses such asrepparttar 109022 goofy 2000 Super Bowl ads.

Ok, we've all had fun withrepparttar 109023 media backlash, now let's regain our bearings. Amidrepparttar 109024 stories ofrepparttar 109025 dot com demise, there is a hidden stream of positive reports showing a growing base of Internet consumers willing to spend ever greater amounts online. Is anyone covering this story?

Report after report shows a growing population of Internet shoppers. High-speed connections are finally catching fire. Cable modems are booming and telecom companies are struggling to keep up withrepparttar 109026 demand for DSL installations. Analysts are saying nice things about's chances of hitting profitability later in 2001. Some bad news.

One recent piece of good cheer arrived inrepparttar 109027 form of "The State of Online Retailing 4.0," a new study conducted by The Boston Consulting Group. The quiet-but-powerful headline ofrepparttar 109028 report reads, "The North American online retail market is expected to grow 45 percent in 2001, reaching $65 billion." Not bad growth statistics, especially since we're supposedly inrepparttar 109029 throws of a complete collapse ofrepparttar 109030 Internet economy.

Apparently, online retailers continue to improve their functionality while journalists report that is burning. "While consumer demand continues to propel growth, online retailers have wrestled with operational issues. They're improving their performance in key areas such as customer acquisition and buyer conversion, " said Elaine Rubin, chairman (sic) of

She goes on to point outrepparttar 109031 weakness of some Net companies that contributed torepparttar 109032 very real crash among some ofrepparttar 109033 ill-prepared dot coms. "There is a steep learning curve in becoming an online retailer - those players that were unable to excel in all facets of this complex business just didn't make it to repparttar 109034 end of 2000."

Ecommerce: A New Artform

Written by Rob Spiegel

What creative project do you have inrepparttar back of your mind? Writing that novel? Putting together a bluegrass band? Paintingrepparttar 109021 sunsets overrepparttar 109022 Rio Grande? How about starting a business?

When you think ofrepparttar 109023 term creative endeavor, does launching or running a business come to mind? To most creative people, business isrepparttar 109024 antithesis of creativity. Yet slowly, ever so slowly,repparttar 109025 nature of business is changing. The need for innovation in business is gradually overtakingrepparttar 109026 need for control asrepparttar 109027 resource that makesrepparttar 109028 difference between success and failure.

Really? But isn't business essentially about control? Controlling resources and controlling people? Yes, but business is also about innovation and communication, both of which live atrepparttar 109029 heart of creativity.

There are two reasons why I believe creativity will become increasingly valued in business. Control is certainly critical in business, both resources and people need to be managed carefully. But control is easier to teach than innovation. Given an equal need for both innovation and control, control is repparttar 109030 easier skill or talent to find and implement. Thus innovation rises in value because it's more difficult to find and utilize effectively.

Are innovation and control equal needs? They certainly haven't been inrepparttar 109031 past. Control has beenrepparttar 109032 leading force in business sincerepparttar 109033 beginning of repparttar 109034 industrial age. That age has ended however, and we now live in an service-based information world of commerce. This meansrepparttar 109035 resource that needs to be controlled is more likely to be information rather than, say, coal. Information can be managed easily across electronic wiring and storage media. That means important work of business will be creating and disseminating information, and that requires a creative mind.

The other reason I believe creativity will rise in importance in business is that in our information-based economy,repparttar 109036 resources required for business are fewer and less costly. If you can run a storefront onrepparttar 109037 Internet that can reach millions acrossrepparttar 109038 globe, you don't need capital to build a store that sits in a city and reaches thousands. The juice it takes to makerepparttar 109039 Internet company successful is not capital so much asrepparttar 109040 creative ability to reach and build a customer base over an infrastructure that's effectively free.

Cont'd on page 2 ==> © 2005
Terms of Use