This situation plays out time and again across many industries as traditional business firms seek to Web-enable their operations. When faced with analyzing numerous e-options, financial professionals may feel the weight of their conventional "brick and mortar" organizations squarely on their shoulders. As with any important project, a strategic approach can help you pursue the best course of action.

If your firm already provides products and services to consumers, business-to-consumer (B2C) e-commerce may help you expand your client reach and can improve customer service by allowing buyers access to information on their product's status. Business-to-business (B2B) ventures can help lower procurement costs, create an efficient purchasing process and improve cycle times and productivity.

Of course, these options are not mutually exclusive. They can also be implemented to complement one another.

Evaluate Needs
Once the goals are established, review the requirements for the new system and determine its impact on every aspect of the business. The following questions can help you evaluate the situation:

• What technology is required? What do we currently have? Internet-based commerce requires an interrelationship between finance and technology systems. Make sure electronic business applications can fully interface with back-office accounting software to effectively support your proposed operation. Also make sure the existing hardware will be compatible with the new technology. In addition, work with the IT staff to ensure that you will be able to support increased Web site traffic and provide adequate security for any online transactions.
  
  
• How will the project be staffed? In a nationwide poll commissioned by our company, 26 percent of CFOs cited a lack of technical expertise on staff as a major stumbling block to offering products and services online. Financial consultants who are experts in e-business ventures can offer valuable guidance and assistance. They can help with any phase of the project - from analysis to strategic planning to implementation and follow-up. It might be useful to bring in consultants to handle the overflow of work from staff members involved with the initiative. A specialized staffing firm that places financial consultants on a project basis can match the most qualified professionals with a firm's particular needs.
  
  
• What roadblocks will need to be overcome? Consider whether overall productivity will be affected during implementation of the new systems. Will the project coincide with peak work periods? Are key initiatives dependent on its successful launch? Is there a back-up plan?
  
  
• What is the required budget? While e-business ventures can ultimately lead to enhanced productivity and cost-efficient service, the initial outlay of capital can be somewhat daunting. According to the same survey developed by our company, 28 percent of CFOs said they would consider conducting more business online if costs of implementation could be reduced. Consult your IT department to ensure the investment will provide cutting-edge technology that can accommodate growth over the next three to five years.
  
  
• Which processes and procedures will be affected? And how? Depending on your business goals, e-business initiatives can affect many aspects of operations or only select areas. Consider, for example, how it will impact IT, customer service, marketing and sales.

Build the Project Team
Developing the firm's online operations will require a commitment from both the accounting and IT departments. Consider forming a project team with representatives or "stakeholders" from key groups affected by the initiatives. Be sure to include a mix of "decision makers," end users and support personnel to maximize employee buy-in and ease the ultimate implementation of services.

E-business initiatives are exciting opportunities for potential revenues, value-added service to customers and enhanced productivity. By evaluating the choices, reviewing priorities and building a strong project team, you will be better prepared to take your firm's operations online.

First published on June 26, 2000.