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Ten Commandments for Making the E-Business Transformation
Part One of Two

Aug. 7, 2000 (SmartPros) In today's hotter-than-hot Web marketplace, more and more firms, organizations and businesses of all sizes are making the transition from "bricks and mortar" to "clicks and mortar." But how effective are these efforts, and what methodology is being applied in the new scenarios?



A successful business does not realize solid profits overnight. Most of the time, it takes years to achieve the right mix of personnel, the correct focus for strategic delivery and consistent building of knowledge systems -- both on paper and in using technology effectively. Unfortunately, many companies have jumped on the Web without sufficient planning and achievement of both short- and long-term goals.

The transition to e-business should not be any different than a transition to a new line of service. If you were to expand your current offerings, you would do the homework before you made any changes, right? Most companies would perform sufficient research, gauge the temperature of the service line with clients and customers, and have the support of firm owners or partners.

The same routines hold true for the transition to doing business over the Internet, regardless of the fact that in many cases, the systems are widely different. Careful planning can lead to results, and a look at ten rules for making the transition can lead to substantial bottom-line profits.

Commandment One: Know the Territory
There is no doubt that the speed of change puts newcomers, part-timers or dabblers at a disadvantage -- and many of these are businesses making the transition to e-business. Research already has shown that this is not a "flavor of the month."

According to a PricewaterhouseCoopers survey of 377 CEOs, 20 percent believe electronic commerce will "completely reshape how they do business," and 59 percent say it will lead to "significant changes."

Companies that want to deliver services over the Web should seek the assistance of others who live and breathe in the environment because they have already driven through the potholes. The key is to attract qualified talent that meshes cohesively with a company's philosophy and business acumen.

You could hire your own staff or use an outside consulting team. In many cases, bringing an IT professional on staff makes sense, but probably down the road. The setup of internal and external systems is best left to experts who have the talent to understand professional firms and Internet commerce. Bottom line: companies wishing to transition to the Web should hire consultants who understand the costs and commitment required for the long haul.

Commandment Two: Know Your Value Proposition
Your value rests with reputation and line of services. Have you asked yourself what you are want to accomplish with an e-business? Do you want to be known as specialists or generalists? Do you want to deliver traditional services or services that delve into non-traditional arenas? What do your clients or customers expect you to deliver, and what kind of advice are they seeking?

The Internet is full of options -- and these options are growing constantly across the globe. Remember that one of the main differences in e-business is that clients no longer wait to see you in person. Instead, they visit you in cyberspace (of course, personal contact is vital, but more on that later).

As a result, businesses should adopt a technology strategy on service delivery and philosophy, and stick to the strategy for success. Ask yourself what your site should deliver to clients and potential clients, and what you want the site to say about your firm. Knowing the answers to these simple questions will do much to position your business so you can truly realize your value.

Commandment Three: Align Your Strategies
Once you know your value proposition, it is time to ensure your traditional business strategies mirror the ones in the electronic environment. It may sound simple, but far too often, companies think e-business means doing business differently, when the main difference rests with the delivery of services rather than the services themselves.

You can not take your clients into e-commerce unless you lead the field, and you must use advanced features that are continuously being invented to realize your potential. For example, think about how you communicate with your clients electronically. You may have a Web site, but maybe you have not provided your staff with access to email or perhaps even the Internet on their desktops.

Visitors must communicate with your staff, just as they do with telephones and even live and in person. Systems then, change their architecture, but the original intent of simply doing business is the same.

Commandment Four: Manage From the Top
Good managers and owners of companies know that any mantra or philosophy promulgated throughout a business should begin on high. In addition, the Internet is not just another set of separate business initiatives. It is a way to redefine how you conduct business and communicate with your clients. An Internet strategy must be addressed as a board-level issue.

Decisions must be made quickly, and your staff, clients or customers will not buy in to the strategy without guidance from upper management. Think about it: the world's most successful businesses began with an idea. That idea became a common thread woven throughout these companies because its implementation began in the boardrooms with key officials. A Web philosophy and way of doing business is not any different.

Commandment Five: Think Speed
Ever since the computer age began, the world has demanded faster and faster processing of data. The delivery of services over today's Internet is based on many factors, but one of the most important ones is speed.

For example, an inexpensive Web-hosting service will not provide the speed you seek, and want, for your delivery. At the same time, the "speed" model must include state-of-the-art hardware and software components, such as a sophisticated Web server, firewall, backbone and back-end servers that provide the mandatory structure for an e-business. Skimping in any of these arenas will be very evident the first time you try to conduct business on the Internet.

Zona Research reports that people will wait a maximum of eight seconds for a page to load, and sites with intense graphics may take as long as 20 seconds to download even on a T-1 line, let alone a slow modem.

This is an area businesses should not take lightly, and some forethought can lead to solutions -- but act quickly. Speed to market is the key and one Internet year is equivalent to three months. The bottom line is to get online quickly with a core Internet strategy. Develop a Web presence, and once that presence is felt and working, leverage it, refine it and expand the presence where it makes sense.

You could hire your own staff or use an outside consulting team. In many cases, bringing an IT professional on staff makes sense, but probably down the road. The setup of internal and external systems is best left to experts who have the talent to understand professional firms and Internet commerce. Bottom line: companies wishing to transition to the Web should hire consultants who understand the costs and commitment required for the long haul.

First published on June 5, 2000.

2000, Smartpros Ltd. All Rights Reserved.

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