An e-business solution in a box

Having discussed the lessons e-business implementers can learn from ERP (Can e-commerce learn from ERP`s mistakes? 7 June) and reviewed the importance of adopting a components-based e-business strategy (Treading softly into e-commerce, 14 June), I want to conclude with a look at the enabling technology to support the e-business and the need for a one-stop e-business.

An e-business, from the perspective of most companies, consists of three separate aspects:

• The design of the Web site. This is very specific to each company since it is extremely important that the Web site communicates the company`s values and profile. There are a vast number of design companies offering these services.
• The e-business engine. Specialised e-business engine vendors provide the necessary tools to build the Web site. They have standard logic and interfaces for order handling, managing online catalogues, creating customer profiles, shopping baskets, credit card handling, etc.
• The e-business backbone. This handles the logistics, order management, financials and communications with the suppliers. The e-business backbone makes it possible to deliver what is promised to the consumers while reaching the overall business objectives.

I take a somewhat different view, in that because e-business involves end-to-end business processes; companies need to place as much focus on the back-end processes as on the front-end processes.

Therefore, I believe that the e-business engine and the ERP backbone should merge and be considered as an integrated entity. The only reason that the e-business engine companies exist today is because ERP vendors do not have that functionality in their offerings, although this is changing rapidly.

I believe that the e-business engine and the ERP backbone should merge and be considered as an integrated entity

Paul Whalley, guest columnist, ITWeb

In addition, there is a need to include the connectors between the engine and the Web pages and a pre-configured Web site optimised for the connectors. The Web designers can add the final touches to the look and feel of this pre-configured Web site.

Vital elements

Web design will always, to some extent, be customer-specific and driven by marketing. For most companies, the design of the Web site is crucial. Image, brand and the ability to attract new customers are vital, but the site`s functionality and its integration with the backbone can be pre-configured.

Such an off-the-shelf, out-of-the-box approach to e-business fulfils most companies` need to minimise time to market. Being second does not count. So short start-up time is vital.

In the not too distant future, I believe customers will demand a complete e-business off-the-shelf solution. In fact, small to medium-sized companies are already calling for a well-packaged, integrated standards-based solution with good quality and performance.

The reason for this call for a one-stop e-business solution shop is that those small companies that have set up their own Web sites have invariably experienced significant growth and have learned the painful lesson that there is more to e-business than a dotcom storefront.

One of the major differences between the very successful dotcom companies and the ones that disappear is how well they manage to execute what is promised in the storefront. That is why the e-business backbone is so important.

Horror stories abound about firms having to hire legions of temporary workers to re-key data from a Web ordering system into the traditional order management system and those that accept Web orders for out of stock products.

Similarly, many order management systems used by these companies were designed to support a small number of customers. The vast increase of orders received over the Web necessitates a revamp of these systems, including credit checks, billing and giving the customer the ability to track orders.

Virtual company

In addition, the dotcom company is, in many cases, a virtual company, in that it does not need to own or store the products it sells. It owns the customer relationship and tries to lock in customers by providing a highly branded, personalised buying experience. This means that the e-business backbone must support the customer relationship management as well as provide the backbone for logistics, order management, payment processing, etc.

The perfect e-business backbone supports three major cycles:

• The commerce cycle from order to payment.
• The supply chain cycle from forecasting to order fulfilment.
• The customer relationship cycle from customer awareness to support and after sales.

As the GartnerGroup says: "A front-end Web site is often the easiest and least differentiating section of an effective e-business strategy. Posting product information on a Web site and talking electronic orders are activities almost any competitor can duplicate.

"E-commerce leaders are now looking to differentiate themselves through relationships with suppliers and optimising the physical flow of goods - creating improved margins and better customer services."