For the average senior executive, e-commerce is fast becoming a muddle of acronyms crowded by a confusion of vendors offering a diverse selection of complicated solutions for the same end result - to keep business apace with the speed of developing technology today. They have little idea, if any, of the full potential of e-commerce nor the direction business should take to best achieve this goal. They leap into e-commerce with gusto - but without the right structured planning, a "big bang approach" becomes big money spent and even bigger falls suffered.
"Companies eager to jump on the e-commerce bandwagon often start the ball rolling by forming a separate IT initiative, but this approach is a sure way to disaster," says CEO, Stewart Barker. "Entry into e-commerce needs to result from the normal strategic business plan which then drills down into an IT/e-commerce strategic plan. Remember that the principles and goals of commerce remain the same, only the methodology, the reach and the speed have changed."
Executives shouldn`t fear what e-commerce and the Internet have to offer - they should be embracing these new opportunities as they would an extension to their existing product range, an expansion of their customer base or an opportunity to significantly streamline their basic business processes," says Barker.
Barker believes one of the most challenging aspects of business today is deciding on a strategy and sticking to it. "The rapid rate of change within technology makes it difficult to maintain a consistent strategy. The best advice to CEOs is not to look at the actual solution being offered by vendors as much as the direction the technology`s taking and to select business partners within this arena with care," he says.
He suggests a number of steps to smooth the approach to e-commerce.
- Sensitise senior executives
- Include "e" in the business strategy
- "It is at this stage that the CIO and his team are key players.
IT managers are great at keeping up with new developments in technology but should not be asked to devise an e-commerce strategy without a clear indication from the business strategy of what is required," says Barker
- Select a business partner to deliver the technology and to assist in the planning and implementation of your e-commerce strategy. There are generally three types of consultants in this area: traditional management consultants; operational technology providers who see to the implementation of software and hardware infrastructure; and the application service provider (ASP), to which the entire e-commerce infrastructure and development can be outsourced, from strategy consulting through to building the infrastructure and ensuring the initiative is integrated to existing business processes.
- Prioritise your e-commerce initiatives and start small for a rapid ROI.
"An e-commerce initiative which does not support a company`s strategic objectives or deliver a sustainable competitive advantage or financial benefits is a luxury which you should do without," concludes Barker.
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