E-Business is no longer an alternative, it`s an imperative Steve Green, technologies director of Softworx, looks at the emerging E-commerce tidal wave.
Companies are in danger of being drowned by the E-business tidal wave if they do not prepare themselves to swim in its waters. E-commerce can longer be considered an afterthought in business, it is has begun to be an imperative.
Two years ago, E-commerce would have represented more talk than transaction. It has now become abundantly clear that the Internet is widely accepted as a commerce platform and as the Internet grows, so will there be corresponding growth in e-commerce.
A recent survey conducted by the IT and Telecommunications Market Research Group BMI-TechKnowledge shows that E-Commerce is already firmly embedded and is expected to grow significantly over the next three years. According to the survey, 26% of large companies, 20% of medium companies and 16% of small companies claim to be conducting at least some commerce over one or more electronic network currently. This is expected to grow to 38%, 31% and 28%, respectively by 2002.
Perhaps more significantly, the Gartner Group predicts that E-business will lead IT spending to $3.3 trillion by 2002 and is set to eclipse Y2k as the main focus of IT spending. In South Africa, online spending has been rapidly climbing rapidly from around R500 million in 1997 to R1.2 billion in 1998, showing a steep increase of 140%. Such compelling statistics should convince the most e-business reluctant or resistant company that it must prepare a swimming kit for this wave.
In order to realise the value of an integrated supply chain and achieve the results of synchronisation, E-business is essential as it facilitates end-to-end communication and collaboration. It is this shift in the business model that has South African business leaders a little more than perplexed and concerned. Some companies interested in e-business are struggling to find the best strategy.
Whilst others are integrating E-business throughout the organisation, some are creating E-business subsidiaries and making them separate online entities. Other strategies entail investing in Internet start-ups or moving their businesses entirely to the Web. However, there is no cut and dried prescription model. Even companies who are in the same industry are not necessarily taking a single similar E-commerce strategy.
However, as a start, aspirant E-entrepreneurs must radically rethink current business models to be in line with the online paradigm.
The momentum driving everyone to E-business-the use of Internet technologies to exchange information and transactions among companies, their customers, employees, suppliers and business partners is clearly going to fundamentally change the way that we do business.
In order to keep afloat in the dynamic waters of e-commerce, there are certain business issues companies must be aware of such as online customer convenience and service.
This ensures that you have convenient self-service tools that allow for easy interaction with your company. Understanding that your product is not your differentiator-there are others who probably make it cheaper and better than you do. E-businesses must also understand that the customer determines what the product is, after all, he or she is the one making the purchase.
For instance, Internet clients are able to customise complex articles like motorbikes, by specifying the model, colour, engine capacity and extras designed to meet their specific needs.
Furthermore, the cost of integrating Internet and back-end systems should also be considered.
In order to meet business requirements of the information age, Baan recently released the Baan E-Enterprise Application Suite. This software solution is integrated with Baan applications to decrease implementation risk and speed time-to-market, allowing customers to reap the benefits of e-business. The applications are built on a platform that offers a lower total cost of ownership than implementing multiple point solutions and eliminates complexity by focusing on a shared strategic platform.
In as much there seems to be a significant interest in South Africa, the process is a little more like teenage sex. Everybody is talking about it, but very few are doing it. However, if you`re intending to stay at the top you had better start to play!
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