"If you build it, they may not come," said Kevin Johnston, GM of BOE`s IT department, addressing delegates at the Ignite 2000 forum at Sun City. Johnston discussed why companies` e-commerce projects fail.
The advent of the Internet has made business globalisation a reality for companies, said Johnston. Merely setting up a company Web site is not good enough when companies are competing on a worldwide level.
Johnston stressed that the deregulation of the marketplace as a result of the Internet will put pressure on companies to re-think the basic foundations of how companies generate income.
The music industry is, according to Johnston, a prime example of how business has changed. "David Bowie is now giving away his music; his last album is a free download to all fans. He makes his money now by using albums as an advert to attract fans to his concerts where the bigger crowds create larger revenue from ticket sales."
Conducting business on the Internet is essential for today`s companies. He noted that the public is aware that the Internet is secure and aren`t hesitant to buy online. However, Johnston explained that the vast competition on the Net means companies have to give their Web sites and offerings an edge.
"We are looking at innovation, not imitation. Look for new markets, or expand existing ones with a differential. Have an ethos of transparency of company information available on your site. This makes consumers comfortable and encourages growth."
Pointing to several "deadly sins" for e-commerce endeavours, Johnston`s first example slammed the White House site for not being updated for a very long time. The site still has pictures of Bill Clinton and Al Gore a little after Clinton`s second term began.
"Take the medium seriously," said Johnston.
He also warned against trying to be everything to everyone, as a company needs to focus on a specialised offering that sets it apart from its competition.
"Putting a company brochure onto the Net is not going to create a good impression. Companies need to give surfers something more than they would get if they had picked up an `about us` type brochure."
Johnston said companies should not concentrate on "PR fluff" when dealing with customers.
"I don`t care if a bank knows when it`s my birthday and what my daughter`s name is, I want the best, fastest and quickest service I can get and I`ll move accounts in a second if I don`t get it. Concentrate on business offerings on business Web sites."
He also warned against not sacrificing reliability at any cost.
"It didn`t help that when the Victoria`s Secret advertised its new site at the Super Bowl, it had 30 000 hits in the first day, and then spent the next two weeks trying to get back up again."
Johnston ended his e-business evolution talk with a quote from Charles Darwin: "It is not the strongest of the species that survives, nor the most intelligent, but the one that is most responsive to change."
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