If this questions is not yet so, should it not be among the most challenging questions facing any organisation today? More and more new applications being released are claiming to be 'web-enabled`. New 'web-enterprises` are popping up every two minutes and being punted by public speakers around every corner. Is it really a question of "To be or not to be on the Internet" or is it just a new hype created by the industry to generate demand after the Y2K frenzy?
Technology and change is quadrupling in pace - even beyond Moore`s Law`s predictions. But, is it change, rather than technology that drives new developments in IT? It almost becomes the old chicken and egg argument. What is important is that we recognise the needs and business drivers within our own organisations and how the changes and technology will impact upon us. This takes us beyond the focus of just trying to keep up to date with the latest trends.
Internet technology has enabled the development of new business models. These business models are changing the way companies compete. Competitive advantage has been based upon being better and more efficient. Technology, benchmarking and best practices have been brought into the arena in order to enable efficiencies. What was the result? Anyone can buy the technology and benchmarking and best practices have levelled the playing fields - the only real problem is that some of those 'best-practices` do not fit the organisations that they were forced upon. So, other than your company`s culture, where is your true competitive advantage - what differentiates you from the next guy?
Web-enabled applications have allowed the creation of business processes that were not possible two years ago! This has been fuelled by the change in customer and consumer expectation. But remember: anybody can buy the same technology - so how do you compete? Do you have to keep up to date? Do you have to have the latest and greatest Internet applications? To further add to this problem, Web technology has created what Don Tapscott called 'dis-intermediation`, or cutting out the middleman. There is an upside to all of this, though. You can create competitive advantage by building a different business model. Do it differently!
Internet technology and web-enabled applications allow business to be creative by creating business processes that did not previously exist. I use the term 'business processes` here in their broadest sense. The latest trend - on demand from customers - is towards interactive multimedia applications. Customers don`t just want information anymore, they want to create their own 'profiles` or products and they want to be able to interact with the suppliers. They want to not only exercise choice; they want to create that choice. This interaction and choice is also not limited to just numbers on a screen; customers want to see and experience more, thus multimedia. This trend or shift has been called the shift from mass market to mass customisation. Be warned, though: if you cannot cope with every customer`s individual demands, retire or sell your business - now.
Internet and web-enabled applications are becoming mission critical. If you are not web-enabled, how are you going to compete with the other players in your market? And you still believe that the Internet has had no impact on your market? Internet technology is touching every market across the globe - even yours! Just consider this scenario: is it possible that any of your customers could communicate via the Internet with another supplier of the same product or service? If your answer is 'no` - wake up or you`ll be trying to play catch-up!
The key to mastering Internet technology, web-applications and the like is for you to focus on your core business and get a technology partner to focus on the technology solutions. Why? Your core competency is to manage your organisation - do you do your own advertising, PR, auditing, etc? No - you get others whose business it is to do that - so why are you trying to understand the latest and greatest in technology? Work with your technology partner to make sure that they understand your business, its drivers, and most importantly that they understand your customers. Use your business strategy as the starting point for this process (you do have one?) Then, develop an IT strategy. Once you have an idea of your vision - work with your technology partner to understand how technology can enable your organisation in achieving that vision. Don`t be surprised if the vision of how you thought your business would operate in the future changes!
If William Shakespeare was alive today, I`m sure he would have re-phrased his famous question to organisations as: "To be, or not to be on the Internet - that is the question."
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Ornet Solutions
Ron Pienaar is MD of Ornet Solutions, a consultancy that builds e-commerce solutions around Oracle technology. Ornet Solutions is a member of MB Worksoft, the software and services arm of JSE-listed MB Technologies.
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