South African companies are making a huge error of judgement if they adopt a "let`s-learn-from-others`-mistakes" approach to implementing an e-business solution.
So says Joanne Cradock, e-business executive at IS (The Internet Solution), a member of the Dimension Data Group and co-author of the recently-published book: E-business - redefining the Corporate Landscape in South Africa.
"It`s often common sense to learn from the mistakes the leaders make, but not when it comes to e-business. No business can afford to be a fast-follower, yet alone a late adopter.
"It`s be an early adopter or nothing in the fast-moving e-business arena. Businesses must be prepared to take risks if they want to maximise opportunities," she says.
One of the motivators for this early adoption strategy is that an e-business is centred on customer profiles and relationship building.
"The catch-up cost of being a fast follower, and especially a late adopter, will be massive as the early adopters will have already re-aligned their business models along e-business principles and built up solid relationships with their existing and new customer base," she says.
Citing the virtual bookstore Amzon.com as an example of an early adopter, Cradock questions how many people know of and buy from Amazon over the Internet compared with Blackwells, one of the leading UK publishers with a history in book sales spanning more than a century.
"Some companies are just too slow to react to change until it`s too late. According to international research this is often complacency rather than a fear of jumping onto the wrong technology bandwagon. They don`t do anything until it starts to have a negative impact on their bottom line - and then it`s often too late," she warns.
In addition to building enduring customer relationships, a first-mover strategy also has the advantage of establishing brand reputation, setting the rules and dominating niche markets.
"Companies must also be aware that in the e-business model, competition might not come from traditional adversaries. Five years ago, Exclusive Books in SA never expected to be competing with a US-based company called Amazon.com. The traditional banks and financial services companies didn`t expect to be competing with Pick `n Pay on the banking side and Woolworths in the Unit Trust market - but they are today.
"If South African companies don`t develop a focused and speedy commitment to bringing e-business-aligned business models to the market, competitors - from all sides - will invariably provide the new economy market with the customised products and services it wants, faster and at lower cost," Cradock concludes.
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