The transition from a bricks and mortar to a clicks `n mortar economy

One of the most profound economic transitions in history is occurring as the Internet Economy takes hold on a global basis. Virtually every kind of company from traditional brick & mortar to new market makers (i.e., Internet start-ups such as Amazon.com, ebay, E*TRADE, etc.) are embracing the challenges and rewards of the new Internet Economy to "clicks & mortar."

In this transition, traditional brick & mortar companies are looking to exploit the Internet by leveraging their investment in existing infrastructure to connect to expanding partners, suppliers, and customers worldwide. At the same time, the new market maker companies will have to extend their capabilities beyond the Internet toward the realities of brick & mortar operations. For example, Amazon.com has to manage inventory, ship products, bill, etc. They may have a virtual storefront and are able to take orders 24 hours a day, but they still require traditional brick & mortar backend processes to deliver. In this tidal shift, the line between opportunity and calamity will be thin and treacherous. On the other side of this divide is the new integrated and connected world, "clicks & mortar."

Success will be tied directly to striking a balance between availability, adaptability, and time to market. Traditional brick & mortar businesses must avoid the potential traps of misdirected advertising and investment in inappropriate technology, as well as business models that may not meet Internet realities and the consumer` s willingness to pay. Given virtual businesses` greater responsiveness and lower infrastructure costs, brick & mortar businesses must carefully analyse and restructure their business models as well as their information-exchange capabilities with business partners and customers throughout the value chain to meet electronic commerce (e-commerce) demands.

Many brick & mortar companies also face the challenge of dealing with intermediaries in their physical channels, who resist displacement.

Traditional business methods, such as order/invoice processing, must be re-examined in light of the more diverse order/deal management processes that are emerging as a standard on the Internet. The electronic business model, from electronic catalogues to electronic bidding systems to electronic search agents, is changing the entire supply chain, leading to increased global competition and demand from customers for service that is faster, cheaper and better. Companies that rely on traditional business models for e-commerce will find themselves increasingly unable to compete against the onslaught of electronic businesses (e-businesses) operating on the Internet with new business models. I t has been widely predicted that the companies that survive the migration to E-business will be those that combine the best architecture and business processes of brick-and-mortar companies with the speed and flexibility of the Web model.