Technology needs understanding

In recent weeks there has been much debate around the state of Internet access in SA, with businesspeople expressing concern about the opportunities that may be lost if we are unable to provide and access world standard Internet service.

Having looked at the issues surrounding Telkom, Sentech, and the cost of Web hosting services in general, the truth is clear: SA needs greater bandwidth and the cost of that bandwidth must come down.

Identifying a need and satisfying it, however, are two different things. It`s clear that government must do something to abolish monopolies and bring about a competitive environment in which it is possible to offer affordable high-speed Internet access.

Hopefully, with business in general and ISPs in particular lobbying government to take action, it will not be too much longer before SA joins countries like Australia, France and the UK in achieving affordable broadband Internet access as a result of government action.

While some may simply resign themselves to a lengthy wait, others say South African business should be using the technology that is already available to optimise business opportunities on the Internet.

While technology can enable e-business, it may be argued that like any other technology, it is useless on its own. Local business needs to recognise that success cannot be guaranteed merely by having a Web presence and e-commerce functionality. In order to succeed, local business has to get real about the fundamental demands of doing business online.

Those businesses that have already made a successful transition to e-commerce generally agree that the enabling technologies have to be supported by management commitment and appropriate marketing strategies.

In order to succeed, local business has to get real about the fundamental demands of doing business online.

Warwick Ashford, technology editor, ITWeb

Some go as far as saying the principles of online marketing are completely opposite to those that apply in traditional marketing. Some companies claim that through an astute marketing strategy, they have been able to demonstrate a return on investment of a thousand times. While there is no way of verifying that claim, it is certainly worth taking into consideration.

If we accept this as true, it may be argued that a lack of understanding about how online trading works is as much an obstacle to the development of an online economy in SA as the lack of bandwidth. In time, high-speed Internet will be of little benefit where there is no basic understanding of online business principles.

Online businesses can also complement appropriate marketing strategies with a more effective use of search engine technology.

Someone recently remarked to me that the most likely reason behind the sudden increase in competition between the likes of Google, Microsoft and AOL in perfecting their search engines is the anticipated importance of search engines in the predicted surge in online trading.

Key to success in the world of e-commerce is ensuring your company features as prominently as possible in search engine results, and top search engine companies are investing heavily in research and development based on the conviction that online companies will be willing to pay handsomely for prominent listings.

Companies unable to buy their way into pole position will have to learn to exploit search engine algorithms more effectively. Gary Terrazas of HighTechMarketing says local business needs to learn to take advantage of the marketing opportunities created by search engine technology.

Terrazas explains that companies can improve their chances of appearing on the first page of a set of Internet search results by researching the key phrases used by their potential customers and constantly optimising their Web site`s HTML code accordingly.

Building a successful Web-based business appears to depend on getting real about the nature of trade on the Internet and being able to adapt marketing strategies and Web site design to make the most of the prevailing conditions.

So while we live in hope of a brighter broadband future, the good news is that there is still much that can be done to ensure business in SA will be ready to make the most of the 2010 Soccer World Cup and any other opportunities that may come along.