Computers Today, January 1-15, 2000, Viewport

<a target="_top" HREF="http://adex3.flycast.com/server/socket/127.0.0.1:2800/click/IndiaToday/InfotechNews/123"><img SRC="http://adex3.flycast.com/server/socket/127.0.0.1:2800/img/IndiaToday/InfotechNews/123" border="0" width="468" height="60"></a>

January 1-15, 2000 VIEWPORT

I Want My E-commerce

The primary causes of E-failure are: creating rigid strategies and allowing technologists to set out business strategies.

By Pradeep Anand

Recently, I read a research firm predicting that more than 95 per cent of E-commerce implementations will fail. Shocking as it may sound, that prediction did not surprise me. For the past year or so, I have seen many firms taking the plunge into E-commerce, like lemmings off the cliff, into a sea of disappointment. The causes for the high failure rate are many, but that is what happens when corporate leaders become enamoured with the growing importance of the Internet, and command, "I want my E-commerce!"

In my opinion, the probability of any E-commerce project failing is almost 100 per cent, at the outset. Every plunge into the Internet space is doomed for failure unless promoters work hard at reducing the probability of failure. By incessantly chipping away at causes of failure, the chances of success are improved.

Anatomy of the Adage

Some of the causes of failure are: creating rigid E-strategies or direction; allowing technologists to set business strategies; being out of touch with markets-customers, competition; being controlled by old business habits-this is the way we do business; being a risk-averse follower, waiting for others to lead; limited imagination and understanding of what Web-based technologies can do to your markets and competition; believing in the modern adage saying "Build it and they will come"; assuming that a Web site is an adequate presence on the Internet; and underestimating the real power of the Internet to create a loyal customer.

A Web site is a door through which customers enter the virtual company. However, if no one is aware of the door's existence, will anyone knock at the door?

To turn "I want my E-commerce!" into a runaway hit, firms should, at a minimum:

Build an E-business strategy, not technology or business tactics. What is needed is an E-commerce strategy, not technology strategies in the guise of business strategies. Most firms use technology companies to create business strategies-it is like asking your builder to architect your home. Worse, some firms ask their internal IT or marketing communications departments to take them into this new world.

Develop an intimate, not casual knowledge of the market. All E-commerce strategies are built on strong foundations of market knowledge-customers, competition, and business climate. An indirect benefit of the Internet is that organisations need to be intimate with their customers and their behaviour.

Break the shackles of current business models. We now have the opportunity to create entirely new business processes to reach, to interact with, and to sell our customers. The Internet now provides the ability to create entirely new processes that may compete with existing ones.

Portal to the Net

Deliver unique value propositions to keep customers coming back. The Internet has very few barriers to entry. Yes, anyone can enter the market and stake a claim but the hard part is to own the customer base. This can be done in several ways-each one can provide unique value propositions to engage customers in very strong ways. First mover advantages are very powerful as are customers' reluctance to move from an existing navigating methodology to another.

Unique content always keeps bringing back customers, as does belonging to a unique community of Netizens. Both establish powerful customer franchises for the firm.

The writer is a management consultant based in the US. He can be reached at pradeep2@aol.com

Issue Contents Write to us Subscriptions Syndication