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Published ArticlesE-commerce 101: Covering The Basics
by Jeannine Taylor
Other Articles The top question from many of our clients over the past year goes like this: "I need to talk to you about e-commerce, but I'm not really sure what it is or what we need to do about it." We can often feel the relief when we explain that there are probably hundreds of different definitions for "electronic commerce", depending on the industry.
Confusion about e-commerce is more common than clarity. As a business person, you are not alone if you feel pressured by e- commerce hype. You may even fear e-commerce due to a lack of direction, technical knowledge, or the learning curve ahead of you. The urgency that business people feel is often compounded by such fears.
This column is not going to relieve your sense of urgency. There should be no doubt that the internet is redefining global communications and the economy. Businesses ignoring the fundamental redefinition of how we live, shop, do business and communicate will do so at their own risk. What I hope to provide in this column are some preliminary tips that may be helpful in your business planning process.
The Need to be Wired
Does everyone have access to the internet at your workplace? Is everyone reading their email on a regular basis? Are there any gaps in their technical training needs? While these may appear to be obvious points, they are commonly overlooked. A recent North American survey revealed that only 25% of CEOs read their own email.
Before your business invests in a sophisticated e-commerce application, you need to ensure that systems are in place to support it. Your internet applications will only be effective if your staff is comfortable managing them. Businesses must be committed to providing their staff with the proper tools before they move to external internet marketing techniques.
Your New Business Model
E-commerce can be defined as the sharing of business information, maintaining of business relationships, and conducting of business transactions by means of telecommunications networks. Your planning process could be built around this general definition. To determine how your business can use e-commerce, review how you use the internet now, how your suppliers use it, and how your customers use it. Most importantly, find out how your industry is approaching e- commerce. You need to be aware of the potential shifts and planned technologies now to be prepared for the future. It has been said that one year in real time is the equivalent to three months on the net. The speed of growth on the internet is one factor contributing to the urgency and competitive nature of e-commerce.
The Global Market Excuse
One of the most common excuses we hear from businesses about why they are not on-line is "I am a small business on Main Street, Ontario; my customers are local and the internet is for global business". Yes, the internet has the potential to reach global markets. And yes, your current customers may only be in your local area. However, if they are not already, they will soon be using the net to locate local businesses and products. If your local competitor is doing business on-line and you are not, guess who will get this business?. Regardless of whether your business is local or global, it is inevitable that e-commerce will impact your market share within a couple of years. Perhaps it already has. To remain competitive, you must review all aspects of your business to project and plan a necessary shift in your products or services.
Become a Competitive Surfer
With the amazing growth of the internet, you may feel it is impossible to predict where your industry is heading in the new economy. But you know your business the best. Arming yourself with research will help you discover how your business might move to e-commerce. The web is the ultimate tool for reviewing your competition and understanding the patterns of your customers.
Spend at least an hour a week searching for sites that are similar to yours. Watch the newsgroups that may be used by your target market. Subscribe to email news services related to your industry. You will very quickly develop a better understanding of how your industry works on- line, and you'll pick up some great ideas along the way. You'll also note some things that you should avoid. Knowing how your competitors and customers use the web will give you a strong competitive advantage.
For more information, contact:
Jeannine Taylor, CEO
(705) 742-6404
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