Going Online: a roadmap for entering ecommerce

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Going Onlinea roadmap for entering e-commerce

• Horace Mitchell
• European Telework Development
• http//www.eto.org.uk
• eto-info_at_eto.org.uk

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Going Online

• What does it mean to go online
• What it doesnt mean?
• Why every business should go online
• Key questions
• Roadmap indicators
• Roadmap
• Questions for centres of competence

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What does it mean - to go online?

• Before a company can make competent decisions
  about an electronic commerce strategy, it needs
  to understand and use the underlying
  technologies.
• This can best be achieved through a three step
  approach
• electronic networking internally within the
  business
• electronic networking with existing customers,
  suppliers and contacts
• electronic networking with the market -
  electronic commerce
• In a small firm the steps can be followed quickly

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Focal role of electronic networking
Step 1
People are electronically networking within the
company
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Focal role of electronic networking
. . .then with customers, suppliers, partners
Step 2
People are electronically networking within the
company
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Focal role of electronic networking
. . .then with customers, suppliers, partners
People are electronically networking within the
company
. . .then with the market
Step 3
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What it doesnt mean
Send us your brochure and well put you on the
web
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Every business should go online

• Sooner or later it will affect your business
• If you wait until it happens to you it is
  probably too late and could be fatal
• Now is the time to be on the learning curve
• But
• Being online means many different things
• There is no best path for all businesses
• Each business needs to understand and choose

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How far to go?
Mainly offline
Mainly online
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Some key questions
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Local market characteristics . . .

• Economic aspects (example)
• Denmark GDP per capita 29,873
• UK 18,849
• Portugal 9,851
• Poland 2,797
• Social/cultural differentiation (example)
• Denmark population in workforce 55.8
• Austria 48.3
• France 45.0
• Malta 36.1

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. . . and local take up differences
Source EITO 1998, data for 1996
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Domestic (same language, same culture) market
opportunity
(millions)
Source EITO 1998, data for 1997-8
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Different places, different cases

• gt70 of e-commerce etc wisdom derives from the
  USA market and experience
• Other countries and regions are different today
  and will be different tomorrow
• The global networked economy is here, is growing
  and will continue to grow - it is the basis for
  phenomenal opportunities
• But local strategies and tactics must derive from
  local as well as global realities

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More questions

• Can the product be sold in English? - or must it
  be sold in the language(s) of the buyer(s)?
• Can it be sold to a world wide audience? - or
  must it be sold in cultural context?
• How much (and when) does the customer need
  dialogue with the supplier?
• Is the customers preference to deal direct or to
  deal through trusted intermediaries?

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Roadmap indicators
High
Explore alternative/synergistic businesses and
markets
Fast track to strong online orientation
preparedness
Progressive development towards online orientation
Online representation by third party/ies
Low
High
opportunity
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Example of offline business sold online by
intermediary
online promotion
search engines
web directory and selection facility
Berlin hotel
customer
Online presence and marketing agency
Website (brochure online)
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Example of offline business sold online by
intermediary
online promotion
search engines
web directory and selection facility
Berlin hotel
customer
Online presence and marketing agency
Website (brochure online)
email reservations
phone reservations
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Example of offline business sold online by
intermediary
online promotion
search engines
web directory and selection facility
Berlin hotel
customer
Online presence and marketing agency
Website (brochure online)
email reservations
Berlin hotel B
phone reservations
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Characteristics

• Product fully understood by customer
• Commodity or commoditised
• Nature of contract is simple and standard, easily
  expressed
• Product is relatively static
• Same product sold by many suppliers in same
  context
• Supplier differentiations easily explained and
  understood
• Product is routinely bought by phone, fax,
  off-the-page

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Characteristics

• Very low cost for small firm
• Low risk - existing processes continue
• Low change/learning - existing processes are used
  to support the online activity
• Online expertise can be fully outsourced
• Putting the brochure online is a valid approach
• Small firm doesnt need any ICT investment or
  competence - not even a PC!

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Questions for centres of competence
Should we be looking for cases like this?
Or should we be looking for the other extreme -
the business that cries out for the full online
treatment?
Or both?
(See notes below)
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Questions for centres of competence
Given constraints in resources and expertise,
what should be our priorities? (see notes below)
Should the priorities be the same in all
Countries? . . . Regions? (no, but we can share
results while applying different priorities)