Strategy – e-business

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Here’s how to help determine whether or not e-business is right for your operation

Have you ever wondered what the key is to building an effective business Web site? Or why, despite gorgeous graphics and programing razzle-dazzle, many Web sites confuse, misdirect, or waste precious visitor time?
Whether you are working on your first Web site or considering an upgrade of an existing site, the key to effective Web sites boils down to developing your Internet strategy.
A business analogy helps illustrate that point. When top management concludes that their business has run out of physical space, the next step isn’t to begin construction. Rather, the next step is to develop a facilities plan to figure out how much and what kind of space is required. The facilities plan answers essential questions such as: whether to expand the current facility or build new; whether to buy or to lease; where to locate a new facility, what logistics issues have to be overcome and how, and more. Similarly, when you determine that your business needs a Web site, the next step isn’t to begin programing. The next step is to develop your Internet plan.

Here are several essential questions that strategic Internet planning will help answer:

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What do your customers need or want?
An effective Web site makes it easier for your customers (visitors) to do business with you.
Effective design depends on how well the essential functions your site needs to perform are identified and defined.
Your customers can help you identify the relevant and essential functions from their perspective. Ask them how you can make obtaining information or completing transactions simpler. Ask them how they currently utilize the Internet. What types of information are they looking for? What do they like about other companies’ Web sites?
The deeper you dig into this area, the more likely it is you will find ways to streamline the flow of information between your customers and your organization and improve customer relationships.
What are your competitors doing online?
An evaluation of the competitive scene is a necessary element in any strategic planning process, including Internet planning. A review of key competitors and an evaluation of their online activities will help further define the essential functions of your Web site. A competitive analysis also helps you develop your company’s own unique and differentiated approach.

What do your key managers and employees suggest?
By seeking out and evaluating ideas and input from within your organization, you’ll find ways to more efficiently and perhaps more cost-effectively meet the needs of your customers and your business objectives.
During the planning process, you and members of your management team will be working to set specific goals and define the essential functions of your new or upgraded Web site.
In addition, find a project leader who has the ability to seek out, listen, and understand relevant input from the department managers. The right project leader helps you get the necessary buy-in for success and support for working through the changes to the company that will result from building a Web site.

What can the Internet do to improve my business?
The business functions that can be performed on the Internet are virtually limitless. Web site programing capabilities vary from generating simple e-mail messages to transacting complex business-to-business initiatives.
The business functions that are right for you depend on the type of product or service you offer, your business goals, customer needs, and budget.

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The sale of product via e-commerce is not the only business need that can be met by building a Web site. Here are some examples of what the Internet can do.

  • Your customers (end users) may wish to know which one of your products is best suited to their specifications or purpose before going out to a local dealer to make a purchase. The Internet makes it easy for customers to obtain such information by filling out an easy-to-use form and immediately receiving product information that meets their specifications.
    The Internet can help you obtain feedback from customers in the form of surveys, refer consumers to your dealers located nearby, allow customers to access their own, secure transaction data to track an order, look up inventory levels, get pricing information and more.
    The Internet allows companies to make product or service information readily available to a wide-ranging audience. From images to technical specifications, from video presentations to downloadable forms, the Internet saves time, improves efficiency, and can help lower transaction costs.
    The Internet can help recruit new employees, promote community involvement and other positives about your company.
    Finally, the Internet can help your outside sales force submit orders, submit information or service requests, or download company forms.

    An important objective of strategic Internet planning is to determine how you want your business to be portrayed on the Web – not to transform your business into a "dot.com." A review of your business plan objectives from an online perspective will help you discern ways in which the Internet can help accomplish your business goals.

    What is your budget?
    Another objective of the planning process is to align the essential functions defined for your new or improved Web site with your budget. The price range for building a Web site increases with:
    – extent of external strategic planning skills required
    – size (or number of pages)
    – graphic design
    – complexity of the programming required to perform the essential functions
    – availability of content information (including copy and images) or whether it has to be created
    – level of outside professional project management required
    – whether online functions need to be integrated with your existing business systems.

    Ultimately, the scope and complexity of your Web site project will determine the final price.
    Determining the right type of site for your business and ensuring that budget resources are spent wisely boils down to strategic Internet planning. A solid plan will ultimately define your site’s essential functions based on your specific business objectives. A strategic Internet plan will help you choose the right type of Web site for your specific business goals as well as reconcile your priorities with budget parameters and timing expectations.

    Does your business need a Web site?
    What if, after going through the process of analyzing your customers’ needs, competitors’ activities, and your business objectives, you find there is no compelling reason to build a Web site? Is strategic Internet planning a waste of time and effort in this instance?
    No. If the "do nothing" alternative is the outcome of the planning process, then your decision will be based on more than just "gut instinct." Your decision not to invest further time, effort, and money on a business Web Site at this time will be informed, active, and based on an understanding of the risks and rewards as well as financial implications of this course of action.

    What are the next steps?
    The race to get online fast can be so overwhelming that you may be tempted to cut the strategic planning process short – or worse, ignore planning entirely thinking it is too time consuming, burdensome or costly.
    Don’t fall into that temptation. Go through the strategic planning process, first. If internal resources aren’t available or a more objective outside perspective is preferred, Internet consultants can help you analyze how to meet your business objectives from an online perspective so that the site you develop is on target. With proper planning you will not only get a handle on the critical issues facing your business, you will also be assured of building an effective business Web site.

    The above article was provided by Sarah F. Branflick of Branflick Consulting of Middleton, www.branflickconsulting.com

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