The first paragraph of this article provides a succinct summary of the content. According to a study by the renowned research firm, Gartner Group, a staggering 75% of all e-business projects are doomed to fail due to inadequate planning and unrealistic expectations of technology. To thrive in the digital marketplace, businesses must undergo a thorough evaluation process. A popular framework for this evaluation is the "Seven Pillars of E-business". This article delves into each of these pillars, providing a comprehensive understanding of what it takes to succeed in eCommerce.
Online marketing has been around since 1994, when the first wave of mainstream companies began to establish their presence on the web. These early websites were simple HTML pages showcasing product information. Today, some businesses still rely on this basic approach, hoping that potential customers will stumble upon their site and make a purchase. However, according to the Yankee Group, only 31% of small businesses and 51% of medium-sized businesses in the United States have a website.
Online ordering allows customers to submit order information through a company's website. This process can be easily set up through a static HTML web-form. When a customer submits an order, the information is sent to a company email address. The company then follows up and bills the customer through traditional business channels. Many businesses, particularly in the tourism sector, operate at this level. However, this method is essentially a digital version of fax ordering, as all information must be manually processed by the vendor.
Online selling takes the online ordering process a step further by conducting the entire transaction online. Customers' credit card information is authenticated directly online, and they are provided with proof of payment. The vendor receives payment directly to its merchant bank. This stage requires a sophisticated database-driven website, strategic planning, a substantial programming and insurance budget, and a bank that allows online credit card merchant accounts. Companies like TravellersMall.com provide these capabilities at a low cost, enabling businesses to overcome the challenges associated with this pillar.
Online fulfillment occurs after the customer has been marketed to, placed an order, and the financial transaction has taken place. This step is divided into two categories: physical products that cannot be distributed over the internet, and non-tangible products and services that can be delivered online. For the travel and tourism industry, the fulfillment process involves confirming reservations, booking, and transferring information to vendor databases.
Online consumption is only possible for certain types of companies. For instance, companies selling information can have customers consume purchases online. An example of this is a subscription to the Wall Street Journal Interactive Edition, where subscribers can read various newspaper articles online.
Online support can be offered regardless of whether the product or service is fulfilled and consumed online. Many companies have an online support process in place, allowing customers to email or visit a specific section of the company's website for assistance. More advanced database-driven websites enable users to track orders online and receive support information through a password or other identification code.
Once companies have mastered the previous pillars, they can leverage their customer database and market data to continuously communicate and market their services to their customers. This requires careful planning and marketing management. The ability to deliver direct marketing programs at the press of a key offers significant cost savings compared to traditional mail or general advertising mediums. It also makes the analysis of the return on investment of these programs much more favorable.
In conclusion, these seven pillars of e-business are crucial considerations when planning an e-business strategy. Businesses must ask themselves how far they want to take the e-business equation and how far their business model and product offerings will allow them to go. Banff.com, the Canadian Rockies Internet Guide, features the e-business solutions provided by TravellersMall.com. Visit us to streamline your e-commerce solutions today!
