13 September 2004
For many companies, implementing an eBusiness strategy is taking a leap into the unknown. Getting it right first time can save a bundle and grow your business, seamlessly delivering your services electronically. Get it wrong, however, and companies risk cost blowouts, losing customers and even jeopardise their businesses.
Companies will often repeat the same critical mistakes when implementing eBusiness solutions, according to Greg Muller, managing director of iFocus Pty Ltd, leading independent ebusiness consultants.
Mr Muller believes that these mistakes are avoidable, even though ebusiness might seem complicated at first glance to most businesses. “It usually starts with a failure to see the big picture first and consider the customer’s needs”, he said. “And that has quite often little to do with technology.
“Too many organizations have a budget for IT and want to buy something without first being crystal clear about what that it needs to do. Being clear doesn’t just mean good documentation either, you must know how it will impact your people, processes and your customers” he said.
According to Greg Muller, the “big 3” classic eBusiness mistakes are:
- Failing to match the customers preferred way of interacting
- Buying a system that does not match your internal processes
- Spending money in the wrong areas
Ignoring the customer or end user of an ebusiness system is the biggest mistake an organisation can make, according to Mr Muller. “It’s often the first mistake people make, and the most crucial, as it has a domino effect.
“Conducting thorough market research into your customers is absolutely vital. Unfortunately, many organisations pay lip service to the needs of the customer, and then put in a system that has little relevance to them.
“Going into eBusiness without first researching your potential users is like entering a 100 metre race blindfolded. Research underpins strategy, which together makes your eBusiness decision making more accountable”, he said.
By failing to consider their customers, an organisation risks spending big money in the wrong areas.
“The biggest spend in an eBusiness program is often on the development of the application that people will need to interact with”, Mr Muller said. “But what you build cannot be decided on until you know how your customer wants to interact with you, and what sort of interface will be right for them.”
A system must also be able to match the internal processes of an organisation. Too many try to fit their organisation around an inappropriate solution, which causes myriad problems and is the second big ebusiness mistake. Mr Muller said: “The decision is not just about technology or a website; it can be about the future of the running of your entire operation.”
He said that this can result when a business adopts a “me too” philosophy to technology and jumps into a solution that is unsuitable. “For instance, will you be able to support the solution that you implement on a day-to-day basis?”
“eBusiness solutions constantly evolve, just like our businesses, and we need to make sure we continue to pay constant attention to processes. eBusiness is never a ‘set and forget’ deal. It is therefore essential that you partner with the right people”, Mr Muller said.
The third classic eBusiness mistake is spending money on the wrong areas, according to Mr Mulller. He says that organisations often misallocate their IT budgets, putting too many resources into their IT infrastructure and applications, while ignoring the strategy that will drive the eBusiness program and the interface that most customers will engage with.
“Companies that get eBusiness wrong need to re-focus their spending”, Mr Muller said. “Many are too heavy on the applications side because they haven’t taken a holistic view of their business, including the business processes that they need to support. Before making the application purchase, it’s important to be informed on how the spend will actually benefit and impact the organisation”, he said.
It can be a delicate balancing act, Mr Muller concedes, but if a company at least has a big picture view of itself and where it—and its customers—wants to go, they are on the way to building an ebusiness strategy that strengthens the business.
“Entering eBusiness without the right research and the right strategy could lead to a weakening of business instead of a positive new era,” he said.
For further information please contact:
Greg Muller
Managing Director
iFocus Pty Ltd
Phone 03 8807 0100