Managing Change - Managing The Development Of An E-business Strategy

MANAGING THE DEVELOPMENT OF AN E-BUSINESS STRATEGY

The shift from a traditional brick-and-mortar enterprise to a click-and-mortar entity typically begins with the formation of the e-business strategy itself, which is often a time consuming and labor intensive process. Many steps are involved in creating an effective business approach, and many levels of management are typically involved. The enterprise must first decide on the common goals it wishes to achieve by implementing an e-business plan. Management should decide why it is going online and what benefits the Internet can provide. It must decide if it is going to target existing customers or try to attract new ones. The enterprise also needs to select target markets and advertising methods, decide what it will be promoting online, identify competitors, and be in tune with conditions in its selected markets.

While these steps are no doubt important, managing the change that goes along with creating a new business strategy is often difficult, and even overlooked. According to a study done by Deloitte and Touche in 2000, 70 percent of online retailers surveyed did not have an e-commerce strategy. Many simply had established a Web site to test demand for their product or service on the Internet. The study did find that those who took the time to develop a strategy were outpacing their competition. According to a January 2000 E-Commerce Times article, "these e-tail leaders have developed a strategy that integrates their Web efforts with other channels. Their e-business effort is designed to win market share and mind share with innovative value-added service—not just to get a presence on the Web."