Archive for the ‘business strategy’ Category

eBusiness - Integration of websites with 3rd party applications

Thursday, July 3rd, 2008

Recently I have spoken to two businesses that are interested in an eCommerce website. Both are established businesses running retail websites. One ecommerce website was more successful then other but the issues were identical. Rather than integrating the websites into the necessary third party applications someone was having to copy and paste data between two systems!!!!

The first point, in both cases, was that the “Someone” was a business owner, who no doubt has far better and more important tasks to be completing on a daily basis. It no doubt felt right at the time when they made the decision, after all, it is an important task that needs to be done right. The reality is that paying yourself £60k a year to do data processing is not good use of resources.

The second is the exposure to risk that can occur with a manual task. In one case it was the payment details, so that chance of getting card details incorrect during the process are slim as the banks have numerous checks to ensure the details match up. The other was account and order creation, which could result in incorrect orders or missing details. When the numbers are small the risks are less but as a business grows the room for error increases.

eCommerce & eBusiness should be about reducing manual overheads and the automation of processes to reduce the risk of error. Ok there is the chance that something can go wrong with the software, but with good levels of testing the risks can be reduced and with log files errors can be easily traced.

This rant leads us back into the use of Kaplan and Norton’s strategy map, which I will pick up next time.

eCommerce During a Recession

Thursday, May 15th, 2008

eCommerce sites provide an excellent form of marketing during economic downturn. When the high street is starting to feel the pinch it is guaranteed that shoppers will be heading online looking for greater value.

The internet also offers a wider source of customers than you might receive from your other channels, obviously the market is virtually world wide.

However simply having a site isn’t going to be sufficient, it is now that extra work is required in order to capture market share at a time when others might be starting to cut back. Investment in search engine optimisation and pay per click advertising will prove money well spent when you start to build your customer base.

eBusiness also offers a cheaper alternative for keeping in touch with your customers. Email marketing is a very cheap method for keeping in contact with your customers and shouldn’t be ignored. It does need to be combined with data from other sources to gain the most value though. Providing personalised and segmented emails to your customers is a great way of showing them that you care. Similar to the mail that comes through the door people pay more attention to mail that is relevant to them.

Many view marketing as an expense that can be cut to save money. I have personally witnessed the implications of such a mistake, a company I worked for previously saw a drop in sales for 6 months, due to reduced marketing activity.

Supporting Our Financial Objectives

Friday, January 18th, 2008

Some time ago Kaplan and Norton developed an interesting tool for measuring business success that wasn’t just focused on the financial targets. It could be argued - well what else is important, but that tends to be very short sighted. An example would be - why don’t we cut back on marketing spend. The accountants argue that this is just a cost anyway.

If we cut back on marketing it does indeed boost profits as the money that was being spent on monitoring and communicating with our customers can now be used elsewhere. However there is a longer term cost. We are reducing our understanding of the market and potentially eroding the relationships we have built up over a sustained period of marketing activity. The future result is, we find our customers no longer want our products and services as the market has moved on. The loyalty and relationships are no longer being maintained with regular communications.

So what do we do? Next we will start to look at how other activities can support our financial objectives.