Internet Strategy: First Steps to a Strong ROI
by Robert Faletti, Blue Archer Principal
In past years, you have heard the internet-devout prophesize that the only business will be eBusiness. You have also seen the internet bubble burst, and perhaps have felt the ripple of the resulting economic waves. And today, you are most likely confused about how your business can and should properly utilize the internet.
Endless product offerings await you in the marketplace- choosing the right tool for the right application can be a difficult process at best, and an expensive one at worst. By identifying areas in which internet technology can provide the strongest return on investment and best benefit your business, you will maximize the efficiency and effectiveness of finding the right internet application. The following information will help to provide guidance and direction.
The Internet as a Cost Cutting Tool
In a recent meeting with a large manufacturing company, it was discovered that approximately two thousand dollars were spent each month on printed memos, meeting agendas, and other paper-based communication items. This number represented the cost of paper and ink only- it did not factor the labor hours spent on copying and distributing these items.
Utilizing the internet as a communication and organization medium can eliminate these unnecessary expenses, and may often represent an ROI in as little as two to three months. A company intranet is a perfect example of an application that may quickly and inexpensively be implemented, and will provide immense value to many companies.
A basic intranet will provide a central resource for employees to access general information, such as company policies, insurance handbooks, and the like. It may also be used to post memos, company events and schedules, and to share collections of documents or shared project information. An intranet may be extended to personnel in the field to instantly access critical information while visiting clients, thus improving the sales process and eliminating phone, fax and mailing expenses. Time and expense reporting is another valuable application that an intranet may provide.
For companies with more advance needs, an intranet may be scaled to provide virtually any mission-critical application or necessary information anytime, anywhere, via the Internet.
The Internet as a Service Tool
Many companies require close contact and information exchange with their clients. In some cases, supporting the needs of the customer requires unnecessary expenditure on call centers, customer service representatives. In other cases, the client simply is not serviced properly.
Implementing an extranet, which is simply an intranet that is extended to entities outside of your organization, is a cost-effective way to provide your customers with better service. Sharing inventory levels, project status, meeting minutes, product data, and other information your clients may be interested in, via an extranet, provides a method of meeting customer demands without taxing your internal resources. In many cases, a customer would rather have immediate access to the data they require without picking up the phone or sending an e-mail request, and waiting for their response.
The Internet as a Revenue Enhancement Medium
E-commerce applications generated the majority of internet hype, and still play a valuable part of a company's Internet arsenal. However, a common misconception is that the only definition and use of e-commerce is "transacting a sale via the Internet" The true use of e-commerce encompasses all segments of the sales process.
An example of this is a manufacturer that sells their product through a few exclusive retail sales channels only. This company could not execute a transaction online without damaging their relationship with their retailers. The solution for this company was to create an online presence that would provide the customer with information and services that would supplement their marketing efforts and help increase in-store sales. The site helped to bridge the gap between the customer's initial purchase consideration and the in-store sale.
Other applications may involve providing product support after the sale. And of course, establishing a transactional site may be critical for many businesses to remain competitive or to stay ahead of the curve. Just remember that the Internet is a valuable tool for the entire sales cycle.
The Internet as a Process Improvement Tool
Utilizing the internet to streamline processes, with the ultimate goal of cost cutting, enhanced customer service, or to minimize time to market, for example, is another application may companies are taking advantage of.
Most of these types of solutions require custom developed systems, or boutique packages that target a specific process or industry. In either case, if you feel that a current process is draining resources or creating a bottleneck within your organization, odds are strong that an internet application may ease this pain.
Next Steps
Once you've identified and targeted an internet application, the search begins for the optimal solution. Each vendor you speak with will have an alternative solution- speak to many to find a solution that is cost-effective and proven, and don't settle with a vendor until all your questions have been answered and the solution proven.
Exchange ideas with and ask questions of your colleagues. Find out what's been attempted, what worked, what did not, and don't settle on a solution without ensuring it will benefit your organization and provide a strong, realizable ROI.
For more information, Robert Faletti may be reached at 412.353.1048, or at rfaletti@bluearcher.com.
