Companies get into eBusiness with a wish and a prayer when they think putting up a website is the path to success. Stop and think before you take that track and fail.
On the surface, eBusiness seems so easy. Put up a website; advertise and voila…hear the cash registers ring all the way to the bank. Your only problem: how to count the gazillions that you will make.
Unfortunately, that is a fantasy not supported by facts.
eBusiness is all about getting your business model right. Through the new ecosystem called the internet, you have new opportunities. The question is: how do you leverage them to create business value.
Nothing is a given. Nothing is obvious. Nothing can be taken for granted.
What is in your way is your existing business model – for most companies that get into eBusiness are existing companies and rare are those that are “pure-plays.” People tend to focus on the pure-plays forgetting that, sooner or later, even they need to expand their footprint into the on-ground world. Even a seemingly “natural” pure-play like Google has had to expand into radio and print advertising.
So how do you overcome your existing business model? More importantly, how do you create a new business model that may or may not leverage your existing business model?
Chances are you will grapple with the former because the latter is a complex and dangerous undertaking which requires an incredible amount of thought and yes, courage. Often, it is not necessary to destroy your existing business model. However, increasingly, it is an imperative to modify your business model.
eBusiness success depends on your ability to do that. It is not dependent on the coolness of your website or the features and functions it offers. If you do not get your business model right, no website can save you.
Do you doubt that assertion?
Then read up on www.Webvan.com. They had a star CEO, the coolest website and burnt through a billion big ones. The result? Well, have you bought your groceries from Webvan lately?
On the other hand is www.Peapod.com. They got the memo. The result? They are going strong and chances are you will buy your groceries from them at some point in the near future.
Whatever happened to www.Napster.com? It has been resuscitated but is it in the same league as iTunes?
There is one and only one cardinal rule of eBusiness: It’s the business model, stupid!
