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Portals and competitive advantage

Martin Butler
Tuesday 24 July 2001 05:33
Portals are expected to raise their profile in the business arena, but will they prove to be as useful a tool as the mobile phone or email? asks Martin Butler

The upsurge of interest in portals as a tool for creating business advantage has been as great and as rapid as just about any other 'new' idea to come from IT vendors in the past few years. If early acceptance is any guideline of future success, then the portal is bound to have a long and successful shelf life.

There is no doubt that the portal market has reached a point where certain vendors - those who are not just leaping onto the latest bandwagon - can provide part of a technology and informational infrastructure to an organisation that will create real competitive advantage.

The basic need for all businesses is to simplify this technology and information infrastructure. Where this is not possible, this is no simple matter because both infrastructure elements have to be made as transparent as possible to the end user.

CULTURE SHIFT
Before any of this can happen, there has to be a true understanding throughout the organisation, led from the highest level, about the importance of structured and personalised information delivery. This will mean a major culture shift in the majority of businesses, as the core processes that are used to drive the business will need to be integrated with both internal and external informational elements.
Processes that have typically been driven by data delivery will need to be re-engineered to use and deliver information. Organisations will not be able to use information as a competitive advantage unless that information is accessible to the business applications. This is the true strength of the portal; it is not just an application or information delivery mechanism, but a solution to integration in its purest form.

Portals need to be externalised; although the early push has been in the business-to-employee (B2E) space, where their effectiveness can be best measured, a most effective solution has been to allow external controlled access. This gives the requirement for a massively scalable distributed architecture that is flexible enough to scale both up and down.

As the portal becomes an ingrained part of the way that everyone operates, the implemented architecture has to be fault tolerant to an extremely high degree. The portal will be the email or the mobile phone of the future in business usage terms. Just as the ability to conduct business is impacted negatively if either of the former should fail for any length of time, so it is with the portal.

The portal should be considered as a deep-seated foundation for the business, just as email is today. Again, this understanding and the depth of implementation have to be driven from the highest levels of the organisation throughout the company structure.

The implementation of a portal solution that operates at these levels has to be viewed as a strategic - and therefore long term - investment. The return on investment measurements used to gauge the effectiveness of the solution have also to be viewed from the same standpoint. As the portal is rolled out across an organisation it will continue to add value to the business - as any good solution should.

This means that a portal deployment has to be seen as an ongoing exercise in business development not an out-of-the box solution. This will create problems as the presentation layer of the portal can be delivered at a departmental level relatively easily, but the underlying layers of the portal model have to touch all of the infrastructure to be effective, and therefore need to be organisationally enabled.

COMPETITIVE ADVANTAGE
This fact has led to longer than expected implementation times and some negative feedback as to the worth of the solution. To a large extent, this is the pain that goes with being an early adopter, and has been the case with other solutions in the past. The reward for that pain is the gaining of competitive advantage.

An obvious way of reducing the pain to a more acceptable level is by careful consideration of which solution to implement. As any market grows, so the number of hangers-on and fringe players increases. This is becoming blatantly obvious in the portal space, as solution providers define portals in their own way to fit into what they currently have to offer.

With this large number of diverse definitions in the market place, it is essential that the requirement is clearly understood and translated into a delivery plan that the solution provider has to be able to meet. As the true portal implementation will reach deep down into the technology base, getting it wrong is not only not an option, in terms of wasted resource, but is also potentially deeply damaging to future business development.
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