Doing business online offers the IT department a chance to put
itself on the corporate map. Internet-based technologies can add
the Web to existing business channels, growing the customer base
and improving our understanding of what customers want. For the IT
decision-maker, e-commerce offers a chance to prove that the worth
of the IT department extends beyond keeping the corporate network
up and running. By Martin Couzins.
One good thing to come out of the dotcom boom and bust was that it
brought to the public's attention what was technologically
possible, says Andy Tinlin, head of strategy and customer
management at KPMG. And now that the dust has settled, Tinlin says
it is a good time to look at second and third wave online business
operations.
He cites the likes of Amazon.co.uk as an example of best practice
for online business. The reason, "An easy experience online for
users. The site is clean and quick, which makes it more
user-friendly." To this end, banks are reviewing their online
offerings. AbbeyNational.co.uk commissioned research firm Taylor
Nelson Sofres and consultancy Cap Gemini Ernst & Young to carry
out a seven-month e-commerce audit.
The research found that many consumers were rejecting sections of
Web sites because of poor service or bad design. In the light of
the results, Abbey National removed a large chunk of third-party
content and focused on usability rather than whizzy
technologies.
This said, there are still inhibitors for online business growth.
Tinlin says broadband is still two to three years away, but while
it develops, he argues that companies need to align bandwidth. At
the moment broadband Web sites are failing because the majority of
customers are on narrowband. Security also needs to be addressed as
consumers are still wary about disclosing personal data.
Finally, Tinlin says, businesses needs to reduce upload times to
keep customers on their sites. This will mean stripping out
graphics and any other content that affects upload speed. "These
are basic to getting a Web operation working well," he says.
Despite the fact that online business is maturing, business and IT
managers in bricks-and-mortar companies still need to get their
heads around what contribution the Web can make to the overall
business plan. It is crucial for the Web to be seen as a part of an
integrated sales channel, not a standalone one, Tinlin says.
This affects the IT director because managing an online business
environment is no longer purely an IT issue. Tinlin says
historically the IT director had to worry about infrastructure and
the marketing director was concerned with how to manage the
customers better.
Now the technology can help the business to find out who the
customers are and what they want. And it is the IT director who
needs to be making this clear to the board. For example, customer
relationship management can be a real eye-opener for sales and
marketing people, says Tinlin. Technology can help to "simplify the
customer relationship process", to find out what customers
want.
To convince the board to reassess your online offering, Tinlin
suggests:
- Base all arguments on customer loyalty. By doing this you will
also help to bridge the gap between IT and the business
- Think business benefits, not costs. Tinlin says IT directors
are seen as the "cost", always wanting money. It is time to change
this and for directors to show how technology will help the
business. IT directors should put an end to the "what do you need
money for now" syndrome
- Try to present a view to the board of where things are going
with the technology - seek to map it to the business strategy.
As business online is maturing, so the role of the IT director is
changing. Online business presents an opportunity for the IT
department to help to shape and enable business strategy. While IT
directors champion this change, Tinlin says, "The challenge is to
get the Web better integrated in business and not to worry about
the Web as a separate channel."