#458  from Innovative Leader Volume 9, Number 3          March 2000

Strategy in an E-business World
by Sandra S. Donovan, Ph.D.

Dr. Donovan, president of Donovan Associates (phone 609-936-1880; ssdonovan@aol.com), is a consultant to senior management on increasing profits and growth through improved leadership, strategies, operations, collaboration, and teaming. 

The Internet has helped to create a customer-centric, interactive, non-linear environment, where the next generation of customers will be on the Web, and demanding even more of “better, cheaper, faster.”  Barriers are down, rules are changing, and it’s important to think differently, to adapt. The Internet impact on business is just beginning, it’s omnipresent, touching all corners and aspects of business, and all occupations.

These were the key conclusions from a recent Conference Board conference that was attended by senior executives from many industries and geographies.  I was the conference program director and also moderated the concluding session of panelists* in an attempt to integrate and interpret what we had heard from our speakers and audience.  Here, I’ve sketched the main conclusions.

Most important changes in doing business caused by E-Business World:

Democratizing of information…Customers have “infinite” choices…It’s critical to understand feedback, you may not get a second chance…Markets and customers are now inserted into the value chain.

Premium on flexibility and speed…And, businesses are destroyed with speed. Speed in everything. We are not in the “ready, aim, fire” era anymore.  Now it’s more like, “fire, fire, and fire!”  Recommendation to try something, watch where the “tracer bullets” go and what happened, adjust and keep going.

Most difficult to address:

Scaling computers and systems…Must build for scalability. Changing culture or management practices, which require leadership and commitment.

Unchanged strategic principles:

Figure out your priorities…Customer is always right…Identify unsatisfied needs.

Define industry and scope…Position to be better than competitor…Give Value.

What you measure and reward is what you get!

Confidence and trust are still important, especially trust between buyers and sellers.

Use tools better (e.g. advertise differently).

Wished we had realized two years ago:

What to buy…Killer ideas…Put “Internet” in book title.

Important considerations for embracing Internet:

Know why you’re there…Don’t let cannibalization fears stop you.  If you don’t cannibalize yourself, others will.

Think in terms of reiterations rather than in terms of a long-term strategy set in concrete.

Use more extended relationships, and more virtual aspects for your organization.

It’s not a question of traditional business or dot com, but both.  Initially you may need to isolate/protect dot com; eventually integrate both.

Have a flat organization, and a culture of mentoring, all learning together, all contributing.

Get senior management onboard… Introduce innovation and creativity.

People who don’t accept rules, and don’t accept it can’t be done, function well in Internet world.  Invent the future!  Be bold!  Use your best!  Pay employees or lose them.  “Pay” can also be in form of “intellectual participation.”

Remaining unknowns:

How will we access information in 10 years?  Speak?  Type?

Is broadband real?

Technology change is remarkable…where is it going?

What will 10 year olds be doing in future?

How will Internet play out in our culture?

Who/what to trust?

Final take-aways:

Customer is king,

Availability of information is “infinite” and “cheap.”

Be bold, Break rules, Listen (to customers, feedback).

Be fast, flexible, creative.

Have speed, creativity and focus.

Internet is remarkable learning tool

Think wireless!                                      

*Panelists: Janice Castro Editorial Director, Britannica.com; Bernd Schmitt, Professor & Director of the Center of Global Brand Management, Columbia Business School; Delos Smith Senior Business Analyst, The Conference Board; Barry Hedley, Global Practice Director Strategy & Financial Management, Deloitte Consulting/Braxton Associates; James Knight Partner, SCA Consulting; David Mason, Senior Vice President Digital Strategy Consulting, NerveWire.

© 2000 Sandra S Donovan