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E-Business Assessment Steps

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Introduction

With all the hype about e-business, you have no doubt considered its merits for your own business. Or maybe you already have an e-business presence, but need to reassess its focus. Whether you sell products or services, certain fundamentals are prerequisites for success. These fundamentals apply whether you conduct business exclusively on the Internet or supplement your business’ physical location with an e-business component. The concepts can also apply equally to a business to business (B2B) application or a business to consumer (B2C) model. This article shows you one approach to answering the question, "How should I evaluate whether e-business is right for me?"

Three stages of assessment
Additional sources of information
Who to contact for assistance

Related information:
Trust and Electronic Commerce
Three Stages of Assessment
You can divide your basic evaluation approach to an e-business plan into three parts: 

Feasibility
Implementation
Follow-up and Monitoring

The steps outlined below highlight some of the procedures that you might follow to assess your operation’s e-business readiness. The specific steps will vary depending on your particular business goals. We are available to assist with any or all steps.

Summary
Additional Information
Who to contact for assistance
Feasibility Stage

This stage lays the groundwork for all the steps that follow. Before you start this stage, re-read your current business plan. Decisions about e-business should complement that plan.

  1. Visit e-business sites that you like. Make a note of those features that appeal to you and what frustrates you.

  2. Conduct a customer survey on your current web site. An online survey can provide an accurate gauge of your likely e-business population if those completing the online survey closely match the target population. When contemplating a survey:

    1. Consider purchasing survey software (some good packages are available in the $200 - $400 range) that can be integrated into your current web site. Surveys can provide an accurate gauge of the population of your likely e-business customers since those completing the online survey may closely match your target population.

    2. Assess relative ease to set up survey, collect data and analyze the results.

    3. Determine the ratio of customers in your local market compared with total likely customers.

    4. Determine and develop the critical survey questions.

    5. Design the survey.

    6. Integrate the survey into your web site.

    7. Promote the availability of the survey and request participation.

    8. Collect survey results.

    9. Analyze survey results.

  3. Estimate the current and near-term demand for electronic product or service purchases.

  4. Analyze potential, if any, for operating cost savings or avoidance.

  5. Assess impact of e-business on the retention or expansion of customers.

  6. Investigate options for e-business software.

  7. Collect data about available software options.

    1. Identify current vendors.

    2. Gather system requirements and expected software costs.

    3. Survey current users of e-business software.

    4. Identify features that are important to users.

  8. Evaluate the type of e-business software desired

    1. Custom software.

    2. Purchased package with customized interface.

    3. Hosted service.

  9. Assess the capability of your current technology to accommodate expected transaction volume and security needs.

    1. Examples of possible hardware upgrades and related considerations:

    2. Hosting service options vs. additional internal server

      • Additional electronic storage

      • Modem banks (if self-hosting your e-business)

      • High-speed internet connections

    3. Examples of possible software purchases, upgrades and related considerations:

      • Internet service providers (ISPs) that best match your e-business needs

      • Network software

      • Electronic firewalls

      • Encryption software

      • Guidelines for customer passwords

      • Database connectivity

      • Integration of the e-business software with your current accounting package

      • Back-up utilities

  10. Assess training and support costs for your personnel as it relates to:

    1. Hardware installation.

    2. Software installation

    3. System maintenance and support from vendor

    4. Customer technical support

    5. Internal technical support

    6. Monitoring costs

Implementation Stage

In this second stage, you begin to set your e-business plan in motion (assuming that you conclude that the plan is feasible.)

  1. Based on the results of customer surveys and internal information, determine the e-services that you want to offer. Some examples might be:

    1. Product and service on-line ordering.

    2. Price quotes.

    3. Customer account maintenance.

    4. Order tracking.

    5. Shipping options.

    6. Electronic payment.

    7. Product notification and informational marketing.

    8. Customer feedback posting.

  2. Develop a realistic implementation budget that includes hardware, software and training.

  3. Discuss system integration issues with your internet service provider (ISP.)

  4. Acquire additional hardware and software components, as needed.

  5. Develop procedures for updating your online product and services catalog.

  6. Design the interface and procedures for processing transactions. Some elements to consider include:

    1. Order entry.

    2. Product or service delivery.

    3. Integration of order entry and inventory control into the accounting system.

    4. Customer ability to access account.

    5. "Opt out" choice for inclusion of  personal information in the company's database.

  7. Consider privacy and security issues

    1. Disclosure of business practices

    2. Transaction integrity

    3. Information protection (customer and transaction information)

  8. Train your personnel in areas that may be different under an e-business model.

    1. Administrative training areas can include:

      • Features and limitations of the e-business services.

      • Customer relationship management

      • Common questions and answers to anticipate from customers.

    2. Technical

      • Hardware support

      • Software support

  9. Market your e-business services to your existing and potential customers through:

    1. Web sites

    2. Monthly mailings with customer billing statements

    3. Advertising in local media

  10. Educate customers about how to use your product or services (Q&A)

Follow-up and Monitoring Stage

Once you open your e-business doors, you need to listen to what your customers say, pay attention to what they want and protect them during their visit. To do this, you need to:

  1. Monitor your e-business system logs for usage patterns.

  2. Solicit customer feedback

  3. Interview your personnel for their feedback and suggestions for improving operations.

  4. Monitor the effectiveness of privacy and security controls on a regular basis.

  5. Respond to customer concerns quickly and honestly.

Summary

As you can see from the steps above, a move into e-business is not much different from the approach you would take for any other new venture. Plan your strategy. Stick to your plan. Stay focused. And be proactive, but don’t panic if you’re not already there. E-business models, while still in their infancy, will evolve quickly in the years to come. Undoubtedly e-business is ready for you. Are you ready? If not, now is a good time to plan.

Additional Information

The Web holds a treasure trove of information about e-business. Far from complete, a few resources include:

Who to Contact for Assistance
Dean Brown (Greater Lansing)
Dean Brown (Saginaw, Bay City)
Duane Reyhl (Saginaw)

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