Friday 22 December, 2006
With competition driving the strategic direction of business
in today's economy one of the greatest innovations of our time, the
internet, is being overlooked in the race to find the competitive edge.
The shape of the business landscape is being fashioned by emerging
technologies, a shortage of skilled labour, the threat of new market
entrants and consumers who are better informed due to the wealth of
information available. Successful business owners are learning quickly
that to survive in this environment they have to do things smarter, not
necessarily harder, to survive. And in doing so, they are starting to
harness the emerging potential of the internet.
Most businesses seek revenue to sustain and grow their market by relying
on income from traditional sources - marketing, selling and servicing
their assumed market. But what if a whole new, untapped market existed -
for a product or service you didn't even know you had? What if there
was the possibility to generate revenue from that product or service
while you slept?
The internet offers a continuously evolving medium to harness the
untapped value of your business. Realising this potential can help your
business to access global markets in an affordable economy, create a
more loyal customer base, leverage emerging technologies, undoubtedly
deliver service innovation, develop product innovation and for some,
build a new and exciting dimension of your business that makes you a
competitive force in the labour market.
So where do you start? The number one requirement is to look into your
business and understand all dimensions of your intellectual property.
Once you are clear on your strengths, you can start to use those to look
for extensions of, or parallels to, your existing products and
services. Let's walk through the three key elements any business should
consider for an internet strategy:
-
Access or subscription to knowledge,
-
Web based delivery of existing products and services, and
-
New products and services.
Access or subscription to knowledge
Think about your business. What is the knowledge you have that your
customers seek? How can you take that knowledge and make it available
over the internet to customers and non-customers alike? Maybe this is in
the form of a newsletter, industry insights, expert advice, access to
various channels or key data and analysis. The options are limitless.
You can use this strategy as a marketing tool and provide free access,
or as a revenue generator and provide fee-for-view or subscription based
licensing models. The latter introduces the leverage of the internet as
you develop once and sell to many.
Both strategies create a new touch point with your customer where you
can maintain a unique link with your target market and cost effectively
communicate new products and services.
Web based delivery of existing services & products
For product businesses this more often takes the form of service
innovation, using the internet to better service your customer and
deliver cost effective solutions.
Examples of such are customer access to supply chain data online via
unique user login so they can always see where their order is, or
product data available online for customers to build and place their
order with you.
For service businesses, again this can take the form of service
innovation but may also extend to delivery. Examples of such are
delivery of reports, analysis, images, data and or process online via a
tool that allows the customer to implement your services. This could be
as simple as a content management tool that users can access to keep a
log of specific data, or as complex as a data interface where real time
analysis is integrated to customer databases to effect pricing models -
again the options are limitless.
The key here is that the internet can represent the ‘add on' or point of
difference to something you are already doing - to do it smarter - in
such a way that enables you to charge a premium, recognise cost savings,
or introduce ongoing subscription base license models.
New products & services
The internet is constantly enabling the unique positioning of new
products and services, and more often than not we are seeing businesses
using this strategy to enter into parallel or totally new markets.
Parallel markets may be those your current business model is
complimentary to, and the allure of the market is backed by your
existing knowledge. An example of this could be an architect providing a
‘fee for access' service to online design tools linked to council
building requirements. In this example the business uses the medium to
develop a new line of revenue and appeal to new markets.
And then there is the world of totally new markets. The internet can
provide a low cost point of entry to adapt new ideas in the services
industry, or to channel new products into new or emerging markets.
Whatever your strategy, in the business landscape of today the real
potential of the internet is only just beginning to emerge, and
businesses are harnessing that potential as a key strategy of their
survival. And the most exciting part - you don't have to be a technical
guru to realise the potential - you just need to be a smart business
person willing to adapt to change and enjoy the ride!
Source:ceoonline.com
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