How to succeed in e-business

By Staff -- Modern Materials Handling, 11/1/2000

In the new economy, the rules of business have changed and will continue to do so. However, GartnerGroup analysts have pulled together a list of imperative rules, from recent e-business experience, to help you stay ahead in e-business. Here are five examples:

• Never plan further than 24 months out. Beyond 24 months, it's reasonable to assume that the business environment will be sufficiently different and that a new strategy will be required. In addition, a strategy that requires more than 12 months to execute is also unlikely to succeed.

• Play by the new rules. Recent dot com start-ups must build market share quickly to compete with traditional businesses in the same market niche. To gain market share, they might include very high expenditures on advertising, deeply discounted prices, and other approaches that lead to net losses in the short term.

• Enhance or destroy distribution channels based on their true power and value. It's critical that realistic estimates of e-business revenue over time be used in the planning process. However, it's equally important to recognize when e-business offers a much more effective distribution channel than any other currently in existence.

• Establish a metrics program that measures the true effectiveness of the e-business initiative. The metrics used must measure progress toward the achievement of the strategic business objectives. They must also capture the interaction between e-business and traditional distribution channels.

• Speed and ruthless execution are everything. Because the business environment and the competitive landscape can change so quickly, it's necessary that e-business initiatives be implemented quickly. In "Internet time," a delayed project is a failed project.

  For more information, visit www.gartnergroup.com .