What is E-Business,
Anyway?
You may know that e-business
is short form for 'electronic
business.' But what does
it really mean? Simply
put, e-business can be
defined as the use of the
Internet to conduct business.
This includes buying and
selling, serving your customers,
and working with business
partners. For the most
part, e-business is about
your company’s website
and how you use the Internet
to help operate and grow
your business.
E-business can range from
a simple website that helps
you market your business,
to an online store that
enables customers to order
your products 24 hours
a day. E-business also
includes e-mail marketing,
Internet-based software
to improve your business
processes, and lots more.
For most small businesses
though, e-business means
having a good website that
creates a positive impression
of your company and tells
people who you are and
what you offer.
The Role of E-Business
in Your Business
E-business can help your
business in many ways,
and it can give you a significant
competitive advantage.
Here are six important
goals that e-business can
help you accomplish:
- Supporting your marketing
efforts and increasing
your sales
- Reaching new markets
and extending your reach
- Communicating with
your target audience
more cost-effectively
- Helping you get more
from your overall sales
and marketing budget
- Strengthening customer
relationships and improving
customer service
- Increasing productivity
and efficiency
Your E-Business Needs
a Team of Partners
A wide variety of business
partners is required to
create and implement a
successful e-business strategy.
It is not recommended that
you entrust this project
to a “friend who
knows about computers.” Your
e-business is important
and you should outsource
the job to professionals.
You also need to be involved
in the process.
An Overview of Your E-Business
Partners
From creative professionals
to technical partners,
a solid team and your personal
commitment will ultimately
determine the success or
failure of your e-business.
Your partners may include
the following:
- Internet Service
Provider (ISP) – connects
you to the Internet
- Website host – gives
your website a home on
the Internet
- Website development
team – builds your
website to meet your
needs
- Application Service
Providers – offer
specialized turnkey solutions
- Computer services firm – set
up and maintain your
computers
- Professional services
team – might include
your banker, lawyer,
and various consultants
Each partner brings a
particular specialization
or skill set to the table.
It is important to recognize
what each partner’s
potential role and limitations
are. For example, an Internet
Service Provider should
not necessarily host your
website. Connecting your
computer hardware to the
Internet and maintaining
the technical aspects of
hosting a website are different
skill sets. Good partners
will have a core competency – something
they are focused on and
are very good at doing.
Your Internet Service
Provider (ISP)
An Internet Service Provider
(commonly called an ISP)
is a company that provides
you with access to the
Internet, allowing you
to surf the web and use
e-mail on your computer.
Often your Internet Service
Provider is a large phone
or cable company.
Different Types of Internet
Access
There are a number of
ways to access the Internet.
Some of the most common
include a:
- High-speed connection
through your telephone
line
- High-speed connection
through your cable television
line
- High-speed connection
through a satellite connection
(useful in more remote
areas)
- High-speed connection
through a wireless network
- Dial-up connection
through your telephone
line (much slower than
high-speed)
For business users in
urban areas, high-speed
access (also called “broadband”)
through a phone or cable
line is the most common
type of Internet access.
In rural or more remote
areas, dial-up access through
a phone line might be your
only option. New wireless
Internet access options
are also becoming more
readily available, both
in urban and rural settings.
Get High-Speed Internet
Access If You Can
Business users should
get a high-speed Internet
connection if it’s
available. “High-speed” has
become very affordable
and makes good sense in
the business world where
time savings translates
directly to your bottom
line. Your best choice
for an Internet Service
Provider is likely going
to be a fairly large company.
Building and maintaining
a reliable Internet service
takes a lot of money, resources,
and technical support staff.
Your Website Host
A website host is a company
that provides space for
your website and sets it
up so your site can be
viewed online. You’re
essentially renting space
on the Internet so you
can put your website there,
much like you might rent
an office. The website
host will have a number
of different packages available,
depending on how much space
you need, how many e-mail
accounts you need, how
many visitors your site
receives, and how complex
your website is.
Important Website Hosting
Issues
There are a number of
aspects to consider regarding
website hosting:
- Get a good domain
name – this is
your site’s address
(e.g., www.yourcompany.com)
- Make sure the domain
name is registered under
your name (or company)
so you own it. Helps
if you need to switch
hosts.
- Decide on the e-mail
accounts you will need
(e.g., yourname@yourcompany.com)
- Keep your site login
and password information
(commonly called FTP
access) on file
- Keep in mind that you
get what you pay for – a
budget website host isn’t
the best idea for a business
site
A good website host can
help you with these issues.
In fact, it may be a good
idea to centralize your
website, e-mail, and domain
name with your website
host. Hosting is a fairly
specialized service. You
should choose a company
with a reputation for excellent
customer service and a
high level of technical
expertise. Your best option
is probably going to be
a specialized mid-sized
hosting company. While
larger companies are often
very good at providing
Internet access, they usually
don’t offer the same
level of personalized customer
service and specialization
as a mid-sized company.
Your Website Development
Team
In order to build a successful
website, you need a team
of experienced professionals.
The main players of your
website development team
may include the following:
- Web Developer
Your website developer
is responsible for
the overall project.
The developer will
help you plan and
create your website.
This person is usually
the project manager,
taking the lead role
on guiding the development
team (much like a
general contractor
on a building project).
Search engine optimization
considerations should
be made throughout
the project.
- Web Designer
The designer creates
the visual concept
for your website. A
professional designer
will help you create
an attractive website
that is relevant to
your target audience.
The designer will make
sure your site follows
design principles,
and fits well with
your company’s
identity. A good designer
will take into account
accessibility and usability
issues.
- Web Programmer
Depending on your website
needs, a programmer
may be involved in
the project. The developer
will usually have a
technical partner for
programming or have
a programmer on staff.
A programmer takes
care of any actual
software development
that is needed.
- Writer
Your writer will help
you create the content
for your website, from
profiles of key people
to clear and concise
information about your
products or services.
A good writer can save
you a lot of time and
will increase the value
of your website. Incomplete
site content often
holds up the launch
of websites. Define
your content requirements
and get to work on
these items early in
the game.
- Photographer
Your photographer makes
sure the photos in
your website look professional.
Buying royalty-free
stock images may also
be a viable option,
although they may not
be as relevant as a
custom photo shoot
for your company.
Your Application Service
Providers (ASP)
There are many companies
that offer online services
or applications that can
help you with all various
business processes, from
tracking sales leads to
building an online store,
and much more. These companies
are commonly called ASPs,
or Application Service
Providers. ASPs build an
online service that would
be very expensive for a
single business to develop,
and they spread the cost
over thousands of users
and offer a per-use cost
that smaller businesses
can afford. An ASP is a
lot like an airline. Business
people fly all over the
world, but very few businesses
own an airplane. It makes
more economic sense to
buy travel services from
an airline on a per-use
basis.
Examples of Application
Service Providers
There are far too many
online services and applications
to list them all, but here
are some of the more popular
services that many businesses
make use of:
- eBay.ca - online
auction site that allows
businesses to set up
a store
- PayPal.com - provides
online sales and credit
card transaction services
- SalesForce.com - complete
online customer relationship
management
- WebEx.com - online
meetings and video conferencing
services
- E-mailLabs.com - email
newsletters and marketing
campaigns
- eFax.com - allows you
to receive and send faxes
via e-mail
The examples listed here
are subject to change,
but chances are sites like
eBay or PayPal aren’t
going anywhere soon. Your
website developer should
have some knowledge of
ASPs and be able to help
you decide if a service
like this is right for
your company.
Your Computer Services
Firm
Your
computer services firm
is the company that keeps
your computer hardware
working properly. Without
computers you can’t
have much of an e-business.
Your computer services
firm will help you set
up your computers, maintain
an office network, help
you install new software,
and take care of pretty
much anything else related
to your computers. They
might also provide computer
hardware or recommend good
vendors. Some firms may
also offer related services
such as website hosting
or custom programming.
The Importance of Maintaining
Your Computers
Computers play a vital
role in your e-business.
They are used for accounting,
inventory tracking and
sales, word processing,
spreadsheet analysis, contact
management, and client
communications.
Some important computer
issues include:
- Keeping your software
updates, patches and
bug fixes current
- Having a good anti-virus
program and keeping it
updated
- Setting up a reasonable
level of security on
your computers and changing
passwords regularly
- Cleaning your computer
regularly – getting
rid of old software or
files you don’t
use
- Backing up your files
on a regular basis and
storing backups in a
safe place
- Setting up a rescue
disk so you can restore
your files if your computer
crashes
- Keeping all software
information and registrations
on file in your office
You may want your computer
services firm to handle
these issues. Messing around
with your computer when
you don’t know what
you’re doing is a
good way to create problems.
And every minute your computer
is not working there is
lost productivity.
Your Professional Services
Team
Your e-business will benefit
from the involvement of
professionals such as your
banker, lawyer, business
or marketing consultant,
and security specialist.
Each of these partners
can add value to your overall
e-business strategy:
- Banker
Your banker can help
you set up an Internet
merchant account
to accept online
credit card payments.
Banks can also help
you finance various
aspects of your e-business
(website development,
buying computers).
You may also need
an Internet payment
gateway, such as
Caledon Card, PSIGate,
Beanstream, Soltrus,
Internet Secure,
and E-xact to process
payments.
- Lawyer
You may want to contact
a lawyer who specializes
in Internet law to
help you with your
privacy policy, online
sales contract and
terms of use, click-wrap
agreements, trademark
disputes, business
and partnership agreements,
contracts, and other
legal issues.
- Business Consultants
Professional business
or marketing consultants
can help you shape
your e-business strategy,
to make sure it fits
well with your business
and your customers.
Consultants can provide
new ideas and concepts
that will help your
business grow.
- Internet Security Specialists
While small businesses
generally cannot afford
a full-time Internet
security specialist,
they would be wise
to have a computer
systems engineer (P.
Eng.) or a certified
security specialist
audit their network,
just as they would
have an accountant
audit their books.
Selecting the Right Partners
Finding good partners
is a very important part
of your e-business strategy.
Below are two very important
factors to consider when
selecting your e-business
partners.
Examples of Work
There is no better indicator
of the expertise or experience
of a company than the work
done by that company. Look
at their portfolio of work.
A good company will be
able to provide numerous
examples of work that directly
relate to the services
you’re looking for.
Referrals and References
Good companies will have
many references and will
receive good referrals
from existing clients.
Just by asking others in
the business community,
you can get a pretty accurate
picture of how good or
bad a company is at what
they do.
How Do You Find Good
Partners?
The best way to find good
e-business partners is
to talk with other businesses
about the companies they
have used. Good referrals
are worth their weight
in gold. Get recommendations
from people in the business
community that you respect.
In any service industry,
word-of-mouth is a key
indicator of how good a
company is. E-business
is no different.
What to Look for in Your
E-Business Partners:
- Internet Service
Provider (ISP) - reliability
and speed
- Website host - reliability,
expertise, excellent
customer service
- Website development
team - good past work
and happy clients
- Application Service
Providers - positive
reviews, pricing, and
secure data
- Computer services firm
- expertise, excellent
service, happy clients
- Professional services
team - good references
and referrals
Working Effectively With
Your E-Business Partners
It’s important to
understand that even though
you are outsourcing your
e-business needs to a number
of different partners,
you still need to be involved
in the process. It is your
job to take an active role
and provide each e-business
partner with the information
they need to do their job
properly. In a way, you
are the project leader.
It’s your business,
you are in charge. You
must be clear about your
business goals and what
it is that you want to
do. Knowing what you want
and communicating this
vision to your partners
is key.
Advantages of Working
with External E-Business
Partners:
- More time to focus
on your business
- Highly skilled partners
will deliver better quality
work
- Work is done in a more
timely fashion than a
do-it-yourself solution
- Better overall return
on investment than a
do-it-yourself solution
Disadvantages of Working
with External E-Business
Partners:
- Higher initial costs
than a do-it-yourself
solution
- Poor supplier could
deliver a poor quality
product or rip you off
Tips for Success
Here are a few tips that
will help you work more
effectively with your e-business
partners.
- Get everything in
writing – proposals,
costs, deliverables,
and all project details
- Agree on the scope
of work – who is
responsible for what
- Talk about what happens
if the partner doesn’t
meet his obligations
- Agree on costs and
the project timeline
before work begins
- Be realistic – don’t
expect a million-dollar
website for three thousand
dollars
- Communicate with your
partners often and clearly
Next Steps: Advanced
E-Business Features
Most small businesses
don’t need an advanced
or complex e-business solution
when they’re just
starting out. Features
such as an online store
sometimes don’t even
make sense for well-established
businesses. For example,
a high-end homebuilder
is unlikely to ever sell
a half-million dollar home
from a website through
online credit card payment.
The sales process of the
company simply doesn’t
fit with direct online
payment.
When Do Advanced Features
Make Sense?
It’s usually a good
idea to keep your e-business
strategy fairly simple
to start with. But do have
measurable objectives and
make sure your site can
accommodate growth later
on. The idea is to crawl
before you walk. You don’t
want to get into a situation
where you spend thousands
of dollars building an
online store, and then
find your customers won’t
buy from you online. A
good rule of thumb is that
an advanced e-business
feature makes sense when
it can pay for itself.
Some common advanced features
include:
- Online store – can
facilitate online payment
and credit card transactions
- Content management
system – allows
you to update your site
easily
- High-end interactive
website – can provide
a rich customer experience
- Online training application
for employees - can increase
productivity
- Business intranet – a
secure internal website
to increase efficiency
Your website developer
will be able to explain
these advanced features
(and many others) in more
detail and will help you
determine whether they
make sense for your e-business.
Resources There are lots
of resources and information
available for anyone who
wants to dive into the
subject of e-business more
deeply. The Alberta E-Future
Centre is a great place
to start. You can also
find many good websites
and books with useful information
on this topic.
Websites
- Alberta E-Future
Centre -
www.e-future.ca/alberta
- E-Business News from
Forbes -
www.forbes.com/ebusiness
- Business 2.0 Magazine -
www.business2.com
- Fast Company Magazine -
www.fastcompany.com
- WIRED Magazine -
www.wired.com
- CNET tech news and
reviews -
www.cnet.com
- ZDNET tech news, white
papers -
www.zdnet.com
- ClickZ Network, trends
and statistics about
the Internet -
www.clickz.com/stats
Domain Name Registration
- ICANN -
www.icann.org
- CIRA -
www.cira.ca
- Network Solutions -
www.netsol.com
- Domains at Cost -
www.domainsatcost.com,
www.domainsatcost.ca
- GoDaddy.com -
www.godaddy.com
Books
- Starting an Online
Business for Dummies
Greg Holden
- Selling Online:
How to Become a Successful
E-Commerce Merchant
Jim Carroll
- The Complete E-Commerce
Book
Janice Reynolds
- Internet Marketing
for Dummies
Frank Catalano
- The Big Red Fez:
How to Make Any Web
Site Better
Seth Godin
Magazines
- Business 2.0
- Fast Company
- WIRED
- Backbone Magazin