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Why the road to online riches is difficult to find … and strewn with beautiful wrecks


When the Internet first appeared on the public horizon in the mid-1980s, the technology was generally regarded as a curious offshoot of the Cold War between the USA and the then USSR.

Initially, the World Wide Web - the software application that took advantage of the Internet's potential - was little more than another quirky computer story.headzup_1.jpg

Within a decade, the situation had changed dramatically. In the late 1990s, businesses - both large and small - were clambering for a connection, and the promised aqueduct to riches.

There was something strangely intoxicating about the promised riches of Internet technology. How else can we explain the way that so many middle-level (and many senior) managers collectively overlooked some of the most basic tenets of business.

It could also be argued that because of the Internet's comparatively rapid introduction, few people had the skills to evaluate the medium's potential benefits (or even envisage them) … and even fewer people had any idea what type of Internet presence a company would need - or was likely to require in the future.

Is it any wonder that most websites today are an mixture of technology, gimmicks and frustration?

The problem is that most organisations rely on Web developers to design their online presence. While Web developers are skilled in the 'nuts and bolts' of site construction, they lack a detailed understanding of business fundamentals.

Today, we know better. Or do we?

Does your website generate those tens of thousands of dollars it was supposed to deliver?

There's no denying that the Internet offers extraordinary potential. But why is it that so many websites fail to live up to expectations?

Expensive lemons abound

It's disturbingly true that the online world is full of expensive lemons. We’ve all seen the websites … entry pages that take five minutes to load, bandwidth-sapping animation, fancy fonts, and even ‘secret’ navigation.

Or could it be that you’re deceived into thinking that because your website looks attractive … it must also be performing well?

DDG has found that commercial websites routinely fail to deliver the benefits that were originally promised or expected from a company’s online investment. To test your site’s performance, consider the following five questions.

1. Has the site yielded substantial cost and time savings?
2. Is the site a valuable source of information for both clients and staff?
3. Would you say that your website has become a crucial business tool that has bolstered your position in the marketplace?
4. Does your website make money, either directly or indirectly?
5. How many new clients (or how much extra business) has your website generated during the past month?

As you can see, these are not unreasonable questions - particularly considering the expense it takes to create and maintain a website.

If your website scores poorly on one or more of the test questions, it’s likely that your online existence is facing a slow but inevitable decline.
headzup_2.jpgBuilding a website that looks striking but serves little purpose is akin to adding an extension to your office that boasts expensive, good-looking furniture - but has no doors.

Similarly, a website with a labyrinthine navigation structure will leave online visitors disoriented, just as a maze-like entrance to your building might leave your clients walking in circles and mumbling, "I only wanted to get a phone number, but I can't even find the reception."

All is not lost!

If this is the online situation you find yourself in, don’t despair because all is not lost.

If your website is failing to deliver you the tens of thousands of dollars worth of bottom-line benefits it was supposed to, clearly you need to reconsider what a website means for your company.

Those benefits you originally imagined are still there for the taking. However, there are several essential steps you must take to ensure your website meets your - and your clients’ - needs.

DDG has found that by classifying what type of business you run - and what type of website complements that enterprise - you can unlock the business opportunity of the Internet.

It has also been discovered that there are two (deceptively simple) laws that should be applied to website development:

1. Your online business model must mirror your offline business model
2. Your website must provide real-time integration with your critical business processes.

But how do you know if your online business model mirrors your offline business model?

Research shows that all successful businesses can be loosely divided into three broad models. Chances are, your business embodies one of these models. Your task is to determine what model characterises your business type.

Critically, if you operate under your optimal business model, you automatically illuminate scores of fundamental questions about the design and structure of your website.

Which model suits your business?

Although the three models are not mutually exclusive, your business must be competitive in two of them and superior in one. In essence, you must decide whether your business matches the transactor, innovator or collaborator model.

If you’re a transactor, you stack ‘em high, sell ‘em low, and do this extremely well. You find a formula that works and you stick to it because you know that variety is not what your customers expect from you.

If you’re an innovator, you don’t just refine or repackage the wheel; you reinvent it. You take risks, continuously amazing your customers with a dizzying array of knockout products. In essence, you continue to outdo yourself: your new products are the only ones on the market that obsolesce your current products.

If you’re a collaborator, you sell a customised solution to your most prized asset: your customers. You recognise the value of long-term client relationships, where going above and beyond is a matter of daily course. You understand your customers’ business processes intimately, and thus, are able to identify their specific needs and ensure that your solutions are implemented correctly.

Real-time means real use

The second law of website development raises the issue of real-time integration.

It's is a delightfully simple concept. Real-time integration is not about focussing on technology but on usage. The old adage 'use it or lose it' applies here. If you’re not using your website on a daily basis - and if it’s not crucial to the functioning of your business - you’re wasting valuable website resources.

A website has to remain up-to-date to be relevant. You can't afford to allow your website sit on your server and stagnate. And the only, sure-fire way you have to guarantee that doesn't happen is to integrate your day-to-day business activities with your online presence.

This could be as simple as publishing an online update of what areas your sales staff expect to visit every month.

Whatever information you publish on the Internet, it has to be meaningful and useful enough to force your customers and staff to access your website on a regular basis.

The whole point of real-time integration is that without meaningful interaction by you and your customers, your website will atrophy into an electronic graveyard - and could even begin to act as a negative force in your company's overall marketing.

You'll find that once you start to ask the right sort of questions, the path to successful e-Business will be clearer - and the only wrecks you'll have to avoid will be those of your opposition, disappearing in the rear-view mirror!
 
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