|
A recent study
reveals that the pessimists who have been proclaiming the death of
the Internet revolution and predicting the doom of the
“new economy” may actually be proven wrong very soon.
The media, which needs spicy stories all the time, has been
delighted with the recent demise of several dot coms. The same
magazines and journals that were talking about nothing else but
“dot com” companies and how they will change everything, are
now similarly making a big deal about how it is all over. That is
why we at eCreativa believe that rather than being carried away by
hype and buzz yet one more time companies should continue to focus
on getting ready for the long term.
Of course, there is still widespread confusion and anxiety
about how the future would look like, the competitive dynamics has
completely changed and new business models are emerging (and
failing, in some cases), but that should instead be an opportunity
to learn and take the right approach.
No wonder,
business leaders just don’t know what road to take and what lies
ahead. The risks appear to be so high that many entrepreneurs and
executives are afraid of committing to anything for fear of being
proven wrong within weeks.
Focus on the
long term
As a consulting
firm, eCreativa believes in long-term planning rather than being
carried away by hype or being discouraged by roadblocks. While
everyone seems to be having fun at the expense of few failed
“dot com” companies or how stock prices of some have crashed,
the reality is vastly different insofar as the strategic issues
are concerned.
A recently
released study by The University of Texas’ Center for Research
in Electronic Commerce should be able to convince all of us that
we need not be discouraged by misleading indicators and instead
continue to focus on preparing ourselves for the long term.
Some of the findings from the fourth bi-annual Internet
Indicators study, available at http://www.internetindicators.com,
that should set all our fears at rest are:
- The
productivity gains at Internet Economy companies are
significantly higher. During the six-month period studied, an
estimated 11.5% increase was observed.
- Internet-related
revenue is growing three times as fast as corporate revenue as
a whole for Internet Economy companies.
- While
“dot com” companies have often been the face of the
Internet economy, they make up only approximately 10% of the
revenue generated. The remaining 90% of the revenue comes from
companies that are exploiting the power of the Internet.
Implications
These findings
clearly show that real and significant business improvements are
possible if companies can adapt the newly available tools to meet
their specific needs. Several
executives have confirmed to eCreativa that merely having a
website has helped their company increase the number of good
leads, reduce the cost of marketing communications, and, above
all, their potential customers can evaluate and consider their
products right away without having to wait for catalogs/brochures
to arrive in the mail.
We all know
that companies with bad business models eventually die whether
they have a “dot com” in their name or not. On the other hand,
executives should learn from the mistakes that these failed
companies have made and then develop an Internet business model
that is better suited to their business, fits their corporate
philosophy and can be implemented at a speed that meets the needs
of their customers.
More
Articles
|
