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Using The Internet As A Strategic Business Tool


3 PRIMARY STRATEGIES
Reduction of Expenses
Internet access (browsing / E-Mail)
Internet web site
Reduction of expenses

Use of the internet should be designed to determine potential expense reductions. This should:

Cover a portion of initial start-up expenses (savings vs. internet costs)
Force integration of internet usage on a corporate basis
If you cannot identify primary cost savings, you should re-evaluate your internet plan!!

Existing expense item targets:
   Telephone
Fax
Stationery
Postage (delivery service)
Personnel
Marketing
Collateral material
Sales
Customer service

Projected expense item targets:
   Expansion of:
   Market base (local, regional, national, international)
Operational capabilities
            Ability to deal with more customers
            Ability to process more information
Additional products/services
            Ability to offer more / new
Market entry (new and or existing products/services
            "Real time" market entry

Internet access (Browsing / E-Mail)

Even without a web site, you can use the internet as a strategic tool! You can browse the web, performing research, obtaining information, identifying competitors and customers,......

Browsing
   CIA Competitive Information Acquisition (maintain a competitive edge)
   Monitor/research:
            Competitors
            Suppliers
            Customers
            Prospective customers
E-mail
   Enhance communication
   Decrease delivery/response time

Document attachment
   Attach documents/files to email
Mass/bulk communication/distribution
            "Real time"
            Cost efficient

Web site:

The development of a web site will allow you to do a variety of things. Here are 5 primary purposes/styles of web sites:

Relational
Informational
Promotional
Transactional
Operational
You can also develop a web site which is used in the following environments:
Internet             Intranet             Extranet
Relational (your presence on the internet)
   Classifies your company with other similar companies
Ability to serve as industry resource
Ability to "help" at minimal cost
Ability to post company web site reference globally

Informational (information about your company)
   convey information to known sources per request
   Customer services information
            Help manuals
            Policies/procedures
            Contact information
convey information to unknown sources (others researching you)

Promotional (sales/marketing efforts of your company)
   advertise your:
   products
services

Transactional (fulfillment of customer needs)
   Allows for specific inquiries
Increases customer/personnel communication
On line purchasing
   Catalog of products/services
Processing of financial transactions
            Payment in advance
            Automatic conveyance of money to bank
Online downloading of products (software)

Operational (interfaces with all company activities)
   Communication:
   Internal
External
Marketing
Customer service
Advertising /promotional
HR Development
   Employment opportunity postings
Online training for existing staff

TMN   Time Money Numbers

CIA       Competitive Intelligence Acquisition


Develop an implementation plan
   evaluate
re-evaluate
create phases of implementation

What you can "do" to others with an internet presence, they can also "do" to you!

Your ability to be cost effective and responsive to your customers and suppliers provides you with a strategic advantage. If your customers and suppliers are using the internet to become cost effective and responsive "for/to/with" you, this increases the benefits of using the internet in a mutual fashion. It becomes easier to do business with other similarly technological savy companies.

You can separate your business contacts into "internet" and "non-internet" and you will most likely discover that it is less expensive to deal with a larger volume of "internet" business contacts.


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Deion Associates & Strategies, Inc.
Mark S.Deion

15 Sackett Street
Warwick, RI 02886-2333 USA
Tel: (401) 732-0457 • Fax: (401) 732-8767
E-mail: marks@deionassociates.com
URL: http://www.deionassociates.com

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