Q. How do senior executives around the world view the
Internet?
A. Most non-technical executives worldwide continue to view the
Internet as a tactical tool and expense item, similar to a
telephone system, copy machine, or advertising budget.
They think they know what it can do, but would rather have their
technicians handle it. Some executives are rapidly becoming aware
that the Internet goes well beyond a digitized billboard or
brochure and that there are very important strategic implications
beneath the surface.
Q. What are the most common myths?
Mistakes?
A. The most important are:
• Looking at the Internet tactically rather than strategically.
Most companies find that they can reduce expenses
substantially-even into the millions of US dollar equivalents per
year-by streamlining their businesses via the Internet. One major
area is customer service and support, whereby on-line product
customization or reduced personnel time can be substantially
beneficial.
Organizations are also finding that the use of collaboration
tools via the Net can spur enhanced development and production.
Some examples include merely generating one or two more products
per year, resulting in millions of dollars in new revenue. Stop
thinking of the Internet as an expense and start looking at how it
can enhance the business.
• Lack of security. Few organizations have a well-articulated
network security plan or the ability to implement one. Imagine
leaving your shop floor or building unlocked. Now imagine that
every nefarious person in the world is a few keystrokes away from
your corporate jewels. Organizations must understand their risks
and address them properly.
• Using the Inter-net without a clear plan is like buying a
warehouse full of equipment without knowing what it will do for the
enterprise. Someone must be responsible for coordinating strategies
and tactics regarding the Internet.
• Using the Internet properly is not cheap, but it can be
exceedingly lucrative. Understand the payback by preparing a
business case rather than simply picking up the first or most
flashy alternative.
Q. What are the most important messages to keep in mind
when developing an Internet strategy?
A. The most important message is understanding what specific
quantifiable business issues are to be addressed. Once these are
known, the time invested to build an appropriate business case is
well worth the effort.
Q. Is the Internet really changing
business?
A. Unquestionably. Look at the travel industry. A rapidly
growing number of people now bypass traditional travel agents and
book their travel directly on-line. Other industries like insurance
and finance are now rapidly incorporating Internet into their daily
messages.
The key is planning properly and effectively.
Q. Is it important for executives to encour-age a
"culture of the Internet"? Are there drawbacks? What steps should
they take?
A. This is an interesting question. There is an underlying
Internet culture among those who have been involved with it for a
long time. This includes Internet etiquette, such as not sending
e-mail or news group postings using capital letters (YOU ARE
SHOUTING!) or using emoticons (smiley faces). There also is
education required regarding spamming or potential hacking.
Most importantly, however, businesses should have a clear policy
on what uses are and are not permitted. This may include not
opening unknown files and avoiding entertainment sites that are
unrelated to any business purpose. In short, Internet is a tool.
People should be instructed how to use it properly.
Joel Maloff, an Internet author and consultant, writes
frequently on the Internet's executive management issues for
on-line and printed magazines. He has conducted Internet
consultancies in several countries, including India, Malaysia, the
Philippines and the United States. He can be reached by e-mail at
joel.maloff@iocenter.net