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:
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Telephone
Fax
Stationery
Postage (delivery service)
Personnel
Marketing
Collateral material
Sales
Customer service
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Projected expense item targets:
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Expansion of:
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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
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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
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CIA Competitive Information Acquisition (maintain a competitive edge)
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Monitor/research:
Competitors
Suppliers
Customers
Prospective customers
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E-mail
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Enhance communication
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Decrease delivery/response time
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Document attachment
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Attach documents/files to email
Mass/bulk communication/distribution
"Real time"
Cost efficient
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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)
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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
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Informational (information about your company)
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convey information to known sources per request
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Customer services information
Help manuals
Policies/procedures
Contact information
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convey information to unknown sources (others researching you)
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Promotional (sales/marketing efforts of your company)
Transactional (fulfillment of customer needs)
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Allows for specific inquiries
Increases customer/personnel communication
On line purchasing
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Catalog of products/services
Processing of financial transactions
Payment in advance
Automatic conveyance of money to bank
Online downloading of products (software)
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Operational (interfaces with all company activities)
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Communication:
Marketing
Customer service
Advertising /promotional
HR Development
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Employment opportunity postings
Online training for existing staff
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TMN Time Money Numbers
CIA Competitive Intelligence Acquisition
Develop an implementation plan
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evaluate
re-evaluate
create phases of implementation
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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.
