Assignment # 1
Reflections about IT and e-commerce usage in several companies in Gävle Region
Executive Summary
This report addresses the e-business usage for 13 study cases all in Gävle region. Study cases included companies with different level of e-business awareness, believing and utilisation. The report was to give hints/ tips for follow up for a project initiated by Gävle University in 1999. What is next is a common question for all, however depending on type of business, depth of e-commerce usage hints were given.
Ibrahim Qazzaz
Högskola i Gävle
February 2004
Introduction
The group of companies chosen for this study form an exemplary pattern for regional economical development. The good approach of selecting enterprises of different categories worth to be highlighted. Realistic proposals given to each of those firms are valid and applauded. Likewise, best of all is the follow up of this study, four years after giving relevant proposals.
This input comprises mainly two parts, one general that include a common message (10 commandments) to be conveyed. The other part is an individual analysis of the of status today compared to study inception. Suggestions for promoting those firms (from IT usage point of view) are subsets of these analyses.
Follow up Analyses for promoting local business through IT utilisation
It is essential to call involved companies to a condensed workshop on e-business horizons. Such a workshop can be started by a general assembly with education on opportunities created by IT with general discussion (each hint has a bold-typed keyword). Breakout sessions for each company delegate(s) should follow with full focus on individual experience and agree on the way forward. It should be noted that many issues are common to all, so instead of repeating, in each case, referring to tip numbers were given.
Part One: The Common Message: “10 Commandments”
The general assembly should emphasise few items, namely:
1. IT as such, is a tool not a target. It is not a burdening cost, but a “for the good tool” that create new opportunities as never before. Internet as a bearer for e-commerce transactions is secure enough. IT penetration and awareness in Scandinavia is of global highest limit; this should be invested.
2. Depending on main function, size and willingness, depth of “IT-ing” varies. A study introduced (September 1999) to WTO described three stages of e-commerce, viz. pre-purchase (ads and info), purchase (payment) and delivery (limited goods: SW programmes, e-books, music, films etc). I claim that the horizons are even wider: Ex: British Telecom BT moved their support service and call centre to India. Also handling a lot of data entry work for Western Agencies in the far East (Philippines, etc). One could assume however that promotion of IT can start with 1st stage described in the aforementioned study then evolve to 2nd and finally reach full e-business system.
3. All homepages should have something in English; to increase reachability (by visitors, invertors, partners, etc) as well enhance building strong brands. IT and Internet added a new dimension that has never been available before. The whole universe thanks to telecommunications is nothing but a global town. Through this globalisation customer could reach new suppliers whom were almost impossible to reach; suppliers on the other hand could reach new customers as never before. This is an all-healthy atmosphere that allows for smooth flow of labour, goods and money. The impressing angle in this whole story is the low price to pay to get these flavours.
4. There are many estimations (as well as forecasts) for e-commerce volumes. Nonetheless it is hard to judge. Train however has gone so far. This is the only thing that one can be sure about. Success stories for e-business and e-commerce should be contemplated. Examples are many (Ryanair, SAS, www.blocet.se, Easyjet, Auctions online: www.qxl.se , matrimonial and dating agents, etc )
5. Benefits: Companies in Gävle region should feel the benefits of joining this train:
a. Advertisements that add an international dimension at a very low cost. Why should companies in Gävle limit their marketing effort to local community at a time they can cover (practically at same price!) whole Europe or even world?
b. Promoting sales volume via creating new brand of own name. This is achieved by creating a website that can be more than a homepage but a portal wherein one will have reason to check frequently for new offers, bonus system, new products, useful news, etc. Updating the site so often is crucial.
c. Substantial reduction of operational costs (OPEX). Ex: One can browse different products at Siba (or El Giganten) site with possibility to compare features of different models, make order and pay (all on line) and get it (physically of course) delivered to his/ her home (or as a gift to a 3rd party!). This saves time and money for all involved in this process. It worth therefore to be promoted further by giving some discounts for those who make their order on line (Many travel agencies already do). Process may lead to 50% labour reduction
d. Risk: Likewise, business customers might be uninterested to deal with suppliers (of any kind!) which are of “low-awareness of technology” profile.
6. IT awareness and adoption is a user-friendly principle not a complicated issue. Old and very young people can learn quickly not only to use Internet and email but also to create and maintain basic websites. True that creating a professional home page (with personal portals and secure connections for payments) may require a consultant, however after being created, maintaining the site is not very sophisticated task.
7. The earlier IT new techniques adopted the easier to develop further. It is possible however to start late and burn steps reaching high level of e-business immediately. This is subject to willingness and investment.
8. Promoting using these techniques is a long proactive process especially out of large towns. Therefore if no promising results are witnessed swiftly, business runner should not give up. They should in stead find better ways that attract users: for example Internet users (e-discount, e-alliance with other supplier to offer one portal for many services, etc). Companies involved in this project are encouraged to liase in support of creating a new culture of e-business oriented pilot area in Gävle region. Psychologically speaking: unless people feel strong benefit/need of the change to e-business no immediate change will happen. Both needs and benefits should be created; mainly by involved companies.
9. In almost all sites, there should be an area for subscribers, wherein one can get much more info about products of the company, special discounts available only online, as well as personal info (settings, customised services, interests, orders history, payment, points in bonus system, etc). This adds more value to the page and increase traffic which eventually should be reflected in more orders (revenues). Creating a club for member is parallel. Data base of customers and subscribers to newsletters are one of most important assets in e-business world. There are many favourable ways to expand these databases.
10. Intranet and Internet system: In most cases it is a key success factor to develop full e-business solution (for the whole cycle of e-business process) that allows customers to make orders online. Order info should be received by delivery department, accounting personnel, customer services, inventory and logistics. Regular summary may be analysed by business development people. Same should apply to complaints (CRM). Saving resources is obvious.
Part Two: Breakout Sessions
1. Arne Holm
As it looks Arne Holm delegate “Peronalchef” is not the right person to discuss e-business (should be Managing director or at least business development manager). There must a missing link knowing that only 4 or 5 customers are showing interest in IT techniques while the number was 34 big customers in 1999. The issue of adding extra tips or recipes to the site should be investigated with customers. Primarily it does not sound true they would be against it.
Smart way of categorizing them in groups (e.g frozen, fresh, dry, canned foods vs. liquid, solid, paper for cleaning means, etc). Refer to commandments # 1,5, 6, 7, 8, 9 and 10 above.
2. DuroSweden
Refer to commandments # 1, 3, 4, 5, 8, 9 and 10 above. It is important not to kill business of sub distributors and agents. Cooperation with big players is good; should not be stopped.
Seeing is believing. With new IT techniques (multimedia players) customer can be filmed with a virtual tour in examples of hung wall paper designs. This compensates much and gives the needed feeling. Ex:Peugeot and Finnmer.se have good usage of films. Conclusion: give customers the possibility on line and let them decide. Should customers in Skåne travel to Gävle or Stkm to buy?
3. Pentiq AB
Refer to commandments # 1, 5, 8, 9 and 10 above.
A well built website should be marketed among potential customers (e.g among real-estate dealers “mäklare”, construction, housing and insurance companies: also some specialised websites like blocket.se , etc). Patent can generate money through licensing nationally as well as internationally.
4. Central Ett.
Owner is positive to e-business, however details of adopting this will depend on type of business he/she would choose. It is essential to think carefully about something marketable. One choice could be to steer the main function to offer services to facility managers (subcontractors). All in all marketing is king. This should comprise also marketing their website among players in the business they would choose. Homepage should be attractive and offering tailor made services and tips.
5. Byggstatistik AB
Nothing suits e-business better than selling info. Company should offer all choices of buying of their annual report: on paper, CD or electrically (attached file). Some customers may be interested in some parts of this report while others may be interested in analyses based on available data: all should be able to buy and get info electronically. www.itu.int example can be copied. Again it is important to market their website. Interest in e-business is not as bad as they think. Refer to com. # 1, 3, 5, 8, 9 and 10 above.
6. Selectra (JOBmeal)
Jobmeal.se is a good homepage; however refer to com. # ?3, 5, 8, 9 and 10 above.
It is suggested to investigate alliance (between all JOBmeal firms) with other bonus system (e.g ICA, Coop, etc)
7. Gävle Taxi
Refer to commandments # ?3, 6, 8, 9 and 10 above.
It is proposed to investigate feasibility of install positioning system (GPS) in all taxis connected with main office (especially if coverage area is large).
The company should use also e-ads (at local internet based newspapers, communities “Kommun”, Tourist Bureau, etc).
8. Gävle Fiskredskap
Refer to commandments # 1, 3, 5, 6, 8, 9 and 10 ? above.
Having common e-commerce with others in same allied companies may be good, but still better to promotes individual system.
9. Nordplant
Refer to commandments # 1, 2, 5, 8, 9 and 10 above.
The homepage is good, but should add more value (info, pictures, multimedia, more interactive, etc). It is important to continue other steps in 99 plan in a way to step 9 above .
10. TPM Industrimålning
Refer to commandments # 1, 4, 5, 7, 8, 9 and 10 above.
The company has done something in accordance to the plan of 99. It is important to continue other steps in 99 plan in a way to commandment 9 above.
11. AB Bertils Rörteknik
Refer to commandments # 1, 4, 5, 8, 9 and 10 above.
Even if a setback happened in implementing 99 plan, company should go forward of original plan. May be feasibility study on coupling the on field digital equipment to central sever is helpful.
12. Fastighetssnabben
Refer to commandments # 1, 4, 5, 8, 9 and10 above.
The existing page is merely one step in a long road. They should be invited again to continue working on IT development feeling threat of slackening their business (commandmant 5.d)
13. JH Pappersgross
Existing page is almost empty and its address is impossible to remember. They should seek an easy name(e.g. jh.se). One good thing is the positive spirit JH have; a thing can be built on. The most important thing is to start real steps towards e-business. Refer to com # 1, 3, 5, 6, 7, 8, 9 and 10 above.