This series of articles addresses the e-commerce landscape - as it exists today and the various directions in which it is swiftly evolving. Almost every business on the planet will need to understand and invest in “commerce-enablement technology” to stay innovative and competitive. Meanwhile there are key decisions that emerging growth companies need to consider now, to formulate winning digital growth strategies.
What does E-commerce mean?
When most people hear “e-commerce” they think of on-line retail, i.e. on-line market spaces where sales transactions are considered and consummated. But in fact e-commerce is a much broader concept that is expanding in many directions. Consider that most businesses today utilize e-commerce and Internet technologies for some part of their value chain. Whether researching the competition, driving manufacturing and distribution with partners on an extranet or accepting credit cards for online sales, almost all companies need to leverage the web and other on-line platforms to attract, find, communicate with and service their customers.
So e-commerce should be defined broadly enough to include many activities that are related to buying and selling of goods and services over electronic systems. It includes e-tailing on websites and other platforms, especially mobile. It relies on analysis of online customer behavior and demographic data. It is facilitated by Electronic Data Exchange (EDI) i.e. structured, computer-to-computer transactions such as between Amazon and its partner vendors. And it is closely related to marketing tools such as email, webinars, video and social media. It involves systems and processes to ensure the security of business transactions and prevent identity theft. And it interacts with “traditional” business models like brick and mortar retailing in a variety of ways, which are shaking up the basic ideas of marketing channels and channel conflict.
Online Commerce
Online commerce has survived many skeptics since its inception in the 1990’s. Back then doubters suggested that it was unlikely that consumers would be willing to take the risk of entering their credit card information on line. They questioned whether consumers would buy items that are often returned, like clothing. Despite such skepticism then and now, online commerce continues to grow at an exponential rate. It is gaining market share as a percentage of overall retail across all product categories. This fact is essential to consider if you are an emerging growth company. Chances are that the riptide of e-commerce innovation will impact your industry and company in ways that are difficult to anticipate. Now is the time to plan and to act to ensure that you are not left behind.
In my next article, I will discuss frameworks that help CEO’s of emerging growth companies evaluate e-commerce opportunities, especially around the key concept of channel integration.
About the Author
Jennifer brings to Newport over 10 years of C-level experience. She has demonstrated an ability to take strategy from conception to execution, achieving excellent results for family businesses and private equity-owned companies. Contact or learn more about Jennifer here.
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