Within five years, every company will be an e-business company - that's Connie Galley's prediction. Galley is president of TSI Software, Inc. (Wilton, CT). The company, with 600 employees and offices worldwide, focuses on developing software for e-business applications. E-business - or electronic business - is often used interchangeably with electronic commerce, or e-commerce (see the sidebar of terms by clicking here).
Galley likens the Internet and today's businesses to the Gold Rush in the 1800s. "It wasn't only the miners who got rich because of the Gold Rush," she says. "The businesses - such as pick makers and the railroad - that supported the miners made money, as well. Companies such as eBay and Amazon.com are like the gold miners. Software development companies and VARs are similar to the railroad.
"Businesses of all sizes will be conducting business with customers and suppliers over the Internet," adds Galley. "This year, 'brick-and-mortar' companies readied for Y2K and realized they will have to do e-business as well."
One key to successful e-commerce is establishing and maintaining good customer relations. "There is a focus on reengineering the customer side of business," says Galley. "It's not just about reaching customers on the Internet. It's also about managing customer experiences and customer relationships."
Online Holiday Sales Spur Growth Of Retail E-Commerce Solutions
"Last year was a watershed year for e-commerce," says Marv Richardson, chief technology officer, e-business solutions, for EDS (Plano, TX). EDS is a professional services and systems integration company, specializing in e-commerce solutions. The company, founded in 1962, has more than 130,000 employees and serves clients in 45 countries in various industries. Richardson cited a recent Harris survey indicating that Internet holiday shopping is expected to more than double from 1998 - to $9.5 billion. "I think it will triple to closer to $12 billion," says Richardson. "Retailers need to have e-commerce solutions up and running by November 1st to take advantage of seasonal sales. As much as 40% of retail sales occur during the holiday shopping period (November and December). That's why VARs and systems integrators selling e-commerce solutions should keep a balance between retail and business-to-business customers. The business-to-business customers get their systems up and running throughout the year, without worrying about a holiday rush."
Vendor Tips On Successful E-Commerce Sales
Galley and Richardson offer the following tips of advice to VARs who want to sell e-commerce solutions:
- Understand XML – VARs don't necessarily need to have a software developer's working knowledge of Extensible Markup Language (XML). However, knowing how software interfaces - or needs to interface - with this emerging standard is important. "Large enterprises can be extremely complex and exacting when it comes to software interfaces for e-commerce. That's where a VAR's knowledge of XML can pay off," says Galley.
- Include middleware – "Putting up a Web site is not enough when it comes to retail," says Richardson. "The e-commerce software used for selling online must be integrated into a retailer's entire operation. That's why middleware - software that integrates these two functions - is a critical component of any e-commerce solution."
- Understand e-business – "It is essential in the e-commerce world for VARs to understand their customers' businesses," says Richardson. "Because an e-commerce solution touches your customers' customers, VARs have to create an environment that can be trusted. It has to be reliable and secure." Richardson points out that eBay, a leading online trading community, lost billions of dollars in market capitalization when its e-commerce system failed.
Galley's best e-commerce advice to VARs: "Choose the market you want to be in, leverage your strengths, and capitalize on your expertise."
