Strategy Considerations for an Internet Age
The Internet continues to exceed many of the early promises in commercial and industrial markets. Yet potential impact extends beyond current thinking of making trading and buyer/seller relationships more efficient. No matter how you examine business-to-business interaction on the Internet, there is much evidence pointing to cost-savings generated by an electronic marketplace and the emergence of new operating models.

Savings can take many forms–more customers, new services, new channels and better response. As a result, the potential value at stake is enormous and it is time for businesses to solidify their e-strategies to create new market value and customer loyalty.

Continued market debate will abound about the right business model for the Internet, whether it becomes seller driven, buyer driven or intermediate. Regardless of the model, it is time for companies to take two crucial steps: 1) define the appropriate e-strategy, and 2) determine how the Internet will impact all aspects of operations. Internet is no longer simply a marketing medium, nor is it a technology issue. Now more than ever, it must be viewed as the emerging strategic element of the business which dramatically impacts all internal and external processes. Business orientation must change. Service response in all operating areas must be immediate; mission critical performance must be error free; manual administrative tasks used throughout processes must be eliminated; web-centric processes must propose optimal service levels for "fast" vs. "easy" response.

To overcome the challenges of an e-strategy, organizational leaders at all levels must commit to change. They can begin by adopting short cycle planning coupled with a long-term vision. Internally they must examine the significant business processes and map current practices to identify Internet break points – those aspects of the business cycle that shape the underpinnings of the business. By maintaining an end customer focus and a willingness to innovate cross-organizationally, business leaders will be well positioned to set an Internet direction and choose the necessary resources to do the job.

Steps to Build Internet Strategy Models
1. Establish a rationale for the model - focus on the what & why of the business
2. Determine cost of realization - focus on when & how the strategy will be built
3. Assess dimensions of risks for alternative models
4. Argue the benefits of an Internet model
5. Initiate at the top - study aggressively act prudently with commitment
6. Promote efforts to accommodate future directions – a long-term vision coupled with short-cycle planning and execution
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