 |
|
Advances in technology and a significant drop in prices for software and hardware have put ebusiness within reach of even the smallest operations. But, while prices have come down, entrepreneurs today must still do their homework when considering any aspect of ebusiness. As with any other part of your business, costs should be controlled and measured against returns. Here are some helpful pointers to increase your ebusiness return on investment (ROI).
 Plan
When considering any ebusiness initiative, whether it's a simple website for marketing purposes or a full-blown e-commerce system, you should have a plan in place to minimize mistakes. These should include:
- Goals: Put these into numbers and measures
- Timelines: Set realistic implementation and conclusion dates
- Milestones: Set up periodic review periods to measure if the plan is working
- Information gathering mechanisms: Ensure that you have a constant information flow from your employees and that everything is running effectively
- Performance benchmarks: Measure initiatives to see if they are meeting your goals. If not, refine your process.
Questions to ask yourself:
- What is the purpose of the ebusiness initiative? Is it for marketing, sales, or communication? Are you trying to improve your operational efficiency, create another "store" for your existing bricks and mortar, or launch a web-based retail operation? Each strategy involves different goals and tactics.
- If it's an online sales operation, will mechanisms such as payment systems be required? And if so, consider contacting your bank to set up a merchant account or private payment providers such as PayPal, Click2Pay, PsiGate and CardService International.
- Will implementing software (web-based or standalone such as bookkeeping software) create savings, improve business efficiency, or take up employee time?
- How will success be measured? There must be mechanisms in place to determine if your goals are being achieved. If it's an online retailing operation, how are you going to track sales and marketing initiatives?
- Are the ebusiness systems appropriate for your operation? A shopping cart system might work for retail sites but is inappropriate for the service industry. Similarly, simple bookkeeping software might work for a single-person operation, but won't supply enough financial information to a larger business.
- What kind of support for the initiative will be in place? A website that sells products is going to require more extensive marketing than one that supplies a niche service. Also, operational software may require ongoing support from the supplier, or training within the organization.
- How will you finance the ebusiness initiative?
What you could measure to determine ROI
Ebusiness can have an impact on a wide range of management functions that include finance, human resources, strategic planning, sales and marketing, customer service and order management, purchasing and procurement, research, production, and distribution.
When determining metrics for return on investment with ebusiness, entrepreneurs should review their original purposes and goals and then measure percentage changes in functions involving:
- Finance and administration
- Design, development and engineering
- Purchasing
- Asset management
- Production and production quality control
- Customer satisfaction levels
- Ordering and shipping
- Human resources
- Sales
It's important that these metrics be updated regularly to ensure that your business does have a good return.
|
  
|
|
|
