The Internet is the key to opening doors to new opportunities. If CIOs do
not embrace it, their competitors certainly will.
Despite shortcomings in bandwidth and ease of use, the Internet is
fascinating to enterprises around the globe. As a result, they are weaving it
into their business strategies at an accelerating rate. It is estimated that one
new Internet address is created every four seconds. "Never before has a new
medium had such a profound effect on all facets of business," says Gartner
Vice President Doug Cayne.
Yet with the rush toward this new technology, CIOs find themselves
facing a complex role -- one that requires them to be part cheerleader to
promote innovative uses that could benefit their business, and part traffic
cop to slow down the hype and inhibit unreasonable expectations of what
technology alone can offer. At the same time, their job is that of the enabler
who provides the capabilities and resources to allow appropriate uses of the
technology to evolve.
These varied tasks mirror the enigmatic Internet itself. "The Internet
is not easy to pin down or categorize," says Cayne. "Not only is it
multidimensional, it keeps changing. Every month, another series of
announcements, another series of capabilities, or a new way to use the
Internet has been revealed." To understand how the Internet can be of
greatest use to a company, it may help to return to its most basic definition.
"What you get from the Internet is access to stored information in an easy
manner across a global span of addresses," says Cayne.
Still Internet 101
For many companies, Internet usage is limited to the corporate Web site, an
often stultifying and largely unread creation. The biggest error, say Gartner
Group analysts, lies in mistaking the Web site as a repository for stale, static
corporate publications. "CIOs who say, 'We should put our press releases,
annual reports and marketing literature on the Web,' might as well add,
'And maybe someone, somewhere, will actually read them,' " says Cayne.
This type of Web site will add little value to the enterprise. "The best
uses of the Web are in enterprises that understand the importance of using it
not just as a billboard, but as a transaction generator and an interactive,
analytical tool to help businesses and consumers solve problems." In addition
to the broad area of electronic commerce, Gartner Group has identified
other business applications for the Internet, including:
Disintermediation. The Internet is well positioned to facilitate the
trend of "cutting out the middleman" in routine activities, such as the
ongoing supply of goods to customers. By communicating directly
with customers, enterprises not only eliminate intermediaries, but
also increase customer loyalty through faster, more direct service and
delivery.
Information Delivery. Global, instantaneous delivery of
customized information -- not only data and text, but also images,
graphics, video and audio -- will become a key competitive
differentiator in the 21st century. The Internet creates an
environment for gathering and disseminating information in a
time-sensitive manner.
Customer/Vendor Relationships. The Internet is emerging as a
critical data collection tool where customers and vendors can e-mail
their praise or complaints about products and shipments. By simply
monitoring and "surfing" the Internet, companies can learn ways to
customize their products and improve customer service -- two crucial
avenues for building market share.
Notable Exceptions
One company that has effectively incorporated the Internet into its business
paradigm is Federal Express, which has used its Web site (www.fedex.com)
to reduce costs and improve service to customers. The company allows
customers anywhere in the world to track the status of a package via the
Web.
Another success story is the Goodyear site (www.goodyear.com),
which includes an interactive application called "Tire Selector." This allows
consumers to enter the year and model of their car, along with such
information as driving habits and usual climate conditions. The Tire Selector
then e-mails customers a list of the most suitable Goodyear tires.
Used with imagination, the Internet is starting to change the way
products are marketed, customers are serviced and suppliers are contacted.
"Rather than think of it as a gold mine that will make us all a lot of money,
it's important to take advantage of its efficiencies and to use it as an effective
communications medium," says Cayne. "And do it now, so you can take
advantage of it before the rest of the world does."
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