{"id":184,"date":"2011-11-11T05:03:57","date_gmt":"2011-11-11T05:03:57","guid":{"rendered":"http:\/\/54.89.30.111\/?p=184"},"modified":"2020-12-17T22:16:04","modified_gmt":"2020-12-17T22:16:04","slug":"e-commerce-the-model-is-changing-is-your-business-ready","status":"publish","type":"post","link":"https:\/\/dstinc.com\/index.php\/2011\/11\/11\/e-commerce-the-model-is-changing-is-your-business-ready\/","title":{"rendered":"E-Commerce … The Model Is Changing – Is Your Business Ready?"},"content":{"rendered":"
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Introduction<\/strong>
\nAlthough it may come as a surprise to 30-something \u201cdigital architects,\u201d e-Commerce has actually been around for more than 40 years.<\/p>\n

What began as an electronic process to facilitate ordering and payments between large corporations has evolved into a strategic business system that allows companies of all sizes to connect with customers in ways that were unimaginable just a few years ago.\u00a0 e-Commerce enables companies to create, deliver and capture value to customers, leveraging its supply chain management, marketing and sales, and IT competencies in new ways that make the company more accessible to customers.<\/p>\n

E-Commerce is creating a networked economy, creating value largely through gathering, synthesizing and distributing information.\u00a0 It allows companies to compete in real time rather than operating by batch processing, making them more competitive in a world characterized by low barriers to entry, near zero variable costs of operation and shifting competition.\u00a0 It organizes resources around the demand side rather than the supply side, and allows companies to strengthen relationships with customers by using technology to increase interactions.<\/p>\n

DST has been an e-Commerce technology leader for 25 years.\u00a0 This white paper explores some of the critical success factors that companies need to take into consideration when launching or expanding their e-Commerce initiatives.<\/p>\n

Background<\/strong>
\nElectronic Data Exchange (EDI), the forerunner to e-Commerce, began in the 1960s when some large companies began transmitting business documents from one computer system to another.\u00a0 However, implementing an EDI system was extremely expensive, which was a limiting growth factor, as was the fact that each company had its own standards for formatting documents.<\/p>\n

Change accelerated in the 1970s.\u00a0 First came Electronic Fund Transfers (EFT), which allowed payments to be processed online.\u00a0 Then, in 1979, the American National Standards Institute (ANSI) developed a new universal standard for sharing business documents over electronic networks, which they called ASC X12.\u00a0 The next major advance was the movement of e-Commerce from the exclusive realm of large companies doing business with each other.\u00a0 This took place when CompuServe, which had been one of the first to provide home PC users with services such as email, message boards and chat rooms, opened its \u201cElectric Mall\u201d in the 1980. This service allowed users to purchase items online directly from 110 merchants.<\/p>\n

Amazon was born in 1995 and quickly established an e-Commerce standard.\u00a0 Much of the e-Commerce functionality that we take for granted today were Amazon innovations, including custom search options, personalized recommendations, and the \u201cone-click\u201d checkout system that allowed for quick and secure purchases.\u00a0 When Digital Subscriber Line (DSL) service was launched in California in the late 1990s, it eliminated the need for slow and inconvenient \u201cdial up\u201d service.\u00a0 In a sense, DSL unshackled e-Commerce as it worked its way across most of the country.<\/p>\n

e-Commerce Changes Everything<\/strong>
\nFor most established companies, particularly B2B-oriented companies, their online presence was initially limited to online brochures.\u00a0 These websites were little more than online sales literature, as companies resisted e-Commerce due to the potential for channel conflict and cannibalization.<\/p>\n

However, many of these companies now embrace e-Commerce, and some of them are actually doing it well.\u00a0 They understand how to leverage their brand names to bring customers new options for interacting with them and are reaping the rewards for their investments.<\/p>\n

The benefits of a robust e-Commerce system from a company\u2019s perspective are myriad.\u00a0 First, and most obviously, e-Commerce provides lower transaction costs by significantly lowering upfront order-taking and post-sale customer service costs.\u00a0 In effect, it opens a company for business 24\/7\/365 without the corresponding increase in headcount and other overhead.\u00a0 It also allows companies to sell from larger catalogs, which can be updated in real-time to make new inventory available for sale immediately.<\/p>\n

From the customer\u2019s perspective, e-Commerce allows them to shop how and when it is most convenient to them, a benefit that cannot be overstated.\u00a0 In addition, e-Commerce gives businesses and consumers more shopping options by exposing them to businesses they would otherwise have never heard of.<\/p>\n

Implemented and managed correctly, e-Commerce is a strategic business advantage, differentiating a company from its competitors.\u00a0 However, there are too many turnkey products in the market that just don\u2019t provide companies with the flexibility they need.\u00a0 Sophisticated companies are looking for bolt-on solutions that can be customized to solve their specific problems and that offer an investment model that makes sense for their businesses.<\/p>\n

An Example:\u00a0 e-Commerce In The Automotive Aftermarket<\/strong>
\nThe automotive aftermarket offers a good case study on how e-Commerce is expanding markets, not replacing the underlying structure.<\/p>\n

For example, regardless of how customers place their orders, those parts will have to be warehoused, inventoried in local stores and delivered as needed.\u00a0 Due to continued vehicle complexity, even the most highly-trained technicians will need professional counter people available to answer their questions \u2013 despite all of the technical information available online.<\/p>\n

From an e-Commerce perspective, however, the aftermarket remains inefficient.\u00a0 Companies must accept that because technology changes rapidly and continuously, e-Commerce cannot be a one-time initiative.\u00a0 Unfortunately, instead of developing and adapting new technology, companies are still spending time and money trying to work around old technology.<\/p>\n

Too many aftermarket companies still see e-Commerce as an electronic stock check or just another way for customers to place orders.\u00a0 Even if their business is focused on B2B trade, they forget that their customers use Amazon, e-Bay and other B2C sites regularly, and expect the same kind of user experience from the companies they shop for parts.<\/p>\n

Data has become the driving factor.\u00a0 More specifically, companies need to identify the content that users value and get it on their screens.\u00a0 In some instances, this will be a company\u2019s own intellectual property; in others, it may come from a third party.\u00a0 Regardless of where content originates, however, the key is to present it to users in a compelling way.\u00a0 For most companies this is a completely new way of looking at their e-Commerce strategy.\u00a0 Instead of concentrating on what is best for the company, they must focus on what is best for their customers.<\/p>\n

True aftermarket e-Commerce solutions must allow companies to adapt to changing market conditions.\u00a0 If a company changes its distribution management system, for example, its e-Commerce engine needs to be portable to accommodate the new platform.\u00a0 Similarly, e-Commerce needs to be flexible enough to handle multiple Buying Group relationships, Internet specials, and expansion into additional market verticals.<\/p>\n

Why DST<\/strong>
\nMost organizations consist of many legacy business systems, and they are understandably hesitant to implement new technologies that would force them to change parts of their business that may be operating at acceptable levels.\u00a0 DST understands this, and for more than 10 years has been delivering bolt-on e-Commerce solutions customized to meet specific customer needs faster and more efficiently than most companies thought possible.<\/p>\n

DST TurboParts\u00ae is a bolt-on solution that can be customized to meet an organization\u2019s unique needs. Furthermore, DST\u2019s strategic partnership with IBM brings the power of the IBM i-Series to support e-Commerce initiatives for companies of all sizes.<\/p>\n

TurboParts has become the preferred e-Commerce gateway for global organizations that want to provide users with the content they need to make intelligent purchasing decisions at their convenience. The TurboParts e-Commerce engine transforms order entry and fulfillment from an operational function into a strategic business advantage. It allows companies to increase sales and expand their customer base by making them \u201copen for business\u201d 24\/7\/365 \u2013 and it accomplishes this without adding to payroll or forcing customers to consider making a complete distribution management system change in order to utilize the power of a best-in-class e-Commerce engine.<\/p>\n

With TurboParts, scalability is a standard, with custom pricing models to allow businesses to budget intelligently. Moreover, end users don\u2019t need to install additional software to interact with TurboParts \u2013 all they need is a browser connection.<\/p>\n

TurboParts provides \u201cright time information\u201d through easy-to-use, advanced sales data analytics to help customers improve inventory management. The system\u2019s drill-down capabilities provide extraordinarily timely information that can be used to run businesses more efficiently \u2013 including lost sales data and information on customer order patterns by day of week and time of day.<\/p>\n

Many companies are looking to maximize sales opportunities by offering Internet specials tied to real-time inventory.\u00a0 This functionality is built into TurboParts, allowing companies to customize TurboParts without relying on third-parties to create these offers. Due to its open architecture, the system can accommodate content from a variety of third party solutions.<\/p>\n

A key functionality of TurboParts is the Rear View Mirror, which allows a company to place links behind photos on TurboParts pages. Even the best sales people may only be able to talk with a limited number of customers in a day to inform them of upcoming promotions or company news \u2013 TurboParts provides users with access to external catalogs, vendor websites, .pdf documents and promotional literature at the click of a button. This allows them to get the information they want when it is most convenient for them, generating the positive online interactions that result in improved customer service levels and a stronger affinity for customer brands.<\/p>\n

In order for customers to receive the full benefits of their DST e-Commerce solutions, they need to drive usage throughout their organization.\u00a0 Unfortunately for too many companies, this is easier said than done.<\/p>\n

DST understands that the old pricing models no longer make sense for customers, and has developed creative, flexible models that encourage full usage and allow a company to still intelligently manage their budgets.\u00a0 DST believes that cost should not be a driving factor in whether a company will be able to deploy an e-Commerce solution that helps them remain competitive in all of their markets.<\/p>\n

A number of factors drive usage, such as geography and corporate culture, which is why DST customizes every phase of implementation \u2013 from the actual technology to training and support.\u00a0 The DST team utilizes best practices gleaned from years of working with companies in different markets and of varying sizes to identify programs that are most likely to generate those results.\u00a0 TurboParts is designed to be user-installable, but DST recognizes that as with all technology, there are critical times when a user needs a real voice on the other end of the line.\u00a0 The resultant pre- and post-implementation support programs reassure customers that DST stands behind its solutions beyond providing a series of tutorials and Help documents.<\/p>\n

Companies considering an investment in e-Commerce need to believe that their chosen solution is truly aligned with how the company wants to go to market and encourages full deployment to all touch points.\u00a0 They need scalability and custom pricing models that allow them to budget intelligently.\u00a0 They want to be able to bolt on other third-party solutions that enhance their e-Commerce engine.\u00a0 Some businesses work with multiple e-Commerce solutions because of different purchasing and customer relationships, and need a core platform that will make it easier for them to deploy and manage the e-Commerce part of their business.<\/p>\n

DST is demonstrating a unique ability to solve all of these problems, which is fueling the company\u2019s growth.\u00a0 For instance, the company continues to win major enterprise deals, including retailers and manufacturers, as well as business with independent distributors and buying groups.<\/p>\n

Conclusion<\/strong>
\ne-Commerce has come a long way since the days of Electronic Data Exchange.<\/p>\n

What began as a way for large companies to share business documents has evolved into a service that customers, B2B and B2C, expect.\u00a0 e-Commerce has transformed the model away from companies pushing product into the marketplace and towards customers demanding how and when they will interact with a companies.<\/p>\n

Companies can continue to treat e-Commerce as nothing more than a way to take costs out of their operations, or they can play second fiddle to companies that embrace the new model and use e-Commerce to help strengthen customer relationships.\u00a0 Forward-looking companies are implementing bolt on e-Commerce solutions that are customized to the unique needs of their businesses, and that seamlessly integrate with legacy business systems.<\/p>\n

The e-Commerce solutions that worked even five years ago are no longer good enough.\u00a0 In today\u2019s competitive global economy, a powerful e-Commerce program can be the difference between prosperity and stagnation.\u00a0 Standard solutions deliver standard results, and that\u2019s just another way of saying inefficient and inconvenient.<\/p>\n

Even companies that recognize the competitive advantage that can be gained from a robust, customer-centric e-Commerce program oftentimes fail to execute the initiative properly because they attempt to do this \u201cin-house.\u201d\u00a0 Captive IT departments are responsible for a myriad of programs within a company, and juggling those responsibilities can force them to lose focus on an e-Commerce initiative, resulting in programs that take twice as long to develop and cost 2-5 times more than they anticipated.\u00a0 Moreover, outside experts have a broader view of \u201cbest practices,\u201d which make the final solution more robust than might otherwise have been the case.\u00a0 Finally, because creating custom e-Commerce engines is not core to a corporate IT department, the likelihood is small that they will continue to look for ways to improve their solution once it has been implemented.\u00a0 Innovative companies partner with DST, and use the time and money they save to focus instead of their business\u2019 core competencies, letting DST manage and drive their e-Commerce initiatives.<\/p>\n

DST understands how to fully unleash the power of e-Commerce, creating the proverbial \u201cwin-win\u201d situation, where end-users get the convenience and functionality they need and companies get the results they need to propel themselves to the next level.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

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