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e-biz update
 WWW means business success (PHILIPPINE DA ILY INQUIRER, DECEMBER 5, 2001)
By CLIFFORD LEE
As a 22 year old sofware developer for a sofware firm in Vancouver, Canada, I can safely say that right now is the best time to prepare your arsenals for the next uprising of the IT industry. Companies in modern countries have been migrating their businesses to the web to provide efficient service to their clients and internal departments.
Too good to be true?
People have been saying that the worldwide web is simply an overrated part of the Information Technology sector. Although it may be hard for some people and even businesses to swallow, I say that the web is here to stay. Either people get ahead of themselves and prepare early or they totally fall behind and turn away from today's world.
When the telephone was first introduced, it wasn't widespread like what the Internet is right now. But nowadays, it is simply impossible for a business to function without a telephone. The web might just be the next essential tool to make a business work in the future.
So how would the web be helpful for a business aside from being a nice online brochure or a shopping alternative? These uses clearly understate what the web can do for a business. In the future, documents on paper essential for today's business will be translated
to digital information transmitted on the web.
Right Solutions
What makes things positive for the web are the hundreds of thousands of available online applications ready to be used for existing business models. Existing business models will be able to take to take advantage of today's technology through conversion of their current business model to move in a speed faster than one can imagine.
Imagine a business that doesn't have paper to work with. Imagine a business environment that works efficiently with the use of the computer, specifically the web, to transmit data from a mere workstation to others across the globe. Wouldn't it be faster to have all the data ready for you to retrieve in a secure environment 24 hours a day, 7 days a week?
Work from home
What makes things interesting is that managers or CEOs can work from their homes by simply logging into the company web site and keep track of how things are going for the company. This internal web feature can be secured from the outside world and yet be very useful for the people who ran the company.
Government agencies can also send documents in a matter of seconds therefore cutting down on red tape. A fully functional web application for a business or government agency will keep track of all transactions such as login and documents being accessed by employees. The applications will be able to do everything an inventory keeper can while keeping it away from people who plan to desecrate it.
Proper deployment of the web application to simulate the current business model will not only force your employees to work harder and efficiently. You will have more manpower to do what you do best, which is to serve your clients while your web application helps you run your business from the backend.
Be afraid of competition
and leverage your brands
By Tina Arceo-Dumlao
Inquirer News Service
SINGAPORE--Internet commerce may not have taken Asia by storm as many people have predicted but there is a bigger competitive challenge posed on retailers that is hitting closer to home--the entry of the big retail and specialty shops from the United States and Europe.
This was the prediction made by Dr. Ira Kalish, director for global retail intelligence system of consulting firm Pricewaterhouse Coopers, in a press briefing here during the Retail Industry Trade Event 2001 exhibition.
Kalish says big foreign retailers such as Wal-Mart in the US and Tesco of the UK are spreading their wings to cover Asia to keep their costs down and improve efficiencies.
By maintaining global and focused operations, these large corporations achieve economies of scale.
Kalish says this threatens the existence of smaller retail companies, including the big local players in the Philippines, because the global companies will be able to sell the same products at lower cost.
He explains that cross-border ownership of retail networks has accelerated over the past years due to the global excess capacity of retail shops, thus, retailers have to look at other markets to maintain their operations.
"There is excessive retailing because people now shop less frequently than they used to as more women get into the marketplace. Instead of shopping everyday, they shop every week or every two weeks so there is no need for too many stores. The Internet has also changed consumer behavior,'' Kalish says.
With consumer having a bigger array of choices than they used to, retailers have no choice but to get a share of the dwindling resources left for shopping.
This means pressure to keep prices low, maintain quality standards and be more responsive to fickle consumers.
Kalish says retail shops, thus, have to find ways to differentiate themselves from the other local and global players in their markets to keep customers coming to their stores. Unique can either be in price, merchandise, customer service and in branding.
Retailers of tomorrow, he says, should leverage on their brands. Clothes shop Gap of the US, for instance, has built up its brand to connote quality clothes at affordable prices.
Victoria's Secret has also built up its brand through multi-channel distribution. It has retail shops, catalogs and a website to reach out to consumers.
Kalish also emphasizes the need to minimize costs. This is more of a challenge for local retailers who do not have the benefit of global purchasing like foreign companies that have expressed interest in going to the Philippines.
"Retailers will also have to innovate, execute, adapt and be paranoid to competition from overseas so that they can institute changes to keep up with the changing consumers and entry of global players," he says.
Kalish predicts that retailing in the future will be global, consolidated, efficient and focused with global players selling off non-core assets to concentrate on their niche markets.
Consumers, on the other hand, are expected to be more sophisticated, price conscious and demanding.
Kalish emphasizes that e-retailing may not yet be too much of a factor in retailing in Asia but it will in the next five years as more people in Asia get connected to the Internet.
"The Internet is one of the transforming phenomena that will change the retailing landscape in the future because it is another factor that will enhance competition in the sector," he says.
Kalish encourages existing players to go into e-commerce to provide another channel for distribution. He says it is existing brick and mortar companies that will benefit most from the changes through the Internet compared to pure Internet retail companies who have to build their business from scratch.
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