| There are more than 5 billion web pages with millions | | | | the ability through autoresponders to send thousands |
| of businesses trying to do business online. But only a | | | | of emails in an instant but few online businesses can |
| few have succeeded while the rest are mere | | | | write an intelligent, witty, one to one personalized |
| billboards on the internet superhighway. | | | | communication to effectively leverage the |
| These few have succeeded in overcoming the value | | | | autoresponder.. |
| hurdles by constant innovation. | | | | Knowledge as value |
| Constant and never ending innovation is the key to | | | | While internet is a huge repository of knowledge and |
| creating value in business more so when your | | | | could act as the major tool for value enhancement, the |
| business is totally web based and online. Why is it | | | | volume of information or knowledge available can also |
| more important in online business than traditional brick | | | | become its major disadvantage. Everyone online |
| and mortar businesses? | | | | knows that there is a huge amount of knowledge that |
| Let us look at a few key components of value | | | | one has to assimilate quickly. The person therefore |
| creation in traditional vs. online business | | | | scans the information online mechanically and quickly, |
| Human Presence in Enhancing Value | | | | not comprehending fully the information he is scanning |
| Traditional business has one major advantage. It is the | | | | on the monitor screen. |
| ability to communicate one to one and personally with | | | | Another disadvantage is knowledge cannot be applied |
| the customer. While communicating directly with the | | | | selectively to the online customer. All knowledge can |
| customer by a sales person, the owner or the | | | | be made available online but it is the discretion of the |
| resource person, the personality of the person is | | | | customer to recognize, choose and use it for value |
| added to the overall value of the goods or services. | | | | enhancement. Therefore it is a highly perishable |
| A smile, witty presentation, on the spot analysis of the | | | | commodity online achieving very fast obsolescence. |
| need and matching the product benefits to the need of | | | | Offline business has the advantage of communicating |
| the customer, a feel for the product and services | | | | knowledge and information in a form that is relevant. |
| enhances the value of the product for the customer. | | | | The availability and access to knowledge, though |
| Online business has very little scope to add value by | | | | limited, is used selectively and tailored to customer |
| physical presence either of the product or the person | | | | requirement. |
| promoting it. To make up for the personal charisma | | | | Change and innovation as value |
| and interaction, online business content has to be highly | | | | Change and innovation are better perceived offline in |
| conversational, witty with personalized writing styles or | | | | real life situations than online. Any innovation or change |
| audio/video to get the same effect and results. | | | | takes time and effort on the part of the online |
| Technology as Value | | | | businesses to reach to the customer in spite of |
| Traditional business is able to get the attention of the | | | | technology as customers may choose not visit the |
| customer by projecting a vision of the technology and | | | | web pages or emails may be filtered out. |
| its possibilities through personal contact. Even a | | | | A change from a staircase to an escalator, automatic |
| moderate technical improvement is made more visible | | | | doors, a facelift to a building or storefront, a better |
| to visiting customers | | | | billing system are all far more appreciated than online |
| Online business is heavily dependent on technology. But | | | | innovations. |
| technology has the disadvantage of becoming a | | | | An online business has to constantly innovate in terms |
| commodity as everyone catches up and the | | | | of sticky online content to keep the customers coming |
| differentiation vanishes. Enhancing value through | | | | back. The web content has to be designed and |
| technology requires constant innovation to stay ahead | | | | written very intelligently to achieve the same impact as |
| of the pack. Technology as a commodity may be | | | | a simple handshake in offline business. |
| overcome only though a human face. You may have | | | | Is it the reason why more online businesses fail? |