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140 Lubbe and Pather
succeed in e-commerce, these new software applications will be required to
integrate the organization’s existing databases, legacy applications, and business
processes more extensively than anything ever attempted.
It is also important that proper information gathering techniques are employed
to ensure that the requirements on the e-commerce system are carefully defined.
Hayes (2002) noted that comprehensive requirements that drive bottom-up project
plans resulting in reasonable, feasible schedules are rarely being achieved. Most of
the schedules she has scanned are unrealistic. It is suggested that the reason for this
shambles is that software is being used as a competitive weapon and is driven by
the need for e-commerce. She noted that back office to frontline meant something
for the managers. Organizations realized that software systems could differentiate
them in the marketplace. This meant new functionality because a new product could
be created within days. There is no manual alternative, and delays might mean
missing market share.
Planning the E-Commerce Venture
Good advice is provided by Abels (2002), who argues that the first step
toward success in e-commerce is to throw aside the baggage of the industrial age
and adopt a born on the Web business model and an Internet mindset.
Pickering (2001) noted in an article on a survey of the e-commerce and IT
practices that the right reasons should be picked when starting out. They caution,
however, that these reasons might not be the right ones at the beginning. Wilson
(2001) provides other advice pertinent to the planning phase, suggesting that
businesses should select online target markets with clearly unfilled or under-filled
niches. While it is advocated that the short-term goals had to be clearly defined,
plans should also focus on the mid- to long term.
Financial feasibility is another traditional planning practice that also deserves
attention. Wilson (2001) advises dot-com startups to set realistic revenue and
margin projections. He suggests that many dot-com “dreamers” set high and
unrealistic projections – they should instead re-evaluate the information and
services they are giving away for free.
Wilson (2001) provides insight into two further lessons learned from analyzing
e-commerce failures. Those businesses that lack sufficient experience and expertise
in an e-commerce setup are encouraged to obtain expert advice as inexperience
sometimes results in serious planning and execution errors, e.g., trying to patch
traditional structures onto a new type of company. Secondly, planning should not
obviate the customer’s important role. An unremitting customer focus is demanded.
Many of the dot-coms’ ideas are unrelated to real customer demand.
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