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Key Indicators for Successful Internet Commerce 147 money to do proper development of the e-commerce shop. Transaction costs should also be low. The problem, however, is still to attract venture capital to ensure a stable financial environment. Feedback: According to the theory, feedback is important in order that ecommerce entrepreneurs can assess if they are on the right track, their service is correct and their customers are happy and will visit their e-commerce shop again. It also means communicating the e-commerce vision inside and outside the organization. Management: The problem that the authors stated in the theory is that top management should be fully committed to successful development of an ecommerce site. If top management does not commit them to it, then the project and e-commerce is doomed to failure. Roles for the team should be defined and responsibilities should be allocated. Marketing: It is important to note the number of advertisements with URLs on them during visits to sport stadiums. Having a brilliant e-commerce site is no use without marketing and the authors have pointed out that successful e-commerce sites spend more money on advertising. It also pays to have a well-known brand in your stable, as this would ensure that people do visit the e-commerce shop. Changes should be marketed to partners, suppliers and customers. People (staff and customer): The theory noted that well trained staff and customer care would ensure that the site is successful. Without customers, there would be no e-commerce and no survival. There should be input from end-users as well (from both sides). Individuals should be educated about new processes, systems and business practices. Alignment of goals: The theory noted that the alignment of goals was a theme that successful organizations should keep in mind while conducting e-commerce. The responsibility rests with the e-commerce team to ensure that the e-commerce goal and the organization’s goal should be aligned. The authors also noted that the e-commerce team should not be part of the IT department or should be separated once they had been picked. Items not suited for sale over the Internet: the theory argued that many items are not suitable for sales over the Internet, like funerals, perfume, etc. Organizations Copyright © 2003, Idea Group Inc. Copying or distributing in print or electronic forms without written permission of Idea Group Inc. is prohibited.
148 Lubbe and Pather should spend some time building a brand name (it does not come overnight) and ensure that they also stock and advertise the items that will sell over the Internet. Parameters: the parameters should be set for the e-commerce so that any variance to the original plan is noted immediately and that corrections are made on time. This would help to manage the vertical tension of centralization versus decentralization and of separation versus integration of the e-commerce organization. Security: Successful e-commerce sites ensure that their site is secure in terms of freedom from hackers and secondly that transactions cannot be copied. Many customers do not trust the Internet and a secure environment would ensure that everybody feels happy. The purpose of developing the theory was to explain how e-commerce managers go about the business to assess its success factors. If a satisfactory explanation can be developed, it could provide a basis for evaluation of ecommerce management. This will allow an understanding as to the likely success of an e-commerce organization, and whether or not management complies with the factors expressed in the theory. It can be deduced that the first four factors are important drivers (50%) that can ensure successful e-commerce start-ups. These four factors should be included when developing and running an e-commerce organization. The other factors are also important in ensuring a successful e-commerce. However, in the case of ecommerce, it is suggested that these could be of higher importance. Surveying the South African E-Commerce Practitioners The framework developed (See Figure 2) was used as a basis to formulate a questionnaire. There were 50 organizations that were identified from a list of contacts supplied by the e-Business Centre of the Cape Technikon. The Web directory of TELKOM S.A. was also used extensively. A total of 120 questionnaires were e-mailed and posted out. This was distributed to 50 e-commerce organizations. Of these 27 were returned giving a 54% rate of return. The size of each of the participating organizations differed (from a giant financial organization to some smaller firms). A range of responses was obtained. Some organizations showed a high level of enthusiasm in the survey whereas indicated an indifference to the importance of the research. For example one big website run by a big shopping complex indicated that they could not complete the questionnaire and that they could not force their participants to complete the questionnaire. Copyright © 2003, Idea Group Inc. Copying or distributing in print or electronic forms without written permission of Idea Group Inc. is prohibited.
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Acquisition Editor: Mehdi Khosrow-P
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The Economic and Social Impacts of
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vi Preface E-commerce is not new, t
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viii the e-commerce’s experience
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Figure 2: Final Model TK Gender Age
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About the Authors 259 Eric Cloete B
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