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The Seven Pillars of eCommerce Defined

By: Stuart Martin

A study released by research firm 'Gartner Group' predicts 75% of all
e-business projects will fail due to poor planning and unrealistic
expectations of technology. In order for any company to conduct successful
business on the Internet, a process of evaluation must be utilized. One
framework to which companies often compare their business is 'The Seven
Pillars of E-business equation'.

Pillar 1) Online Marketing has been in existence since around 1994, when the
first wave of mainstream companies jumped onto the web displaying their
rudimentary html pages containing product information. Still today, some
companies do little more than place their information on the Internet using
a pleasing layout; in hopes that someone will stumble upon their site and
buy the product. Many companies have not yet reached pillar one. According
to the Yankee Group, only 31% of small business and 51% of medium-sized
businesses in the United States have a website.

Pillar 2) Online Ordering is the process of allowing a customer to submit
order information through a company website. Online Ordering is quite easy
to set up through an online web-form created in static html. When the
customer clicks on 'submit', the information is forwarded to a company email
address. Customer follow-up and billing occurs offline through traditional
business channels. Many tourism companies are at this level, receiving a
request forma and even a credit card number. They think that they are now in
the online business. However, all of the information has to be processed by
the vendor. In reality, this is another form of fax ordering.

Pillar 3) Online Selling takes the Online Ordering process one step further
whereby the customer`s transaction is actually conducted online. For the
ease of the customer, credit card information is recorded and through
traditional business channels, the company provides goods or services to the
customer. Credit card information is authenticated directly online and
customers are supplied with proof of payment. The vendor receives payment
direct to its Merchant Bank.

The third pillar is a stage most companies cannot seem to master. It
requires sophisticated database-driven websites, intensive strategic
planning, a large programming and insurance budget, and a bank that allows
online credit card merchant accounts.

Th....[MORE]

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