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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.
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