Newsletter April 2000B

FUTURE - Tomorrow's Business Model

In the book The New New Thing, Jim Clark is described as the man with his finger on the pulse of the future. He had the ability to create 3 companies that each reached $1 billion in market valuation: Silicon Graphics, Netscape and Healtheon. His entry into the technology sector with Silicon Graphics was a step ahead of his time. The creation, or better yet, the vision of what Netscape became was also one of the single most powerful insights that have changed almost everyone around the globe. The creation of Healtheon also showed how the web could link organizations in a method never tried on such a large scope. The fact that Clark was ahead of the technology cycle leads one to believe that his shift in business models might also forecast an entirely new direction for the web.

Today's models might be grouped as:

     1. Traditional brick and mortar

     2. Internet service or product companies

     3. Hybrid Web Entities (HWE)

Most businesses prior to 1994 were completely brick and mortar using technology as a way to enhancecommunications. Remember the fax machine? Even today there are many companies that have yet to plug into technology's new operational tools and consider the web to only be a marketing and email architecture. 

Many internet services and product companies, free or for hire, have based their entire operations on the creation of a dominating position in the web infrastructure only to be valued as the mainstream URL, such as Amazon. Business executive have positioned themselves to be portals, engines, links or windows to other areas of the net or brick and mortar operations that may in the long term generate profits. In addition there are a number of internet operations that are making money using the net as a model in and of itself.

Lastly, there exists the hybrid web entities that have been catching up with the new organizations ever so slowly. These are businesses that have either needed time or an understanding in order to embrace  technology. They have been given ample transition tools so that if we compare their operations of just 7 years ago to today, their structure, 

communications, operations and marketing now appear to be reborn. Companies that embrace technology, including backend, automated systems,  and customer relationship management software, will see a lowering in the cost of doing business.  They are faster, more efficient and understand the basic business model of making a profit. Engineering firms can keep current and move product design faster through their systems. Sales companies can benefit from 24/7 business operations by showing their products and conducting sales meetings with their "brochures" right in front of the customer at any time of the day or night. The fact is that cash rich organizations with tremendous reach have been able to meld the new operating models into their existing enterprises, are more savvy and are willing to invest in future expansion in web-based and traditional markets.

This past week has been a topsy turvy investment nightmare for most investors linked to the net. After years about concerns in the technology sector, it's not hard for many to say I told you so. However, they too may still be wrong. The changes in the market are both a sign of "the new rules" and of the obvious that some companies will fair the technological challenges and some will not. Analysts are expressing concerns about Internet based businesses that are falling short of predictions and we are sure to see many bankruptcies and closures as capital is directed elsewhere. In most cases the future will be comprised of ideas that move to market quickly and then become the standard for web based business. 

Jim Clark has now created a brick and mortar business that expresses itself as an internet company. In reality, myCFO.com is the epitome of giving information and resources to people by utilizing the net as a tool for the enterprise. myCFO has been created to allow the millionaires of today to have the very best financial services while enjoying life around the globe. myCFO, like the emergence of the "new" way of banking, provides 24/7/365 client access by utilizing the Net. myCFO gains access to billions of dollars in capital to leverage services to its members; hence, Clark can say, "We have $500 million to invest in your project, and we want a special deal."

This is not to say that the future of the web is to move out of technology, on the contrary. Companies involved with the hardware and structure of the web have billions in profits to generate. It does, however, suggest that the future of successful businesses is either in building their infrastructures to meet customers expectations or in not mistaking the web as just another marketing tool to the world 

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COMMUNICATION: Business is knocking at your door...

is anyone home?

Communications and customers are a package deal in the business world. When we look at communications and how they link to our customers, we need to look at two facets of communication: the type of communications used and the deployment of the method chosen. Years ago, customers were satisfied to call a firm by phone and talk to a real person. That real person could assure the customer that their wishes would be fulfilled, even if, during the initial conversation the business person could promise no more than to return the initial call with information.

Over the past two decades, technology has introduced to us many new and exciting methods of communication, such as cell phones, pagers, faxes, email, voice mail, web presence, telcons, intranets and pda's. One would think that more must be better, as we can now make ourselves accessible in ways most convenient to a variety of customer types 24/7. Unfortunately, today's customers sometimes feel more neglected and shut out than ever before. 

Emails often go unanswered when requests are made. (Note: their is no need to respond if there is nothing to say). Voice mails are used as screening devices, from which message recipients can opt to return calls as they become convenient during busy days, if those calls are answered at all. With downsizing, many workers are doing the jobs of two people instead of one. In addition, communications provide us with a plethora of messages from an abundance of sources. It's no wonder that customers feel ignored, or feel that they can't trust us to provide the services they seek. 

This is where we need to look at how we are utilizing the many methods of communication with our existing and potentially new customers. This is where we can seize one opportunity after another to show our customers that they matter and that their needs will be met. Build into your communication tools automated devices that respond to the customer in a timely fashion. The response is immediate and affords the customer service representative or executive a little more time to reply in depth. Take a look at your own business and see where you could stand to improve in this way. Some additional activities to consider are:

*Make it a point to check your communications messaging systems at least every 2 hours.

*Make sure to respond, even if only to notify that you will be in touch within a certain period of time.

*Realize that any communication is an opportunity for business-if not now, then in the future.

*Use auto-responders in your email queries off your web site or email system (above).

*Place thank you's in your web design so that customers get the sense that you care.

*Gain the value of group communications so that multiple parties get the message and you save time.

*Opt for CRM programs that include automated executable routines.

Again, the new ways of communicating with customers

should work to your benefit. It is in the way these communications are utilized that will determine whether customers are provided with quality service or not. Frequently evaluate your responses to your customers, and upgrade where necessary. You are bound to keep old customers and win new business with attention to this area.