Malanaphy Consulting, LLC

By Brian Malanaphy

With all of the recent high profile dot-coms crashing and burning, and the huge amount of money that was subsequently lost, the question of whether or not it is possible to make money on the Internet is more pertinent today than it was even a few years ago just prior to the Internet boom. Hawaii-based companies are well positioned to prosper from the application of web-based and Internet technologies, as many lessons have been learned in the aftermath of the dot-com frenzy, and the tools to implement strategic web initiatives have greatly evolved.

So can you make money on the Internet? Most definitely “yes”; however, as when applying any computer technologies to improve business, it requires a methodical, measured and informed approach. Most of the dot-coms that crashed and burned did so not so much because of bad technology but because of plain old bad business planning and poor execution.

Perhaps a better question is: How do you apply web-based and Internet technologies to your business to either reduce costs, or increase revenues and profits? The answer generally is to simply do more with less. Do more business with less resources or cost. Of course this is easier said than done, especially for mid-sized, budget-conscious businesses in Hawaii.

To what area of your business is it best to apply these technologies? Is it best to automate your customer or sell side? Or is it best to automate your supply or buy side? Or maybe it’s best to automate the processes that occur within your company or inside. Let’s take a brief look at each of these functional business areas and how companies are utilizing web-based and Internet technologies to improve their businesses.

Sell Side

Sell Side solutions leverage web-based and Internet technologies to improve transactions and relationships with customers, expand marketing and sales reach, and empower customers to serve themselves. Dell Computer is a preeminent example of how to use the Internet to transact business with customers. Customers can shop and configure their system on-line, get pricing and availability information, order their system, track the order status and shipment, and get technical support that is specific to their system. This functionality ultimately provides better customer service, at less cost to Dell.

Buy Side

Buy Side solutions enhance transactions and relationships with suppliers, whether your company is buying raw materials, MRO (Maintenance, Repair and Operations), or other supplies or services. Wal-Mart is an excellent example of how to apply web-based and Internet technologies to transacting business with suppliers. Wal-Mart’s Retail Link site allows its tens of thousands of suppliers to have quick and easy access to Wal-Mart’s inventory systems, which results in faster replenishment, lower inventory costs and a product mix that is better tailored to customer needs.

Inside

Inside solutions enhance and streamline internal business processes related to customer service, product development, knowledge management and human resources. Cisco Systems’ Employee Connection site demonstrates how to apply web-based technologies to improving internal business processes. From this self-service site, Cisco employees can order office supplies, review benefits, compare meeting schedules, make travel arrangements, access technical documentation, attend distance-learning classes, and even order catering for upcoming meetings. The site enables employees to spend more time doing their jobs and less time searching for information and processing paperwork.

Ideally, web-based and Internet technologies should be applied (where appropriate) to as many aspects of your business as possible. Many obstacles preclude companies and organizations from leveraging these technologies; however, those companies that have the foresight to strategically apply web-based and Internet technologies are the companies that will be well positioned to best compete and maximize profits.

Of course you can make money by utilizing web-based and Internet technologies but you’ll still need to follow basic business sense and you’ll still need to carefully plan, test, deploy and enhance the web-based technologies used by your company or organization.