Marketing significance of e-business vs e-commerce
By Greg Spaulding

Having a successful business in the real world is more than just simply opening a storefront or factory. The same holds true in that conducting business online is more than having just a web site. There are other fundamental variables to consider for a business to succeed.

It is paramount to have a solid infrastructure with great products, superior customer service, effective marketing strategies, real-time information systems, and efficient product fulfillment processes. The proper planning, implementation and execution of these functions are the foundation of any successful business. Unfortunately however, when it comes to the Internet, many companies forgo their business plans, strategies and infrastructure and treat the World Wide Web like a crapshoot. Many brick-and-mortar companies get a web site simply because their competition has one, and thus put little forethought into making the web work for them.

For most companies the Internet is an untapped resource. However, of the companies that do have an Internet presence, only a small fraction will actually utilize the Internet to it’s full potential.

The reason why is quite simple. Most companies mistakenly make use of the Internet for just basic eCommerce, not actual eBusiness. In doing so, other intrinsic and critical business functions found in a true eBusiness platform are neglected. The use of an exclusive e-Commerce platform is a common and understandable mistake. If you were to survey a room full of senior corporate executives, almost all questioned would not be able to tell you the difference between eCommerce and eBusiness. But make no mistake about it; there is a difference between eCommerce and eBusi-ness, a tremendous difference.

E-Commerce is the concept of buying and selling on the Internet. However, the infrastructure of any business is more than just buying and selling and this is where eBusiness begins. A strong eBusiness platform enables a company to provide quality customer service, prompt delivery, a strong marketing presence, maintain flexibility, have reliable inventory control mechanisms and access to real-time information. Let’s take an example of a fictitious company that sells widgets to distributors as well as the general public worldwide. Widgets, Inc. has been very successful selling their widgets for many years in which they contribute their success to a combination of a solid product, prompt delivery, efficient management, and excellent customer service. These variables add up to a satisfied customer base and a profit margin to be proud of.

The president of Widgets, Inc. decides to expand business by creating an Internet presence. However, instead of approaching the Internet division of the business as it did the brick-and-mortar division, with planning and careful consideration to business process management, marketing and quality customer service, the company as an alternative puts together a web site with just a "shopping cart" and without the necessary tools needed to maintain Widgets, Inc.’s dominance in its industry.

The biggest mistake Widgets, Inc. made was not taking into consideration that although their web site at first glance is only a portion of their corporation, their site is a very visible and therefore, influential representation of their corporation. If the site is not able to fulfill the duties of its brick-and-mortar counterparts, then it does not properly represent the qualities that it should. Such a faux pas can also ruin the possibility of increased profits that Widgets, Inc. would make, from a quality and efficient Internet division of their business.

In actuality with the right implementation, the eBusiness faction of a company can be more profitable than their brick-and-mortar counterparts without comprising the same "real world" philosophies that helped propel the company to success in the first place. All you need are the right tools and how to make the most of them.

Now, imagine being able to maintain and manage every aspect of your traditional business, but have access to it anywhere in the world. Imagine expanding your business without having to build expensive storefronts. Imagine running elaborate, expansive, intricate marketing campaigns in hours rather than weeks and at the fraction of the cost. Imagine your RMA and CRM satisfaction levels being either at par or higher online in comparison to your brick-and-mortar division. In today’s eBusiness world, these concepts are not possibilities, but a reality and need to be implemented in every Internet business structure as such.

These are just a few examples of how an expansion into the Internet via eBusiness can vastly increase your profits without conceding the very idiosyncrasies that made you successful in the first place.

Greg Spaulding is the owner and principal of Spaulding & Associates, an independent marketing services and consultation firm located in Thousand Oaks, California. You may reach Greg at (805) 558-7013, email him at: greg@marketingmethodology.com or visit his web site at: www.marketing-methodology.com