September 2000 FAQ:
Q: There is debate among the executives at my company that the new economy has blown out the rules of the old economy. Can you set the record straight?

We sure can…

New Times Call for Old Thinking

The new economy thinking in your company better be based on some old economy thinking and practice … or you may find a new way to the old poor house! New stuff comes along, and it's usually exciting, intoxicating, and value added…but it never seems to be complete all by itself. Sure the new economy is here with some great new ways of thinking and some wonderful new tools for operating…but none of the new throws out all of the old! There are some parts of old economy thinking that are still required in the new economy.

A critical part of old economy thinking is the whole idea of business strategy, the approach the firm uses to please its customers and protect itself from its competitors. Yes, customers are still king and are likely to remain so, and competitors are still out there and they still want your firm to just go away. In these times of the new economy, it is critical for your firm to have an eStrategy to guide its entry and route through the web enabled, ERP facilitated, java-driven jungle!

eStrategy…a Definition

So what is an eStrategy and how do I get one for my firm? Let's start with a definition of eStrategy from the point of view of e-Business/Commerce on the world wide web.

• eStrategy is your company's game plan for using the world wide web to add long-term value to your company. Your eStrategy game plan must be precisely aligned with your company's overall competitive strategy.
• eStrategy is the game plan you will use to further either e-business (enhancing business to business capabilities and transactions over the web) or eCommerce (providing goods and services over the web to your customers).
• eStrategy is your firm's business plan for exploiting the Internet to add dollars to your bottom line.

Action Steps to an eStrategy

So that's eStrategy, but how do I get one for my firm? We have had great success with the following steps:

1. Assess your Company's overall Vision/Strategy as the foundation for eStrategy Development. Is your company clear on where it wants to go as a business and how it will get there from a strategy point of view? Do you know what specific needs you want to meet for customers and why they would want to do business with you?

2. Assess your Company's Business Products/Services/Processes to identify leverage points for exploitation with e-Business/Commerce. Not all products sell well on the world wide web and certainly there are services that cannot be delivered on the web. Do you know which products and services would work and not work, given your vision and strategy?

3. Assess your company's current capability for e-Business/Commerce (including IT technology strategy). What is your company's platform for working in the new economy? And by platform, we don't just mean technical platform but organizational platform or maturity level in deal with high tech information products and solutions.

4. Assess your company's Business environment with special emphasis on e-Business/Commerce. Guess what? Those naughty competitors are struggling to gain traction in the new economy as well. Your company needs to know:
    - Competitive direction, trends and capabilities
    - Customer/Supplier direction, trends and capabilities.

5. Explore "What is possible today and tomorrow" with e-business/
Commerce. Things are moving fast in the eWorld…and you want to be up to speed on what can be done to prevent the installation of a buggy whip solution!

6. Develop eStrategy Options/Scenarios that would add value to both your company and your customers in both the short and long term. And don't hold back on the alternatives…there are many different ways to hook your company into the new economy. But get serious with each alternative … including a quantified business plan for each option that project revenue impact and cost requirements.

7. Decide on your eStrategy and plan to get it implemented. Present and discuss your eStrategy Options/Scenarios with key business and technical personnel, and decide what you want to do. Then focus, focus, focus to make sure it happens.

Have fun with the new economy…but look at it as an extension of the old economy, not as a complete replacement. Adding the good of the new with the proven of the old may just be the best recipe for success in today's fast changing world of business!

Dutch Holland, CEO of HDI, has worked as a management consultant for 30 years, helping organizations and leaders manage and implement change successfully. And if you enjoyed this short article, you'll love his book, Red Zone Management: Changing the Rules for Pivotal Times (Dearborn Trade, Chicago, Fall 2001, released with new cover by WinHope Press (Houston) October 2004)). Check your local bookstores or read a review at amazon.com or barnesandnoble.com! Contact Dutch at 713.877.8130.

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