A full 75 per cent of all e-business projects will fail due to poor planning and unrealistic expectations of new technology, according to a study released last week by research firm GartnerGroup.
Most companies implementing e-business strategies don't fully understand the new technologies behind e-business, the study said. At the same time, they become so dazzled by those very technologies and turn away from old-fashioned business planning and strategies.
Gartner Group listed five pitfalls to avoid. First, use e-business as a tool, the analysts said. E-business is a means to an end, not the end itself.
Second, don't be lulled into believing that e-business alone is a substitute for the rules of good project management. Make sure that there is an understanding within the company of the technologies being used. Use a step-by-step approach and keep track of a project's progress, Gartner said.
Third, make sure before implementing any new technology that there is a sound business goal in doing so. Keep track of new technologies and new business goals and update them accordingly. It would be a good idea to make sure there are people within the company who are assigned to deal specifically with e-business implementation and the replacing of out-dated modes of e-business operations.
Fourth, build e-business models that include plans for using the new technologies to attract new customers and markets. Don't overlook one of the greatest advantages of e-business which allows for a company to plan ahead, Gartner said.
And the last bit of advice: keep track of the competition and watch out for new competitors. The key point for a company is to always expect, prepare for and embrace change -- e-business or not.