Leveraging the web critical to effective business strategy - MTI

MTI Consulting, the eminent international strategy consultancy, recently added six specialists consulting units to its Sri Lankan operations, namely Corporate Finance, Technology, Legal and Governance, Supply Chain, HRM and Branding.

MTI's Technology Consulting arm advises on today's requirement for a web presence and the importance of having an Internet Strategy. MTI's Senior Business Analyst for Technology, Yusuf Ali Isaam, discussed the Internet's changing environment and the need for Internet Strategy.

DN: What is really happening with the growth of the internet that is being talked about so much?

MTI: The internet can no longer be ignored. Today, 1.1 billion people use the Internet for communication, information and entertainment. People are using the web to find out everything they need. So much so that the verb, "Google", was added to the Merriam Webster and the Oxford Dictionaries in 2006, with the meaning, "to use the Google search engine to obtain information on the internet."

While the dependence on the Internet for information is very high in more developed countries, developing countries are fast moving into a similar web dependent culture.

Broadband internet Access which allows for faster access to rich content such interactive websites and video, is growing in Sri Lanka with major telecom companies actively offering affordable broadband services.

DN: Is the dependence on the web for information serious enough to significantly affect companies which are falling behind with their online efforts?

MTI: Research has become one of the most significant business uses for the internet. A huge amount of business research is done online, and much of it exclusively online. It is fast becoming the natural starting point.

Contact information, comparative analysis and unbiased reviews are easily available making the web the most attractive option for any researcher. As more companies focus on their online presence and have more content available, researchers are turning to the web by default are not venturing beyond the keyboard. This means that if a company is not 'visible' online, effectively it doesn't exist.

In situations where no prior knowledge about a company is available, conclusions will be drawn using the website. An established 'brick-and-mortar' company may be passed over for a smaller, newer operation which presents itself well using its website. By not being impressive online, there is a huge risk of being overlooked for projects, investment and even by direct consumers.

DN: Should the company website and web presence be driven by the IT team?

MTI: Usually, the website, and by extension the entire web presence of the company, is left to the IT department. To be rather harsh, this is like leaving the writing and publication of marketing communication documents to a typist.

There is more to a company's web presence than 'developing' a website. How a company uses the Internet is something that must be looked at strategically.

Questions such as 'What corporate financial information should our website have?', 'Who are we trying to actively reach?' and 'Who will be responsible for the running of the website?' will need to be asked.

The answers to these questions and the overall guide to the company's Internet strategy must stem from the business strategy of the company; it cannot be left to be driven by the IT team.

DN: How does a company decide what should be done with the Internet and what the expectations should be?

MTI: At MTI we believe that ultimately any initiative must make strong business sense and has to affect the bottom line in a positive manner.

Therefore the Internet strategy of the company must naturally be an extension of the business strategy of the company. This will also help create a clear view of what is expected from the initiative.

DN: What key areas must a web presence cover?

MTI: The corporate image must be communicated clearly and the direction and confidence of an established firm must be strongly felt. It is very easy to underestimate the quality.

The adage 'You never get a second chance to make a first impression' is brutally true on the Internet. Short user attention span means the first impression needs to be very effective.

A website must sell. This is very important in defining website content.

Confidence, the perception of value and reliability must be communicated while information on features, functionality and quality must be provided.

Making the mental sale is only half the battle. There must be a way to complete the sale; for example facilities to purchase online or live sales assistance via chat or telephone.

The website also plays an important role in customer retention. By clearly communicating support and services the confidence of the customer in the company, brands and products can be retained and enhanced.

Business strategy will also define what will be done with the website in the future. It will determine what aspects of the business can be extended to the web; for example using the website to implement a CRM (Customer Relationship Management) or SRM (Supplier Relationship Management) system.

DN: Why is an 'internet strategy' necessary?

MTI: Early website productions were sometimes isolated, one-off and forgotten. This resulted in websites which were out of date; providing wrong information and portraying a negative image of the company.

As the Internet is here to stay, the web presence of a company is something that is permanent, requiring attention and maintenance, and something to be viewed as an asset. Just as the opening of a new store outlet will require detailed planning and projections, the web presence of an organisation must be strategically thought out, structured and placed in a process that will sustain its performance, in terms of quality and effectiveness, and position it for continuous progress.

DN : What is MTI's internet strategy model?

MTI: MTI's Internet Strategy Model creates and drives business oriented Internet strategy; the approach ensures that activities carried out are relevant and effective and monitors performance while positioning for the future. The model is scalable to the needs of different organisations.

DN : Will my company's internal IT team be able to put together a strong IT strategy and a cutting-edge, professional website?

MTI: In developing and implementing an IT strategy, technically sound analysis and technologically sound implementation are essential. Prior experience also enables smooth functional integration with the processes and systems of the organisation.

Art and science are both needed to achieve the perfect user experience; creation of a cutting-edge web presence will require professional branding and design skills as well as deeply technical skills such as Search Engine.

Optimisation, which ensures 'visibility' (ease of finding a website) and web analytics, the understanding of user behaviour and trends.

This level of skills, expertise and experience is usually beyond most organisations, simply because its overkill for them.

While a few large companies may have enterprise level IT teams up to this task even they can benefit from the focused, specialised input that can be brought in.

MTI is internet strategy model approach to internet strategy focuses on driving strategy through the business needs. It also helps achieve clarity in an area where popular new tools and initiatives are appearing all the time with varying degrees of effectiveness and relevance.

The approach defines the ownership of the web presence. Typically this should be taken on by the CIO or a designated web champion. This individual will create a team, usually a matrix formed out of the relevant business areas, to drive the strategy and the activities.

Comprehensive analysis and research is carried out and the needs, relevant features and initiatives are determined and categorised by implementation priority.

MTI's internet strategy model ensures that urgent needs, essential needs and important needs are addressed immediately and completely.

This prevents these needs being compromised at the cost of ambitious yet distant 'work in progress' initiatives. It is unacceptable to have a live website displaying outdated company logos and branding while the team is 'developing' a interactive product showcase.