10 e-business myths10 e-business myths
…corresponding e-business realities
“There is no such thing as an
old economy company or a new
- Brian Kelley
Ford Motor Company
Inspired by and taken from an article in Automotive News written by Ralph Kisiel; published July 10, 2000
e-businesse-business mythmyth #1#1
Auto Dealers will disappear or their
marketing position will be marginalized
e-businesse-business realityreality #1#1
Auto Dealers who accept the Internet as a
tool to better satisfy and please consumers
are getting stronger and capturing more of
their AOR market share.
e-businesse-business mythmyth #2#2
Build-to-order, where a consumer orders a vehicle
and expects it in several days, will dramatically
alter the automotive industry.
e-businesse-business realityreality #2#2
Before that happens, consumers must demand
it. At this time, most consumers do not want
Build-to-order. Consumers are satisfied with
selecting from vehicles in dealer inventory.
e-business reality #2e-business reality #2
The automotive industry is moving to
an operating system best described as
“Build-to-demand”, in which consumer
demand drives what plants will build
and what dealers order and bring into
e-businesse-business mythmyth #3#3
The Internet will only be used by customers
to gather information and not to buy.
e-businesse-business realityreality #3#3
During the next 24 months, consumers will
become more confident and comfortable using
credit cards online. The better they get at
buying books and clothing online, the more
likely they will buy a vehicle that way.
e-businesse-business mythmyth #4#4
Customer Relationship Management will be a big
competitive advantage for some dealers.
e-businesse-business realityreality #4#4
Consumers will dictate how they want to
interact. Dealers who respond most effectively
to customer-demanded relationship management
models will retain a higher percentage of their
e-businesse-business mythmyth #5#5
Customer Satisfaction is paramount to each
e-businesse-business realityreality #5#5
The age of the never-satisfied customer is
near… The consumer will guage automakers
and dealers against competition that the industry
has never thought of before.
Five More To Go!!!Five More To Go!!!
Water or beverages…
Brief phone call…
Get up and stretch…
Get some fresh air…
Are we ready for a break?Are we ready for a break?
e-businesse-business mythmyth #6#6
European countries are behind the United States in
Internet applications and e-commerce participation.
e-businesse-business realityreality #6#6
Europe developed as a wireless society… The
United States developed as a computer-based
wired society. Europe and the USA will end up in
the same place in 24 to 36 months – SEAMLESS.
Americans will learn a lot from Europeans.
e-businesse-business mythmyth #7#7
The Internet makes commodities of brands
e-businesse-business realityreality #7#7
Dealers should stop thinking about building their
“Brand” and start thinking about building their
community of users and consumers who are part of
that “Brand”… This will drive VALUE to a
dealership over the long term. Brands can be grown
and destroyed in a short time on the Internet.
e-businesse-business mythmyth #8#8
The debate rages on… Who owns the customer?
The dealer, or the manufacturer?
e-businesse-business realityreality #8#8
No company or layer within manufacturing and
distribution owns “The Customer”!
e-businesse-business mythmyth #9#9
B2B is for manufacturers only and is simply about
procurement and buying goods cheaper.
e-businesse-business realityreality #9#9
B2B will start with OEM procurement because that
represents the path of least resistance. B2B will
move into supply-chain management and product
development, and ultimately, into the complete
integration of this economic ecosystem called the
e-businesse-business mythmyth #10#10
There are “old economy” companies and
“new economy” companies.
e-businesse-business realityreality #10#10
There is no such thing as an old economy company
or a new economy company, but there ARE winning
and losing companies based on their ability to
leverage the resources, intelligence, people,
structure, facilities, technology and processes
required to win in this information age.
e-business reality #10e-business reality #10
The winners will NOT be “New
Economy” companies, but rather
“New Economy THINKING” vs.
“old economy STAGNATION”.