Overcoming Short-Sightedness in Business Planning

The Internet: A Game Changer in Business Planning

In most cases, businesses tend to make minor adjustments to their previous year’s plan, changing only the dates, title page, and financials. This approach, however, overlooks the transformative potential of the or https://npfinancials.com.au/internet. The internet has revolutionized the business landscape, offering new ways to reach, service, and communicate with customers. Despite this, many businesses struggle to incorporate a well-executed internet strategy into their plans.

 

For instance, e-commerce is a significant aspect of the internet’s impact on business. While high-profile online retailers like Amazon.com and Priceline.com may first come to mind, they represent only a fraction of the total e-commerce business. The majority of e-commerce revenue comes from B2B transactions and companies that have leveraged the internet as an alternative distribution channel. Dell Computer, for example, generates over $6 million in online revenue daily.

Another example is Milacron Inc., a manufacturer of metalworking products. By utilizing the internet, Milacron was able to tap into a previously unreachable market segment, resulting in higher profit margins. According to Forrester Research, e-commerce revenue is predicted to exceed $1.3 trillion by 2003, with nearly 70% of all businesses engaging in some form of electronic commerce activity.

However, the internet may not be the right fit for every business. To determine if it should be part of your future plans, consider the following questions:

  • Can the internet improve your customer-facing transactions?
  • Can your internet presence be used to promote and position your business, as well as educate your customers and prospects?
  • Can the internet help you reach market segments that you currently can’t reach economically?

If the answer to any of these questions is yes, then an internet strategy should be part of your business plan.

 

The Role of Inertia in Business Planning

Inertia, a concept originally defined by Galileo, states that objects moving in one direction tend to continue moving in that direction