Even before e-Business has landed we are evolving into the e-Marketplace.  Evolution dictates that only the strong survive. The weak either die or become members of a weaker species. Are you fit enough to survive in this new e-Marketplace world? 

Are you fit enough to survive in an e-Marketplace?

The Internet has totally changed the business environment. New environments accelerate evolution as the constituents adapt to survive. 

Evolution normally defines a gradual development or adaptation to the environment. Revolution normally defines a forceful overthrow of a social order. The changes being driven by the Internet and its associated technologies have created the condition of evolution at a revolutionary pace. Only the fittest, financially, structurally, organisationally and business intelligently, will survive unscathed.

The phenomenon that we are living through is the next phase in the evolution of communications. This phase is the electronification of information. We have come along way from word of mouth, runners with cleft sticks, pony express riders, telegraph and even e-mail. We can now place orders, track those orders, interact with the service department and even pay for the goods electronically.

Because the opportunities are endless and the technology is available globally, new ideas are being developed throughout the world at an ever-increasing pace. This is having the effect of rapidly changing the business world order.

Like an oil tanker, most international organisations take along time to change their course. It requires a lot of energy; it requires superior captaincy and a skilled crew. More importantly it also need a new direction.

The problem is that the pace of technology development is outpacing the solutions. Normal business logic says that it takes least two years before a market reaches critical mass – so there would be enough time for late starters. This elapsed time is getting shorter and shorter. Just as one concept has been analysed, tested and is being implemented, the next, even better, concept hits the table. This requires a level of agility that is difficult to imagine let along apply. 

The latest concept is to create a “frictionless” market place where buyers and sellers have access to all the information together. This should minimise unnecessary interactions (friction), improve efficiency and lower the costs. The focus is shifting from bringing business partners together to value added services. Rather than just simplifying the supply chain, e-marketplaces evolve into application service providers. This represents the full integration of the business processes so that the supply chain is no more.

The business pressures that this creates are enormous. Is this an adaptation that must be followed or is it just a transient modification of the overall, yet to be finalised, model? This is the business dilemma. Should you be leading the charge or a fast follower? Both strategies have their risks. The benefits of leading are enormous; the risks could be terminal.

Because of the pace of change and the change in business economic fundamentals, it is important that an organisation is fleet of foot and extremely fit.

Are you fit enough for this new challenge?