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Home Start here Purpose Here's why On-line Weekly, free, essential Outlook It costs, but you can't afford to be without it Framework What's dot-com quality? It's all here Top five This is our list - what's yours? Masterclass Best practice in ten minutes Buzz Captured from the e-stream USER_NOTES Content changes frequently! PRIVACY It's simple! Get in touch!Things you’d like to see included? Examples, references, opinions or criticisms? |
Last update Saturday April 15, 2000
"Don't panic ... ... investors are just seeking quality" Business Week/April 17 issue, 2000 The key word is quality. Starting April 4 and still running, the US stock market's long overdue 'correction' has seen the dot-com economy lose its luster, probably permanently. April 14th's sell-off, "a complete wipeout," with "no buyers in sight," according to CNBC's commentators at the day's close, is not the end of the world, just market reality - painful as it may be. What's the connection to quality - and to our purpose? Consider this: Quality – the next big thing in the dot-com world! Why? Two reasons: First, the internet bubble is subsiding towards market fundamentals. "There's a gnawing anxiety now in Silicon Valley," says Joe Costello, ex-CEO of Cadence Design. Not everyone agrees though, see "What_Bubble?" Facing increasingly urgent priorities to perform and to survive, dot-com companies will be looking for lifebelts to keep them afloat. Quality can throw them one. Second, all internet markets will be exponentially more crowded in the near future, and riskier for customers. One indicator – an explosion in domain-name registrations. Another – "We're getting to the point where the frauds are going to come in," – Bill Joy, founder of Sun Microsystems. Standing out from the crowd will become harder. Dot-com pixie dust and first-mover advantage will no longer be sufficient. An increasing focus on the elements of a quality organisation won't be an option, it'll be essential. As in the old economy, 'quality' will be a key differentiator. The new economy is different True. There's only one economy, and that's the internet economy. "Today the internet is changing the rules in every market and every industry, creating a new breed of businessperson. They are driving a new economy, creating explosive opportunity, arousing excitement, passion, and fear," says Business 2.0 editor in chief James Daly. "This networked economy – decentralized and antihierarchical – is the most important force shaping commerce. It radically transforms business, careers, and lifestyles." What is 'quality' in this new economy? It's about both what you do and what you deliver. Means and ends. Brilliant leadership, effective strategy, unrelenting attention to customers and markets, the recruitment, training and retention of exemplary staff, process superiority, good use of data, and great results. According to Patrick Folliott, co-founder and CEO of realityclick.com, "… the rules of the web … have nothing to do with the mechanics of ecommerce, tech savviness, and image control. The game is quickly becoming all about connecting and respecting, listening and understanding, empowering, sharing, promising and delivering ... In a word, relationships" (Business 2.0, March, 2000). And in the same issue Jim Avery of JR Avery and Associates of Richmond, MI, says "Web quality and usability will be key factors in differentiating companies doing business on the Web … for every dissatisfied customer who complains, there are nine who leave the site, shop somewhere else, and tell 10 other people about their bad experience. "Each day more people join the web community. These people do not have the tolerance that the early adopters have for poor quality. If the web is going to be a viable sales channel, then the next wave of development must address quality. "Our experience suggests that companies have been slow to react to issues of quality and usability on their sites. The web is unforgiving, and I expect the winners will quickly realize that getting the customer to their site is just the first step, but that quality and usability will be key factors in getting them to return." We agree The more things change, the more they stay the same Customers still want service that delights, and products that deliver more than they promise. Transaction costs still matter. The market will once again worry about P/E ratios, even if the e-boom seems to be sending many investment beliefs into a spin. The Securities and Exchange Commission (and its international equivalents) is taking a hard look at the numbers, and some of the aggressive, and creative, accounting practices are being reined in (Business Week, April 3, p70). The top five elements of dot-com quality are ... |