Added by PI Blogger, 16 weeks ago

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In his book e-Procurement, From Strategy to Implementation, Dale Neef estimated that “nearly 80%
of organizations that have rushed to establish Web sites for online retailing have failed to invest in
the purchasing and distribution systems that make delivery of their products possible.”i

At the height of the dot.com revolution, businesses were focused almost entirely on the potential of
the Internet. Driven to jump on the “new economy” bandwagon and not get left behind, corporate
executives placed more emphasis on establishing Internet presence, rather than on how it could be
used to improve business practices. This resulted in losses at companies such as Etoys, who lost
more than US$4.00 on every order they received, or Drugstore.com, which lost a staggering
US$16.00 per order.ii

Now, it is expected that companies will do more than exist online. They will transact, and conduct
core business over the Internet. Those who do it well will succeed and those who don't will fail.
Market analysis reveals the following: