Cyber Rules: Strategies for Excelling at E‐Business

Citation

Chapman, K.J. (2000), "Cyber Rules: Strategies for Excelling at E‐Business", Journal of Consumer Marketing, Vol. 17 No. 6, pp. 550-560. https://doi.org/10.1108/jcm.2000.17.6.550.1

It appears that entering the e‐business environment is similar to becoming a parent. You are suddenly confronted with a complex and growing organism and yet no one gives you any instructions. Well, except in both cases, if you really want to succeed be prepared to lose a lot of sleep. In fact, I have been searching for a book that clearly details the new rules for doing business online. It seems that every one I pick up offers strategies that are not much different than what I would find if I read any good marketing or strategy book written in the last decade (e.g. know your customer. Satisfy individual customer needs. Keep the customer’s attention. Make it easy for your customer to buy from you. Build relationships with partners in your channel. Know your competition. etc. etc.). Cyber Rules is really no different. Alas, the search continues.

When you read the title of Thomas Siebel and Pat House’s book, Cyber Rules, it is not clear if the authors are going to make an attempt to outline the rules (rule as a noun, as in “laws”) of operating a business in cyberspace or if the book is presenting an argument that online business rules (rule as a verb, as in “governs”). In fact, as the chapters progress it becomes apparent that the authors are trying to do both. However, they do a much better job of persuading the reader that a digital presence (e.g. Internet, Intranet, Extranet) both up and down the channel of distribution is an increasingly important element of success than presenting any real novel or insightful cyber rules. Given Mr Siebel is the founder, chairman, and CEO and Ms House cofounder and executive vice president of Siebel Systems – the multibillion dollar software company specializing in salesforce automation and enterprise‐wide solutions – it is not really of any great surprise they paint a picture suggesting businesses must be online to survive.

To their credit, the authors do acknowledge throughout the book that although we have new and powerful tools at our disposal many of marketing’s basic rules still apply. The book is filled with statements such as “No matter how high‐tech you get, it’s still about customers. Technology drives E‐business, but it’s not about technology. It’s about using technology to empower yourselves and your customers” (p. 126), and, “If your customers aren’t happy with you at the end of the day, it won’t make a difference whether you sold product to them through the Web or hand‐carried it to their doorstep…It isn’t about the ”E” in E‐business. It’s about providing value to the customer” (pp. 92‐3).

The book is organized into three parts. Part I, titled “The first five years”, is a good introduction to e‐business and includes chapters on “The virtual marketplace”, “Problems and prospects”, and “Lessons of the first generation”. This is followed by Part II, “On the horizon: e‐business’s cyber rules”. Part II includes chapters titled “Private infotainment will give way to global enterprises”, “Internet pioneers will reshape their industries”, “Market models will multiply, not contract”, “Online companies will become para‐enterprises”, “The Net will move from communities to customerization”, and “The sales and marketing landscape will be redrawn”. The book concludes with Part III, “Getting there from here”. This is the only section of the book that offers thoughts specifically related to implementing an e‐business strategy. It includes chapters on “Rolling it out I: digital strategy”, “Rolling it out II: nuts and bolts”, and “Mission critical”. On the whole, the 12 chapters are an easy read and each is laced with good examples and interviews with leaders in the field.

If you are looking for a book that introduces the basics of e‐business, Cyber Rules is the book for you. Cyber Rules introduces the reader to some of the common jargon of e‐business, and unlike other books I have read on the topic, does not assume you know the difference between a T1, T3, and a tee time. The book also has some interesting and insightful anecdotes about some of the pioneers in this area. In addition, if you need a bit more motivation to develop an online presence, Cyber Rules is filled with inspiring quotes such as “If you’re a business professional in the Internet age, you’re confronting the fact that, virtually overnight, your potential customer base has exploded in size, the choices available to those customers have gone through the stratosphere, and hundreds of new competitors are suddenly grappling for their attention. In order to thrive in this world, you must be online” (p. 9) and “Increased revenues, increased operating efficiencies, lower costs, happier customers. Whatever your business and whatever your size, that’s a blueprint that no savvy company can ignore” (p. 94). Wow!I’m convinced. Help me survive – Tom, Pat – help me thrive.

Although the authors do a great job getting the reader excited about having an online enterprise, they fall a bit short when it comes to offering any new and tangible strategies for succeeding at the e‐business game. For example, most of the ten lessons from Part I are pretty rudimentary, applying basic marketing principles to cyberspace. An abbreviated version of the lessons from Part I (pp. 65‐94) include:

1. 1.

   (1) “Zapping” is the way on the Web – if it takes more than three clicks or three seconds for a customer to find what he or she is looking for on your Web site, you have lost a customer.

2. 2.

   (2) Direct traffic aggressively – customers do not just happen to go to a Web site, they must be aggressively directed to a site through the use on offline and online advertising as well as mix of other proactive techniques (e.g. strategic use of keywords in search engines).

3. 3.

   (3) Be seen at the front door – have visibility where your customers go (e.g. at portals and hubs).

4. 4.

   (4) Give more than “Brochureware” – offer visitors some immediate compensation for spending time at your site.

5. 5.

   (5) Think convenience – make it easy for people to find, use, and to buy from you.

6. 6.

   (6) Close the loop – be prepared to make substantial changes in every facet of your business.

7. 7.

   (7) Do not go it alone – strategic alliances are key to survival.

8. 8.

   (8) Improve as you go – launch and learn.

9. 9.

   (9) E‐business is still business – many of the traditional rules still apply.

10. 10.

    (10) Yes, you can – overcoming the common objections to going digital.

Granted, these are all important “lessons.” For the cyber‐newbie these might be insightful; for the cyber‐sage, the lessons will be less than revealing.

After reading this book is it more likely you will be successful with your e‐business endeavors? It depends. If you have limited or no knowledge about e‐business, yes this book is likely to help and inspire you to enter the digital age (see lesson No. 10). Cyber Rules clearly conveys that these are exciting and dynamic times. If you have a good marketing background and experience with e‐business, I would not recommend this book – it is a bit too basic. All‐in‐all, for those of you who are simply curious about this emerging e‐business environment and want to get up to speed on some of the basic terms, concepts, and possible benefits to you and your partners by going digital, Cyber Rules would be a pleasurable and informative way to start.