Businesses consume different types and amounts of technology depending on the industry they are in, their size, and what the current business objectives are (launch, growth, consolidation, or exit).  Finding a way to understand where you are in that journey, and what technology would be useful to you, can be a difficult task if word of mouth and marketing materials are all you have to go on.

I have had the pleasure of working alongside the team at Digital Business Insights for a couple of years now, and I've come to appreciate the power and simplicity of their model for understanding where a business is in their journey in the use of technology.

The following material is copyright (c) Digital Business Insights and outlines seven stages of the business technology use journey (e-Journey) and how they might apply to you.

E-journey stages expanded

The vision, understanding and attitude of the proprietor and senior management within a business are the keys to progress on the e-journey. Attitudinal barriers have to be overcome, as well as new concepts and understanding gained.

Stages on the e-journey

Stage 0 businesses have not begun the e-journey. Typically use a phone but not a computer.

• Either no computer or doesn’t use a computer

• Uses mobile phones for out of office communication

• Manager may be thinking about buying a computer or sees no benefit in doing so

• Managers with businesses at this stage need to understand benefits of connection. 

Stage 1 - “Processing stage” 

Businesses typically have at least one and maybe more computers depending on business size. Businesses at this stage also typically use:

• Uses mobile phones for out of office communication

• Computers that may be networked (peer to peer)

• Uses simple business software - financial package - MYOB, Quickbooks

• Probably uses word processing software – MS Office

• May use desktop publishing or industry specific software depending on industry demands

• Manager may be thinking about connecting to the Internet or sees no benefit in doing so

• Managers at this stage need education across a whole range of new issues 

Stage 2 - “Communication stage” 

The business will have connected to the Internet and use the Internet for research and communication. The Internet connection provides a platform for e-mail communication with customers, suppliers and peers. Businesses at this stage also typically:

• Uses mobile phones for out of office communication

• Have one or more computers and use simple business software

• Have computers that are probably networked (peer to peer) and if the business is bigger could be using a server network

• May use an industry specific integrated software package appropriate to the business sector

• May use on-line banking for account balance and payroll

• Uses e-mail as part of broader communication mix

• Have managers that typically are sceptical of the “so called” benefits of the digital revolution

• May know someone with a Web site that didn’t deliver value

• Have managers that distrust or are sceptical of claims from solution providers

• Managers need convincing about benefits and need guidance on a range of new issues 

Stage 3 - “Information stage” 

Businesses may have simple web site - on-line brochure, although is not interactive. The presentation of information onto the Internet platform supports the existing business and increases reach to customers and suppliers and peers. Businesses at this stage also typically:

• Use e-mail regularly for business communication

• May subscribe to or send an e-mail newsletter to customers

• Use on-line banking for account balance, payroll and paying suppliers

• May have a simple on-line catalogue

• Uses an external supplier to update their web site content

• Have managers that are likely to trust their established suppliers - computer/software supplier and ISP

• Need reassurance re their existing business experience and developing new skills. Some are concerned about fraud on the Internet. Uses simple security methods – anti-virus, spam filter etc

• Have business managers that need to develop skills and need advice about business models and best choice of technology. 

Stage 4 - “Transaction stage” 

Businesses typically have enabled interaction on their Web site and on their internal network. Using the Internet to share resources internally or offer products and services directly to customers and suppliers brings increased efficiency. Businesses at this stage also typically:

• Have web sites that allow the transaction of funds and/or information

• Information will be gathered where possible using forms and surveys

• Using databases to mine and drive the delivery of information within, to and from the business

• Using e-mail newsletters to build customer relationships and networks

• Have managers who are confident about technology and the benefits. May use on-line forums to share and find out information

• Have managers who have established a trusted relationship with one or more technology/solution provider/s for specialist advice

• May have an IT specialist depending on size. They may also host their web site internally

• Managers need to develop their capabilities in understanding/integrating new technologies and applying new opportunities to the business. 

Stage 5 - “Integration stage” 

Businesses are typically integrating their internal business processes with those of suppliers and/or customers. Allowing customers or suppliers to access selected parts of the business network using the Internet as a platform builds closer relationships. Businesses at this stage typically:

• Have Extranets that allow access to information and resources by customers/suppliers

• Integrating processes with customers/suppliers where possible. Building stronger relationships

• This may involve considerable re-organisation within the business. Processes and infrastructure may have to change to suit new software or an external industry supplier need or demand

• Smaller businesses may well need business organisation advice as well as technology advice for change to be successful.

• Integration raises issues of ownership, trust and control of destiny. Not faced before.

• Managers are typically innovative and concerned about how to maintain their leadership position.

• They are concerned about suppliers/customers - out of step. 

Stage 6 - "Transformation stage" 

Businesses have transformed themselves into new businesses using all the benefits of digital technology as the platform for their business. Businesses at this stage are rare in Australia. Examples overseas are Dell and Amazon.

• Integrating processes with suppliers, complementary businesses and even competitors - marketplaces and portals

• Re-organising and integrating internal processes to support customer focus

• Typically have a customer/content focus supported by technology and based on a clear customer need.

• People within these organisations will all share the same customer/content focus.

• Typically use ongoing training and change management strategies to maintain skills and confidence in new direction.
  

For further details, see DBI's website:

http://www.db-insights.com/index.php?item_id=20

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