Net Success
The whole world and his dog are going online for both business and pleasure, but are Scottish companies staking a claim to an ever increasing internet spend? Ewen Angus of Trinity Heriot surfs around for the facts.
The net boom and bust is over, to be replaced with more reasoned optimism that websites can be a valuable business tool and not necessarily the greatest thing since sliced bread. Those of you with long memories will remember the pre-Millennium technology bubble that threatened to leave those without an e-business strategy as redundant as the Hovis delivery boy. Of course, the minute we returned to our desks after the Hogmanay hangover, the bottom fell out of the market and a lot of venture capitalists were left without a shirt on their back.
As we approach the fourth anniversary of those crazy days what has changed on the Web, and can your business make money online?
Of course it can. The Internet has continued to grow and mature since the Millennium, with most meaningful statistics showing a growing importance for business. A Scottish Enterprise e-Business survey in 2003 showed that 74% of Scottish businesses have Internet access (68% in 2002) and 46% of organisations have a website (39% in 2002). In addition to this, 55% of Scottish companies consider e-business essential, very important or important to their organisation's needs. So, whether you're catering for the Connerys or selling salmon in Singapore, the chances are you can find it online. The Web is no longer just for teenage geeks.
The amount of money now spent online highlights the scramble for new or improved websites. British consumers now spend over £1bn a month online (6% of total retail sales) and last year, half of all UK firms bought goods and services online, spending £23bn in the process; it's going to be a very merry Christmas for some businesses this year. These figures have exploded over the last few years, as doubts over security and delivery concerns have been allayed and firms have improved their website's usability and range.
However, it's not just the big boys like Amazon and Tesco who are reaping the benefits. Indeed, thousands of Scottish firms of all sizes have their email inboxes bursting with orders. The levelling of the global marketplace since the arrival of the Internet is the principal reason Scotland can grab sales and profits from the Web. Online size and location is replaced by quality and service, factors that many companies in Scotland have in abundance. Selling that salmon to Singapore illustrates the benefits of online business perfectly; many people throughout the world know that Scottish produce is second to none but before the Internet, selling abroad was a complex and expensive business. Now your customers can visit your website, examine your produce and prices, check out delivery schedules, input their credit card details and then sit back and wait for the fish to arrive on plates without any human contact and weeks of missed phone calls.
The international possibilities for your company are immense - there are more than 200 million Internet users in North America, over 200 million in Europe and around 700 million globally. Even if your business doesn't operate internationally, the benefits in cost cutting, communication and marketing mean a website should be an essential part of your business. Filling it with information about your products or services will cut the costs of printing brochures, while adding comprehensive email contacts will cut the time and expense of having to call people for every little detail. Integrating your on-and-offline activities should lead to a leaner and meaner company to the benefit of staff and customers alike.
Of course, that first day back at the office with the Hogmanay hangover will still be terrible.
