E Business Critical Success Factors
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The document discusses critical success factors for online ventures. It identifies reaching the target audience, converting the audience to customers, and generating revenue as key factors. Other important factors include leadership and vision, understanding the target market, adequate financing, innovation, and managing competition. The document also examines reasons why some online ventures have failed, such as having an idea that was ahead of its time, poor market understanding, execution issues, insufficient funding, and lack of patience.
E Business Critical Success Factors
- 1. CRITICAL SUCCESS FACTORS The Success is Achieving The Goal. [email protected]
- 4. • Reaching Target Audience - If the portal or we can call it online solution is reaching successfully to the target audience successfully and it has very good rate of hits then this is first success. • Converting Target Audience to Customers - how many of those target audience which are successfully reached are can be converted to customers. • Revenue - When the portal will start making money, • How much money it is making with every successful conversion. • How to increase the visit to conversion. • How to increase the money for every conversion. • How to keep this customer coming again and again. [email protected]
- 6. Leadership • Leadership - There is no success and there cannot be success without the right combination of the passion, the zeal to succeed. • Leadership -The leader, his idea, his motivation, his passion for his idea and patience along with knowledge and hands on will make it all happen. • The leader who led from front and takes leads and motivates his team in right directions is the one who will reach the goal. He remains committed 100% in difficult time, with patience and with all his passion takes the ship out from the storm will sure to win. • Team -The team is of equal importance. Team plays very important role in the success of project. Without a good mix of team, their devotion and commitment no project can success. They are the equal contributor to the success. • Along with team, mentor, family and friends are very important in success. Their emotional and monetary support and motivation goes a long way in success. [email protected]
- 7. Vision, Idea and Goal • The second critical success factor is vision. What really the promoter wants from this venture. What is the vision for the venture? When the vision is clear and can be quantified and qualified then the journey can be taken. With the vague vision which is not clear enough and cannot be quantified then the planning and execution of the Idea is difficult. Having very clear vision is the first part of success story. [email protected]
- 8. Target Market, Strategy and Reach • The third critical factor is your audience. Define very critically who is your target market? How big is your target market? Does this make business sense? Will this make a break even? How much customers is needed to break even? How much hits are required? How will you going to get these hits? • If you are able to understand your market, then half of the battle is won. When you are able to reach them, another 25% is done. Then there come the real difficult task of conversion of these to revenue. [email protected]
- 9. Finance • Money is important. Availability of enough cash till the venture starts generating positive cash and profits is very important. The execution plan must have a detailed budget for expenditure. In my opinion at least cash for 1000 days must be available whenever it is required. Availability of cash makes a person comfortable with working on execution smoothly. Most of the time small venture does not have cash when required and this was a major for the closing of venture. [email protected]
- 10. Innovations ,Technology, and Systems • Customer Satisfaction is the GOLDEN RULE. This customer satisfaction has many dimensions and but I will right in brief what can make your customers delighted. [email protected]
- 11. The Customer Life Cycle Deliver What You Promised Deliver on time Accept Return and all complaints Listen to them and engage with them [email protected]
- 12. Competition • Know thy competitor. This is important. Who else is selling similar products and services? How fast competition can come, if there is no one today? How it can be taken care of? What are the strength and weakness of the competitor? These are the factors which can make life easy in long term for new venture. Without knowing the competition and their strength and weakness ,it is difficult to win the market. [email protected]
- 14. THE GREAT FAILURES Being first and ahead of others may not always bring you success. These are the great failures, because they are first and ahead of others and ahead of time. In internet ventures it has happened again and again, ahead of time or being ahead of others may not always result in success. [email protected]
- 17. SixDegrees.com • SixDegrees.com was the first online social network. It has done very well initially but faltered after that. It may be true that people weren’t ready at that time for social mingling and penetration of net was not high enough. [email protected]
- 18. AskJeeves • It has originally developed arithmetic of search based on webpage hyperlinks and also linguistic queries. It has all the factors which made a search engine success but it is well ahead of time. [email protected]
- 19. WebVan • The story of wrong planning, this is great Idea but execution is faulty. A home grocery at your doorstep is the real concept. [email protected]
- 20. Pets.com • This is a startup that had poor timing rather than a poor concept. It is a great idea, doing very good today but failed to deliver because of timing. Today Pet Supplies is a big business. [email protected]
- 21. Dodgeball • This is mobile social network before time, there were no 3G and 4G networks, and messaging ( text message ) is the only way which is very friendly and attractive enough for the idea to click. Foursquare which the same idea as Dogeball is big hit. [email protected]
- 22. GO Corporation • The idea is to develop smart phone and touch screen phone with mobile operating system but the idea was too early to succeed. [email protected]
- 23. LetsBuyIt.com • The original packed online group buying services failed because of not enough promotions available. [email protected]
- 24. WebTV • This was original Web TV, the idea is to bring net on TV but failed because it was too early. [email protected]
- 25. NextNewNetwork • NextNewNetworks was MTV of the web • It was bought by Google. It failed in its idea to be MTV of web. [email protected]
- 26. WHY DO E VENTURES FAILED [email protected]
- 27. Reasons of Failure Idea, Vision Market Technology, Execution and System Strategy, Plan and Marketing Budget Human Patience and commitment Support [email protected]
- 28. Idea & Vision • The first and foremost is idea. What is idea and how much appealing is idea. If idea is great and can go in long way to success then this is best opportunity. Online business needs mass appeal and reach, so that it can make great success. Because most of the ventures do not have this appeal they could not break even and die at early stage. [email protected]
- 29. Market • Knowing your market is very important factor. Whom you want to sell? What you want to sell? How you want to sell? How you want to reach him? • How big is opportunity? Can you make money on it? Who are the competitors and how will you get pie of the cake. [email protected]
- 30. Technology, Execution and System • Another challenge is technology. Not only the availability of technology matters but also its affordability and commerciality makes it very important factor. Early age internet ventures fail because they did not have access to technology and so are today. The systems must be at place. How the business is going to be run. • Technology and system are in place but fails execute the plan, the business is doomed. [email protected]
- 31. Strategy, Plan and Marketing • When plans go awry, strategy fails to deliver and no corrective steps are taken, this is full script of failure. The marketing fails and customer does not turn up, because you never reach them and don’t know what to do. [email protected]
- 32. Budget • Going out of money is sure failure. When business is growing, there are needs which are planned and known but there are many things come which are many times not known, not having enough cash pull results in sure failure. Those who do have enough cash or cannot arrange enough on time is reason for failure. [email protected]
- 33. Human • The one who wins is human; who run the show is human. Not having right people, at right time at right place is reason for failure. Most of the time not having talent is the reason for failure, the team effort get you to the success, when there is no team which can deliver the failure is eminent. This is one more reason for failure. [email protected]
- 34. Patience and Commitment • The patience plays very important role. Many startups lose patience and leave the project when they were very close to success. Startups need time and commitment before they can deliver the result, unfortunately many entrepreneurs loose the patience and success with it. [email protected]
- 35. Support • Start loses many times because they don’t have enough support. Not having support of mentors, family and friends in difficult times plays important role in failure. It is a nail in the coffin. Having good support of family, friends and mentors is very important if venture has to succeed. [email protected]
- 36. Who Are We Dr. Zia Ahmed MBA, CIFP, PhD Global Expert on Value Creation and Growth Strategist LinkedIn Slide Share SME Blog [email protected]