ETD: 894 Bleeding Edge; Characteristics of top 100; Wireless
Industry Embraces E-Commerce Outsourcing
E-Tailer's Digest
etd_post at gapent.com
Thu Jun 9 12:15:38 GMT 2005
E-Tailer's Digest --- Everything for the Retailer
Issue #0894 June 9, 2005
George Matyjewicz, Moderator mailto:georgem at gapent.com
Published by: GAP Enterprises, Ltd. http://www.etailersdigest.com
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CONTENTS
[1] Greetings
[2] Bleeding Edge
[3] Characteristics of top 100
[4] Wireless Industry Embraces E-Commerce Outsourcing
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[1] Greetings.
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Hi All:
Are you on the bleeding edge of technology? We have a client who wants to
be so, and I'm curious to see what others are doing.
Small businesses are the backbone of the economy in the U.S. and the rest
of the world. It's interesting to see the similarities of the top 100
small businesses according to Business Week.
E-commerce will be expanding to mobile (cell in the U.S.) phones as the top
wireless providers team up with the specialists. It may be a good thing
for retailers, but I for one will be quite annoyed to receive unsolicited
ads, especially when I'm paying for air time. So, what will retailers do?
Now, let's get to everything for the retailer.
Sincerely
George Matyjewicz, PhD
Chief Global Strategist, GAP Enterprises, Ltd.
mailto:georgem at gapent.com
http://www.etailersdigest.com
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[2] Bleeding Edge
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We are now engaged with a client to bring in a new IT solution and we
issued an RFP which was sent to 24 vendors. What's interesting about this
RFP is we are looking for bleeding edge technology, which, IMHO should be a
technology dream for suppliers. Imagine having the latest technology at a
client who is willing to pay and who will be a great reference?
A little background on the client. They are a manufacturer/distributor of
socks and seasonal accessories. Their sales last year was $43 million, so
they are not a huge company. I first met them in 1987 when they were doing
approximately $3.5 million in sales. They wanted to expand and maintain
efficiencies and contain costs. We brought in a state-of-the-art (at the
time) computer which lasted them 10 years, and allowed them to grow to $20
million, at a time when the industry was hit with imports.
In 1997 they called us back to do another RFP. The fact that that system
lasted 10 years and helped them grow profitably, was their incentive for a
new system. Unfortunately, they did not take our advice at that time, and
went with a SAP system (at a cost of $1.5 million). That lasted a little
over a year, when they threw it out and went to the vendor we
recommended. Now, they are poised to do $80 million within the next 3-5
years, and want the latest that will help them.
What are we seeking?
1. Our eventual goal is a paperless office, which implies scanning
everything at the point of receipt or point of entry (at least until such
time as the world goes paperless). Obviously for those partners with whom
we use EDI, this will not be an issue. It is with the others. So, we are
seeking perhaps a keyboard with a scanner attached. When receiving an
invoice, for example, it will be entered and then scanned into the system,
and attached to the A/P record internally.
2. All images of all products are to be scanned and available throughout
the entire system. That makes it simple for all staff members and outside
suppliers to know exactly what they are dealing with.
3. Ability for the customer can see the designs of new product online and
be able to move them around to see all angles. The only thing they won't
be able to do is touch the products. If approved, samples can be made and
sent to the customer for approval.
4. Wireless connections of all technology throughout the offices.
5. Obviously RFID
6. Availability to link to products using PDAs (e.g., Palm or Blackberry)
which can be used when sales people are on the road.
7. Secured wireless connection for use when at trade shows or in client's
offices, e.g., at a trade show, show the product online, scan (or voice
recognition for entry) the order into the system, which will be linked to
the office. Orders are to be printed at the show and handed to the
buyer. Some of this is presently available, and we want to expand on it.
8. Seamless (Web-enabled) integration and collaboration of all
applications and interaction with our offices, warehouse, suppliers and
customers (the last two to be limited access, obviously). Presently the
warehouse uses a RF system and is linked to NYC with a T1 line. We want to
improve on that.
There is a lot more involved, especially with the applications. The reason
for discussing this is to see if our list members have used or have thought
of bleeding edge technology solutions. What have you considered/used? How
successful was the venture?
This is going to be fun.
George
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[3] Characteristics of top 100
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Business Week listed the 100 Best Small Companies. They listed some
interesting facts about these companies:
1. Small companies continue to boost a sputtering economy by hooking
customers on their distinctive goods and services.
2. They are a prime source of innovation, producing 13 times as many
patents as large companies do.
3. They account for 50% of the nonfarm gross national product and create
75% of all new jobs, according to the Microcap Company Political Action
Committee in Washington.
4. Their hard work often pays off. Past list members who have graduated to
the big time include Abercrombie & Fitch (ANF ), Whole Foods Market (WFMI
), Cisco Systems (CSCO ), eBay (EBAY ), and Apollo Group (APOL ), which
manages the University of Phoenix.
The article is here...
http://www.businessweek.com/magazine/content/05_23/b3936401.htm
George
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[4] Wireless Industry Embraces E-Commerce Outsourcing
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Sprint Communications recently became the latest wireless communications
company to turn over its e-commerce efforts to a third party, extending a
trend that recognizes the benefits of having a Web sales specialist handle
online sales and marketing.
Sprint has signed a long-term deal with InPhonic that calls for InPhonic to
operate all of Sprint's e-commerce efforts. The move is a recognition that
InPhonic, which operates scores of co-branded Web sites for wireless
companies as well as its own WireFly comparison-shopping site for wireless
deals, can convert more Web surfers to buyers.
The deal plugs into a number of trends in both the e-commerce and wireless
spaces and could be a glimpse into the future, when mobile carriers tap
third parties to sell an entire menu of e-commerce services to customers.
On the e-commerce side, it's also a recognition that the ability to convert
shoppers to buyers is something that major companies are more than happy to
pay for.
InPhonic Chief Executive Officer David Steinberg reported that Sprint
recognized other trends as well, including a long-term one in which huge
numbers -- nearly 70 percent by some counts -- of customers who eventually
bought wireless phones and calling plans in stores actually began their
shopping and research online.
In fact, many mobile carriers have long used aggregator sites to promote
their offerings. However, analysts say there is room for more to happen and
opportunities for e-commerce players to capture an increasing piece of the
burgeoning mobile pie.
Major carriers such as Sprint typically change the content on their Web
sites six to eight times a year, Steinberg said. InPhonic's site can change
that many times in a single day as it responds to traffic patterns that
tell it which marketing plans are working most effectively, which phone
offers are bringing in visitors and what's selling the best.
Steinberg said because it has invested heavily in its e-commerce platform,
InPhonic can show carriers such as Sprint that it can convert shoppers to
buyers at seven times the rate that they typically see from their own
operations. "We can convert the traffic they're driving with off-line and
online promotions into sales," he added.
The future will likely feature more online buying, with customers buying
phone handsets, basic services and 3G services all online. In fact, while
the number of new subscribers to wireless carriers is seeing much slower
growth, there is still heavy churn as customers upgrade to new phones,
change plans or renew.
Converting Visitors to Buyers
Nielsen//NetRatings senior retail analyst Heather Daugherty said that
converting visitors to a Web site into buyers is becoming increasingly
important because of competition among e-commerce sites and because of the
increased attention to paid search and other online marketing efforts.
Steinberg sees his company "at the crux" of the changes in the telecom
industry. While wireless subscription growth is slowing, phone sales remain
strong, according to recent data. Also, his company is in a position to
benefit from any kind of sale, whether it's a new-customer sign-up, a
customer switching carriers or users upgrading their devices or subscriptions.
Details at...
http://www.ecommercetimes.com/story/43439.html
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