E-business Tied to Existing Business Plan Creates Revenue.

In the past year or two the number of companies conducting business over the Internet has grown radically. From Fortune 500 companies to the hardware store down the Street, everyone seems to have a Web site.

With so many companies racing to put all or portions of their business on the Internet, which will still be around two or three years from now? Industry experts agree that in order to attain success in e-business, many companies will need to mote closely align their online strategy with that of their overall business model and, more importantly, the needs of their customers.

Having spent an entire career on the business side of the healthcare industry, I recognized the challenges associated with gaining online customers in an industry not exactly known for efficiency in supply chains. medibuy.com was tasked with finding a way to convince hospital and healthcare purchasing agents to purchase healthcare supplies and equipment through a Web site on a continual basis.

During this process, we discovered that e-businesses looking to gain repeat customers need to posses several key characteristics.

Expertise in Core Business -- Internet companies are more than just Internet companies. For example, while medibuy.com conducts business over the Internet, we are first a healthcare company. It is absolutely critical that we have an intimate understanding of our customers needs are and what challenges they face in their jobs. The people creating the solutions offered on our website have to thoroughly understand why our customers use, or don't use, what is offered to them.

This is more complex than it first appears, particularly for companies focused on business-to-business endeavors. For medibuy.com, developing this expertise included hiring people with extensive healthcare backgrounds, in-depth industry research, and endless interviews with potential buyers and sellers to determine what it would take for them to use our service. This process -- hiring knowledgeable people with great attitudes -- takes time and costs money, but is well worth it.

It is essential that this expertise be there from the conception of the e-business company. Things happen at lightening speed on the Internet. Companies can not afford to go back and make extensive changes, nor will customers come back if their first online experience is unpleasant, or they find getting information from the site difficult.

Technology Expertise - Once the features of the site have been determined, it is crucial that the tools and services offered work flawlessly. Customers who are unable to find what they are searching for, or who can not complete their transactions, do not come back. medibuy.com relies on the expertise of our own technology staff, as well as the knowledge available through other well-respected companies, including Gateway.

In the course of our interviews with users, we learned that potential customers were somewhat uncomfortable and confused by technology. This escalated the importance of a user-friendly interface. We even opted to have Ernst & Young augment our implementation and training process for our customers. We are certain the expense is justified in gaining the loyalty and confidence of our customers.

Fit-- Even when moving at lightening speed, successful e-business companies slow down long enough to make sure they are balancing technology with customer need. Technology for technologys sake frequently does not meet customer need. Successful companies offer solutions that ate tailored to perfectly fit the many needs of the customer -- and make changes to further meet those needs on an ongoing basis. Sounds basic, but all too often fast-moving companies forget to take a step back to evaluate where they are and where they need to be. Developing the perfect fit, requires ongoing communication between all departments in the company so that the resulting strategy is as well-thought out as possible.

About the author: Dennis Murphy is the chairman and CEO of medibuy.com, a leading e-commerce solution for healthcare supply procurement.