eCommerce software development can enable digital enterprises to maximize the bottom line. While eCommerce should ideally be looked at as an important component of a multi-channel sales system, some business leaders and managers tend to commit the error of looking at it as a separate vertical. It is this erroneous vision of business leaders and managers that lead to a series of errors in business strategy formulation and execution, usage of technology and business processes.
It has to be borne in mind that when business leaders conceive of eCommerce as a vertical they consider technology and systems to be the sole drivers of growth. Strategy setting goes for a toss. The choice of technology and its alignment with business goals is forgotten. Most importantly unwise investments are made into processes, resource engagements and technology. On the other hand, enterprises that consider eCommerce to be a component of the multi-channel system understand the complementary relationship between brick and mortar models of business with new age digital off-shoots: one of them being eCommerce .
The Natural Selection of eCommerce Web and Mobile Development
eCommerce web development and mobile applications for eCommerce are not magic wands. These need to be used judiciously with a combination of several factors in order to stay relevant in business and then maximize profits. A recent report by the business consulting giant McKinsey suggests the vitality of digital initiatives to corporate lifespan. The report states in crystal clear terms that the average lifespan of corporate enterprises has gone down dramatically. In the year 1958, the life span of a corporate enterprise according to data released by Standard & Poor’s was 61 years which tumbled down to 25 years in 1980 and only 18 years in 2011. Adapting to technology holds the key to staying relevant in business. In the next few paragraphs we discuss the biggest challenges and eCommerce software solutions to the same.
Dealing with Uncertainty and Looking at Disruptive Innovations
It is important to integrate digital strategy with business strategy. There has to be an alignment. The merit of doing so is that it reduces the gap between strategy formulation and execution. Looking at the rate of disruptions that continue to hit the global market, it makes enormous good sense to state that there is a big wave of disruption in digital business every three to four years. Business leaders need to go back to the board and reassess their strategic position every three to four years. This means looking into the future and demystifying emerging trends of innovation in eCommerce and digital initiatives. For example there is data available that shows the rapid rise in the usage of social media to offer e-care. Volumes of tweets that speak of a brand have risen by two fold in the last two years globally. The head count of Twitter users who have used the platform to obtain after sales service has risen by 70 % since 2013-14 (data by McKinsey).
Business Process Automation and Economic Efficiency
Business automation can enable companies to achieve huge economies of scale and cost saving. A study shows that companies that have created robust e-care models save 25 to 30% costs by consolidating call centre engagements. Moreover there are also benefits of an increase in customer satisfaction by up to 33%. eCommerce web development and eCommerce application development can enable companies to automate processes and thus reduce resource engagements and streamline profitability. The reason behind this is the use of the great repetitive model that allows companies to repeat and scale up best practices. As learning by doing takes place, average costs of operations comes down over time.
Integration of eCommerce Apps Development and Operations
The traditional concept of software development is to create a project with well-defined parameters and then start work on it with exclusive resource, cost and time commitments. This slows down the speed of implementation of new technology in operations by increasing the time to market. The smart way is to integrate new eCommerce apps development with operations on a small scale in a real time business environment for a pilot project. Agile software development enables the organization to make changes to the technology as issues are spotted. With development operation a company can reduce the costs of development and a faster time to market enables further cost rationalization and high returns on investment from technology.
Understanding the Customer’s Purchase Behaviour through Data Analysis
It is imperative for companies to have a thorough understanding of the customer’s purchase behaviour. Data available from eCommerce mobile and web apps when dissected tell unique stories of customers. The usage of science to dig deep into the customer’s behaviour can enable companies to serve him better. Factors such as various points in the customer’s purchase journey, preference of digital channels, demographic, economic and geographical metrics can reveal a lot about the customer. This forms the basis of customization and customer delight.