Why having an Internet Strategy is so important

By: Roger Billing 

If you want to win in the competitive online world, then Roger suggests you develop an internet strategy. He goes on to explain the role of strategy for online business and its importance

The online business environment is becoming increasingly competitive. Who will survive in the long-run? The smartest – that’s who. The smartest online businesses have an internet stratsgy to guide their ongoing development and success.

“If you don’t know where you are going, then any path will get you there”. This is an old saying and one that applies equally in the online world as it does anywhere else. “You can’t predict the future” is another quote I often hear when challenging the merits of strategic planning. I believe this to be true but still believe that any business, on-line or not, can benefit by having a strategy that stands the test of time. Ok let’s look at how we develop an online strategy.

Strategy is about winning. It is also about the long-term. So planning to win in a competitive situation is what strategy aims to achieve. So what process do we go through to develop our online strategy?
The online world is changing. Every year, more and more people are researching their needs online and are increasingly willing to buy online. So the first step in any strategy development process is to look at the current situation. What does the current competitive environment look like (internal and external) and what challenges do we face? Then develop a “focussing question”.
Focussing questions help to keep the strategy clearly focussed on a particular question. For example, “How can we reshape our business to align with the changing needs of customers without driving cist up?”. This is a focussing question.

One last point I would like to make about the current situation or situation analysis. Don’t be tempted to rush this step. It is often tempting to move onto the more interesting future thinking. However, having a good understanding of exactly where your current capabilities are is critical to building tension between the now and the desired future position.
With a solid grounding in the now, we look at the future. Where do we want our online business to be? Who are the stakeholders to that success? How will we know we have succeeded? So this is about making clear statements of intention with all stakeholders interests accommodated.

Now the real strategy decisions need to be made. Great strastegies differentiate a business from its competitors. What are the unique strengths that your business has that could be leveraged to bridge the gap between now and the future? These are critical decisions, because they shape the way your strategy forms.

A quick note at this point. There must be tension between where you are now and the desired future position. Too little tension and you will be selling yourself short. Too much and your strategy will be seen as unachievable and will become shelf-ware. So keep asking yourselves “id this going to be challenging to achieve and can we do it?

The final step is to create your action plan. This only need be done to get the execution of the strategy underway. No need to define every project for the next 3 to 5 years. The world will change and you will need to adjust.
A clearly articulated online strategy will rally the team behind a better future. This is why strategy is important. It engages people in a business ideal that they find attractive and it aligns their activities. Just as importantly, it provides a reference point to help managers decide what they should be doing and, just as importantly, what they should not be doing.

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