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14 May 2001, Australia

Dear Dr. Ecommerce:

I have some questions about SMEs who have not yet or have just started to adopt e-commerce:

What things are important for SMEs to be aware when SMEs adopt e-commerce?

Why might SMEs consider adopting e-commerce?

What business issues should be considered?

What tools might be appropriates for SMEs?

Thanks,

KK

Dear KK:

The answer to your question will vary tremendously depending upon the kind of SME. However, a few general statements can be made.

Most SMEs will implement e-commerce either because they believe it will help them cut costs - particularly in the case of B2B - or because they believe it will expand their market. Larger companies might adopt e-commerce because they see it as a means of increasing customer convenience and a few companies will adopt e-commerce because it is trendy.

They most important thing a company must do is draw up an e-commerce strategy with clear, achievable goals. In addition, they should draw up a cashflow chart to determine the total required investment and time to pay-off. These will allow a company to monitor progress and alter strategy as necessary.

The necessary tools comprise whatever the company needs to start selling on-line. At the least, this will include a web site, an on-line catalogue, shopping cart software and secure on-line payment software. The company may also need to add, expand or modify their logistics system. Other tools will probably be necessary depending on the kind of products/services the company sells.

Good luck,

Dr. Ecommerce