Most players in the insurance and financial services industriesmaintain well-established Web sites and an online presence thatwasn't born yesterday. Despite what you may have heard, theinsurance and financial services industries are leaders in the moveto the Web-they've progressed from simple 'brochureware' Web sitesto transaction sites to pioneering the establishment of all theirmajor business functions online. And it's been valuable: GE Capitalexpects to save $1 billion by moving all its major businessprocesses to the Internet.

Yet for all of the dollars invested and time spent, even thosecompanies with the most sophisticated online experience may beconcerned about the value and return of their commitment.

If you're one of those with questions, you aren't alone.

Many people are confused about some basic but unresolved issuessuch as the definition, purpose, and payback of e-business. It'sbecome particularly difficult to determine the real value ofputting all your major business functions online, even as real orimagined competitive pressures dictate that you have to do justthat. According to Jupiter Research, even savvy IT people can'tdefine the difference between e-business and e-commerce, let aloneunderstand the implications of a presence on the Internet, intranetand extranet.

What does such confusion mean? Not surprisingly, onlinetechnology has exceeded our ability to understand and determine itsreal value within the broader and more meaningful context of acompany's overall business objectives. There's no doubt theindustry is enthusiastic about its collective online presence-butmany companies have decided to take stock of their currente-commerce initiatives and consider some needed courseadjustments.

Where does a decision maker begin? It doesn't matter how large acompany's in-house e-business capability, budget, and staff are-afresh, unbiased, outside perspective often is the quickest and mostcost-effective way to evaluate a company's existing e-businessprogram. Outside e-business consultants are free from a commitmentto a company's existing e-business scheme, meaning they provideobjective analysis and make unbiased recommendations. Given theirexperience with multiple clients, often in multiple markets,outside consultants are capable of bringing a range of hands-onexperience to bear-experience usually unavailable in-house. Theycan often create a new game plan for a more successful deploymentof existing in-house staff. The result: fixing, not scrapping anexisting e-business program.

Before selecting an e-business solutions provider, you need toengage in a thorough analysis of their existing e-businessactivity. You need to be objective; you need to determine youractual e-business needs. Many companies think they want tacticalsolutions-such as enhanced enterprise resource planning-when allthey really need is overall e-business strategy.

Looking for Mr. Right

E-business success requires that you deal simultaneously withtechnical and business challenges. Full integration is the onlylong-term solution. You can't delay that while you wait for “bettersystems.” A broad e-business strategy results in more efficientbusiness processes and better information about customers,suppliers, and internal operations.

But does acknowledging these realities mean that Web-sitedesigners are less important than e-business strategists? If a Website re-design is all you really need, graphic designers-sansMBAs-might be the vendors of choice. If your design and technicalsolutions are a clear part of your e-business strategy, go forproviders with a demonstrable range of skills. That means lookingfor e-business strategy, design, and technical solutions bundledtogether.

The problem for IT managers (and related decision makers) is inselecting the right vendor from among the Web developers, systemintegrators, business process specialists, management consultants,ad agencies, consumer marketing agencies, and VARs all claiming tooffer the optimum e-business solution. Here are some fundamentalconsiderations in evaluating e-business solution providers:

o Select a provider that understands your existing systems andprocedures, and can integrate what you've got off line with whatyou want to achieve online. The key word here is “seamless.”
o If you're looking for technical help for creating an e-businessstrategy, look for a vendor that stresses the importance ofhigh-level strategic e-business advice. Look for a vendor with atrack record of providing specific, e-business, technical solutionsas part of having analyzed, established, enhanced, and implementedan e-business strategy.
o Prospective providers of e-business strategy need to explain howan online presence will create value and profit. They need toidentify what infrastructure investments will be necessary to turnvision into reality. Don't settle for generalizations.
o Prospective e-business solution providers should explain how acompany's information infrastructure and allocation of resourcesmust change in relation to pursuing e-business objectives. Too manydecision makers think engaging a solutions provider means nothaving to allocate management time. Wrong. Remember there can be noreal gain without undergoing infrastructural and cultural change.Anything less is merely cosmetic.
o Prospective providers of e-business strategy need to review acompany's existing e-business objectives to identify (or at leastvalidate) existing e-business opportunities. E-business objectivesmay be sound, but if the company hasn't identified opportunities,fundamental reassessment is in order. You'll need an e-businessconsultant able to span the gap between correctly identifyinge-business opportunities and defining corresponding objectives.Only then does selecting and implementing specific solutions makesense.
o There may not be a silver bullet for all your e-business needs.Sometimes incremental improvements such as more effective pre-salelead gathering or post-sale customer service make the mostmeaningful difference.

In the Know

What about only relying on providers of e-business solutionsthat have actual experience in the insurance industry? Whileknowledge of the industry may help, the fast moving e-businessworld shares more similarities than dissimilarities across markets.The in-depth experience and seasoned judgments of leadinge-business solutions providers aren't easily confined to one marketniche.

You want out-of-the-box thinking? Then go out of the box. Beopen to innovators and leading providers of e-business solutionswherever you find them-even if that means engaging the services ofan out-of-town vendor. Don't settle for the wrong provider ofe-business solutions just because it's local.

Whatever your e-business strategy, it must support, notcontradict, your company's overall business objectives. Beforebeginning a reassessment of e-business activities, initiate adialog among corporate IT, marketing, and other relevantdepartments-and include your newly engaged e-business solutionsprovider. Keeping in mind the company's business objectives,decision makers need to evaluate existing (or prospective)e-business activity as an integrated component in fulfilling thosegoals. The result should be integration and reconciliation ofe-business and non-e-business objectives.

Granted, evaluating the value of your e-business activity iscomplex. Return on investment was once the crucial factor incorporate decision-making when it came to technology. Today, thedrivers are changes in business models, business processes, andattempts to maintain or extend market share. Identifying andmeasuring payback isn't easy, but the following areas are a measureof the effectiveness of both your e-business presence and youre-business provider:

o Taking the initiative to enhance customer and supplierrelationships and to identify new business opportunities
o Focusing on business growth more than cost reduction
o Supporting customer profiling as a basis for personalization,e-marketing and e-merchandising
o Moving quickly to update Web sites
o Planning for systems failures…and graceful recoveries.

An optimum e-business program, especially the Web site, mustalways be a work in progress. Optimizing e-business opportunitiesrequires a company culture that understands the perpetuallyunfinished reality of the e-business experience. Success demandsmanaging a company's e-business commitment as a process, not anevent. The best outside providers of e-business solutions can helpestablish and implement a process-centered e-business managementthat assesses a company's needs and translates that knowledge intopractical and cost effective e-business solutions. Don't settle foranything less.

E This, E That — Know the difference between e-business ande-commerce

E-business-Using Internet-related technologies in anycollaborative business activity, including sales, marketing,purchasing, human resources, procurement, and supply-chainmanagement.

E-commerce-A subset of e-business activities related tomarketing and selling products or services. These activitiesinclude building and managing customer-facing Web sites, conductingpersonalized marketing campaigns via the Web or e-mail, andcapturing and processing sales orders.

Industry Web Sites Worth Checking Out

Bayview Financial (www.commercial-money .com): Thissite features an automated commercial loan application process andgives prospective clients the ability to estimate loan interestrates based on a series of variables.

Horace Mann Insurance (www.horacemann.com): Webcasting onthis site permits visitors to see and hear recorded companypresentations.

ATradeUSA.com (www.atradeusa.com): A multitude ofinteractive financial tools makes this site a helpful financialplanning center.

George Szymkiewicz is founder of Desktop Innovations(www.desktopinnovations.com),a provider of strategic e-business and e-site managementconsulting, design, implementation, and follow-onservices.