Just recently we had to do an exercise at Uni to discuss the Nine essential principles for growing your business on the World Wide Web written by Schwartz in 1997 and how, if at all, any of those principles had changed and what our views on such. Below is a very brief summary of his 9 principles and below that my 2 cents worth on the subject.
Webonomics: Nine essential principles for growing your business on the World Wide Web
- The quantity of people visiting your site is less important than the quality of their experience.
- Marketers shouldn’t be on the Web for exposure, but for results.
- Consumers must be compensated for disclosing data about themselves.
- Consumers will shop online only for information-rich products.
- Self-service provides the highest level of customer comfort.
- “Value-Based Currencies” enable you to create your own monetary system.
- Trusted brand names matter even more on the Web.
- Even the smallest business can compete in the Web’s global “marketplace”.
- Agility Rules – Web sites must continually adapt to the market.
Webonomics – my 2 cents worth.
Schwartz was fairly accurate with his predictions and analysis of the web for business. The micropayment stuff as mentioned by other students was probably one area he did not foresee in taking off, however I believe he was referring more to content and information rather than a product, such as music or videos. Choice magazine is an example he gives, and I must admit from personal experience I would not pay, even if it is a small amount for a bit of info I might find somewhere else. Today in particular with affiliate advertising and CPP advertising (google) a website that is popular does not need to charge for the info. I hate advertising as much as the next however you can choose to ignore it and what you are really after is free.
Another point Schwartz makes is about businesses adapting to what the consumer wants, I think now days quick instant help and answers is the way forward. Some online businesses such as ISP’s and Website Hosting companies have an amazing online chat help system where you get to chat with someone about your problem with a very little wait time. The fact that is is a person at the other end, you normally don’t have to wait long and they can usually sort your problem out is huge plus for businesses. I can see this type of help system will be growing in the future.
The only other aspect which is of concern to me and is not mentioned or foreseen as such by Schwartz is the fact that the internet, which is meant to be a massive mesh of free exchange of ideas and information is slowly but surely being controlled by one giant and powerful entity – Google.
It is scary to think that online businesses can be made or broken by one swift tweak of their search algorithms, it has recently happened with their latest update codenamed PANDA, it has had some drastic effects on some very legitimate businesses. I will give them credit for trying to enhance the search user experience, to give relevant and information rich search results, however when one can yield such power over small and even large businesses world wide it must look at the consequences before taking a swipe.
To add to the pain their help system is almost non existent because the search indexing is a free service. Get onto their Adwords program where you are a paying customer and you have a very extensive almost immediate response help system, and yet the free service can have a much more drastic effect on your business! Lets face it if your online business is not coming up on the first couple of pages – at least – you lose a large chunk of the market.
In conclusion it is sad to see that one corporation, one entity has such so much power over a supposedly “free as in speech” and “free as in lunch” resource.
Sources: Schwartz, EI 1997, Webonomics: Nine Essential Principles for Growing your Business on the World Wide Web
© 2011, Enrique. All rights reserved.
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