E-Business Trendspotting for 2008

Believe it or not, 2008 is upon us. Savvy entrepreneurs are educating themselves about new products, practices and ideas, and strategically looking for the one or two trends they can adopt to catapult them past the competition.

In the first part of a two-part trendspotting series, internet-based trends are highlighted and fleshed out by experts in each area. Hang onto your digital hats as you move into 2008 with the knowledge to help you stoke your company's competitive bonfire.

Social Media
Though Web 2.0 isn't the newest development anymore, this area of online  technology is exploding. The term is being thrown about everywhere, from ritzy benefit galas to tabloid TV. Social media have officially arrived.

Kira Wampler is a former small business owner who now works for Intuit. As a senior marketing manager for Intuit's new website, JumpUp.com, Wampler says entrepreneurs are readily adopting Web 2.0 technology. Entrepreneurs visit the site seeking resources, a sounding board and information on how to start a business and keep it going. They also take advantage of the free online business community, where they can network and swap real-life tips.

Business relationships have become increasingly virtual as social networks replicate faster than Agent Smith in The Matrix. In the uberconnected world of the internet, businesses can expand their relationships with customers, partners and suppliers beyond their local neighborhoods.

John Capano, vice president of strategy and planning at RiechesBaird, a consulting company that specializes in nontraditional and internet marketing, notes that with the increased competition for attention and dollars among all audiences, many B2B companies are increasingly using innovative online tactics that used to be the exclusive domain of B2C companies. These include community building, dedicated microsites, webzines, RSS feeds and advanced web-based applications.

And let's not forget about blogs, which have leveled the playing field since companies no longer need a hefty advertising budget to reach their markets. Blogs may very well be the best thing to happen to the business ecosystem in a long time.

Technnorati reports that nearly 100,000 blogs are created each day. But David Sifry, Founder of Technorati, also says that nearly half of all blogs are totally abandoned after just six months, with 45 percent becoming idle shortly after being launched--barely enough time to begin to realize the benefits of blogging. Why? Because many businesses continue to struggle with leveraging the company blog to increase the bottom line.

Chris Baggott, CMO of ExactTarget, is hoping to change that. He has co-founded Compendium Blogware, a software development firm that has created new blogging software that not only helps businesses get their blogs up and running, it also helps them transform their new blog into a viable marketing tool.

Virtual Worlds
There has been a fair bit of negative backlash surrounding virtual worlds. Proponents feel, when implemented correctly, virtual worlds hold some serious potential. Some businesses have found them to be venues for reaching customers and experimenting with new product ideas and business models before investing hard-earned revenue into concepts that may or may not pass muster.

Virtual world skeptics view the whole realm as nothing more than a big video game that's a few personal photos away from MySpace and teenage shenanigans.

One thing is for sure: A business's online presence will be a critical factor in increasing mindshare and gaining market share. Customers will dig even harder to find the information they need to make decisions, rather than merely accepting what's pitched to them, and virtual worlds, along with other channels, facilitate that process.

Web Video
YouTube mania continues to spread. Sites like blip.tv host internet-based TV shows free of charge for businesspeople who think they're the next Donny Deutsch. Google is in on the video action, too, and even Hillary Clinton launched her political campaign with a series of weekly, streaming, town hall-meets-Q&A-type video chats.

Smart businesses that want to step boldly into 2008 have already realized their markets are no longer content with simply reading text. Today's customer craves the interactivity and sensory engagement that video delivers. These pioneering companies are busy in closed-door meetings figuring out how they can use online video to make their point and stretch ahead of the pack.

Backup in the Sky
Thankfully many decision-makers have come to their senses and realized that magnetic media, like tapes and CDs, aren't valid solutions for backing up.

"Now that tapes are being used more for archiving, companies are starting to turn to outsourced, off-site, redundant, automatic, internet-based backup strategies," says Darren Schreiber, ITMS division manager at MicroMenders, a San Francisco-based consulting and managed delivery firm.

There are risks and gains, but the latter more than outweigh the former. For those who are still hung up on security concerns: If you've ever paid with your credit card in a restaurant, you had a better chance of getting ripped off then. Most of the internet-based backup services use the same technology as major financial institutions. And if it's good enough for them, it's good enough for me.

Online Banking
"It's a widely held idea that one of the key reasons businesses fail is because their owners can't manage the business's finances," says Paul Rosenfeld, vice president of small business solutions for -QuickBooks Digital Insight, an Intuit company.

Since the Check 21 Act took effect almost three years ago, paper checks can now be turned into digital versions. Businesses are busily scanning checks into their online banking platforms, and checks are typically clearing in less than 24 hours.

This translates to improved cash flow and fund availability, but also means more cash to manage. And if you already aren't doing a great job at that, this may add salt to the wound. The ability to check bank balances in real time, pay vendors in two clicks and conduct wire transfers on your own all from one interface can be confusing and frustrating.

To help stop the madness, Intuit has launched Personal FinanceWorks to help customers manage their finances soup-to-nuts style, by giving them an accurate picture of where their money is going and how much they have available to spend. At the same time, it will help smaller banks and financial institutions compete and win in an increasingly competitive financial environment.

Security
Kevin Mahon, CEO and founder of KEMP Technologies, a firm that improves the efficiency and effectiveness of e-business sites, is happy to finally witness an "aha" trend in his industry. "Smaller businesses need the same functionality as enterprises when it comes to their internet network infrastructure. Although smaller businesses don't have large budgets to invest in the exact same platforms as large enterprises, they're finally realizing that both security and high availability are crucial in running a successful e-business," notes Mahon.

And fortunately for small businesses, someone such as Roger Thompson of Exploit Prevention Labs exists. Thompson spends his days tracking cybercriminals and keeping tabs on how businesses are being faked out with new and increasingly clever online crime schemes.

Thompson is wise to the web-based techniques hackers are using for profit and growth. How can business owners address heightened security concerns as they move into 2008 while continuing to conduct more and more business online? Thompson recommends that businesses be even more vigilant about protecting their websites from malware attacks and exploits that have the potential to steal customer passwords, credit card numbers and basically any other bits of sensitive information your customers may trust you to securely capture or store.

These six trends are by no means an exhaustive list. Think of trendspotting as an integral part of your strategic process that's meant to shine a light on what should be on your mind for 2008 and help you identify new opportunities, tweak your positioning and widen your competitive edge for the year to come.

Coming next month: Technology Trendspotting for 2008.