e-ditorials - Issue #1: Start Off Right

The September 11th Effect on Internet Business Objectives: Are you prepared to move into this new era of communication?

Well before September 11th , the United States economy was on the brink, if not completely in, a recession period and the US postal service had been reporting staggering losses for several years. Business owners were already cutting staff and redefining their business plans to accommodate the shifts in business and consumer confidence.

Everyone remembers where they were the day of the attack on our country. America was under attack and shortly after, we were a nation at war. For many of us, most business activity came to a halt. Even after business resumed, many people were sensitive to being successful at a time that they felt should still be a mourning period. Then came the anthrax scares and some analysts predict the postal service will never fully recover.

When our nation was under attack, the Internet may have slowed but it was steady and it was an important form of communication for many of us who could not reach loved ones by cell phone because the lines were jammed. After the attacks, it has served as a place for news, open discussion, and emotional and monetary support. Now more than ever is it the Internet's time to shine.

The Internet, created in demand by the government for a decentralized hub of communication during the cold war, was built to be flexible and stable even if one part was shut down by unforeseen circumstance. It is true that the Internet remains vulnerable to weapons, like viruses, but these are usually fixed rapidly by security companies like Norton and Symantec and these viruses prove a lot less fatal to people than Anthrax or Small Pox.

The attacks have affected our priorities in many ways. What matters, to most Americans, is safe communication whether it be by the phone or the computer, and the Internet plays a vital role in this type of communication. It is likely that we will look for staples and items with meaning at holiday time, not superfluous gifts. As we reconsider our priorities, many of us may find less appeal in jobs and systems that keep us working long hours - leaving us less time for friends and family.

Let's look at the emerging Internet trends and possibilities for how the Internet can enhance your business strategies.

E-mail use

Should the postal service continue to have problems and/or as some analysts predict, never recover, do you have a plan in place to use email as your method of communication?

Many people I have spoken to had mailed important information that was received weeks late or in some cases was never received, by their clients/members. For example, one of our clients, the Greater Mercer County Chamber of Commerce, sent it's regular monthly events mailing and it arrived over 2 weeks late or in some cases not at all. Events were not as heavily attended because this was the means in which members and non-members were prompted to sign up for these events. In response to the disruption in postal service and to lower print distribution costs, the current plan is to create a system that moves their monthly mailing to an online system that members can subscribe to. The plan intends to not only substantially reduce the cost of over 1200 pieces of monthly print materials that are sent by postal mail but to enable the Chamber to send out information quickly to encourage people to attend events.

How can you use email to reduce print and mailing costs as well as manage delivery expectations of your information?

Internet Privacy

Before Sept. 11, there were battles on a regular basis about Internet privacy and information privacy in general. Now, the attitude towards private information has changed, as new laws are being passed to provide law enforcement officials greater surveillance freedom and plans are being proposed for every American to carry an ID card that has an embedded computer chip that carries vital information about that person. With many Americans accepting privacy intrusions from government and law enforcement agencies in exchange for greater security, will this new climate encourage the public to feel less resentment about the collection of personal information by companies and web sites?

After September 11th, there have been proposed changes in the government's Internet surveillance power. One proposal is the Combating Terrorism Act of 2001, in which section 832 seeks to enhance the government's ability to capture information related to a suspect's activities in cyberspace. For example, a government agent could examine a URL to gather knowledge of a product that a person sought to purchase or perhaps learn about a person's query on a search engine which indicates travel plans.

Internet Security

Consumers were still nervous about purchasing online before September 11th. What is interesting is that charities made it very easy to contribute online and some people who had never used their credit card online suddenly felt compelled to help regardless of their previous fears. After they did this, they realized their credit card numbers were not stolen and they may have finally got over their reservations of using their credit card online.

Effect on E-commerce

Many consumers are fighting the economic recession with patriotism. I had a sales clerk tell me in early October that he and his wife had already done all of their holiday shopping to pump money back into the economy. And they weren't alone, several of my friends emulated this activity.

A demand for e-commerce systems has increased as many businesses are looking for ways to have their business run by themselves after hours, so they have more time with their friends and family. Some analysts predict e-commerce web sites could see an increase in purchases this holiday season as shoppers browse online rather than at the malls. In this way, they can avoid the time waiting for parking and in long check out lines, and instead spend quality time with the people they love.

Another fact that may have an impact on e-commerce spending is that there is now a reluctance to travel and personally deliver gifts. Many will cancel or not make travel reservations to see their friends and relatives. If consumers do travel, the new airline restrictions will limit their ability as to how much they can carry onto planes. This again may make mail-order or e-commerce the most viable option.

Walmart.com recently streamlined its checkout process, in part to be ready to handle any increased demand. It is estimated that US consumers will spend $11 billion online this holiday season which is a 10% increase from 2000. (Forrester) It is predicted that worldwide online holiday sales will reach $25.3 billion which is a 39% increase from 2000. (Gartner)

What will you be doing to assist your customers this holiday season?

Effect on Distant Business Meetings and Training

Travel and communication play a vital role in the business market. Suddenly it doesn't seem necessary to take the time to fly to a location to have a business meeting or gather training. As this occurred, the demand for videoconferencing equipment, web-based videoconferencing providers, and enhanced audio conferencing applications have become increasingly appealing. This is reflected in the stocks of these video conferencing and online training companies, where some, seemingly over night, saw a 30% or more increase in the value of their stock.

This concept was popular before the tragedy because it was a less expensive option to flying, and putting staff up in hotels and paying for meals. Even more so, managers and company owners are now more accepting of video and audio meetings because they want to keep their employees safe and care about them being away from their families for an extended period of time.

Where do we go from here?

We are now able to look ahead to see where we are going and determine the steps we need to take to get there. We need confidence as we make it across that wide sea of confusion and uncertainty and the only way to gain confidence is through knowledge and understanding. One thing that does seem apparent is that the changes in the Internet industry are likely to be enduring and profound.

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