Net Ready - Strategies for Success in the E-Conomy

From the Book: The Internet is driving an Internet economy that is creating unprecedented opportunities for countries, companies, and individuals around the world. In just five years, since the introduction of the World Wide Web, the Internet economy-what the authors of Net Ready term the E-conomy-already rivals the size of century-old sectors such as energy, transportation, and telecommunications, The impact of the Internet economy is global, reaching both business and government. Business leaders worldwide recognize the strategic role that the Internet plays in their company's ability to survive and compete in the future. To be competitive in this new economy, companies need to harness the power of the Internet. Through Internet solutions, Cisco has maintained its agility and competitive advantage, All our business operations-from supply chain management to employee communications- are Internet-based. Today, 80 percent of our orders and more than 80 percent of our customer inquiries are transacted over the Web. As a result, we are growing faster than all our key competitors, have been rewarded with one of the top ten market capitalizations in the world, and are recognized as the fastest growing, most profitable company in the history of the computer industry. Many of the business practices we have employed to become the leading example of an Internet economy company are readily identified in Net Ready, an important book that analyzes the practices that will move businesses along the road to success in the Internet Economy. Net Ready helps build a road map that can guide companies to take advantage of six key areas that I believe are fundamental in building an Internet-basedbusiness: Customers. Customers in the Internet economy are well informed, and their expectations continue to increase. Therefore, the ability to respond rapidly to customer demands and deliver value is imperative. Globalization. The Internet economy is leveling the playing field for big and small companies. This leveling goes hand in hand with globalization. Being able to deliver consistent value irrespective of geographic proximity is necessary to be successful in today's constantly changing competitive landscape. Partnerships. The rise of the Internet economy can be tied to an emerging "Internet E-cosystem," a new business model for Internet-connected businesses to serve Internet-connected customers. The open nature of the Internet encourages complementary business alliances that create a unique set of interwoven dependencies and relationships. Employees. A key change being driven by the Internet is how companies share information with their employees. In an Internet economy company, employees are empowered to make the decisions that are in the best interest of the customers. Only when employees have access to information are they truly empowered. Culture. The ability to turn change into competitive advantage for your company and for your customers is critical for success in the Internet economy. Of course, at the center of any successful company's culture is also dedication to customer satisfaction. Access. In the past, information and internal systems have been viewed as strategic assets to be selectively shared. Today, companies must balance the need for both security and open access to information. The Internet economy is creating tremendous opportunities, and we are seeing individuals, businesses, and countries use Internet technology to reeducate and reinvent themselves. The overwhelming acceptance of the Internet is one of the biggest stories of the 1990s, as this book so compellingly documents. Net Ready outlines the lessons and the steps that many companies have experienced in their quest to attain the elusive quality of Net Readiness. My challenge to you is, "Are you ready? " John Chambers President and Chief Executive Officer Cisco Systems