Still, our research shows that virtually all companies pursue e-business opportunities in a strikingly consistent way, passing through four consecutive stages of development. E-opportunities mature to the point that specific structures are formalized to support each business and help it grow. In the Grassroots stage, companies take their first steps toward harnessing the Internet's potential. IT departments, product groups, and business units all begin to explore ideas, identify opportunities, and launch initiatives. The Internet has clearly registered on the CEO agenda, but it is not yet a priority.
Ideas propagate through the organization with little or no control.
Resources are allocated independently, business unit by business unit, as each starts to pursue its own opportunities. The Internet, with the Web site as the vehicle, is still thought of during the Grassroots phase mainly as a technology tool and a marketing resource. But as opportunities are broadly and visibly exploited, more people become Internet believers, and an entrepreneurial zeal for new e-business models is palpable throughout the company. As experiments in e-business unfold, lessons are learned but not necessarily shared because, among other reasons, there is a general lack of coordination and communication among business units. Without any central coordination mechanism or top-down strategic direction, the Grassroots phase can quickly disintegrate into mayhem, confusing customers and compromising the brand.