Some Factors That Influence the Success or Failure of Digital Businesses

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  • Topic: Dot-com bubble, Dot-com, Dot-com company
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  • Published : May 5, 2013
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Some Factors That Influence The Success or Failure of Digital Businesses| |
CI226 Socio-technical Approaches to Information Systems|
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Radha Shah|
10818217 |

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Introduction:
“The impact of the internet on the society has been described as being as significant as some of the greatest technological innovations in history, such as the telephone and the motor car.”( Jobber, D. and Fahy, J. 2009) The internet has become a vast part of everyone’s everyday life. People use the internet via their PCs, mobile devices, televisions and any other digital devices. Businesses would have done research on the population that uses internet via different devices and therefore would make a decision to become digital. “Digital business or e-commerce has been defined as a wide range of technologies used to facilitate business interactions such as the internet, Electronic Data Interchange (EDI), email, electronic payment systems, and hand held digital devices, interactive television, self service kiosks and smart cards”. ( Jobber, D. and Fahy, J. 2009) Failures and Successful:

There are many factors that influence the success or failure of digital businesses. There is clear difference between the digital business that do well and those that don’t. From reading through articles, some state ‘building an digital business is not hard yet so many businesses seem to be getting it wrong.’ (Limeshap, 2012). To have a successful digital business, the business person would have to think what a consumer would like and what would they want if they were in the other position. A few things that need to be pointed down for a great digital business are: * Great photos. Having images in your digital business will increase the number of visitors every time. They draw visitors in and are one of the biggest selling points for an online website. An example given is Zappos. They do all their own photography of products for sale on the site. * Unique Content. The business should differentiate from other web sites. Having a unique page will give more value to the users and enable to rank better in search engines. * Search Engine Optimization. Search engines are the biggest source of traffic for most digital businesses. Digital businesses should optimize their product pages based on keyword research using unique titles, headers and content. * User generated content. These consist of having user reviews. Having good reviews from customers will increase the business chance of being viewed more. People always read reviews first then they make the decision on the review they read which means user generated content can be strong component on your business. Thinking about customers is a crucial part of a successful digital business. You have to make life easy for the customers and think why they are visiting your online business. The top websites all have simple, consistent navigation with excellent customer account facilities. It should be easy to use, allow customers to find business details easily and navigate easily through the application. Examples of few successful dot-coms are Google, Amazon, eBay & Wikipedia. However, there are various reasons and examples of why digital businesses have failed. Internet business companies began in the late 1990s. They were also known as dot-com companies. Comparing to all of them, some of them have survived till date and some companies are closed or bankrupt. Dot- com is companies which were set up to use the Internet as their prime trading platform. There were high expectations from investors to their online business. Different people with different ages and with little or no business experience but with an interesting idea made it possible by the existence of the Internet. Politicians and media were involved and stated that this “was the future for business”. They encouraged more people to join the dot.com sensation. “The main purpose of these dot-com companies was to raise the...
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