e-Profit

About the Author

Peter S. Cohan, the author of E-Profit: High Payoff Strategies for Capturing the E-Commerce Edge, is a distinguished management consultant and president of Peter S. Cohan & Associates. With a rich background that includes working for The Monitor Company, a consultancy founded by the legendary Michael Porter, Cohan has established himself as a thought leader in the field of e-commerce and technology-driven business strategies. His previous works, such as Net Profit and The Technology Leaders, have set the stage for his insightful exploration into the high-stakes world of e-commerce. Cohan's experience and expertise shine through in his comprehensive approach to identifying and leveraging high-payoff strategies for businesses venturing into the digital marketplace.

Main Idea

E-Profit: High Payoff Strategies for Capturing the E-Commerce Edge by Peter S. Cohan delves into the critical aspects of e-commerce that can transform businesses. The book addresses the skepticism that often surrounds e-commerce and offers practical strategies to harness its potential. Through detailed case studies of companies like Amazon.com, Merrill Lynch, and Cisco Systems, Cohan illustrates how businesses can create competitive advantages, streamline processes, and significantly enhance customer satisfaction by adopting e-commerce technologies. The book is a guide for managers to understand, implement, and sustain e-commerce initiatives effectively, providing a roadmap to navigate the complex digital landscape.

Table of Contents

1. Evidence on High Payoff
2. Avoiding Low-Payoff E-Commerce Applications
3. Your E-Commerce Evaluation in Seven Steps
4. Amazon vs. B&N: Competitive Advantage through E-Commerce
5. Getting Senior Management Online
6. Engaging the CEO in E-Strategy
7. Managing and Sustaining E-Commerce-Induced Change
8. Building an E-Commerce Infrastructure
9. Nine Steps to Evaluate E-Commerce Suppliers
10. Negotiating Deals and Managing Implementation

Evidence on High Payoff

Cohan begins by providing concrete evidence of the high value that properly implemented Internet solutions can bring to businesses. He highlights Cisco Systems and its Cisco Connection Online (CCO) as a prime example. CCO generates over 80% of Cisco's sales, amounting to $12 billion in revenue. This system allows customers to find solutions to technical problems and place orders for network equipment online, significantly enhancing efficiency and customer satisfaction.

According to Cohan, the highest-payoff e-commerce applications share several characteristics:

• Management encourages frugal experimentation.
• Enhanced customer satisfaction is prioritized.
• There is a strong partnership between IT and business units.
• Management adopts a pioneering spirit in e-commerce efforts.

"Perhaps the system's greatest achievement is the manner with which it gives customers the tools to configure network solutions over the Internet, allowing them to pick the correct components and troubleshoot any potential problems electronically." - Peter S. Cohan

Through the example of Cisco, Cohan emphasizes the importance of a well-integrated and customer-centric e-commerce strategy that drives significant business value.

Avoiding Low-Payoff E-Commerce Applications

Cohan outlines common pitfalls in e-commerce initiatives and how to avoid them: