University of Arkansas at Little Rock - College of Business
Donald W. Reynolds Center for Business and Economic Development
2801 S. University / Little Rock, Arkansas 72204
Phone: (501) 683-7700 Fax: (501) 683-7720
SAMPLE INTERNET READINESS ASSESSMENT REPORT
Internet Readiness Assessment Report
Prepared Monday, August 21, 2000 for
Internet readiness : 60
This business is NOT RECOMMENDED for Internet commerce, but has the potential to be ready with an modest investment of time and resources. Recommend registering a domain name and creating a website for marketing purposes only.
Product readiness : 69
Retail businesses are able to take full advantage of e-commerce to include order fulfillment and electronic funds transfer.
Immediate delivery limitation. The inability to deliver the product over the Internet requires this business to include transportation options and charges in its online shopping cart solution.
The cost to deliver the product is not very costly and should have little impact on sales provided that charges are reasonable and in line with similar products.
Consider using online help documents to deliver the training required to assemble, install, or operate your product. A user manual could be created and exported to an Adobe Acrobat portable document file (.PDF) for easy download and access by customers using a free Adobe Acrobat reader program.
Support or service limitation. Extensive special technical support or after-sale service is a major obstacle to Internet commerce. Consider options to use Internet technologies such as an online knowledge base to provide customers do-it-yourself access to troubleshoot and effect repairs. Consider developing a network of independent contractors/businesses to provide after-sale service.
The Internet provides a global market with environments ranging from hot, humid tropics to extreme cold. The ability of the product tolerate harsh or widely varying environmental conditions increases the shipping options and may also increase the market for the product.
Willingness to adapt your product and/or packaging increases your chances of success. Consider creating an online form that allows a great range of customization. Can the customer easily and inexpensively delete features or add features?
Market readiness : 11
Branding limitation. Being a relatively unknown company means that this business will need to expend a larger effort to market both the business and the product . While the Internet does provides for some savings, this business should ensure adequate funds and resources are available for marketing during the start-up phase.
Promotion limitation. One of the common reasons that Internet businesses fail is due to lack of advertising and promoting the business at every opportunity. Ensure that adequate time and resources are available to promote the product. Ensure that all promotional efforts include references to the existance of the website. Consider the use of discounts, paid shipping, or other incentives for rewarding customers who use the Internet versus conventional fulfillment systems.
Interest limitation. The lack of inquiries may indicate that there is little demand for the product. Consider additional due diligence in assessing the actual demand for the product.
Managers or sales staff with Internet marketing or sales experience is a definite plus. Consider subscribing to e-mail newsletters and regular visits to competitor and industry websites to keep abreast of trends and innovations. Advanced ecommerce classes may be available at local institutions of higher learning.
Research limitation. Consider conducting basic market research by visiting websites of similar businesses. Note both exemplerary ideas as well as shortcomings. Consider local high school and college business students as potential sources of assistance in conducting market research.
Market size limitation. As the current market is local or regional, there is the distinct possibility that the Internet will not increase sales enough to cover development cost. If the product is limited to the local area, then consider developing only a modest website. If there are no restraints on delivery of the product, then development of a website should prove beneficial in increasing the customer base and sales.
Sales and distribution limitation. No sales network indicates that this business will have to maximize every opportunity to market and sell its product. Ensure that web and email addresses are prominently featured on all printed materials. Consider the use of email signature files, participation in large Internet forums and newsgroups, give-away information, banner exchanges, and recipricol links.
Business Systems readiness : 55
The existence of a written business plan is a plus as this usually indicates that a business has taken the time to plan its growth and development.
A merchant account is a definite plus for this business as acceptance of credit cards is key to locking in internet sales while the prospect is interested in the offer. There may be an added monthly expense to enable immediate processing of credit cards without human intervention - a desireable process for high volume sales. Low volume sales may be accomodated by rekeying the credit card information into the existing merchant account equipment or software.
The ability to fulfill internet orders promptly is one of the traits most desired by internet customers.
Generally, a mix of hiring new staff and training existing staff is the solution used by most small businesses. Ensure that new hires have the skills for the job and are willing to train or coach your existing staff.
Commitment limitation. Strong commitment from top management is critical to the successful implementation of e-commerce.
Financial limitation. The inability to invest more than one-thousand dollars significantly reduces the scope of any internet presence. This company should be prepared to expend labor in lieu of cash to develop its own internet presence in-house. Outside consultants and services should only be bought when needed. Seek out as much free advice and assistance from public outreach agencies, such as SBDCs, SCORE chapters, BICs and other entrepreneural programs. Perhaps a technically adept college or high school student could be hired.
Time limitation. Few internet businesses achieve immediate success. Most internet businesses require a period of between six months and a year to grow their web site's content and build market share.
Human Resources readiness : 52
E-mail communication skills are a plus for this business.
Full internet access indicates that one or more individuals have the opportunity to acquire the skills required for maintaining a web site and using web interfaces for e-commerce software.
HTML skill limitation. The inability to edit web pages requires this business to hire a third party to develop and maintain a website at great expense. Recommend that at least one employee be trained to edit basic webpages.
FTP skill limitation. The inability to transfer documents using file transfer protocol (FTP) requires this business to hire a third party to update and maintain its own website.
About Your Report
Keep in mind that this tool compares your business to other businesses which have successfully conducted business over the Internet. It neither guarantees nor predicts success or failure of a business to thrive on the Internet. Many low scoring businesses may succeed while much more "successful" businesses may fail. These differences are generally due to business variables, such as, committment, time on task, financing, infrastructure, human capital, etc.
We recommend that you print and discuss this report with your management team and/or business counselor. Free consulting services are available from your local SBDC or chapter of SCORE.
About the Internet Readiness Assessment Tool
The Internet Readiness Assessment was created by Timothy Lee, an extension specialist with the UALR Arkansas Small Business Development Center. The tool was refined with the assistance of Dr. Steve Edison of the UALR College of Business Administration.
The tool was initially validated using small businesses participating in the ASBDC's pilot Internet Incubator program.
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The Arkansas Small Business and Technology Development Center is funded in part through a cooperative agreement with the U.S. Small Business Administration through a partnership with the University of Arkansas at Little Rock College of Business and other institutions of higher education. All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the views of the SBA. It is the goal of UALR to eliminate discriminatory harassment and to promote equal opportunity regardless of race, gender, color, national origin, sexual orientation, age, religion, veteran's status, or disability.