For the production of this article, the collaboration of Open Media and its CEO Mauricio Sierra Cubides is especially appreciated for the information provided. Environment and Current Situation The dynamics faced by the markets and the very way of doing business, is a phenomenon caused by technology that has gained strength in the second half of the nineties.
The vertiginous growth of the use of the Internet in the world in terms of carrying out commercial transactions is a trend that will be observed in Colombia with consequences for companies such as: first, changes in the marketing of products and services focused on users of Internet and, second, a universe of opportunities for those who know and understand how to capitalize on them in their favor.
The indicators of Internet use are proof of the opportunities that companies have to make a presence and attract the attention of the large market that is continuously growing thanks to the reach of technology.
Currently, the number of Colombian companies with home pages on the Internet is increasing, in the same way the number of them that manage their sales from the international network, has increased.
Internet commerce or electronic commerce (e-commerce) is a commercial phenomenon.
However, the immediately preceding years have been decisive for the development of the Internet in Colombia, since there were key processes such as the sale and mergers of Internet-based companies.
So much so, that for this same year the CCIT (Colombian Chamber of Informatics and Telecommunications) award was created, which seeks to stimulate the development of the new Internet economy by Colombian companies that have a presence on the Internet.
These events have opened the eyes of many entrepreneurs to the enormous business opportunities that exist in new technologies and in the network of networks, consolidating the main point of interconnection and communication for the development of e-commerce in the country.
Awards like this one have made it clear that the virtual economy is more real than it seems, since every time organizations need a visually pleasing place and totally available to the consumer.
In Colombia, a large number of companies have been created that try to satisfy the demanding market, benefiting the companies that take their services, which begin to compete under the new parameters that are required in the globalization of markets.
When examining the current situation of electronic commerce in Latin America and comparing it with the present and past situation in the United States, a delay of 24 and 36 months is estimated.
This delay is largely due to a number of barriers:
- Cultural aspects such as the lack of tradition in remote purchases, strong brand loyalty and low confidence in postal systems. The low penetration of personal computers in the countries of the region. Costs to the buyer, such as high internet access costs. Costs for the seller, such as high investment in systems.
The logistics problems due to the low penetration of computers, the low penetration of credit cards and the lack of development of the postal infrastructure.
Many of these barriers, especially those that have to do with technology and access costs, are likely to be removed or reduced in the short and medium term, giving way to the acceleration stage of trade growth in Colombia.
The elimination of barriers allows the Internet to be the means of development and massive projection of small and medium-sized national companies. The Internet has gone from being an advertising medium to being a strategic business channel.
Latin America has 2% of the world distribution of Internet users; This phenomenon of the new economy has allowed the benefits of a true capitalism to be known, with very little intervention in the markets, an accelerated pace of business creation and immediately reflects a reduction in prices that is translated to the final consumer of products with an increase in quality.
However, despite the advantages of this network interconnection system, Colombian companies have been underutilizing their services, since now in addition to advertising, it is essential that organizations that wish to stay in the market and establish a competitive advantage, adopt a strategic position in front of the Internet to achieve the creation of successful businesses.
The days when the Internet was limited to the publication of a static Web Site with the company's corporate information and a "Contact Us" are long gone.
Today the Internet offers us the possibility of achieving surprising increases in sales, expanding the reach of organizations globally, optimizing communication with customers and suppliers, entering new market niches, creating a differential advantage over the competition, testing the viability of a new product, optimizing processes, reducing administrative costs, managing knowledge within the organization, obtaining all information about the target market and its characteristics, generating a personal and intimate relationship with each of the suppliers, distributors and end customers.
Electronic commerce has revolutionized the way organizations do business.
They have quickly managed to optimize them by improving profit margins through marketing systems. Improvements in competitiveness and after-sales service are part of the multiple benefits that companies around the world perceive every day.
For the creation of e-commerce solutions, it is necessary to analyze the needs and requirements of the company, in order to implement a personalized solution that really fits the specific business model as a strategic piece in the distribution and communication of any type of organization.
| Opportunities for suppliers | Opportunities for clients |
| Global Presence
Increase in competitiveness Shorter delivery chain Substantial cost reduction New business opportunities |
Global choice
· Quality of service Personalized products and services Substantial decrease in prices New products and services |
Source: E-commerce opportunities
Administrative factors
The new economy, the new business, and the new technology are not separate elements; they are closely linked.
They enable and direct each other. If the entrepreneur understands how the new technology corresponds to the new interconnected company, he can forge a strategy to compete in the new economy.
We are entering a new era, we move from the paradigm of the industrial society to that of the knowledge society (Translated as value, technology, skill and opportunity), it is and will be the source of wealth and competitive advantage of countries and companies.
The main function of the organization will be to make knowledge productive, that is, to manage intelligence.
Innovate in products and processes through the network. Adjust the products to satisfy each of the markets, that is, each of the clients. Nicolás Negroponte, founder of the Medias Lab Laboratory of the Massachusetts Institute of Technology and the NGO, called 2b1 (dedicated to promoting the use of the Internet in third world countries) assures that the network will eliminate commercial intermediaries.
The customer will have all the power, and companies wishing to survive will have to introduce their after-sales services.
The company must not lose its reason for being in the market, all technologies will be implemented to achieve its objectives in less time, with greater capacity, achieving better results and generating added value that will guarantee permanence in the market due to the preference they will feel. the clients.
The mission and vision will be much broader due to the great door that is opened by entering the network.
Within the organization, internal communication changes from analog (memos, reports, meetings, phone calls, schematics, documents, models, photographs, designs, graphic arts, etc.) to digital.
The new media are leading to a fundamental change in the nature of human work, the way businesses are run, the way well-being is created, and the implicit nature of commerce and business itself.
The new company enables independence in time and space; redefining these elements employees and shareholders.
Work can be done from a variety of locations, including employees' homes. The network becomes a warehouse for time-independent communications.
Fundamental Principles in the new Economy
The new economy is being fueled by an event with profound consequences: individuals and companies around the world are connecting electronically, so it is not surprising that the rules of the game are changing within organizations.
Considering these principles together they constitute the entire revolution in the rules of the business world.
- The matter. Matter is becoming less and less important. Processing information gives more and more power and has a better cost-result ratio.
Increasingly, the value of a company is measured not by its tangible assets, but by the intangibles: its people, its ideas and the strategic sum of key information-oriented assets.
- The space. The distances have disappeared. Now you have the whole world as a customer, and also as a competitor.
The entrepreneur is exposed to rivals from all over the world.
- Time. Simultaneous interactivity is vital and causes rapid change.
In a world where instant connections prevail, it is much more advantageous to offer simultaneous responses and have the ability to learn from, and adapt to, a market in real time.
Successful companies accept this culture of constant change.
- People. Intellectual power cannot be quantified in a ledger, but it is the primary factor driving the new economy.
People generate and manage knowledge, it is the most valuable element of the company to maintain itself and excel in the market.
The present and future of organizations depends on good management in the management of knowledge.
- Growth. The Internet can dramatically increase the adoption of any product or service by applying a "viral marketing" technique, based on the power of the network to expand any type of message.
Communication is so easy on the web that news about any product spreads like wildfire.
- Efficiency. Traditional distributors and agents (middlemen) face a threat from the rise of the web-based economy, as buyers can deal directly with sellers.
Markets are getting more efficient. For this reason, consumers have gained enormous power in the new economy.
- The markets.
Buyers are gaining great power and sellers have new opportunities. It is no longer necessary for buyers to hit the streets to find the products that fit their needs.
Businesses that truly offer unique services or lower costs will prosper.
The Virtual Company
The new technology forces a rethinking of the value chain. Transactions and communications are made digital on networks.
The systems are deployed beyond the organization, targeting customers, suppliers, other partners, and even competitors. Physical exchanges become virtual by transforming themselves into charged particles of microprocessors in a network.
The result of this change from the physical to the virtual, apart from the reduction in costs, the acceleration of communications or the provision to the participants of more timely information, will be that when the exchange of information becomes electronic, more changes are generated, they occur in the nature of human and organizational communication.
The value chain becomes a value network, as new relationships become possible.
And instead of enabling added value, technology allows the organization to create new institutional structures that can generate value.
New information technologies considerably improve the structure and way of operating the company, allow it to progress at all levels, facilitating processes and saving time and money in all its operations.
A typical case of this is the companies dedicated to banking, through electronic resources, they connect their corporate or private clients to their corresponding banks throughout the world.
The Virtual Office
The virtual workspace can be shared by several workers, where they share information, ideas, design and knowledge that can be manipulated, interconnecting with each other creating a workplace called "virtual workplace".
The virtual work space will be strengthened as the multimedia techniques advance, with which it will be possible to participate in work sessions equal to those carried out in physical form.
The virtual office is best applied to remote workers, entrepreneurial entrepreneurs, office-hotel users, mobile office workers and anyone who prefers or needs to work outside of a traditional office environment, whose advantages will be:
- Flexibility; the schedule is designed by the owner. Low cost; reduced overhead, less time to move from one site to another, modernization. Future is the office of the future. The entire office can be physically brought to the client's premises.
Virtual Work
It is a result of the so-called Teleworking, as has been observed for quite some time, since the appearance of the telephone it has been possible to carry out activities without the need to be physically present in the workplace.
The new organization schemes allow workers to be more efficient and effective in their work, they are paid for the work done and for the objectives achieved.
New companies are embracing this new concept of work, giving them names like Flex-place (flexible place) or Mobility (displacement).
It adapts to the new, more competitive and productive corporate model and, on the other hand, is consistent with a new attitude towards workers and towards work ethics.
Companies are realizing that employees can be trusted more if they are given the freedom to do work at will by providing them with the right tools of new technology.
Both parties win; By having confidence in its workers, the company does not require minute-by-minute control, but relies on the worker's good disposition and professional ethics, the company saves space and auxiliary operational tasks, employees can make their own decisions, which that implies more control and responsibility, which they always appreciate.
An example of this new job concept can be a mortgage loan officer who is part of a team distributed in banking functions, physically located in the suburbs, who can even interact directly with potential clients wherever they are.
Another case is a life insurance agent supported by an interconnected workstation to visit clients in their homes, or a university professor can tour an archaeological excavation describing what he sees and feels through a direct transmission to students. located in 20 different points.
The mergers of companies of all kinds (essentially those related to information systems), are based mainly on structures of large computer networks that allow them to be linked together, from anywhere in the world.
The integration of all the new technologies above leads to the true virtual company. These companies rely primarily on a vital raw material: software.
Starting a virtual company or factory requires more than consultants and good ideas.
This SMC software (Supply Management Chain, Supply Chains) has already been created and is being marketed, it is what allows manufacturers to better integrate customer operations with their own and in turn with suppliers.
In reality, SCM components are the essential components of the virtual factory, and are made up of extremely advanced technologies and business processes.
The administration of the Supply Chain (Supply Chain Management or SCM) consists of optimizing the business processes in all its stages, inside and outside the limits of the company.
The company and the companies in its chain can share sales predictions, manage inventories, plan resources, optimize dispatches and improve productivity.
Using SCM solutions based on e-business (electronic business), companies can obtain results such as:
- Lower operating costs by reducing inventory requirements. Improve the degree of customer satisfaction by having the appropriate stock. This keeps offers up to date with market trends and changes. Improve productivity through better information integration, with fewer order errors, fewer reviews, and faster communications. The result is better competitiveness.
The Human Factor
It is the key to developing an idea on the Internet, it is not possible to build a successful idea without the best people.
At the core of any company are its people, even for Internet businesses.
The team's recruiting strategy and hires play an important role in the success or failure of the company. You must be surrounded by people with experience and knowledge of the business.
Technology is easily available in the market with enough money, so it is the human factor that makes up the company, which will forge the expected results. «More power for the employee:
Companies must change the relationship with their workers if they want to take advantage of their creativity. The important thing is no longer increasing your performance, but your commitment.
»Employees should not be treated as just another resource, but rather as generators of ideas to whom we must contribute the resources.
If they feel that they can develop more easily in the company than anywhere else, they will be less tempted to leave.
Within the work team that must be counted on, it is very important to be advised by key professionals such as lawyers, accountants and real estate experts, these people will contribute to important decisions within the company such as contracts with investment companies, leases, regulations, responsibilities, control and efficient management of capital and strategic location of the facilities, always seeking the best for the company.
CRM (Customer Relationship Management)
Customer Relationship Management is a strategy whose main objective is to establish and maintain long-term relationships with customers.
In today's competitive business environment, where customers are increasingly demanding and profit margins are decreasing, organizations face the need to create new products and services, and to become more efficient in their operations.
This is why companies must focus on their most valuable asset, customers.
Over the past 30 years, we have moved from a mass market culture of few products to a dynamic market with many products customized to meet the specific requirements of individual customers.
Customers have options. Many studies have shown that long-term loyalty is only achieved with highly satisfied customers.
Why is fidelity important? Because the cost of obtaining a new customer is far greater than that of retaining a current customer.
Market research indicates that the cost of acquiring a new customer is 5-10 times higher than that of retaining a current customer for the company.
As it becomes increasingly difficult to differentiate products by quality or price, customers will tend to buy from a supplier who listens to what their needs are, responds quickly with the correct information, and provides excellent service.
CRM applications are designed to increase the effectiveness of employees who interact with customers or prospects, generating a better customer response and giving the employee a complete view of the customer's life cycle.
CRM solutions, which are part of e-business systems (Electronic Businesses), allow the customer to receive better service through personalized attention, while offering companies the possibility of identifying new customers and keeping customers more satisfied. existing ones.
There are many companies that have developed software to improve and serve customer relationships, since it is the most valuable asset of the company, among which are Microsoft, IBM in alliance with Siebel, among others.
The service offering for CRM is structured around consulting services that help companies design customer-oriented strategies and create an action plan to transform business processes:
- Definition of Strategy: diagnosis of the CRM mission in the company, analysis of needs and gaps, definition of priorities, analysis of strategies and points of interaction between company / client. CRM Master Plan: analysis of the organization's business processes and the information systems that it uses to define the projects to be undertaken. Design, development and / or implementation services for comprehensive solutions, as well as specific solutions from other companies. Automation of the sales force Design and implementation of a Call Center (Call center to attend and solve customer concerns developing more profitable and loyal relationships with customers). Data management services.
To better understand customer needs, it is necessary to create a centralized database that unifies the information obtained from each customer. They offer a series of services aimed at: analyzing customer data, identifying those groups of customers who may be interested in a certain action, designing marketing activities, promotions and loyalty programs based on this data.
Colombian legal framework
Since a few years ago, people began to talk about electronic commerce in the United States and later in Europe, due to the significant growth that the Internet has had.
In our country, we have experiences for about 2 years in relation to incipient e-commerce projects.
The first step was taken by electronic banking with virtual branches.
Later, networks were implemented to handle supplier orders by some companies.
At present, there is more and more information related to Internet pages of national companies that manage their sales from the international and public information network.
The Colombian Congress regulated some aspects derived from such an event, such as electronic commerce, by issuing Law 527 of August 18, 1999 (See Annex 4), which generally includes the following content:
A first part, articles 1 to 25, divided into 3 chapters, namely: General provisions (scope of the law, definitions of data message, electronic commerce, digital signature, certification body, electronic data exchange and system information, and incorporates basic principles for its interpretation and application).
And the other two, on legal issues related to validity and evidentiary forces, signatures and contract formation. A second part on the transport of goods derived from electronic commerce transactions.
In addition, a third part on digital signature, certifying entities, certificates, subscribers of digital signatures and functions of the Superintendency of Industry and Commerce, and, finally, a fourth part on regulations, validity and repeal.
For a proper understanding of the law, its international origin must be taken into account, since most of its content comes from the model law of the United Nations Commission on International Trade Law UNCITRAL.
The law allows the development of many instruments that will facilitate and expedite the procedures of a commercial activity with lower transaction costs for the employer.
A brief explanation will be given below that directs traders to an understanding of the main implications of Law 527 of August 18, 1999.
Some implications in the different branches of law are:
Evidentiary Law: understood as the physical medium in which an electronic negotiation is carried out includes networks, terminals, servers and disks for storage and disposal of electronic data, it is necessary to establish the parameters under which the jurisdiction and the parties themselves can prove the pertinent facts regarding e-commerce relationships.
Tax Law: if electronic transactions will be the general rule in the future, the states should consider the possibility of dealing with the tax aspect in this matter.
It must be determined whether taxes should be applied to this type of business activity.
Currently, companies apply their taxes according to the geographical area where they are located.
Copyright and industrial property: Internet is a medium where it is easy to use the information of third parties, names, brands, among other elements without the authorization of the owner.
Therefore, one of the forms of protection is the authentication and verification of the legality and content of the Internet pages in terms of merchants.
This guarantees the existence of the seller and that the information found there is real and reliable.
Fundamental rights: this basic minimum to ensure the dignity of the human being, can be affected by the use of the Internet.
Our data and location are known to many, which creates a situation of risk and uncertainty. This is how it is necessary to guarantee security and privacy.
Many businessmen and people have the possibility to know personal information.
Consumer rights: Consumers of products offered on the Internet tend to increase greatly.
This consumer protection law will be applied without prejudice to the current regulations on protection.
Taxes on the Internet
Currently there is no tax legislation that regulates Internet transactions, since Law 527 of electronic commerce, specifies the conditions for generating transactions and their probative capacity.
However, this issue has been the subject of discussion on different occasions by international organizations for economic development.
The international dimension of electronic commerce makes it difficult for administrations to manage taxes and may even discourage transnational electronic commerce initiatives.
The businessman faces the problem of complying with his tax obligations in jurisdictions very different from the one in which he is established, which increases his costs in legal advice and administrative management, in addition to the uncertainty that by its very nature, international trade generates (especially in SMEs).
It is the responsibility of the national tax authorities to obtain, in collaboration with the market, various agreements on the tax treatment of operations included in electronic commerce.
Generally accepted tax principles (neutrality, efficiency, simplicity, fairness and flexibility) must be applicable to electronic commerce, which will require the adaptation of national laws to the new international framework.
According to the Committee on Fiscal Affairs (CFA) of the OECD, the current rules on international taxation can serve as a vehicle for these principles, which does not exclude new fiscal or administrative measures that favor the maintenance of the fiscal sovereignty of the countries and avoid the double taxation.
At the international level, taxes on consumption (such as VAT) require special attention.
It is necessary to preserve the income of public administrations for these concepts, as well as to prevent fraud, but it is also necessary to avoid double taxation, minimize the cost of compliance with their obligations by entrepreneurs, stimulating the growth of electronic commerce.
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