Published in e-Pro magazine, March 2003
Monster movies never give you a good view of the monster until halfway through. Representing Godzilla through one enormous footprint — or even one enormous foot — is a good way of building up suspense. It’s also realistic: if Godzilla came to town, one scaly foot would be all that most people ever saw.
Some things are so big they’re hard to see. Although e-business is making some huge changes to the way we live and work, we don’t often think about where it’s coming from and why. Asked to identify trends driving e-business, analysts tend to resort to general statements about business efficiency or customer empowerment. Alternatively, we get the circular argument which identifies e-business as a response to competitive pressures—pressures which are intensified by the growth of e-business.
The real trends driving the evolution of e-business are at once more specific and more far-reaching. Moreover, these trends affect everyone from the B2C customer at home to the IBM board of directors, taking in the hard-pressed WebSphere developer on the way.
The first trend is standardization. On the client side, there is now only one ‘standard’ browser. A friend of mine recently complained about a site which was not rendering properly (in Navigator 7.0). The Webmaster — presumably a person of some technical smarts — replied, “This is not a problem with our site, but your browser. I am running Windows 98 with IE 5.50 and everything displays perfectly.” At the back end, conversely, the tide of standards rolls on—from CORBA to XML to SOAP to ebXML. Interoperability between servers is too important for any company, even Microsoft, to stand in its way.
Whether standards are set by mutual agreement or by the local 800-pound gorilla is secondary; however it’s achieved, standardization has fostered the development of e-business, and continues to do so. The effect is to commoditize Web application servers and development tools; this in turn promotes the development of a single standard application platform, putting ‘non-standard’ platforms and environments under competitive pressure. From OS/400 to Windows 2000, platforms which diverge from the emerging Intel/Linux/Apache norm are increasingly being forced to justify themselves.
The second trend is automation. Since the dawn of business computing, payroll savings have been an ever-present yardstick in justifying IT projects. E business continues this trend with a vengeance. Whether you’re balancing your bank account or making a deal for office supplies in a trading exchange, you’re interacting with an IT system where once — only a few years ago — you would have had to deal with a human being. The word processor was the end of the line for shorthand typists; e-business is having a similar effect on growing numbers of skilled clerical employees. The next step, promised by Microsoft and IBM alike, is an applications development framework so comprehensive that business analysts and end users will be able to generate entire systems: even application development will be automated. (No, I don’t believe it either, but are you going to bet against IBM and Microsoft?)
The third trend is externalization of costs. Not long ago, if you asked a shop to deliver to your home, you could expect to see a van with the name of the shop on the side. Place an order online today, and your goods may well be delivered by a self-employed driver working with a delivery service contracted to an order fulfillment specialist. Talk of ‘disintermediation’ as a trend in e-business is wide of the mark. By offering more agile, flexible and transparent inter-business relationships, e business makes it possible for intermediaries to proliferate, each contracting out its costly or inconvenient functions. On the B2C front, meanwhile, operating costs are increasingly passed on to the customer: I sometimes spend far longer navigating a series of Web forms than it would take to give the same details to a skilled employee.
A drive for standardization, forcing all platforms into a single generic framework; automation for all, cutting jobs among bank tellers and programmers alike; businesses concentrating ruthlessly on core functions, passing on costs to partners and customers. These trends have had a huge impact on IT and society at large — and there’s more to come. In the e-business world, we’re all in Godzilla’s footprint.