By
Bill Littler
Management Consultant, Canada

Preparing for E-Commerce

The business world is changing. Business conducted electronically between organizations and consumers ('Business to Consumer') and between organizations ('Business to Business') is growing rapidly. World-wide 'Business to Consumer' E-commerce trebled from 1998 to 1999 to reach $31.2 billions, but 'Business to Business' turnover is even higher now at $200 billions (Goldman Sachs). Together such E-commerce is likely to reach $2000 billions by 2001 (International Data Group) and $350 billions by 2003 (CyberAtlas).

Over 200 million people are now 'on-line' world-wide (Nue Internet Surveys) but this represents only about 5% of total population. Even in the USA only 25% of the population use the Internet – so the potential for the growth of E-commerce is massive.

Of course this transformation of business has enormous implications for those who now intend to take an MBA. On the positive side - they will have far greater opportunities to be business entrepreneurs than any previous generation. For the cost of a decent PC and peripherals and a Web site, a good idea can be turned into a good business. The barriers to entry into such business are low – no need for stock, offices, factories, and lots of people. Both these venturesome people as well as those who be aiming to get a job with an organization on completion of their MBA, should note that there will be some major growth areas. For example, between now and 2001 'Business to Consumer 'E-commerce is expected to soar in travel (by 1000%), entertainment (800%), books and music (600%) and financial Services (400%) (Intershop)

There is another consideration. Will your MBA program adequately equip you for E-commerce? So far the evidence is not encouraging. The database on the MBAinfo site demonstrates that as yet there are few E-commerce MBA programs. Grenoble and New Brunswick (Canada) are a two of the exceptions. There are however many more Schools which offer E-commerce and related subjects as options/electives within a General Management MBA program. ( eg Monaco, MIT, U Texas, Cape Town, Murdoch). Whilst most major programs will have such electives eventually, take care to choose carefully at present.

You might also note that specialist E-commerce programs may be offered by other University departments and might lead to other degrees ( eg the Carnegie-Mellon M.Sc program in E-Commerce). Note that Business Schools are not - because of their traditions – well placed to provide E-commerce competences for venturesome individuals. Traditionally full time MBA programs – the core activity of many Schools- have supplied bright graduates for big business and consulting organizations. In turn these businesses have supported the Schools and their top faculty. For evidence – check out the nature of the sponsored professorships in the big Schools, the consultancy clients of their faculty and the main non government sponsors of their research centres. Now the Schools are concerned that, increasimngly, their best graduates will not follow the traditional route – but will do their own thing or join small high tech start-ups.

So the Schools not only have to adapt their curricula (more emphasis on IT/IS, Marketing, Finance and Strategy and less on Operations and Human Resources?), but also to re-orient themselves to their markets. They will need also to place more emphasis on developing entrepreneurial skills and may need to be prepared to invest in the ventures of their students – if they are be successful in creating the type of climate from which E-commerce will flourish . These are major adjustments and the main driving force at present is not the faculty, but people like you who are looking for an appropriate MBA for your E-business future. Choose carefully and use you influence.