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Selling Software In The Internet Age

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DQC Bureau
New Update

Not so long ago, the primary

tools for any business opera-

tion were limited to a typewriter and a calculator. Today, these now primitive

devices have been replaced with computers and their universal appeal. From homes

to large organisations and for a range of tasks, computers specifically and

computing power in general, have provided us with answers to many of our

time-consuming and unwieldy tasks.

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From the days when there was no market for genuine software

in existence, to a time when piracy levels are down to 60 percent, much has

changed. Another hallmark of this era of change has been the increasing

competition between MNCs and local OEMs and system builders.

And if these factors weren’t enough to create a sea change

in the way software is sold, the Indian customer has been increasingly exposed

to international developments, more aware and articulate of his needs and

demanding in terms of service and support.

Last year, PC shipments crossed the one million mark, taking

the total installed base across the country to over five million PCs. This

number will only increase each year, and while we are still a long way away from

countries that ship in excess of three million PCs a year, the future looks

promising.

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The traditional distribution channel itself has undergone a

major change. Companies like Microsoft, Compaq and Intel and many others have

worked to establish a network of partners across the country to ensure easy

availability of world-class products. Channel members today are up to date with

the latest trends and technologies, and are empowered to help their customers

make informed purchase decisions.

Drivers of the PC market

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Today, we see PC and software sales being driven sharply by

three key sectors-the home market, small and medium business, and the emerging

plethora of e-enabled enterprises. Each of these segments has its own unique set

of driving factors but the common denominator is the Internet and the role it is

playing is redefining boundaries of traditional computing. So how will the

Internet affect companies in the industry?

Nicholas Negro Ponte, MIT guru, in his book ‘Being Digital’,

describes the world as consisting of atoms and bits. Atoms are the physical

goods that can be bought and sold over the Internet yet require physical

delivery. Bits on the other hand, like software, can be bought, sold, delivered

and even used over the Net.

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In this new scheme of things

In this new scheme of things, it is but natural to re-look at

the way we have been doing business and gear up to the New Economy. There are

many examples of how emerging technologies have taken advantage in changing the

paradigms of doing business in today’s market.

Application service providers are one such segment that is focused on

providing users across the world with

software applications on rent through the Internet - or

"apps on tap". Companies like Dell and Cisco have increased their

competitiveness and thus revenues by selling their products online, and have a

significant percentage of business to be generated through this mode of

interaction.

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There is no doubt that the advantages and opportunities that

the Internet Age offers are tremendous. The Internet helps even out and level

the global playing field, and hence it is not just the size of the vendor that

will drive customers online. Small companies have just as much of a chance to

devise web strategies that will help them deliver value to their customers.

So how will the Internet help your business and stay on top

of the competitiveness curve... here are a few ways that come to mind:

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Lower cost of doing business:

Imagine you wanted to reach each present and potential

customer directly. Think of the phenomenal cost of an advertisement or direct

mailers. Compare that to the cost of sending out an email with a link to your

web site address. Not only will you save yourself a huge expense, you can also

decide what information you want your customers to have - product and pricing

lists, buyers guides, promotions and discounts, customer suggestions and

feedback, contacts of satisfied customers, there is no end.



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Access anytime, anywhere:



Instead of having to wait for 9 AM on Monday morning, it

would be ideal if the customer could get online and either post a mail for

immediate assistance, or chat with a technical assistant to rectify the problem

immediately. And this is possible today. Web sites offer 24x7 customer

interaction, either in terms of Frequently Asked Questions, chat rooms, links to

support sites or white papers, minimising downtime and winning customers for

life by making the additional effort.



Going beyond traditional geographical boundaries:



If you are a system builder in Nehru Place in New Delhi,

offering great deals to your local customers, there is no reason for you not to

extend that service, to the rest of Delhi, surrounding towns, and maybe even

neighbouring regions. And with no additional investment in infrastructure, as

long as you have your distribution mechanism in place.



Tying your partners in:



Struggling with high inventory costs? Stock out situations?

Obsolescence? A business-to-business model on the Internet can help you get your

partners and suppliers online to minimise these and other irritants. An added

advantage is the ability to provide customisable configurations online, a model

followed successfully by PC giant Dell.

From experience, any businessman will tell you that it takes more money to

get a new customer than to retain an existing one. With competition growing,

only the companies that actually look at customer satisfaction seriously will

succeed in the long term. The Internet is the simple way to maximise this, in

the shortest possible timeframes, and can only add value to your business, and

pass this added value down to your customers. In the end, new economy or old,

the customer is still the king

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