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The Web Centric Business

One of the more important concepts to understand from a customer behavior perspective relative to SaaS is that of web-centric versus web-agnostic behavior. Web-centric behavior describes individuals whose have fully integrated the Internet into their daily routine. For these web-centric users the Internet is central to how they consume information, interact with others, find and buy products and services, and solve problems. They recognize the increased efficiency that the Internet provides relative to these activities and have embraced it. They have integrated the Internet into both their personal and professional lives – at home, at the office, even when mobile.

By contrast web-agnostic users do not rely on the Internet as a central component of how they live. They may make use of the Internet for email, or occasional online shopping – but when they have a problem to solve, their instincts to not drive them to a web browser to find a solution.

Just as individuals can be web-centric or web-agnostic, so also can businesses be web-centric versus web-agnostic. Web-centric business (no matter what kind of business they are), recognize that the Internet can be a place to advertise, generate and qualify leads, transact sales, provide support, and interact with their customers. Web-centric businesses embrace the Internet as a core part of their business strategies.

Web-agnostic businesses, like web-agnostic users, have a limited perspective on the value that the Internet offers to their business. Web-agnostic businesses, by comparison, do not attract web-centric customers. Further, there are many, many, businesses today that are (in theory) selling products and services online that are web-agnostic! How is this possible? Simply stated, they do not the right things to allow prospective customers to search, find, self-qualify, and make the buying decision. Web-agnostic businesses do not attract web-centric buyers, even when they have the ability to purchase online, because they fail to recognize the behavior of the web-centric buyer.

 Why is this important to SaaS? The spectrum from web-agnostic to web-centric behavior is not easily quantified, but one thing is clear and universally recognized – the percentage of web-centric individuals and businesses is growing, and as a result the opportunity for SaaS is steadily increasing. At the same time SaaS providers must recognize these fundamental behavioral characteristics and integrate it into their go-to-market strategies, making a conscious decision with respect to how, and if, they will market and sell to both consituencies.

Published Thursday, August 24, 2006 10:35 AM by hagins
Attachment(s): WebCentric.png

Comments

 

jmurfin said:

That's a great graphic Jeff ;-)

On a serious note, one point you make interests me as a discussion topic: How can we start measuring the consumers and businesses moving to web-centric and more interestingly, for what reason? The answer to that quesiton would allow ISVs and Service Provider channels to place some bets. I.e. Do small businesses become web-centric when SaaS allows them to collaborate online at an affordable price (I.e. When an 'extranet' is not just a Corporate luxury run by a dedicated IT department) or do consumers become web-centric when they realise online tools are better than offline ones (think websites and blogs when researching where to buy something, versus opening the phone book)?

August 24, 2006 12:58 PM
 

atomlinson said:

Fun with lozenges. My throat feels better just looking at those illustrations!

Jeff your articulation of the difference of these two "classes" of businesses leads me to wonder about the tipping-point(s) at which web-agnostic companies become web-centric businesses. There are many paths to being a web-centric business, but they in all liklihood pass through the same territory where customers and partners/vendors are reachable online and are willing to transact with you, on some level or another, through the web. The entire "neigborhood" of a vertical needs to reach a point of critical mass of activity for true collective business acceleration to kick in.

August 27, 2006 4:31 PM
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About hagins

Jeff Hagins has more than 24 years of experience in product marketing, product management, software development, technical operations, service delivery, and software quality. Hagins is currently the Managing Partner for Mural Consulting and a General Partner of Mural Ventures, both companies that focus exclusively on Software-as-a-Service. His career has also included positions as Chief Technology Officer, Senior Vice President of Product Management, Chief Architect, Vice President of Engineering, and Board Member for companies such as Lockheed Martin, J.D. Edwards, TeleComputing, Apptix, Dynix, and SMBLive. Hagins has been active in the Software-as-a-Service industry from the beginning, helping to launch the J.D. Edwards ASP initiative in early 2000, becoming a board member of the ASP Industry Consortium (ASPIC) in 2001, as an advisor to the Computing Technology Industry Association (COMPTIA) Software Services Group, and as an advisor to Microsoft on the Communications & Collaboration Developer Advisory Council. Hagins is currently also a member of the Gerson-Lehrman Technology, Media, and Telecommunications Council of Advisors. Hagins has worked actively over the last 6 years in the Utility Computing and Software-As-A-Service industry with companies such as Microsoft, British Telecom, CSC, Telecom New Zealand, Cable & Wireless, NTT, MCI, Bell Canada, Savvis, and many others. His efforts with these ISVs and Service Providers have focused on overall Go-To-Market Strategy and Execution, Product & Marketing Strategy, Channel Development, Service Design & Architecture, Service Optimization, and OSS/BSS Integration. Hagins' experience in the SaaS industry is unique, having worked as CTO for SaaS ISVs such as SMBLive, as a CTO for pure-play Application Hosters such as Apptix, and even as the CIO for a mid-market company purchasing SaaS offerings (Dynix). He brings a unique perspective on the complete value-chain for SaaS, and in his role as Managing Partner for Mural Consulting is actively working with ISVs and Service Providers of all shapes and sizes to help them define and execute their SaaS strategies.