Experts: Women Well-Suited
for e-Business
By Michele Fitzpatrick
Women entrepreneurs are quickly becoming a part of the new
e-conomic landscape, which is still up for grabs as the first
wave of pioneers sets out to build online businesses. A number
of experts say these women already possess the tools needed
to build a new e-commerce business model to define how the
organization is structured and how it treats customers. They
predict the new model will break with tradition and contain
more of a "woman's touch."
"E-commerce is a new game and the rules haven't been
written yet. It's a unique period in business history for
women to construct a new e-commerce business model,"
said Ellen Rudnick, executive director of the entrepreneurship
program at the graduate school of business at the University
of Chicago.
The traditional business model, its organizational structure
and methods of reaching customers must adapt to the changing
e-commerce landscape, said C.V. Harquail, assistant professor
of business administration at Darden Graduate School of Business
Administration, University of Virginia-Charlottesville.
"A network structure will replace the traditional hierarchy
structure because the key e-conomy question is not who is
in charge, but rather who has the information needed to get
the job done?" she said.
Experts are quick to point out that the network organization
they envision bears no resemblance to a "good old boys"
network, in which informal, internal relationships dictate
who holds power and how tasks are delegated. Instead, the
e-business network organization is about leveling the playing
field for all players, regardless of gender and position.
Its primary directive is simple: What combo of employees can
get this task accomplished?
"In a hierarchy structure, the corporation is an entity
unto itself," said Lisa Klein, assistant professor of
marketing at the Jones Graduate School of Management at Rice
University. "Its boundaries are clearly defined and authority
and responsibility are clearly delineated by the organizational
chart."
Harquail said that in a hierarchy business structure power
flows from the top down. Those at the top have the most power
and authority. Subordinate positions hold lesser degrees of
power and are responsible for specific parts of the work.
"In a network model, however, there is a broader definition
of power and work projects can cross channels to handle parts
of the work," she said. "It is about harnessing
power within the organization and often harnessing some outside
the organization to get a specific, sometimes short-term,
task done. A hierarchy structure is neat and a network structure
is often very messy, but (a network structure) is more effective
to achieve goals in the fast-paced e-commerce arena."
Klein said e-businesses are likely to move to a network structure
-- what she terms "virtual organizations," whereby
separate elements of the business come together, often temporarily,
on a project basis. "In this structure, organizations'
boundaries are rather fluid and authority or responsibility
is not allocated by titles but earned by building relationships
among the diverse components," she said.
Harquail said women handle network structures particularly
well. She said, "Within traditional hierarchy structures,
female workers have often used networking, also called a workaround,
to get jobs done for the simple reason they haven't had access
to power and authority."
Klein also said that women have an edge in a network structure
-- their experience at being flexible. She said women are
more likely to have pursued alternative career plans, taking
time to raise children or working part time.
The second key element of a business model, the element that
relates to customers, also is morphing into something new.
Not only will dot-coms replicate or improve on traditional
customer service, they also will face the challenge of building
virtual communities.
"Online entrepreneurs must balance their Web site's
transaction capacity for selling things with its connection
capacity, creating community. Sites that focus solely on directing
visitors to buy the product without creating networks of people
who exchange and relate to each other can't capture their
market," said Harquail.
She pointed out that Ebay, the auction site, isn't a hit
because of its transaction capacity alone. "It's a big
hit because a visitor can say, 'Wow, I'm not the only one
in the universe who is crazy about PEZ candy dispensers.'
Women tend to create those kinds of connections more easily
than men do," she said.
Marjie MacLean, president of Evanston-based AudioCast.net,
a streaming-media technology company, said that creating connections
is vital to a new model for online customer relationships
for two reasons: The technology exists to do it and a replacement
for face-to-face relationships is needed for any business
to thrive.
"The tools are there to foster business-to-customer
relationships," MacLean said. "We can transmit a
clear audio signal anywhere we can drag a telephone line.
We can pair that with a robotic camera, which lets users tilt,
pan and zoom a room or live-event photo while they watch and
listen. This technology is available to users with a modem
as slow as 28.8 to participate. We can't duplicate face-to-face
encounters, but we can create a substitute with a virtual
community."
Women also understand the online customer's need for added
value, said Stephanie Collins, associate professor of computer
information systems at New Hampshire College in Manchester,
N.H. "The online consumer expects a large variety of
products, fast service and the added value that has always
given traditional businesses the edge over their competition."
"In a traditional sales model, a customer feels and
touches the product and a salesperson adds information or
offers further help to assess what the customer needs,"
she said. "The e-commerce challenge is to add the extra
value. How do you give the customer the feel of the product,
the added information and make them feel you are there to
meet their needs? Women tend to understand that. They are
more client-oriented."
Experts also caution the new e-terrain is not without its
challenges to female entrepreneurs, particularly the fact
that most IT professionals are men.
"I call it the 'geek-izmo' factor," Harquail said.
"The plain fact is that both software and hardware professions
remain dominated by men and it's tough for women to fit in.
It's not impossible, just tough."
Collins said she sees some gender differences among programmers
-- in very broad terms, men tend to design software to please
themselves while women tend to design software with the client
in mind -- but she believes a woman's approach is more in
tune with online needs.
"Now that everyone including grandma is signing up and
signing on, we need software to be really, really easy and
fun to use," she said. "I think women are more attuned
to that."
Maria Lupetin, CEO of Infomaker Inc., an e-business consulting
company in Glenview, said many women underestimate their technical
skills or are leery about seeking the training they need to
compete for jobs in a male-dominated field. She also thinks
that women tend to shrink from asking their supervisors for
the training they need or job positions they want. She said
that women don't have to become programmers or technical experts
to work in technology, but they should acquire technical savvy,
network among tech professionals and actively look for opportunities.
"Personally, I think women need to get more aggressive,"
she said. "I don't think women are aggressive enough,
especially in the technology fields. I gave a friend of mine
some counsel once when she wanted to go after a promotion
but hesitated, unsure of her skills or her chances to land
it. I guess it worked because she is a vice president now.
I said, 'Ask them for what your heart wants and then don't
be afraid to go and DO it.'"
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