Several factors brought about the evolution of business sites from e-commerce sites into Web-based business applications. First, the sheer number of sites made it critical for individual sites to distinguish themselves from their competitors. Then, heavy competition created a demand for sites that attracted viewers, converted them into buyers, and retained them as long-term customers. The result was the development of e-business sites: content-rich, multi-featured, interactive business applications that could attract viewers and retain customers through the use of site differentiation and personalization of content to fulfill their customer. s needs.

Coincidentally, the very same features that made these sites powerful vehicles for commercial transactions also gave organizations a completely new ability to automate many of their traditional business operations.

Site differentiation is the strategy that makes a site unique, keeps it vital, and gives viewers a reason for returning again and again. To be effective, each site needs to publish information that appeals to viewers, is relevant to their specific interests, motivates them to act (buy), and creates a bond or a sense of expectation to draw them back. Sites managed strategically to achieve these objectives help shoppers enter a relationship life cycle as visitors and remain as customers.

Site differentiation is achieved by providing:

1. Value-added information
2. Interactivity
3. Frequent, useful content updates
4. Information personalized for specific users or user groups
   

Value-added information is content that goes beyond basic product details (like make, model, color, price, and size). Its purpose is to educate viewers (so they can make informed decisions that will lead them to buy); to motivate shoppers (so viewers and buyers are drawn back to the site and viewers are converted into buyers); to create a sense of expectation or anticipation (so viewers and buyers return at a later time). Value-added information can take many forms such as product reviews, promotions, case studies, usage suggestions (tips and tricks) or other advice.

Making a site interactive helps users bond with it by converting them from passive viewers into active participants. The degree of interactivity ranges from simple to complex: from a customer posting a book review to a customer receiving a travel itinerary after entering information on their budget, type of accommodation required, and preferences about attractions and activities.

Static content is the death of a site. An e-business site must have the ability to update content at a frequency dictated by business requirements (and not by the limitations or restrictions of site technology). If your users require daily advice then the site must include it. For example, financial information may need to be updated each hour; an auction site needs bids posted in real time.

Personalization means strategically targeting specific users or user groups with content relevant to them, delivered at the time and manner most appropriate for them. The more personalized the content, the greater the likelihood it will appeal to a given viewer's needs or desires and trigger a desired response (buy, return to the site, etc.). The ability to personalize content is currently being refined to the point where relationship management is now part of strategic site management. Giving users appropriate access extends personalization and requires the ability for customers to access a site using a variety of devices (PDAs, Web phones, Web TV, Internet kiosks, etc.).

Having the ability to provide the right information to the right people at the right time is critical to managing any organization, and therefore the very capabilities that allowed e-business sites to supply selected audiences with up-to-date, value-added, information turned web sites into powerful communication tools for achieving new levels of operational efficiency.Every operating group in a traditional brick and mortar company could benefit from the Web's speed and its ability to make specific information available to both broad and specific audiences.

A marketing manager, for example, could now publish current information about the company's product line (including product demos) on the Internet, information relevant to individual clients on an extranet, and discussion papers about emerging products on the company intranet.

In a similar manner, a sales account manager could create small Web portals on a secure extranet for each of his or her prospects and customers. This portal would be used as the primary communication link between the account manager and the accounts. The account manager could publish all information on product, services, and support for the customers through the Web site.The ability to channel selected information to specific user groups, the ability to keep information up to date, and the ability to make communication interactive (if this is required) makes it possible to bring significant improvements to speed and efficiency in all operational areas. As a result, organizations are adopting e-business Web technology as a strategic means to achieve their overall business objectives.