e-Business Strategies for Virtual Organizations

6.11: The Consultant Engagement Process

6.11 The Consultant Engagement Process

It is estimated that by 2005 the global Internet consultancy market will be worth $US50 billion (Evamy 1999). In the UK alone, website design consultants' growth in earnings have increased from 76% to 133% involving millions of dollars in consultancy fees.

The success or failure of an SME engaging a website design consultant involves a number of issues. First, it may be the SME's first attempt at engaging an external consultant and the SME may lack the relevant knowledge and experience required for successful engagement. Second, website design consultants are often SMEs themselves, and in the current climate of accelerating growth in the electronic commerce area, website design consultants are often business start-ups and consequently may lack experience in negotiating successful contracts. Finally, consultants tend to view SMEs as one-off jobs and may consequently lack commitment to the project:

small firms were viewed as one-shot opportunities, offering no potential for establishing a long-term relationship. Consultants would sell the small firms software and hardware, put together a network, and move on to the next company. (McCollum 1999 , p. 46)

Prior to consultant engagement an SME should have a clearly defined Internet strategy but should also understand the need to align business processes with website strategy through the creation of a new e-business model. They should further identify the amount of time and effort the SME contributes to the project and the critical importance of maintaining a clear understanding of the role of...

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