Chicken Little and the Disintermediation Myth
by: Paul Shearstone
If Chicken Little were alive today he wouldn’t be running around forewarning us of the sky that was about to fall. He’d be too preoccupied alerting everyone about another potential disaster which may in the end prove to be just as erroneous as his first prediction. Nevertheless, if the conversations around the office water coolers are any indication, he’d still get the attention of many nervous corporate omnismarts. So what’s the new buzz? Disintermediation!
If you haven’t heard the word already, you’re going to hear it ad nauseum.
For those unfamiliar with the term; Disintermediation is a groovy way of saying; ขSoon there won’t be a need for a Middleman.ข That is to say, thanks to things like the Internet, ecommerce, global attraction and fulfillment, manufacturers will no longer require the services of the ขMiddleman in the Channelsข [resellers] to reach end users or customers.
It would seem today’s prognosticating Chicken Littles are quite convinced the death of the middleman is in fact, imminent. But like the chicken that went before them, that doesn’t mean they’re right!
The incredible rise and untimely fall of many of the mighty dotcom’s should serve in no small way to highlight much of what we thought the internet was going to do, it didn’t and probably won’t. And you don’t have to bring up the name, Peter de Jager, to know there is no shortage of redfaced futurists still hiding under rocks looking for ways to get out of town. Fortunes were made and lost especially in hightech resulting from, let’s call it; bad information concerning things like Y2K and the forecasted unavoidable changes to the traditional business landscape, thanks to the Internet.
But to be fair, de Jager wasn’t in a bomb shelter when the clock struck twelve, he was in a plane and as far as I know, he never told anyone to stock up on Tang! We can save that discussion for another time as it is – at the risk of sounding a little ironic – history.
Nevertheless, the argument regarding whether ecommerce will entrench itself as the กpreferredก way of doing business continues. From my perch, I’ll go out on a limb and say, ขIt won’t! At least not totally.ข
Simply put, there are two fundamental transactiontypes that culminate in a sale. One is Tactical and the other is Strategic. Few would argue the implementation of a new ITnetwork or specialized software requires a strategic approach that can only be satisfied in person employing a B2B strategy. Most sales requiring specializations all but eliminate – at least for now – an ecommerce solution.
Tactical sales, however, are entirely different and Amazon.com is a perfect example. For products like books,a bar of soap or an airline ticket, ecommerce has a far better chance of becoming the time and moneysaving fulfillment process of choice – but even that, as we have seen, has no guarantees!
A toy is a toy is a toy. Right? So why did Toys.com go under? Surely their business model personified the quintessential Tactical sale for which ecommerce was designed. It did! Yet it still failed. Why?
Why also do studies conducted by USbased firms like Pittiglio Rabin Todd & McGrath report ecommerce has not – as of yet replaced or significantly reduced traditional channel operations to any significant extent?
I personally am reasonably esavvy but, to date, I have only bought a couple of small items over the net. Not because I haven’t tried to buy more.
Giving out my credit card information has never frightened me. My bank assumes all responsibility for purchases by my card should it fall into the wrong hands. [Note: I, like you, pay handsomely for this privilege].
On several occasions I did try to make a small epurchase. Each went something like this. Step 1: Name / Address / Phone Number / [No problem with that].
Step 2: Date of Birth / [SAY WHAT?] SIN Number / [NOT A CHANCE!]
The fact is; I, like most people, will, not under any circumstances give out sensitive, personal information over a faceless Internet regardless of how secure the connection is. And therein lies one of the major stumbling blocks for even the simplest epurchase. Misuse my credit card; I am inconvenienced. Misuse my personal information; I am potentially devastated for life. A few bars of soap or a new toner cartridge for my printer are in the end, not worth the risk.
What about larger purchases? Not too long ago, the Auto Industry was bracing for what it thought would be a groundbreaking way to sell cars – over the Net. After all, it did meet the Tactical Sale Model ecommerce was designed to satisfy. And when that didn’t happen, they were quick to ameliorate their expectations by saying; customers will purchase cars in three steps. First: They will shop the net for exactly the car they want. Second: They will physically test drive one. Finally: They will again shop the net for the very best price and purchase. … So how come so few buyers have done this?
There is an obvious [predictable] answer and it isn’t so difficult to understand.
Educated salesspecialists know there is an Art and a Science to selling. Both the Art and the Science are timetested and proven and are well rooted in things like Psychology, Human Behavior and Motivation. Ecommerce, although quick to offer a potentially new and better way to buy, has fallen miserably short in its ability to offer the human factor still expressly integral in allowing traditionalists to make the leap of faith from the real world to the eworld. In the end, it doesn’t matter whether it’s a computer part, a bar of soap or a new car. A better strategy is still needed to achieve synchronicity between the two buyingmodels thereby bringing credibility or a speedy end to the argument about Disintermediation.
ขIs Disintermediation real? Or is it a Myth?
For the answers to this and strategies you can use [already embraced by successful emanaged companies], go to >www.success150.com/theanswer
About The Author
Paul Shearstone aka The ‘Pragmatic Persuasionist’ is one of North America’s foremost experts on Sales and Persuasion. An International Keynote Speaker, Author, Writer, Motivation / Time & Stress Management Specialist, Paul enlightens and challenges audiences as he informs, motivates and entertains. To comment on this article or to book the Pragmatic Persuasionist for your next successful event we invite to contact Paul Shearstone directly @ 4167285556 or 18668554590
www.success150.com or [email protected].
This article was posted on March 21, 2003
by Paul Shearstone
