E-Business Innovation: Cases and Online Readings
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Localization and E-Business Implementation
By early 2002, more than 50% of the world’s Internet users will live outside the United States.1 Increasingly, managers of all forms of content on the Web will need to consider how best to reach clients in a format that is culturally appropriate. Localization is defined as the “process of adapting a product or service to a particular language, culture, and desired local ‘look and feel.’” Localization requires conversion of media products developed in one culture into a format culturally and linguistically acceptable outside the original target market.

To truly globalize business on the Web, there is growing acceptance that adaptations go beyond simple language translation. When localizing a product or service, in addition to idiomatic language translation such details as symbols, colour preferences, product or service names, cultural gender roles, or geographic examples must all be considered. A successfully localized service or product is one that appears to have been developed within the local culture.

Companies that ignore cultural sensitivities, or make mistakes related to culture, lose business as a result. For example, Hewlett-Packard was bruised in their early days of international e-business by posting non-localized instructions for use with its printers on their Asian Web site. HP used the image of a human hand with the palm facing forward as part of the instructions. Unfortunately this image is an extremely threatening gesture to Asians. In another example, a jewellery manufacturer that displays colours on a white background may find that the choice of colours offends customers. Also important is sensitivity to cultural differences in the development of e-loyalty.2 Despite the embeddedness of culture with trust, to date little attention has been paid to how culture could influence relationship building in a Web-based environment.

Beyond cultural issues, companies must successfully take their e-business strategies through the implementation stage. Web-based technology is creating opportunities to reevaluate business models (as outlined in Theme 1 of this book). Traditional domains such as operations, marketing, or customer service can be enabled by technology to expand both in the speed and in formats for delivering services and products to customers.

Understanding strategies for success and learning from failures such as the dot-com “bombs” are important. Having a good product or service, a solid plan, and a management team with the ability to follow through on implementing goals are imperative. Both technology and people are central to this process.

NOTES
1. L. Yorgey, “Remember: you’re open 24-7 worldwide,” Target Marketing, 23(2000)(2): 46–48.
2. Dianne Cyr and Haizley Trevor-Smith, “Building e-loyalty across cultures and organizational boundaries in e-business,” paper presented at the EGOS International Conference in Lyon, France, July 2001.

Part 1: Localization

Part 2: Implementation