Larson says the customer economy is a significant business environment that allows service-driven companies to add value to their products while building loyalties between the company and its customers. Even more important, Larson said, is that the customer economy will affect long-term growth and future sales for many companies, regardless of their industry.

"Consolidated Freightways is thinking in terms of a customer economy that is defined by services, special products, business services, customer relations, and our ability to empower clients to manage their transportation and logistics services in near real time," Larson explained. Speaking to senior Information Technology (IT) executives on how "Evolving IT Strategies are Taking Aim at Customers," Larson discussed strategies developed at Consolidated Freightways (CF), which are focused on CF’s 155,000 core business customers.

"The web enables us to provide core customers a variety of tools, applications and solutions that benefit end users immediately," he explained. "These self service tools can then be extended very economically to smaller and smaller accounts; customers who even a couple years ago may have been too expensive to serve from a sales and follow up point of view."

Larson’s comments were presented to senior delegates on the first day of the e-business Summit 2001 general session, a private gathering of executive-level managers responsible for E-Commerce and Internet strategies. Marcus Evans, an international organization designed to create executive forums for the exchange of global business and intelligence strategies, sponsors the e-business summit.

Trucking, banking business models similar

Although he was billed as the transportation expert, Larson told the delegation that in many respects Consolidated Freightways, a top-tier trucking company, is no different than a top-tier bank. Just as CF now offers a complete menu of sophisticated e-business tools to its smallest customers, a bank offers a full range of online services to customers who may have as little as $100 in a passbook account.

Larson affirmed that activities aimed at the customer economy require an aggressive, proactive role by Information Technology executives. "IT is the enabler," he said. "The web gives us the venue, and IT is empowering customers — large and small — to manage their business affairs and make decisions in near real time."

IT strategies integrate with marketing

"If we offer e-business tools that customers don’t want, don’t need or can’t use, we’ve wasted valuable time and resources," he said. "IT successes and failures will affect entire companies, and have direct impact on marketing, sales, and corporate growth."

Larson believes that companies offering business services in the broad B2B environment have particular opportunities to grow and prosper by addressing and serving the customer economy.

"So-called old economy companies, are perceived to be big, bulky and established in their ways," noted Larson, pointing out that many old economy companies compete within perceived slow or no-growth arenas. "But the emergence of the Internet, and related e-business tools has opened the eyes of top management."

At Consolidated Freightways, IT initiatives tie long-term corporate growth with e-business tools and applications. "We are creating a glass pipeline that gives customers full visibility of their freight. But more significant is the fact that clients large and small will actually control, manage and adjust freight movements as it moves within our system," said Larson, referring to CF’s vast network of 300 terminals throughout North America.

Larson sees parallels between his trucking company’s glass pipeline and the menu of financial services offered by a large bank. He said banks today offer online business tools that allow customers to move funds among various accounts, pay bills, and handle numerous transactions all while the customer’s cash resources are managed within the bank. Likewise, a trucking company’s customers who have access to technology can manage freight and inventories, change routing and combine shipments all while freight is in motion.

"These business processes add enormous value to working with us," concluded Larson. "The more value we add to our services the better our product, and the more we can reach out to expand and grow our businesses."