Firms found lacking in e-business strategies

28 March 2001
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29 March 2001 | David Arminas

More than half of companies buying on the Internet have yet to implement an e-business strategy, according to a major survey to be published next week.

The E-Business Report 2001, compiled for CIPS, the Institute of Logistics and Transport and the Institute of Management, also found a lack of robust performance measures to assess the success of business-to-business applications in meeting their objectives.

The survey, carried out by the University of Birmingham's Centre for Business Strategy and Procurement, and headed by Professor Andrew Cox, was based on responses from 1,129 companies.

"Despite what has been written in the media, the use of e-commerce applications has not been as widespread as expected," Paul Ireland, a co-author of the report, told SM. "This is particularly true of marketplaces, where we expected to see twice as many in use as reported."

There were many reasons for implementing an e-procurement system. The ability to use staff more effectively was the most widely cited reason, named by 68 per cent of respondents. A reduction in internal transaction costs was cited by 67 per cent and 51 per cent said that a decrease in external transaction cost was the main reason.

Only 10 per cent of respondents were using the Internet for complex supply chain tasks, such as demand forecasting.

SMmar2001

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