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Single Currency Would Power B2B E-Business Boom
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8/12/00
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With the Nice Summit in the offing, support for the euro among leading UK executives has been confirmed by the results of a B2B e-business survey showing more than 50% back entry to the single currency to aid UK participation in pan-European electronic trading exchanges. The MORI and Cranfield School of Management survey for Microsoft questioned key executives from 400 major UK organisations on the progress and future impact of B2B e-business initiatives in the UK.
The report reveals that B2B e-business is a priority issue for these UK organisations with almost two-thirds having an e-business director, 74% having B2B e-business on the board agenda and 42% having a companywide strategy. Yet it is not yet playing the major role in day-to-day commerce that recent publicity has predicted. 72% of B2B transactions are still carried out using paper and email - less than 3% are web-based. And while many of these organisations have a B2B e-business strategy, 44% have not invested in B2B e-business projects during the last 12 months. In addition, more than two-thirds think it is too early to say whether current initiatives have delivered on their projected benefits. Budgetary constraints are viewed by more than a quarter of these key executives as the biggest barrier to the take-up of B2B e-business. And 19% believe their organisations are being held back by a lack of in-house skills.
Despite this, B2B e-business is expected to take off during the next two
years when almost one in five transactions will be web-based and all these
organisations expect to be investing in B2B projects - with one-third
investing 3% or more of turnover. Correspondingly the figure for paper and
email activity is expected to fall by 18% on average as web-based
transactions proliferate.
Additionally, the spread of online trading exchanges will help to push
levels of activity up. The number of organisations using trading exchanges
is expected to more than double in two years time - from 26% to 53%.
Predictions for the wider economic impact of B2B e-business are
optimistic. 62% expect the growth of B2B e-business to lead to an increase
in Britain's GDP and almost one in four expect it to contribute to a fall in
unemployment. In addition, just over three-quarters anticipate that the
growth of B2B e-business will make the UK economy more competitive.
Perhaps surprisingly, the surveyed organisations overwhelmingly welcome
the Government's involvement in online regulation. More than 80% want the
same or greater levels of Government involvement in the regulation of
Internet trading practices both nationally and internationally.
Although these executives believe they know what is important in
achieving successful B2B e-business many feel they are underperforming
against these measures. For instance, while almost two-thirds recognise the
importance of a scaleable and reliable technology solution, 35% feel their
organisation is failing to deliver one. And though 84% believe that top
management commitment to the strategic potential of B2B e-business is
important, only 44% think they have achieved this.
Similarly, the importance of delivering a consistent service to the
customer was stressed by just over three quarters, though only 27% feel
their organisation is performing well in achieving this.
However, executives are clear on the priority issues for realising
business benefits. A quick return on investment (ROI) is essential with more
than 49% needing to see a quantified ROI in under 12 months for a B2B
e-business project to be given the go ahead. Quick implementation
facilitates this and one in two name speed of implementation and ROI as the
top strategic priorities when rolling out B2B services. In addition, 53% see
speed and responsiveness as their key performance indicators.
Despite misgivings that UK organisations could be doing better against
their own targets, in global terms executives are confident of the UK's
progress in B2B e-business. More than two-thirds think the UK is keeping up
with the rest of Europe and 60% consider its relative global position to be
just as healthy.
The survey, conducted during September and October 2000, explores the
current use and future potential of e-business within four of the largest UK
industry sectors: manufacturing, retail, financial services and the public
sector.
The survey was carried out among non-IT business decision makers, of
these 31% were board directors and 69% functional heads. They were taken
from a sample of 400 organisations in the four industry sectors specified. A
sample of companies with an employee base of over 250 was provided for each
sector by Dun & Bradstreet. All respondents were non-IT specialists.
Fieldwork was carried out by MORI Telephone Surveys Ltd using Computer
Assisted Telephone Interviewing (CATI). Data entry and analysis were carried
out by MORI Telephone Surveys Ltd and Cranfield School of Management.
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