To understand how European firms cope with the organisational, process and speed issues of eBusiness, Forrester conducted in-depth interviews with 20 board-level executives in Global 500 companies across Europe. The resultant report, "Organizing for eBusiness", is also set to form the subject of a Forrester eBusiness Forum Europe this week (26 – 28 February) in Amsterdam.

The main findings cover the explosive growth in eMarketplaces, and the trend to outsource long-cycle activities such as manufacturing. This is forcing an internal business shift to short cycles. It is also shaping overall profitability, enhancing customer relationships and building corporate intelligence. In consequence, firms now need to separate processes into business units into set roles and cycle lengths. Each eBusiness unit needs to become more competitive in any given market. It also needs to select its own business partners on- and offline, as well as to develop its own unique information sources.

Explaining the transition to this state, Senior Analyst Mark Favier said, "Firms must first isolate short-cycle units by listing each industry that it sells or buys in, and set up a dedicated unit that will focus on the particular dynamics of that vertical. Companies must next dismantle medium and long cycles by appointing one medium-cycle unit unique to geographies. Finally, firms must implement new reporting structures by letting each eBN unit define its own board, with senior staff from inside the company and from the markets they serve. Once established, the units must negotiate and contract the exchange of products, services, and information between each other."