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.