Many respondents to the survey expect e-business technology to transform companies and markets within the next two to three years. Whilst only 15% say they currently reap substantial financial benefits from e-business initiatives, more than 40% expect to in future. In addition, 90% of companies surveyed believe e-business will eventually reduce costs by 10% or more. The percentage of companies making more than 5% of purchases online is expected to triple by 2005 from 20% to 60%.
But some of the biggest benefits are likely to be experienced by customers. 83% of firms believe e-business initiatives will improve the quality of customer service by 2005. Moreover, the number of companies expecting revenue per customer to increase is four times greater than the number of those expecting it to drop.
Commenting on the survey CBI director general, Digby Jones, said:” This is clearly the year when reality bites for e-business. Business is pragmatic and is using the technology to help achieve new efficiencies and bottom line benefits. But it is reassuring that plans to expand markets and create new commercial opportunities through e-business have only been put on hold. It’s very likely that as investment capital becomes available companies will move swiftly to create new commercial advantage.”
KPMG Consulting CEO, Jeremy Anderson, added: “Business leaders are knuckling down to learn the lessons of e-business in a diverse range of circumstances. That is why they are consciously prioritising and pursuing a variety of discrete, relatively low-risk and measurable e-business projects. Through a process of rational experimentation, they are weighing fast payback against business impact; ease of implementation against innovation. And they are consistently applying what they have learned to every business unit, function and process so that they can move quickly when the economic upturn comes.”
The survey also revealed that in 64% of companies, corporate boards and heads of business operations were now accountable for e-business initiatives, compared with just 16% where the IT director remains in charge. Only 16% of firms now have stand-alone e-business operations, compared with 38% of companies in 2001.
