Despite a huge potential market, UK firms lack the capability to exploit the B2B online market, according to a new report by Forrester. Online business could be worth £300 billion by 2005 says Forrester but firms will have to work hard to overcome their current organisational and technological difficulties in order to reap the benefits of this market.
“In 2005, UK online business trade will pass £300 billion and eMarketplaces will facilitate 41% of these online transactions, but many firms will move too slowly to capture the benefits of online trade,” said Forrester analyst David Metcalfe.
“Despite the prospects for dramatic B2B growth, UK firms lack the capabilities to capture the benefits because they are mired with siloed ERP systems, clunky processes and outdated connections,” Metcalfe added. “With B2B organisational, technical and ROI disputes resolved, firms believe they will realise the benefits of online trade projected for their industry. But they won’t – the capability gap remains. To fix their B2B inadequacies, firms should self-assess current capabilities and market pressure to move online.”
The largest sector to benefit from online trade is set to be petrochemicals which will see revenues of £70 billion by 2005, accounting for almost a quarter of all industry trade. Online trade in consumer goods is forecast to account for 27% of all industry trade by 2005.
| |
2001 |
2005 |
| UK online B2B revenue (£b) |
13 |
300 |
| Consumer good online (as % of total market) |
3% |
27% |
| Petrochemicals online (as % of total market) |
|
24% |
Source: Forrester
