E-Business is ‘Necessary Response’ to Competition
According to a new comprehensive study on e-business conducted by Cutter Consortium, 38% of companies see e-business as a necessary response to competition. Thirty percent responded that e-business is ‘a major competitive weapon,’ while 25% see it as a peripheral or experimental element to business strategy.
Complete results are contained in the new report, "e-Business: Trends, Strategies, and Technologies." The author of the study is Chris Pickering, a Cutter Consortium Senior Consultant and e-business expert.
Says Pickering, "Many companies are being pulled into e-business. Rather than perceiving e-business as a strategic opportunity, they are responding to market pressures. This reflects the maturity of e-business (at least in some industries). E-business has reached the point where it conveys less competitive advantage because e-business capability is becoming commonplace. Once this happens, it is necessary to do e-business just to retain competitive position."
Respondents were also asked to judge the most promising potential benefits of e-business. The top answers were:
A new channel for existing business — 25%Improved customer service — 23%To enable an entirely new line of business — 18%The biggest obstacles to pursuing e-business are benefits not demonstrated — 18%Financial cost — 16%The Cutter Consortium e-business study was conducted during the fall of 1999. One hundred and thirty-four companies took part. For more information on the report, go to cutter.com/consortium/freestuff/trendsreport.html.