New York (ots-PRNewswire) - Many Expect E-Business To Alter Their
Core Business; Need For Greater Senior Management Involvement Going
Forward. The majority of companies in a KPMG International global
study see the Internet having a profound effect on the role they play
in their industries -- with nearly one-third expecting to see
e-business changing their core businesses, according to the
professional services organization.
Some 30 percent of 331 senior corporate executives interviewed say
that e-business will change the definition of their core business,
with a greater percentage of executives in electronics (43 percent),
financial services (42 percent) and communications (39 percent)
industries saying so. These findings are reported in the KPMG study
"The e-business value chain: Winning strategies in seven global
industries," which was conducted by the Economist Intelligence Unit
in cooperation with KPMG in June and July 2000. The study focuses on
the automotive/manufacturing, chemicals, communications, consumer
markets, electronics, financial services, and pharmaceuticals
"The revolution triggered by the rise in the Internet and
e-business is clearly gaining momentum and influence, despite the
recent fallout suffered by the dot-coms," said Alistair Johnston,
KPMG International Managing Partner, Global Markets. "On the
positive side, the changes will deliver new opportunities, from
strengthened customer relationships to new sources of revenue.
However, the dramatic changes occurring across these industries are
posing a real threat of diminishing market share for those companies
who may be unable to adapt quickly."
Most companies were found to have an e-business strategy and
active involvement by senior management in formulating e-business
strategies. However, the KPMG analysis also disclosed that senior
management involvement is probably inadequate at more than 40 percent
of the companies surveyed -- suggesting that it may take longer for
those companies to implement their e-business plans.
When asked 'what changes to your organizational structure are
needed for your e-business strategy to succeed,' more than half of
the executives overall responded that their firms need to dedicate a
senior-level manager with sole responsibility for e-business
initiatives. E-business strategy is being driven by executive
committees at 42 percent of the firms, and by chief executives at 28
Among the seven industries included in the study, the automotive
industry ranked lowest (35 percent) in senior management involvement.
Not surprisingly, electronics (80 percent) and financial services
(62 percent), two industries at the leading edge of e-business
change, enjoy the highest degree of senior management participation.
The survey found the financial services and communications
industries undergoing fairly significant e-business change, with the
chemical and automotive industries lagging in terms of readiness for
e-business growth. The analysis is based on a number of measures,
including senior management commitment, web site capabilities, and
on-line revenue projections.
-- 50 percent of the survey respondents expect e-business to
change their company's relationship to other industries, in effect,
crossing industry lines to offer bundled products and services.
-- 57 percent expect e-business to transform the role they play
within their industries.
-- All of the industries surveyed are placing more emphasis on
B2B than B2C, and expect to shift the balance of their investments
toward B2B initiatives. In addition, 48 percent believe that on-line
exchanges will be very important for their own supply chains in the
next 18 months, up from 19 percent today.
-- 45 percent said their companies are investing in dotcoms. The
reasons for doing so are to gain access to e-business expertise and
to reach new customers and markets.
In the next year and a half, the executives surveyed expect
dramatic improvement in the web or internet-based features that they
offer suppliers and partners. Today, only 11 percent of those
interviewed report that their suppliers can access their inventory
systems. In 18 months, 46 percent say their firms will grant access.
Electronic bill payment capabilities to suppliers are expected to
increase to 44 percent in the next 18 months, up from 12 percent.
Projections for on-line sales growth, the study found, are
significant. Respondents expect their e-business revenue contribution
to increase from an average of seven percent today to 22 percent in
18 months. While communications and financial services firms today
enjoy the greatest percentage of online sales, the largest growth
will come from the electronics industry, which is projected to
increase from 9 percent today to 33 percent in 18 months.
Other KPMG/EIU findings:
-- E-business strategies are being adopted because of the need to
keep future strategy options open (75 percent), need for growth
opportunities (73 percent), for internal efficiencies (55
percent) and because of competitive pressures (53 percent). By
contrast, little direct pressure is coming from either their boards
(19 percent) or shareholders (17 percent).
-- When asked about the potential barriers to e-business
implementation, executives interviewed in the study cited the
necessity to re-engineer business processes, the lack of e-business
skills, and the lack of back and front-end systems integration.
-- In pursuing e-business goals, the executives said their firms
would be less willing to risk alienating customers (13 percent) or a
lower short-term share price (16 percent), but would be more willing
to risk lower short-term revenues (23 percent), disruptions with
established supplier relationships (22 percent) or cannibalizing
existing sources of revenue (22 percent).
For the "The e-business value chain: Winning strategies in seven
global industries" study, 331 industry executives were surveyed in
June and July in North America, Europe and Asia. In addition, 42
senior executives participated in in-depth interviews during the same
timeframe. The hypotheses for the study were developed jointly by
the Economist Intelligence Unit and KPMG.
KPMG's global industry strategy focuses on a number of priority
sectors, including financial services; industrial markets; consumer
markets; information, communications & entertainment; and
infrastructure, government and healthcare.
KPMG is the global network of professional service firms whose aim
is to turn understanding of information, industries and business
trends into value. With more than 100,000 people worldwide, KPMG
member firms provide assurance, tax and legal, financial advisory and
consulting services from more than 830 cities in 159 countries.
About the Economist Intelligence Unit
The Economist Intelligence Unit (EIU), the business-to-business
arm of The Economist Group, is the world's leading provider of
country intelligence, with over 500,000 customers in corporations,
banks, universities and government institutions. Our mission is to
help companies do better business by providing timely, reliable and
impartial analysis on worldwide market trends and business
strategies. Through our global network of over 500 analysts, the EIU
continuously assesses and forecasts political, economic and business
conditions in 195 countries, and provides insight into how companies
ots Original Text Service: KMPG International
Tom Gibson, 201-505-3703, or Tim Connolly, 201-505-3617,
both of KPMG; or Don Durfee of EIU New York, 212-698-9729;
or Jane Gardiner of EIU London, +44-207-830-1155
Original-Content von: KPMG International LLP, übermittelt durch news aktuell