Newspaper article THE JOURNAL RECORD

Business Conducted on Internet Expected to Grow

Newspaper article THE JOURNAL RECORD

Business Conducted on Internet Expected to Grow

Article excerpt

Analysts are increasing their projections for the amount of business that will be conducted via the Internet by 2005.

The Gartner Group, a respected e-business research firm, calculates that B2B Internet transactions exceeded $433 billion in 2000, a 189 percent increase over 1999, and estimates $8.5 trillion will be transacted by 2005. Worldwide growth projections are expected to exceed $919 billion this year, $2 trillion in 2002, $3.6 trillion in 2003 and $6 trillion in 2004.

The Gartner Group says the slowdown could prove advantageous for companies that have been slow to adopt e-commerce capabilities. The downturn could allow some companies to close the gap on their competitors who were early adopters of Internet technologies.

The accounting firm, Ernst and Young, has developed an E- Commerce Trends Index that describes five stages of progression towards a company's transformation to electronic commerce. On a scale of zero to five, E&Y provides a ranking in Manufacturing News of how well U.S manufacturers currently are performing.

Stage Zero, no e-commerce: Four percent of manufacturers have no e-commerce initiatives under way. Of those who do have initiatives under way, 32 percent have no supplier connections, 18 percent have no employee connections, and 87 percent have no partner connections.

Stage One, E-Information: Twenty-six percent of manufacturers provide one-way information to customers, employees and suppliers with minimal interactivity.

Stage Two, E-Interaction: Forty-two percent of manufacturers say they have some electronic interactions with their major constituents.

Stage Three, E-Commerce: Twenty-seven percent of manufacturers say they have a transactional focus integrating the Internet with existing corporate processes and systems and can transact electronically with customers, suppliers, partners and employees.

Stage Four, E-Company: One percent say their borders extend beyond their doors to an extended enterprise, bundling services and practices and strategic alliances for virtual integration.

Stage Five, E-Economy: Zero percent say their organization is the nucleus of a mini-economy, serving as a marketplace, exchange and information aggregator. …

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