Business process integration with applications internal and external to the organisation is the major technical challenge companies face when expanding their use of e-business. This is the finding of a survey released by e-business solution provider Sterling Commerce, represented locally by Commerce Centre, a company in the JSE-listed Datacentrix Holdings group.
Conducted by Specifics, Inc of Atlanta, the E-Business Reality Check survey predicts a significant increase in the volume of e-business transactions in the next two years as companies increase their adoption of XML (extensible Markup Language) and their participation in e-marketplaces.
"The survey is an effort to cut through the hype surrounding e-business by determining how companies are using e-business today and their needs in the future," says Mike Lamb, a director of Commerce Centre. "It is one of the tools we`ll be using on an ongoing basis to ensure our e-business solutions meet marketplace requirements."
Just over half (52%) of the participants in the survey estimated their companies` level of systems integration at 50% or less, and 68% listed "integrating internal business processes" as a major e-business need, making it the most mentioned business need cited. Next was "integrating processes with external trading partners", at 60%.
"Integration is the key to success as businesses expand their use of new technologies, and increase their participation in e-marketplaces," says Lamb. "Solution providers that can help increase the level of business process integration within and between enterprises are in the best position to help their customers capitalise on the opportunities e-business creates."
EDI and Web technologies are by far the most frequently used methods of achieving current levels of integration, according to the study. The adoption of XML will increase substantially, while ERP applications, e-marketplace integration, and business-rules-based transactions are also likely to play substantial roles as companies strive for higher levels of process integration.
Other e-business needs mentioned include building e-business communities at 33%, and joining an e-marketplace. Just over a quarter (28%) of companies surveyed currently participate in an e-marketplace, with an additional 25% planning e-marketplace participation in the next year.
The study also revealed that, while business-to-business e-commerce has only recently attracted the attention of the public, 65% of companies studied have been performing electronic transactions with trading partners for at least five years. However, only 12% of organisations are conducting more than 75% of transactions electronically and 40% conduct less than a quarter of their transactions electronically.
Those numbers are expected to increase significantly as over half of those studied anticipate that electronic transactions will comprise better than 50% of their total business transactions two years from now. Current activity is focused primarily in invoicing/payment, sales, and logistics. The greatest increases are expected in the areas of marketing and promotions, procurement, and customer relationship management.
Better than 60% of companies rated "reduce costs and streamline operations" as the most important result they expect from e-business, although a quarter of companies participating view opening new sales channels or increasing or protecting market share as the most important result of their e-business initiatives. In addition, almost half (46%) of participants said their e-business objectives have changed over the last two years, reinforcing the impression that e-business is increasingly being viewed as a way to build business, rather than just reduce costs.
* Specifics, Inc completed in-depth telephone conversations with 150 companies from around the world in multiple industries that have already implemented some level of e-business within their organisation. The study has a margin of error of around 5% at the 90% confidence level.
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