Financial executives view "determining the appropriate use of e-commerce" as the most important information technology (IT) issue they currently face and increasingly view technology as a vital strategic resource rather than as a means to cut company costs.
These are key findings in the third annual Technology Issues for Financial Executives Survey, a joint undertaking by Computer Sciences Corporation (CSC) and the Financial Executives Institute, a professional association of 14,000 senior financial executives in more than 8,000 companies in the United States and Canada.
The survey shows that the average company is spending more on electronic commerce than it spent preparing for Y2K. While Y2K accounted for 13 percent of the average respondent`s 1999 IT budget, e-commerce made up 18 percent of respondents` 2000 budgets.
According to the survey, 71 percent of companies are involved in an e-commerce project, many in a significant way. This trend is generally independent of company size: at any given revenue level, no fewer than 65 percent of companies are involved in e-commerce.
The survey also revealed that managers expect more than a simple Web presence from their e-commerce initiatives. A solid 74 percent expect the Internet to go beyond "transacting." This involves the creation of new channels, businesses, products and services.
"The results support CSC`s philosophy that there is far more to achieving sustainable e-business results than just building impressive Web sites," said CSC`s e-business executive in South Africa, Garry Wilford. "E-business is truly about using information technology for strategic benefit. It`s about enabling an enterprise to connect to customers and trading partners and to conduct business using the appropriate Internet technologies in a way that enhances shareholder value."
The survey showed that last year management was nearly 50 percent more likely to be involved in the integration of e-commerce into business strategy as compared to 1999.
"This is promising and suggests that more and more executives recognise e-commerce as a business issue first and then a technology issue," said Wilford. However, the survey also showed that fewer than half of the respondents have an actual information systems strategic plan, and nearly one third are uncertain of the returns they are getting on their technology investments. These findings have been the same since 1998.
"South African companies need to build on their existing IT capabilities," Wilford added. "Many companies have put in place core systems that address finance, HR, order management and similar concerns. Now they need to shift their attention to front-office implementations addressing marketplace performance: supply chain and customer relationship management systems to help differentiate through service; data warehousing, mining and analysis initiatives to tighten market focus; and the appropriate e-business capabilities to increase the company`s scope and reach."
Computer Sciences Corporation helps clients in industry and government achieve strategic and operational results through the use of technology. The company`s success is based on its culture of working collaboratively with clients to develop innovative technology strategies and solutions that address specific business challenges.
Having guided clients through every major wave of change in information technology since 1959, CSC combines the newest technologies with its capabilities in consulting, systems design and integration, IT and business process outsourcing, applications software, and Web and application hosting to meet the individual needs of global corporations and organizations. With more than 68,000 employees in locations worldwide, CSC had revenues of $10.2 billion for the 12 months ended Dec. 29, 2000. It is headquartered in El Segundo, Calif. For more information, visit www.csc.com.
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