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Automotive companies lead the charge into e-Commerce
Barbara Axelson, Contributing Editor -- Design News, April 23, 2001
Chicago—e-Commerce is not dead, according to a survey released jointly by the National Association of Manufacturers (NAM), the Manufacturers Institute, and Ernst & Young LLP.
Released March 5, the study summarized nearly 600 questionnaires completed by NAM members to conclude that Internet use will not stop growing and that electronic marketplaces will not be shut down.
Surprisingly, only one-third of the organizations surveyed said they were using the Internet for sales and procurement. And those that do generate only 7% of sales and 7% of production goods from Internet transactions. The majority of respondents indicated they were mid-chain manufacturers, having other manufacturers or distributors as their primary customers. Participant organizations and business units averaged fewer than 500 employees and reported average sales of $410 million.
So is there a future for e-commerce? See the attached chart below for Ernst & Young's prognosis of how companies are progressing through "The Five Stages of e-Commerce Transformation."
According to Ernst & Young's Robert G. Neubert, partner, national director, manufacturing industry services, "Organizations can be performing at different stages within different divisions or business units and within four different connection points (customers, suppliers, employees, and partners)."
Overall, the automotive industry led slightly in the race to implement all five stages. Other industry segments surveyed included: energy/chemicals/natural resources, consumer products, technology and electronics, metals, and industrial equipment.
The others were slowed by barriers such as a lack of both human resources and technical knowledge, and concern over security issues. The reward for overcoming these challenges is broadening customer reach and exploring new business opportunities, Neubert says. For more information about surveys from NAM: Enter 536
| The Five Stages of e-Commerce Transformation | ||
|---|---|---|
| Stage 1 | e-information-or posting data | 27% of respondents are making data available |
| Stage 2 | e-interaction-exchange of information with customers, suppliers, employees, partners | 44% are interacting |
| Stage 3 | e-commerce | 28% said they are buying or selling |
| Stage 4 | e-company an extension of business beyond traditional enterprise boundaries | only 1% claimed to be involved |
| Stage 5 | synchronizing end-to-end business processes, optimizing the entire supply chain | has no participants yet |
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