Forrester Estimates Worldwide Internet Commerce Will Reach As High As $3.2 Trillion In 2003
Cambridge, Mass., November 5, 1998 . . . Internet commerce stands on the threshold of broad global acceptance. According to new projections from Forrester Research, Inc. (Nasdaq: FORR), worldwide iCommerce sales will reach as high as $3.2 trillion in 2003, representing nearly 5% of all global sales. The projections were announced today at the annual Boston Forrester Forum, the premier Internet commerce event since 1993.
"There is no question that iCommerce will represent a significant portion of the global economy over the next five years," said George F. Colony, president of Forrester Research. "To achieve its full potential, businesses need to move quickly to establish market leadership, while governments must nurture electronic commerce with supportive laws and policies. If a favorable climate can be established, Internet commerce will reshape the global economy."
Underscoring the importance of Internet commerce to their business plans, 46% of Forum attendees indicated that their companies plan to sell more than $1 million in goods and services on-line in 1999, and 23% expect their on-line sales to exceed $10 million. Similarly, 28% indicated that their companies will purchase more than $500,000 in goods and services on-line next year. The Forum is being attended by more than 600 senior-level business executives from a wide range of industries.
Based on Forrester's commerce threshold model, worldwide Internet commerce sales will be between $1.8 trillion and $3.2 trillion in 2003. In the high potential estimate, public and private synergy will make buying and selling on the Internet simple, secure, and internationally viable, resulting in high growth. In the low potential estimate, slow business adoption and government intransigence will hamper iCommerce development. Both estimates include business-to-business and business-to-consumer sales and EDI orders placed on the Internet, but exclude the value of financial transactions. Forrester defines iCommerce as the trade of goods and services in which the final order is placed over the Internet.
This Forrester Forum, "Preparing For Dynamic Trade In The Internet Economy," focuses on how companies can adapt to the Internet economy as it evolves from early Web marketing and selling experiments to a new business trading model that Forrester calls "dynamic trade." Dynamic trade will dramatically change how companies view products and services, production schedules, and pricing models. At the same time, dynamic trade will redefine organizations: their internal processes, external relationships, and technical infrastructure.
Forum attendees learn about the impact of dynamic trade on pricing, procurement, production, logistics, marketing, and customer support from Forrester analysts and featured speakers. The Forum also features case studies highlighting some of today's emerging leaders in dynamic trade.
The Forrester Forum Series is designed to provide opportunities for senior executives to informally share ideas, discover the latest technology tools and vendors, and develop successful business strategies. "Preparing For Dynamic Trade In The Internet Economy" is the final Forrester Forum for 1998. Plans for the 1999 Forrester Forum Series will be announced later this month.
Forrester Research, Inc., is a leading independent research firm offering products and services that help its clients assess the effects of technology on their businesses. The company provides analysis and insight into a broad range of technology areas such as new media, computing, software, networking, telecommunications, and the Internet, and it projects how technology trends will affect businesses, consumers, and society. Additional information about Forrester Research can be found on the Web at www.forrester.com.
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