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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Venkie who wrote (33828)	3/16/2001 1:48:26 PM
From: im a survivor	Respond to of 65232

BRICK-AND-MORTARS STILL SPENDING ON B2B IN 2001 -- By Maria Seminerio -- (Ziff Davis) The stock market might be tanking, but brick-and-mortar enterprises will forge ahead with B2B projects this year, according to a recent survey of IT managers and chief technology officers by Goldman Sachs Global Equity Research, in New York. The survey of 454 companies, conducted late last year and released last month, shows that consumer-products companies, car makers, chemical producers, computer makers and paper producers will be the strongest adopters of B2B initiatives this year. What's more, officials at most companies surveyed said they will increase spending this year on building or joining B2B marketplaces, electronically managing supply chains, and electronic procurement. This news might surprise stockholders crying in their beer over the sinking share values of some B2B commerce enablers, but it falls in line with other research on the potential growth of B2B. International Data Corp., in a similar survey, predicts B2B transactions will reach $1 trillion by 2002 and $3 trillion by 2004. Transportation companies--including auto manufacturers--will lead the way, according to IDC, with their B2B spending going up 150 percent this year over last--more than in any other vertical. The trend makes sense given the kind of business-critical initiatives many companies plan to support with B2B spending. For example, many of the companies surveyed by Goldman Sachs said their top B2B goals for the year are expanding customer bases, shortening product cycles, reducing inventory and cutting order-processing costs. According to IDC's research, expanding sales channels and lowering operational costs are the top goals. The biggest question now for enterprises is how to structure these investments so that they help the companies meet their e-business goals without either breaking the bank or proving fruitless. It's all too easy for companies to throw money at vendors promising to build state-of-the-art B2B platforms. But before signing any contracts, it's crucial to have a game plan for what the vendor is expected to provide--and some kind of time frame for delivery. Goldman Sachs' research suggests some companies are still buying B2B-related products and services without a clear idea of how those products and services will support their e-business goals. "Spending on and prioritization of B2B [spending] is not random, but it is also not 100 percent efficient," according to the report. "There is plenty of scope for companies and industries to make even better use of their IT buck."