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To: Proud_Infidel who wrote (45684)4/20/2001 7:15:27 PM
From: Proud_Infidel  Read Replies (1) | Respond to of 70976
 
Most Companies Boost IT Capital Investment Despite Economic Downturn: JUAS Survey
April 20, 2001 (TOKYO) -- Japan Users Association of Information Systems (JUAS) released a survey on corporate use of information technology (IT) and networks, showing that 54 percent of large and midsize companies are increasing their IT-related investments in fiscal 2001, which ends in March 2002, from a year earlier.



The figure marked a rise from the previous year's 43 percent.

The survey, which was released April 16, also showed 21 percent planning to increase IT-related capital investment by more than 10 percent compared with last year. "This illustrates an unexpected intense level of IT investments," a JUAS official said.

Amid uncertainty over companies' IT investment in the wake of a slew of profit-warning announcements from computer makers and system integrators, the survey shows strong results.

Under the continued severe economic conditions, corporations are striving to cope with economic difficulties by concentrating their resources on the IT business.

By investment, the survey said the majority of companies are planning to use their capital spending to build and operate networking, data telecommunications and mobile communications systems.

The survey also said 89 percent have their own Web sites, up from the preceding year's 79 percent, and that 98 percent of large companies and 83 percent of mid-size firms are operating Web sites, up from 93 percent and 68 percent, respectively. Midsize companies are especially aggressive in opening Web sites.

Also, the survey said that 39 percent are offering business-to-business (B2B) e-commerce services and 19 percent are engaged in business-to-consumer (B2C) business.

Of the B2B service providers, 35 percent were using dedicated lines, down from the previous year's 38 percent, while 47 percent of them shifted to the Internet from dedicated lines as a network system, up from 30 percent a year earlier. In particular, midsize companies are eager to use the Internet.

The companies that said, "E-commerce will impact the existing sales channels" reached a level of 76 percent of the total respondents. From now on, the number of companies planning to sell products through the Internet is expected to grow. They are viewing e-commerce as an important tool of customer relationship management (CRM) that enables them to communicate with consumers directly on the Internet and go beyond the existing sales channels.

JUAS has conducted the survey annually, to ascertain corporate use of information technology since fiscal 1992.

The fiscal 2001 survey was conducted between October 2000 and February 2001, by sending questionnaires to 3,000 companies that are introducing information systems. Responses were received from 818 information system developers, or 27.3 percent, and 677 information system users, or 22.6 percent. Also, JUAS interviewed 57 companies.

Previous surveys:
Signs of IT Investment Increase in Fiscal 2000, Survey Says
Corporate Investment in Information Systems Declines in Japan, Survey Says

(BizTech News Dept.)