Out-Law / Your Daily Need-To-Know

According to a survey of IT Directors released by UK-based researchers Simpson Carpenter and commissioned by Compaq, UK companies are failing to fully exploit the potential opportunities presented to them by e-business.

The survey showed that 88% of UK companies believe that the most important function of e-business is to build a closer relationship with customers.

Whilst this is undoubtedly an important role of e-business, the survey shows that opportunities are being lost, with almost one in five respondents feeling that e-business provides no opportunity for reducing supply chain costs, and one in six companies feeling that e-business does not provide any access to new business markets.

When the companies that identified that major opportunities were presented by e-business were questioned as to whether or not they felt confident of actually exploiting those opportunities, only 14% felt confident that their company was equipped to exploit shorter supply chain opportunities.

The report also highlights the fact that in the majority of cases, less than 5% of a company’s IT budget is invested in e-business.

Of the companies that do not feel confident of taking advantage of e-business opportunities, 67% stated that the reason behind this is a lack of senior management support.

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