IDC eWorld 2001 Challenges Accuracy of Current Market Assumptions

Apr 24, 2001, 01:00 ET from IDC

    FRAMINGHAM, Mass., April 24 /PRNewswire Interactive News Release/ -- IDC,
 the leading global market intelligence and advisory firm, releases the final
 results of its eWorld 2001 Survey today. "The accuracy of current Internet
 market assumptions is challenged by the eWorld 2001 Survey results. For
 example, the dot-com stock crash has made people lose sight of the fundamental
 reasons companies invest in ebusiness strategies. Contrary to recent reports,
 the NASDAQ's woes in no way mean the end of ebusiness," said John Gantz, IDC's
 Chief Research Officer.
     Based on eWorld 2001 findings, IDC forecasts over $5 trillion will be
 invested over the next four years in developing more efficient modes of
 conducting ebusiness worldwide. IDC's investigation reveals the various market
 trends, concerns, and factors that will dictate this spending. The eWorld 2001
 Survey findings contradict many popular market assumptions, offering insight
 and knowledge that will better prepare ebusinesses on both domestic and
 international fronts.
 
     IDC eWorld 2001 HIGHLIGHTS
     The Dot-Com Crash Is Irrelevant
     Companies around the world will spend more on Web-site infrastructure this
 year alone than they did in five years preparing for Y2K. Although Internet
 stocks have crashed, dragging most of high tech with them, this decline is
 simply part of a cyclical market trend. In reality, brick-and-mortar companies
 worldwide are still investing in ebusiness with fervor. Over the next four
 years, the number of Web sites will double, ecommerce will increase by a
 factor of 10, and technology spending on Web applications will escalate to
 four times what it was the previous four years.
 
     B-to-C Is Not Dead
     By 2005, over $700 billion will be spent by consumers purchasing goods and
 services online in the United Sates alone. Of the 40% of companies that can
 take orders for products and services through their Web sites, 81% handle
 consumer transactions (most also handle business to business). Despite its
 much-maligned status in the Internet stocks pantheon, business-to-consumer
 Internet commerce is alive and well.
 
     When It Comes to Mobile Access, the United States Is Stuck in the Mud
     By 2004, Europe will have twice as many mobile Internet users as the
 United States. While most of the world is swiftly migrating to mobile use of
 the Internet, the United States, which is already behind both Europe and Japan
 in mobile phone penetration and mobile Internet access, will fall behind even
 further.
 
     eBusiness Expectations Are Not Prepared for Demand
     While 2 in 5 Web sites can take orders, less than 1 in 10 can handle
 payments over the Web. Many companies have high expectations for ebusiness,
 yet most aren't equipped to reach their goals. Companies expect to double
 revenues from online sources this year, but less than 1 in 5 commerce sites
 are tied into the traditional order processing system; despite the rapid
 growth of mobile users they will have to support, less than 1 in 10 has made
 any accommodation in their Web site.
 
     English Will Still Rule the Net
     By 2005, over 30% of all Internet users will still speak English as a
 native language. It's a widely held assumption that in a few years English
 will no longer be the dominant language on the Internet, yet by 2005, Chinese
 will come second, with less than 1 in 7 Internet users speaking it as a native
 tongue. Japanese will be a close third.
 
     Personality Clashes
     Less than 1 in 5 IT professionals characterizes himself or herself as a
 risk-taker; while 2 out of 3 Internet executives considers himself or herself
 a risk-taker. Beyond the functional practicalities of Web hardware and
 software development and implementation, there is another potential
 obstruction to ebusiness goals: company politics. The ebusiness executives who
 must drive Internet initiatives need certain personality traits to be
 successful as agents of change, yet the IT professionals who must integrate
 and maintain these changes with existing information systems have
 personalities that are almost polar opposite. Ideological difference and
 personality conflicts in the workplace may prove just as problematic to
 achieving company goals as the implementation of necessary technology.
 
     About the Survey
     The IDC eWorld 2001 Survey was conducted through 27 countries polling the
 three major subsections of the ebusiness world: CIO/IT managers, business
 executives, and consumers. This is IDC's most comprehensive data analysis of
 the global market landscape to date. The survey is available for purchase by
 contacting Amie White at awhite@idc.com or (508) 935-4653. The IDC eWorld 2001
 Survey was sponsored by Compaq Computer Corporation (http://www.compaq.com),
 Cisco Systems, Inc. (http://www.cisco.com), eTranslate
 (http://www.eTranslate.com), The Industry Standard
 (http://www.industrystandard.com/), CIO Magazine (http://www.cio.com/), and
 Market Probe (http://www.marketprobe.com/).
 
     Web Conference
     For information and to register for IDC's Web conference on eWorld 2001,
 visit http://www.idc.com/Events/webcGR/invite/wc042501.htm.
 
     About IDC
     IDC is the foremost global market intelligence and advisory firm helping
 clients gain insight into technology and ebusiness trends to develop sound
 business strategies. Using a combination of rigorous primary research, in-
 depth analysis, and client interaction, IDC forecasts worldwide markets and
 trends to deliver dependable service and client advice. More than 700 analysts
 in 43 countries provide global research with local content. IDC's customers
 comprise the world's leading IT suppliers, IT organizations, ebusiness
 companies and the financial community. Additional information can be found at
 www.idc.com.
     IDC is a division of IDG, the world's leading IT media, research and
 exposition company.
 
     All product and company names may be trademarks or registered trademarks
 of their respective holders.
 
     Editor's Note: The executive summary and visual documentation from the IDC
 eWorld 2001 Survey are available at http://www.idc.com/eworld2001. For further
 press information contact Erin Lynn Marino at 617-838-5593.
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X11834620
 
 

SOURCE IDC
    FRAMINGHAM, Mass., April 24 /PRNewswire Interactive News Release/ -- IDC,
 the leading global market intelligence and advisory firm, releases the final
 results of its eWorld 2001 Survey today. "The accuracy of current Internet
 market assumptions is challenged by the eWorld 2001 Survey results. For
 example, the dot-com stock crash has made people lose sight of the fundamental
 reasons companies invest in ebusiness strategies. Contrary to recent reports,
 the NASDAQ's woes in no way mean the end of ebusiness," said John Gantz, IDC's
 Chief Research Officer.
     Based on eWorld 2001 findings, IDC forecasts over $5 trillion will be
 invested over the next four years in developing more efficient modes of
 conducting ebusiness worldwide. IDC's investigation reveals the various market
 trends, concerns, and factors that will dictate this spending. The eWorld 2001
 Survey findings contradict many popular market assumptions, offering insight
 and knowledge that will better prepare ebusinesses on both domestic and
 international fronts.
 
     IDC eWorld 2001 HIGHLIGHTS
     The Dot-Com Crash Is Irrelevant
     Companies around the world will spend more on Web-site infrastructure this
 year alone than they did in five years preparing for Y2K. Although Internet
 stocks have crashed, dragging most of high tech with them, this decline is
 simply part of a cyclical market trend. In reality, brick-and-mortar companies
 worldwide are still investing in ebusiness with fervor. Over the next four
 years, the number of Web sites will double, ecommerce will increase by a
 factor of 10, and technology spending on Web applications will escalate to
 four times what it was the previous four years.
 
     B-to-C Is Not Dead
     By 2005, over $700 billion will be spent by consumers purchasing goods and
 services online in the United Sates alone. Of the 40% of companies that can
 take orders for products and services through their Web sites, 81% handle
 consumer transactions (most also handle business to business). Despite its
 much-maligned status in the Internet stocks pantheon, business-to-consumer
 Internet commerce is alive and well.
 
     When It Comes to Mobile Access, the United States Is Stuck in the Mud
     By 2004, Europe will have twice as many mobile Internet users as the
 United States. While most of the world is swiftly migrating to mobile use of
 the Internet, the United States, which is already behind both Europe and Japan
 in mobile phone penetration and mobile Internet access, will fall behind even
 further.
 
     eBusiness Expectations Are Not Prepared for Demand
     While 2 in 5 Web sites can take orders, less than 1 in 10 can handle
 payments over the Web. Many companies have high expectations for ebusiness,
 yet most aren't equipped to reach their goals. Companies expect to double
 revenues from online sources this year, but less than 1 in 5 commerce sites
 are tied into the traditional order processing system; despite the rapid
 growth of mobile users they will have to support, less than 1 in 10 has made
 any accommodation in their Web site.
 
     English Will Still Rule the Net
     By 2005, over 30% of all Internet users will still speak English as a
 native language. It's a widely held assumption that in a few years English
 will no longer be the dominant language on the Internet, yet by 2005, Chinese
 will come second, with less than 1 in 7 Internet users speaking it as a native
 tongue. Japanese will be a close third.
 
     Personality Clashes
     Less than 1 in 5 IT professionals characterizes himself or herself as a
 risk-taker; while 2 out of 3 Internet executives considers himself or herself
 a risk-taker. Beyond the functional practicalities of Web hardware and
 software development and implementation, there is another potential
 obstruction to ebusiness goals: company politics. The ebusiness executives who
 must drive Internet initiatives need certain personality traits to be
 successful as agents of change, yet the IT professionals who must integrate
 and maintain these changes with existing information systems have
 personalities that are almost polar opposite. Ideological difference and
 personality conflicts in the workplace may prove just as problematic to
 achieving company goals as the implementation of necessary technology.
 
     About the Survey
     The IDC eWorld 2001 Survey was conducted through 27 countries polling the
 three major subsections of the ebusiness world: CIO/IT managers, business
 executives, and consumers. This is IDC's most comprehensive data analysis of
 the global market landscape to date. The survey is available for purchase by
 contacting Amie White at awhite@idc.com or (508) 935-4653. The IDC eWorld 2001
 Survey was sponsored by Compaq Computer Corporation (http://www.compaq.com),
 Cisco Systems, Inc. (http://www.cisco.com), eTranslate
 (http://www.eTranslate.com), The Industry Standard
 (http://www.industrystandard.com/), CIO Magazine (http://www.cio.com/), and
 Market Probe (http://www.marketprobe.com/).
 
     Web Conference
     For information and to register for IDC's Web conference on eWorld 2001,
 visit http://www.idc.com/Events/webcGR/invite/wc042501.htm.
 
     About IDC
     IDC is the foremost global market intelligence and advisory firm helping
 clients gain insight into technology and ebusiness trends to develop sound
 business strategies. Using a combination of rigorous primary research, in-
 depth analysis, and client interaction, IDC forecasts worldwide markets and
 trends to deliver dependable service and client advice. More than 700 analysts
 in 43 countries provide global research with local content. IDC's customers
 comprise the world's leading IT suppliers, IT organizations, ebusiness
 companies and the financial community. Additional information can be found at
 www.idc.com.
     IDC is a division of IDG, the world's leading IT media, research and
 exposition company.
 
     All product and company names may be trademarks or registered trademarks
 of their respective holders.
 
     Editor's Note: The executive summary and visual documentation from the IDC
 eWorld 2001 Survey are available at http://www.idc.com/eworld2001. For further
 press information contact Erin Lynn Marino at 617-838-5593.
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X11834620
 
 SOURCE  IDC

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