Izodia Releases Findings From Global Survey on State of B2B E-Commerce

Integration Issues, Return on Investment and Speed of Implementation Top

Priorities in Global Survey on the State of B2B E-Commerce Sponsored by Izodia



Apr 02, 2001, 01:00 ET from Izodia

    BROOMFIELD, Colo., April 2 /PRNewswire/ -- Adoption rates of B2B
 e-commerce among developed countries vary widely, but the majority of
 companies worldwide expect their solutions to pay for themselves within two
 years, according to a global survey sponsored by Izodia, an international
 leader in B2B e-commerce software solutions and services.
     Respondents to the global survey, released today by Izodia (formerly
 Infobank), indicated that 50 percent expected a return on their investment
 within one year and 83 percent said they expected their B2B initiatives to pay
 for themselves within 2 years.  Respondents from the manufacturing sector were
 the most aggressive, with 47 percent demanding a return on investment in one
 year.
     Even more surprising were the wide variances in the rate of adoption
 between countries.  The United States and Holland led the way as early
 adopters of B2B initiatives, while South Africa and Italy reported
 dramatically lower rates of adoption. Furthermore, certain sectors -- such as
 the finance industry in Germany -- reported lower adoption rates of B2B models
 than expected.
     When asked about their top priorities in implementing B2B initiatives,
 respondents-regardless of location-cited the ability to integrate B2B
 platforms with legacy back-office systems, speed of implementation and value
 received for the cost of software systems as their top criteria.
     "The survey results are clear when it comes to B2B. Regardless of their
 location, companies will not tolerate B2B solutions with expensive price tags
 that do not integrate with existing systems," said Anthony Stepanski, Izodia's
 president and chief executive officer.  "This survey proves our belief that
 e-commerce is not a one size, fits all approach."
 
      Global B2B Adoption Rates, Perceptions of B2B e-Commerce Vary Widely
 
     A portion of the survey focused on the rates at which companies worldwide
 intended to pursue B2B e-commerce initiatives.  The survey found the following
 results around adoption rates among various countries:
 
     --  Not surprisingly, the U.S. market is more advanced than the largest
         European markets in terms of adopting B2B e-commerce initiatives, with
         75 percent of U.S. companies surveyed indicating they were either in
         the process of embarking on or already had adopted B2B e-commerce
         initiatives.
 
     --  The United Kingdom followed closely with 69 percent in various stages
         of B2B initiatives.  Distant fourth and fifth were Germany and Sweden,
         respectively.
 
     --  In last place for adoption was Italy, where more than half of the
         respondents said they had no plans to launch B2B initiatives.  When
         asked about the perceived benefits of B2B e-commerce, the majority of
         Italian companies who responded indicated they saw no benefit.
 
     --  South Africa also shook out as a late adopter, with 25 percent of
         respondents indicating they had no immediate plans for B2B.
 
     --  Of the major markets, Germany (and in particular, Germany's finance
         sector) was the laggard with 21 percent saying they had no plans to
         initiate e-commerce venture.  In Germany's finance sector, more than
         41 percent said they had no plans to pursue a B2B e-commerce project.
 
     Global Markets Share Similar Perceptions on Benefits of B2B E-commerce
 
     Cost savings, automating the supply chain and ability to behave as both a
 buyer and seller were just a few of the most valuable benefits of B2B
 e-commerce identified by all companies surveyed.  The top findings are
 highlighted below:
 
     --  Seventy-eight percent of respondents rated cost savings through
         automated procurement processes as the largest benefit of B2B.  In
         second place with 67 percent was the ability to mobilize the supply
         chain.
 
     --  In the United States, 85 percent of respondents cited the ability to
         connect to other marketplaces as the biggest benefit of B2B.  This
         contrasts with only 42 percent of Swedish respondents, who placed
         greater value on the ability to conduct collaborative commerce.
 
     --  Respondents in the United Kingdom cited the ability to mobilize the
         supply chain and provide management tools that analyze B2B activities
         as the most important benefits to e-commerce.  That supports a
         separate finding that UK companies were 72 percent more likely to
         implement B2B initiatives up and down the supply chain.
 
     What Companies Want: Top Priorities of B2B Include Integration, Speedy
 Implementation
     Regardless of how companies plan to benefit from B2B e-commerce or how
 they fast they expect to experience a return on investment, 56 percent cited
 the ability for a B2B solution to integrate with other back office legacy
 systems as the No. 1 priority.
     Of those who have already implemented a B2B solution, 64 percent ranked
 open integration as of one of the top three criteria for selecting their
 platform.  Other findings include:
 
     --  Half of all respondents identified support for multiple trading models
         as a top priority.  Support for multiple platforms came in third
         overall, with 47 percent citing it as a top concern.
 
     --  U.S. companies placed more emphasis on integration as a top feature at
         64 percent.  Also in the United States, 60 percent rated support for
         multiple platforms as a top feature, compared with 47 percent
         globally.
 
     --  In Germany, 60 percent rated support for multiple trading models and
         connection to other marketplaces as two of the top three features vs.
         49 percent who placed priorities on those benefits globally.
 
     --  Worldwide, manufacturers placed a higher priority on issues like
         catalog creation and logistics.
 
     --  Overall, features such as auctioning, were generally seen as not a top
         priority for B2B.
 
     "As we enter a new era of adoption of B2B e-commerce globally, we must
 take into account the needs of customers from a financial and technical
 perspective," said Izodia's Stepanski.  "At Izodia, we have built our
 solutions and developed an approach to B2B e-commerce that is sensitive to
 those needs."
     Independent IT research consultant Vanson Bourne conducted telephone
 interviews with 360 executives in companies with annual revenues below
 $700 million in the United States, Germany, United Kingdom, Italy, Sweden,
 Holland and South Africa.  Companies equally represented three key industry
 segments: manufacturing, retail and distribution and finance.
     Participants were asked about their company's adoption of B2B e-commerce,
 the benefits they expected to derive and the timetables for which they
 expected to implement B2B initiatives.  Participants also were asked to
 outline their top priorities when faced with implementing B2B e-commerce
 ventures and their expectations for return on investment.  A copy of the full
 survey report is available on request.
 
     About Izodia
     Founded in 1993 in the United Kingdom with North American headquarters in
 Broomfield, Colo., Izodia (formerly Infobank) is an international leader of
 business-to-business e-Commerce software and services.  With its flagship
 offering, InTrade 5, Izodia delivers a B2B solution that easily configures to
 support the unique needs and complexities of a company and its trading
 relationships, whether it's e-Procurement, e-Supply or an e-Marketplace.
 InTrade is designed to easily integrate into a company's existing procurement
 and supply processes -- and those of business partners.  With offices
 throughout North America, Europe, Africa and Australia, Izodia's customer base
 extends over four continents and across a diverse array of industries,
 including healthcare, manufacturing, utilities, mining, aerospace, government
 and retail.  For more information, visit www.izodia.com.
 
 

SOURCE Izodia
    BROOMFIELD, Colo., April 2 /PRNewswire/ -- Adoption rates of B2B
 e-commerce among developed countries vary widely, but the majority of
 companies worldwide expect their solutions to pay for themselves within two
 years, according to a global survey sponsored by Izodia, an international
 leader in B2B e-commerce software solutions and services.
     Respondents to the global survey, released today by Izodia (formerly
 Infobank), indicated that 50 percent expected a return on their investment
 within one year and 83 percent said they expected their B2B initiatives to pay
 for themselves within 2 years.  Respondents from the manufacturing sector were
 the most aggressive, with 47 percent demanding a return on investment in one
 year.
     Even more surprising were the wide variances in the rate of adoption
 between countries.  The United States and Holland led the way as early
 adopters of B2B initiatives, while South Africa and Italy reported
 dramatically lower rates of adoption. Furthermore, certain sectors -- such as
 the finance industry in Germany -- reported lower adoption rates of B2B models
 than expected.
     When asked about their top priorities in implementing B2B initiatives,
 respondents-regardless of location-cited the ability to integrate B2B
 platforms with legacy back-office systems, speed of implementation and value
 received for the cost of software systems as their top criteria.
     "The survey results are clear when it comes to B2B. Regardless of their
 location, companies will not tolerate B2B solutions with expensive price tags
 that do not integrate with existing systems," said Anthony Stepanski, Izodia's
 president and chief executive officer.  "This survey proves our belief that
 e-commerce is not a one size, fits all approach."
 
      Global B2B Adoption Rates, Perceptions of B2B e-Commerce Vary Widely
 
     A portion of the survey focused on the rates at which companies worldwide
 intended to pursue B2B e-commerce initiatives.  The survey found the following
 results around adoption rates among various countries:
 
     --  Not surprisingly, the U.S. market is more advanced than the largest
         European markets in terms of adopting B2B e-commerce initiatives, with
         75 percent of U.S. companies surveyed indicating they were either in
         the process of embarking on or already had adopted B2B e-commerce
         initiatives.
 
     --  The United Kingdom followed closely with 69 percent in various stages
         of B2B initiatives.  Distant fourth and fifth were Germany and Sweden,
         respectively.
 
     --  In last place for adoption was Italy, where more than half of the
         respondents said they had no plans to launch B2B initiatives.  When
         asked about the perceived benefits of B2B e-commerce, the majority of
         Italian companies who responded indicated they saw no benefit.
 
     --  South Africa also shook out as a late adopter, with 25 percent of
         respondents indicating they had no immediate plans for B2B.
 
     --  Of the major markets, Germany (and in particular, Germany's finance
         sector) was the laggard with 21 percent saying they had no plans to
         initiate e-commerce venture.  In Germany's finance sector, more than
         41 percent said they had no plans to pursue a B2B e-commerce project.
 
     Global Markets Share Similar Perceptions on Benefits of B2B E-commerce
 
     Cost savings, automating the supply chain and ability to behave as both a
 buyer and seller were just a few of the most valuable benefits of B2B
 e-commerce identified by all companies surveyed.  The top findings are
 highlighted below:
 
     --  Seventy-eight percent of respondents rated cost savings through
         automated procurement processes as the largest benefit of B2B.  In
         second place with 67 percent was the ability to mobilize the supply
         chain.
 
     --  In the United States, 85 percent of respondents cited the ability to
         connect to other marketplaces as the biggest benefit of B2B.  This
         contrasts with only 42 percent of Swedish respondents, who placed
         greater value on the ability to conduct collaborative commerce.
 
     --  Respondents in the United Kingdom cited the ability to mobilize the
         supply chain and provide management tools that analyze B2B activities
         as the most important benefits to e-commerce.  That supports a
         separate finding that UK companies were 72 percent more likely to
         implement B2B initiatives up and down the supply chain.
 
     What Companies Want: Top Priorities of B2B Include Integration, Speedy
 Implementation
     Regardless of how companies plan to benefit from B2B e-commerce or how
 they fast they expect to experience a return on investment, 56 percent cited
 the ability for a B2B solution to integrate with other back office legacy
 systems as the No. 1 priority.
     Of those who have already implemented a B2B solution, 64 percent ranked
 open integration as of one of the top three criteria for selecting their
 platform.  Other findings include:
 
     --  Half of all respondents identified support for multiple trading models
         as a top priority.  Support for multiple platforms came in third
         overall, with 47 percent citing it as a top concern.
 
     --  U.S. companies placed more emphasis on integration as a top feature at
         64 percent.  Also in the United States, 60 percent rated support for
         multiple platforms as a top feature, compared with 47 percent
         globally.
 
     --  In Germany, 60 percent rated support for multiple trading models and
         connection to other marketplaces as two of the top three features vs.
         49 percent who placed priorities on those benefits globally.
 
     --  Worldwide, manufacturers placed a higher priority on issues like
         catalog creation and logistics.
 
     --  Overall, features such as auctioning, were generally seen as not a top
         priority for B2B.
 
     "As we enter a new era of adoption of B2B e-commerce globally, we must
 take into account the needs of customers from a financial and technical
 perspective," said Izodia's Stepanski.  "At Izodia, we have built our
 solutions and developed an approach to B2B e-commerce that is sensitive to
 those needs."
     Independent IT research consultant Vanson Bourne conducted telephone
 interviews with 360 executives in companies with annual revenues below
 $700 million in the United States, Germany, United Kingdom, Italy, Sweden,
 Holland and South Africa.  Companies equally represented three key industry
 segments: manufacturing, retail and distribution and finance.
     Participants were asked about their company's adoption of B2B e-commerce,
 the benefits they expected to derive and the timetables for which they
 expected to implement B2B initiatives.  Participants also were asked to
 outline their top priorities when faced with implementing B2B e-commerce
 ventures and their expectations for return on investment.  A copy of the full
 survey report is available on request.
 
     About Izodia
     Founded in 1993 in the United Kingdom with North American headquarters in
 Broomfield, Colo., Izodia (formerly Infobank) is an international leader of
 business-to-business e-Commerce software and services.  With its flagship
 offering, InTrade 5, Izodia delivers a B2B solution that easily configures to
 support the unique needs and complexities of a company and its trading
 relationships, whether it's e-Procurement, e-Supply or an e-Marketplace.
 InTrade is designed to easily integrate into a company's existing procurement
 and supply processes -- and those of business partners.  With offices
 throughout North America, Europe, Africa and Australia, Izodia's customer base
 extends over four continents and across a diverse array of industries,
 including healthcare, manufacturing, utilities, mining, aerospace, government
 and retail.  For more information, visit www.izodia.com.
 
 SOURCE  Izodia