Manufacturing Companies Earliest Adopters of B2B E-Commerce, Have Highest Expectations for Return on Investment

Results From Global Survey on State of B2B E-Commerce Commissioned by Izodia

Lists Manufacturing Sector As Most Progressive Users of E-Commerce



Apr 11, 2001, 01:00 ET from Izodia

    BROOMFIELD, Colo., April 11 /PRNewswire/ -- Manufacturers have adopted B2B
 e-commerce at a higher rate than any other sector, but set the most aggressive
 expectations for a return on their investments, according to a global survey
 commissioned by Izodia (formerly Infobank), an international leader in B2B
 e-commerce software and services.
     The survey, titled "The State of Global B2B E-Commerce," found that
 66 percent of all manufacturing companies who participated in the survey had
 implemented or were in the process of deploying B2B initiatives.  That puts
 manufacturing ahead of the finance and retail sectors, according to the Izodia
 survey.
     The survey also found that while manufacturing companies are quickest to
 adopt B2B e-commerce, they require much faster timetables for obtaining a
 return on their initial investments.  Of those surveyed, nearly half
 (47 percent) of manufacturers expected a return on investment within a year.
 Overall, 83 percent of respondents across all sectors expected a return on
 investment within two years of deploying an e-commerce initiative.
     "We believe these figures are indicative of the maturity and understanding
 of e-commerce in the B2B sector," said Anthony Stepanski, CEO of Izodia.  "Not
 only is this sector furthest ahead in terms of its adoption, but also reflects
 manufacturing's appreciation for the benefits of e-commerce.  These companies
 understand how collaboration across the entire supply chain and practices such
 as lean manufacturing can help to drive down costs and increase operational
 and financial efficiencies."
 
     Other findings in the manufacturing sector include:
 
     -- Manufacturing companies in the United States and Germany led the pack
        in terms of B2B adoption, well ahead of the United Kingdom in ongoing
        and completed e-commerce implementations.
     -- Only 10 percent of manufacturing companies had no plans to introduce
        B2B e-commerce, half as many as other sectors that participated in the
        survey.
     -- Over one-fourth of manufacturing companies said they were automating
        procurement functions first.  That compares with 13 percent in retail
        and 22 percent in finance industries respectively.
     -- Although manufacturing companies in the United Kingdom are behind in
        adopting B2B, the survey suggests that these companies express a higher
        desire to automate processes both up and down the supply chain.  More
        than 83 percent of UK manufacturers intend to automate both procurement
        and supply functions, compared with 61 percent in the United States and
        Germany.
     -- The manufacturing sector cites open integration, support for multiple
        trading models and the ability to connect to other marketplaces as the
        three most important features.
     -- The top priorities among manufacturing companies is getting value for
        the money spent on B2B software and services and integrating those
        tools with legacy systems already in place.
 
     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.
 
     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 11 /PRNewswire/ -- Manufacturers have adopted B2B
 e-commerce at a higher rate than any other sector, but set the most aggressive
 expectations for a return on their investments, according to a global survey
 commissioned by Izodia (formerly Infobank), an international leader in B2B
 e-commerce software and services.
     The survey, titled "The State of Global B2B E-Commerce," found that
 66 percent of all manufacturing companies who participated in the survey had
 implemented or were in the process of deploying B2B initiatives.  That puts
 manufacturing ahead of the finance and retail sectors, according to the Izodia
 survey.
     The survey also found that while manufacturing companies are quickest to
 adopt B2B e-commerce, they require much faster timetables for obtaining a
 return on their initial investments.  Of those surveyed, nearly half
 (47 percent) of manufacturers expected a return on investment within a year.
 Overall, 83 percent of respondents across all sectors expected a return on
 investment within two years of deploying an e-commerce initiative.
     "We believe these figures are indicative of the maturity and understanding
 of e-commerce in the B2B sector," said Anthony Stepanski, CEO of Izodia.  "Not
 only is this sector furthest ahead in terms of its adoption, but also reflects
 manufacturing's appreciation for the benefits of e-commerce.  These companies
 understand how collaboration across the entire supply chain and practices such
 as lean manufacturing can help to drive down costs and increase operational
 and financial efficiencies."
 
     Other findings in the manufacturing sector include:
 
     -- Manufacturing companies in the United States and Germany led the pack
        in terms of B2B adoption, well ahead of the United Kingdom in ongoing
        and completed e-commerce implementations.
     -- Only 10 percent of manufacturing companies had no plans to introduce
        B2B e-commerce, half as many as other sectors that participated in the
        survey.
     -- Over one-fourth of manufacturing companies said they were automating
        procurement functions first.  That compares with 13 percent in retail
        and 22 percent in finance industries respectively.
     -- Although manufacturing companies in the United Kingdom are behind in
        adopting B2B, the survey suggests that these companies express a higher
        desire to automate processes both up and down the supply chain.  More
        than 83 percent of UK manufacturers intend to automate both procurement
        and supply functions, compared with 61 percent in the United States and
        Germany.
     -- The manufacturing sector cites open integration, support for multiple
        trading models and the ability to connect to other marketplaces as the
        three most important features.
     -- The top priorities among manufacturing companies is getting value for
        the money spent on B2B software and services and integrating those
        tools with legacy systems already in place.
 
     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.
 
     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