E-Business - A Critical Business Strategy

08/06/2002

Serving clients through multiple channels is a well-accepted philosophy of customer and brand management, and is thriving through new enabling technologies and processes. Those pursuing vision-driven enterprise transformation will move ahead in the marketplace.

The latest release of the eState Of The Nations report (Version V), completed June 7th for EDS Solutions Consulting EMEA, a division of global services leader EDS (NYSE:EDS) shows a majority of respondents treating eBusiness as a fundamental, long term, strategic business direction, distinct from a tactical, short term reaction to changing client demands. Many firms go further, with plans to drive long-lasting business process improvement as they pursue their commitment to better serve their clients.

The independent report questioned 339 directors and senior executives of companies ranging from $100m to $1bn and 82 respondents in government departments in the major European economies. The aim was to clearly understand the impact and progress of those tools, technologies, processes and strategies associated with the area formerly known as “eBusiness.”

“Some people think eBusiness disappeared with the bursting of the Internet stock market bubble,” says Steven Leonard, President EDS Solutions Consulting EMEA. “There was obviously too much hype around the term ‘eBusiness.’ But eBusiness isn’t dead. It is alive and well in the boardrooms of major corporations. It’s no longer about putting up a web site. It’s not about tools and technology. The focus has changed to a more holistic approach. The ‘e’ is for enterprise. It’s about vision-driven, enterprise wide.”

The main findings of the report show that: eBusiness is now strategic for most businesses: even those who continue to use a tactical approach are demanding a shift to strategic focus involving new working methods. Most current corporate eBusiness strategies limit their goals to business process improvement -- and are driven by traditional cost and efficiency metrics. But their next step is vision driven enterprise transformation (currently used by nearly 20% of respondent and growing), which is driven by the CEO and board vision and demands a new set of holistic metrics.

Serving clients through multiple channels is a well-accepted philosophy of customer and brand management, and is thriving through new enabling technologies and processes. Those pursuing vision-driven enterprise transformation will move ahead in the marketplace.

There will be major growth in Digital Enablement -- the enabling and integrating of business process systems -- with over three quarters of respondents planning further investment in this area.

Investment will continue to grow in Customer Relationship Management (CRM) and Supply Chain Management (SCM) in the next two years. Four of five enterprises plan investment in both CRM and SCM.

Over half of respondents predict major growth in outsourcing in the next two years. Take-up of outsourcing has continued across small and medium enterprises as well as large organizations. “One of the drivers behind this continued acceleration is that outsourcing gives access to scarce skills and experience, such as those required to support the enterprise transformation agenda," says Leonard.

The philosophy of using electronic channels to reach out and better serve citizens is a huge issue for governments with nearly two thirds of respondents pursuing a strategic approach to the digital enablement of government.

The independent business intelligence company Neaman Bond Associates produces the eState Of The Nations series for EDS Solutions Consulting EMEA.

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