Issue link: http://www.e-digitaleditions.com/i/63421
FEWER THAN 35 PERCENT OF COMPANIES SURVEYED HAVE AN ONLINE CATALOG, AND JUST MORE THAN 20 PERCENT USE THE INTERNET TO GENERATE ORDERS FROM CUSTOMERS. "Unrealistic hype has been replaced by danger- ous complacency." Three aspects of 80 percent of companies are using the Internet for e-mail communica- tion, most are still reluctant to embrace the Internet fully for its capabilities in online databases, e- commerce, customer service, and supply chain management. Fewer than 35 percent of companies sur- veyed have an online catalog, and just more than 20 percent use the Internet to generate orders from cus- tomers. "While B2B still presents many opportunities for all types of organizations, there is a danger that they will be missed," stresses New. New found that while more than NEWSBYTES ■ E-LEARNING, YES; CRM, NO A recent study by Nucleus Research Inc., a research firm based in Welles - ley, Massachusetts, has found that the return on investments in tech- nology can be a mixed bag. On one hand, companies that make moder- ate investments in technology for e-learning systems do see a return on their money—they spend less on areas such as travel, human resources, and customer support. However, those savings are not realized when companies invest in customer relationship manage- ment (CRM) technology. Here, the study found that companies often overspend on the technolo- gy; they often find that their work in the Internet age, such as rely- ing too heavily on traditional bench- marks to measure success or underes- timating the costs of implementation. Second, firms still find it difficult to integrate online systems with their existing computerized systems. Finally, the culture within many com- panies is still resistant to conversion to Internet strategies—some organi- zations still find the Internet "an unwelcome intrusion on the status quo" in the relationships they have with their customers and suppliers. "One interpretation of these online buying and selling stand out, writes New in his study. First, even large organizations still follow procedures that don't results seems to be that there is per- needs change by the time the sys- tems are implemented; and they are hindered by salespeople who are unwilling to share their client infor- mation with other divisions on a CRM network. ■ JAVASCRIPT WITH YOUR JAVA Coffee powerhouse Starbucks, based in Seattle, Washington, now offers high-speed Internet access at 1,200 locations. The company hopes the launch of the Internet cafes will both position the company in the com- puter age and, not surprising- ly, sell more cof- fee, Starbucks haps an unwarranted degree of opti- mism—and maybe even complacen- cy—in the responding firms," New notes in the study. "An alternative reading, however, suggests that organizations will increasingly be divided into victors and victims in the E-marketspace. For firms who take the new opportunities seriously, it might well mean that they can improve their position in the sup- ply chain in both directions. For firms who neglect the new agenda, there could be an increasing squeeze on prof- itability and power." Visit www.sbs.ox D ATA B I T .ac.uk/e-market space/to download the full report. In July 2002, the revenue generated by online pur- chases increased 26 percent over July 2001. According to Internet research firm comScore Networks Inc., online sales, excluding auc- tions, totaled $6 billion in July. Travel-related purchas- es were up 32 percent, and computer hardware sales were up 30 percent. By 2005, analysts expect annu- al online sales revenues to top $6.3 trillion. chairman Howard Schultz told Reuters. Java drinkers can pay $12 per hour for impromptu Internet sessions. More serious users can pay $29.95 per month for unlimited local access or $49.95 per month for unlimited nationwide access. ■ NEW TECH CENTER FOR MICROSOFT In September, Microsoft held a grand opening ceremony for its new Micro soft Innovation & Technology Conference Center in Reston, Virginia. The $25 million facility boasts the latest in highly secure computing and telecommunications equipment. Microsoft's goal for the building and its site near Washing - ton, D.C., is to secure a contract with the U.S. government for its domestic security initiatives. ■ z BizEd NOVEMBER/DECEMBER 2002 53