E-business on a rising trend - but slowly

A new study from PricewaterhouseCoopers reveals that e-business principles are being adopted in business-to-consumer organisations much faster than in business-to-business organisations.

The latter are investing in new technology and systems at a slower rate and seem less driven to pursue emerging opportunities. This is true, despite the fact that most business-to-business organisations cite increased operational and cost efficiency as their key web concern.

The business-to-consumer companies seem to find the need to increase customer satisfaction and loyalty to be a stronger drive. As evidence, PWC notes that in the US 45 out of the top 50 brands on the web are actually internet-only brands.

'Steam-driven' competitors are still perceived to be the greatest threat to business, with few companies yet worried about those already ahead in the e-business race.

This is no time for complacency, though, says PWC's Bill Bound. "This research proves that European businesses do not lag behind their US counterparts in their ambition for e-business. However, it indicates that most are taking a defensive stance that pays lip-service to the internet but fails to realise its full potential. Most are seriously under-estimating the impact of new '.com' entrants," he warns.

Elliott Chase