PracticeConsultingUK plc grasps the e-biz baton

UK plc grasps the e-biz baton

British business is set to fully embrace the Internet revolution over the next two to three years, according to a landmark survey of almost 1,000 UK firms published by the Confederation of British Industry and KPMG Consulting.

According to the report, The Quiet Revolution (published with the support of the London Business School), 76% of companies currently generate less than 5% of their turnover from e-business. But this is set to change dramatically with 58% expecting to derive at least 10% of their revenue directly from e-business within the next two to three years.

The report shows that 93% of UK companies have already addressed e-business in their corporate strategy. Just over 40% of firms are finding that e-business is already having a real impact on all aspects of the organisation with only 17% reporting a limited impact. And 99% expect e-business to have some impact in the next two to three years.

Above all, the survey dispels the notion that the Internet revolution has ground to a halt. The rise and fall of the dotcoms may have dominated the first wave but the second is being led by traditional organisations of all sizes in every sector, with all companies expected to step up their e-business activity over the next two to three years.

The survey identifies three distinct groups: 21% of companies are “e-pioneers”, forging ahead in business-transforming aspects such as CRM and integrated supply chain management. “E-followers” comprise 43% of companies, which have grasped the basics and are creating websites and exploiting the Internet but have yet to put e-business at the heart of all their activities. And 36% of businesses are “e-laggards”, those gearing up to evolve their e-business activities beyond e-mail and related IT in the near future.

KPMG Consulting CEO Alan Buckle commented: “A quiet revolution has begun – imaginative companies in all sectors have been embracing Internet technology to revolutionise the whole way they relate to their customers, suppliers and employees.”

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