ICT help companies increase their process efficiency - and develop innovative customer services

e-Business W@tch 2006/07 has shown that the overly pessimistic and hesitant attitude towards ICT, which the burst of the new economy bubble provoked in many companies is a thing of the past. e-Business has gained new momentum in the EU and in other advanced economies of the world. The cost-saving potential of ICT has been broadly recognised by companies. Efficiency and productivity gains have been a key driver for growth in ICT investments. Large firms, and increasingly the public sector, are spearheading this development. However, in parallel to the continued search for cost-cutting potential, companies are become more creative in using ICT for new forms of customer service.

 

Key e-business trends in 2006

Among the key trends  observed by e-Business W@tch in 2006 were the following:

• Supply chain integration is key: Increasingly, competition occurs not only within a company's value system, but between entire networks. Optimising the supply chain by means of ICT, e.g. by integrating with distribution networks, is a key factor in achieving competitive advantage.
• Better solutions for SMEs: Until recently, the ICT industry was often criticised for failing to provide adequate e-business solutions for small and medium-sized firms. This is changing. Driven by market requirements, and enabled by technological advances, ICT companies are increasingly addressing the SME market. They are developing affordable, smaller-sized solutions (e.g. ERP and CRM suites) that can be connected with the more powerful systems of large firms.
• ICT for customer service: e-Business is not just about cutting costs: service companies have always used ICT for marketing purposes and customer service. Now, manufacturing companies are increasingly devoting attention to using e-business for better service to their customers, with the strategic goal of creating sustained relationships with them.
• Growing maturity of new technologies: Applications based on RFID technology, the use of Voice over Internet Protocol, and mobile e-business applications using wireless technology have gained maturity. Although still not widely diffused, these emerging technologies have started to influence e-business.

The European e-Business Report 2006/07 can be downloaded here.

 

Results of the final conference

The final conference of e-Business W@tch 2006 on 30 January 2007 in Brussels generated further conclusions and concrete proposals for action to assist the uptake of e-business technologies:

• Innovation is key: innovation plays a central role in creating value out of ICT. Innovative firms derive higher productivity gains and other benefits from the use of ICT.
• Management skills and creativity: whether a company introduces innovation and uses e-business can critically depend on the creativity of business managers and their understanding of e-business concepts. Promoting management skills and supporting managers in understanding e-business concepts is therefore vital.
• Cooperation of all stakeholders is increasingly important in the networked economy. Multi-stakeholder-partnerships are needed, for example, to ensure the adequate supply of ICT skills.
• Limited network effects due to digital divide: Exploiting the full network effects of e-business is still hampered by a digital divide between large companies and their smaller suppliers or customers. Efforts to overcome this divide are required, e.g. by promoting the development and uptake of e-business solutions for SMEs.

The proceedings of the e-Business W@tch final conference can be downloaded here.