Size and sector the prime factors behind e-business adoption 

Company size and sector of activity are the main driving forces behind e-business adoption in the EU, according to the Commission's 2003-2004 e-Business W@tch survey.

Presenting early results of the survey at the Commission's annual e-Business W@tch event, Mr. Hannes Selhofer said that the importance, role and implications of e-business differ widely according to sectors of economic activity. "Not all objectives are relevant for all sectors at the same time," Selhofer pointed out.

The textile and health sectors stand out as the least interested in doing business online, whether at the back end (supply chain, internal business processes) or front end (sales and marketing). ICT (Information and Communication Technology) services, automotive and electronics appear at the opposite side of the spectrum with highly developed e-business activities. Other sectors such as tourism have highly developed e-business services for marketing and sales purposes but little internal business process integration.

As expected, size is also crucial, with large companies generally more inclined to do business online than SMEs.

The overall trend emerging from this year's survey, which compiled results from almost 11,000 interviews across 26 countries, is to cut costs and increase efficiency along the entire supply chain. At the same time, firms continue to upgrade their ICT infrastructure mainly through increased broadband and wireless access to the Internet.

Improving managerial understanding of e-business, especially for SMEs, is the main challenge for the future, Selhofer concluded, as the productivity gains of e-business will only be felt once a critical mass is reached.