E-COMMERCE SURVEY OF S.E. MASSACHUSETTS BUSINESSES

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E-COMMERCE SURVEY OF S.E. E-COMMERCE SURVEY OF S.E. MASSACHUSETTS BUSINESSESMASSACHUSETTS BUSINESSES

Fahri Karakaya, Ph. D.Fahri Karakaya, Ph. D.Charlton College of BusinessCharlton College of BusinessDepartment of Marketing/BISDepartment of Marketing/BIS

University of Massachusetts DartmouthUniversity of Massachusetts Dartmouth

Umass Dartmouth ranked 5th.Umass Dartmouth ranked 5th.among northern public universities byamong northern public universities by



Number of Internet Users• 148.7 million users in North America

• 86.6 million users in Western Europe

• 57.6 million users in Asia Pacific,

• 10.8 million users in South/Central America,

• 9.5 million users in Eastern Europe, and

• 7.5 million users in Middle East/Africa.

Source: Business Week (Sept. - 1999)



Web Users By Region(Millions at Year end 1999)

US

38%

Japan 9%AP 9%

WE

36%

Other 8%

327BSource: ICMM V6.1, IDC 2000



Web Users By Segment

Home

55%

Med/Lrg Bus

18%

Small Bus

13%

Ed/Gov

15%

Total:327BSource: ICMM V6.1, IDC 2000



Users & Devices On The Web (worldwide)(Millions at Year end)

0

100

200

300

400

500

600

700

800

1997 1998 1999 2000 2001 2002 2003

DevicesUsers

756M devices

602M users

Source: ICMM V6.1, IDC 2000



Digital Homes & Consumers• 40% of US homes now online• 26M homes with broadband by 2003

Adults Ordering On-Line

0

10

20

30

40

50

60

70

1997 1998 1999 2000 2001 2002 2003Source: CyberDialogue



Ecommerce on the Web

• University of Texas at Austin's & Cisco Systems Inc., study showed that the size of the Internet economy was $524 billion last year (U.S.).

• The same study forecasted that the revenue could reach

$850 billion this year if current trends continue.

• This year the web will see almost 100 million unique web buyers.

• The number of publicly accessible Web pages is expected to grow from 800 million in 1999 to 8 billion by 2002.



B2B Marketplace Opportunity

• Estimates (worldwide)

– Forrester - $1.3 trillion by 2003 and 92% of all Internet commerce

– Goldman Sachs - $1.5 trillion by 2004

– IDC - $1.1 trillion by 2003

• Huge efficiency gains possible



S.E. Mass. E-Commerce Survey (May 2000)

• Objective: to assess the e-commerce use and the needs of the area businesses in S.E. Massachusetts.

• The survey was funded by a grant from UMD Foundation.

• Using the area zip codes, selected 490 companies from a computer database.

• Mailed a personalized letter, return envelope and survey.

• Ninety-four companies responded to the survey (19%).



Demographics of the Responding Firms

• 54% manufacturers 20% service firms, 10% distributors, 8% retailers, and 9% other.

• On average only 6.3 % of the responding firms’ sales is attributable to e-commerce business.

• 58% (50 organizations) indicated that 0% of their sales is attributable to e-commerce.



Demographics of the Responding Firms

• Only five companies attributed 25 percent or more of their sales to e-commerce.

• On average, the responding firms have engaged in e-commerce for 17 months (range= 0-5 years).

• Sales and profits - in the range of very good and good.

• The average size of the responding firms was 127 employees (0 -1954)



Using Internet - E-Commerce

• 92% use internet

• 73 % has web-sites

• However, on average, only one out of four companies (25%) utilize the Internet regularly in conducting business

- online promotion, sales, purchase, - customer service, - gathering marketing, vendor, and distributor data online.

• Overall, most businesses use the Internet to provide information about their products and services.



Internet Use by Area Firms

0

0.2

0.4

0.6

0.8

1

1.2

1.4

Promotion

Gather Vendor Info.

Gather Marketing Info.

Gather Distributor Info.

Online Purchasing

Online sales

Customer Surveys

Measure: 0=never, 1=occasionally, 2=almost always, 3=always



E-Mail Usage by Area Firms



Contents of Responding Company Web-sites

0

10

20

30

40

50

60

70

80

90

100

Percentage

CompanyInformationProduct/ServiceinformationCompany FinancialInformationLinks to OtherCompaniesOnline Transactions

Stock/InventoryStatusOnline Catalog

Customer serviceAreaOther CompanyAdvertisementsOwn CompanyAdvertisements

35% has onlinetransaction capability



Firms Interested in Partnerships

58

60

62

64

66

68

70

72

74

76

Percentage

Networking w/othersLinks from othersitesLinks to other sites



What is important?

0

0.5

1

1.5

2

2.5

3

Importance

E-mail Use

Transaction Security

Internet Use

Web Page Development

Web Hosting Costs

Online Customer Service

Local Area Networks

Online Transactions

Web Server

Online Catalog

Hyperlinks

Advertising Online

Wide Area Networks

Intranet

Extranet



Importance of Possible Assistance from Umass Dartmouth

65

70

75

80

85

E-Commerce Assistance

E-Com.workshops/seminars

Assistance in Networking

Assistance w/ specialprojects

Assistance w/ecommerce relatedproblems

On-site Assistance



CONCLUSIONS

• A great majority of the responding firms use the Internet (92%).

• 73% has web-sites.

0102030405060708090

100

Use InternetHas Web-site



CONCLUSIONS

• Only a small percentage uses the Internet/E-Commerce tools extensively.

• Most web-sites only provide company and product information.

• Majority of the firms surveyed use e-mail to a great extent.



CONCLUSIONS

• Most of the area businesses feel that the UMass

Dartmouth could assist them through:

- e-commerce seminars/workshops;

- networking;

- special projects;

- e-commerce related problems, and

- on-site e-commerce consulting



CONCLUSIONS

• There is potential to increase Internet usage and conduct e-commerce to improve business operations.

• It is also clear that the S.E. businesses are very interested in E-Commerce



E-COMMERCE SURVEY OF S.E. E-COMMERCE SURVEY OF S.E. MASSACHUSETTS BUSINESSESMASSACHUSETTS BUSINESSES

Fahri Karakaya, Ph. D.Fahri Karakaya, Ph. D.Charlton College of BusinessCharlton College of BusinessDepartment of Marketing/BISDepartment of Marketing/BIS

University of Massachusetts DartmouthUniversity of Massachusetts Dartmouth

Umass Dartmouth ranked 5th.Umass Dartmouth ranked 5th.among northern public universities byamong northern public universities by

Documents

E-COMMERCE SURVEY OF S.E. MASSACHUSETTS BUSINESSES