Methodology A.1A.2A.3 HOME B.1B.2B.3 B.4B.5B.6 C.1C.2C.3 C.4C.5 D.1D.2D.3 D.4D.5D.6 E.1E.2E.3 E.4E.5 e-Business W@tch Summary A. Infrastructure B. Internal.

Chart Report 2004 1

Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure

B. Internal Processes

C. Procurement and SCM

D. Marketing and Sales

E. Impacts

Online Link to the e-Business W@tch

INTRODUCTION TO E-BUSINESS W@TCH

Chart Report: The e-Business Survey

2004

European CommissionEnterprise Directorate-General

Chart Report 2004 2

Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


The European Commission, Enterprise Directorate General, launched the e-Business W@tch in late 2001 to monitor the growing maturity of electronic business across different sectors of the EU economy. In 2003/04, the e-Business W@tch covers 10 sectors, five of which are from manufacturing and five from the services part. The analysis is based on annual, representative enterprise surveys. Results are published in the form of sector impact studies and synthesis reports. This Chart Report summarises the results of the survey 2003 which included interviews with decision-makers from than 10,000 companies from the EU and EEA States.

All publications of the e-Business W@tch, including this booklet, the statistical database and plenty of other relevant information are available in electronic format at www.ebusiness-watch.org or via the Europa server (www.europa.eu.int/comm/enterprise/ict/policy/watch/index.htm).

Further information

e-Business W@tch European Commission c/o empirica GmbH Enterprise Directorate-General Oxfordstr. 2, D-53111 Bonn B-1049 Brussels Fax: (49-228) 98530-12 Fax: (32-2) 2967019 Mail: [email protected] Mail: [email protected]

The e-Business W@tch

Chart Report 2004 3

Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


Regional digital divide in business is smaller than expected

The digital divide between enterprises from the 10 new EU Member States and their counterparts in the former EU-15 is smaller than might be expected. Slovenia and Estonia in particular, but also the Czech Republic, emerge as "e-leaders" among the new members of the European Union.

This finding may come as a surprise. Household surveys normally report a different situation and show that there is still a significant digital divide between most of the new Member States and the EU average.

Differences in online procurement and supply chain integration

Basic connectivity in terms of internet access is in place in most of the companies from all Member States. Even broadband access is well deployed. Some differences, though, become evident when looking at more sophisticated and higher level e-business applications, particularly with respect to online procurement activities and supply chain integration.

For example, only 19% of companies (in terms of their share of employment) in Poland say they order at least some of their supply goods online, while 46% of companies from the current Member States do.

Summary: E-Business in the Enlarged European Union

Chart Report 2004 4

Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


Focus of application differs between manufacturing and service sectors

Survey results confirm that the size of a company and the kind of business activity are more important factors for the use of e-business than its location. Manufacturing companies have different application priorities than those in service sectors, and small enterprises need other solutions than large ones.

For example, companies from the automotive or the electronics and electrical machinery sectors have a strong focus on improving the efficiency of their supply chain processes. Enterprises in consumer-oriented service sectors such as tourism or retail are focusing more on customer facing business functions. Tourism, for instance, is a leading sector in marketing and selling online, while internal and supplier-oriented solutions are less diffused in these service-oriented sectors.

E-Champions and Late E-Adopters from a sectoral perspective

The ICT services sector, the manufacture of electronics and electrical machinery and the automotive industries are the most e-business intensive sectors. The chemical industries and business services are also among the e-intensive sectors. Tourism and retail are very specific in their use of ICT, while the textile industries (among the manufacturing sectors) and the health & social services sector are late e-adopters.

Summary: Size and sector are major determinants of e-business

Chart Report 2004 5

Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


The E-Business Index (based on the eEurope 2005 Benchmarking Index)

Summary: The e-Maturity of Sectors (eEurope 2005 Index)

Source: e-Business W@tch: e-Business Survey 2003

0

20

40

60

80

0 20 40 60 80 100

(A) ICT Infrastructure

(B)

e-B

us

ine

ss

Ac

tiv

ity

Health

Textile

Tourism

Business services

Chemical

ICT services

Automotive

ElectronicsRetail

Chart Report 2004 6

Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


Sectoral e-Business Profiles

Textile industries

-1,5

-0,5

0,5

1,5A

B

C

D

Max Average Textile

Chemical industries

-1,5

-0,5

0,5

1,5A

B

C

D

Max Average Chemicals

Electronics

-1,5

-0,5

0,5

1,5A

B

C

D

Max Average Electronics

Transport equipment

-1,5

-0,5

0,5

1,5A

B

C

D

Max Average Transport

Retail

-1,5

-0,5

0,5

1,5A

B

C

D

Max Average Retail

Tourism

-1,5

-0,5

0,5

1,5A

B

C

D

Max Average Tourism

ICT services

-1,5

-0,5

0,5

1,5A

B

C

D

Max Average ICT srv

Business services

-1,5

-0,5

0,5

1,5A

B

C

D

Max Average Business srv.

European E-Business Scoreboard 2004. Index for the e-business intensity in four categories:A = Connectivity of the enterprise. B = ICT use for internal business process automation. C= E-procurement and supply chain integration. D = E-marketing and sales.

Chart Report 2004 7

Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


Trends from 2002 to 2003

• Internet access: migration towards broadband internet connections

• Companies are improving their internet connections, typically upgrading from ISDN to DSL (or other broadband connections).

• The percentage of firms with an internet connection of at least 2 Mbit/s has increased from 24% in 2002 to 28% in 2003 (in % of employment).

• Online procurement: Increase in B2B online trading

• The share of companies that make online purchases has increased since 2002, as well as the relative volume of online purchases (in % of total purchases).

• On the other hand, the share of firms using special SCM (supply chain management) software for co-ordinating their supply processes has not increased.

• E-commerce growth is restricted to specific markets – firms focus on system integration

• The share of companies that sell goods or services online is stagnating at about 16-17% of firms (2002, 2003).

• The frequently reported e-commerce boom in the business-to-consumer (B2C) market takes place in specific sectors and markets, mainly in some retail markets and in tourism.

Chart Report 2004 8

Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


A.1: Companies connecting their computers with a LAN

A Local Area Network (LAN) is the most common way of connecting computers for sharing files and software applications within a small area, typically inside a building, company or organisation.

Base: all enterprises, EU-5 (DE, ES, FR, IT, UK). N=4516 for all sector total.Weighting: Totals, sectors and countries in % of employment. Size-bands in % of enterprises.Source: e-Business W@tch (2004)

By regionand firm size

By sector

61

30

42

68

87

49

51

88

89

83

50

0 25 50 75 100

All sectors

Crafts & trade

Health services

Business services

ICT services

Tourism

Retail

Transport

Electronics

Chemicals

Textile

61

30

56

77

88

36

70

64

54

60

58

65

0 25 50 75 100

Total (EU-5)

250+ empl.

50-249 empl.

10-49 empl.

0-9 empl.

PL

EE

UK

IT

FR

ES

DE

Chart Report 2004 9

Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


A.2: Companies with Internet accessBasic internet access has become a standard across the economy. Broadband access is increasing, with many companies migrating from ISDN towards DSL connections.

Base: all enterprises, EU-5 (DE, ES, FR, IT, UK). N=4516 for all sector total.Weighting: Totals, sectors and countries in % of employment. Size-bands in % of enterprises.Source: e-Business W@tch (2004)


By sector

70

57

62

47

69

59

56

62

68

64

35

51

21

21

43

36

29

18

61 27

15

7

0 25 50 75 100

All sectors

Crafts & trade

Health services

Business services

ICT services

Tourism

Retail

Transport

Electronics

Chemicals

Textile

Bandwidth: < 2 Mbit/sBandwidth: >2 Mbit/s

50

68

73

65

18

10

10

30

31

20

27

24

29

67

65

57

70

55

63

62

61 27

28

47

0 25 50 75 100

Total (EU-5)

250+ empl.

50-249 empl.

10-49 empl.

0-9 empl.

PL

EE

UK

IT

FR

ES

DE

Bandwidth: < 2 Mbit/sBandwidth: >2 Mbit/s

Chart Report 2004 10

Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


A.3: Remote access to company networkBusiness process efficiency can be enhanced if staff at branch offices, teleworkers and travelling staff (managers, field service) can remotely access data from the company's network.

Base: all enterprises, EU-5 (DE, ES, FR, IT, UK). N= 4516 for all sector total.Weighting: Totals, sectors and countries in % of employment. Size-bands in % of enterprises.Source: e-Business W@tch (2004)


By sector

7

15

31

47

19

14

61

36

45

21

12

26

10

9

9

25

12

6

26

3

3

10

0 25 50 75 100

All sectors

Crafts & trade

Health services

Business services

ICT services

Tourism

Retail

Transport

Electronics

Chemicals

Textile

Wired remote accessWireless remote access

42

33

19

11

8

4

5

18

13

7

4

13

1231

17

23

20

31

13

18

26 10

11

17

0 25 50 75

Total (EU-5)

250+ empl.

50-249 empl.

10-49 empl.

0-9 empl.

PL

EE

UK

IT

FR

ES

DE

Wired remote accessWireless remote access


Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


B.1: Companies using an intranet

An intranet facilitates the knowledge exchange within the enterprise. As its value increases by company size, sectors in which large firms dominate are more intensive users of intranets.



By sector

45

16

25

49

77

34

37

81

77

62

32

0 25 50 75 100

All sectors

Crafts & trade

Health services

Business services

ICT services

Tourism

Retail

Transport

Electronics

Chemicals

Textile

45

42

39

50

41

51

37

37

72

55

31

20

0 25 50 75 100

Total (EU-5)

250+ empl.

50-249 empl.

10-49 empl.

0-9 empl.

PL

EE

UK

IT

FR

ES

DE


Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


B.2: Use of online technologies for e-learningE-learning has been defined here as learning material for employees made available on the Intranet or the Internet. This application is mostly used in high-tech sectors and large companies.



By sector

13

14

10

33

12

10

19

26

8

3

2

0 10 20 30 40 50

All sectors

Crafts & trade

Health services

Business services

ICT services

Tourism

Retail

Transport

Electronics

Chemicals

Textile

13

5

9

10

20

4

18

21

7

5

10

15

0 5 10 15 20 25

Total (EU-5)

250+ empl.

50-249 empl.

10-49 empl.

0-9 empl.

PL

EE

UK

IT

FR

ES

DE


Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


B.3: Use of online technologies to track working hours and production timeE-controlling: Online technologies can support controlling and project management, for instance by tracking working hours and/or production time in collaborative projects.



By sector

20

8

9

25

43

10

11

42

36

33

15

0 10 20 30 40 50

All sectors

Crafts & trade

Health services

Business services

ICT services

Tourism

Retail

Transport

Electronics

Chemicals

Textile

20

20

17

19

14

25

34

5

36

26

12

4

0 10 20 30 40 50

Total (EU-5)

250+ empl.

50-249 empl.

10-49 empl.

0-9 empl.

PL

EE

UK

IT

FR

ES

DE


Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


B.4: Use of online technologies to support the HR managementCompanies can use online services to support their human resources management, for instance for recruiting by posting vacancies on special online exchanges.



By sector

21

5

16

25

42

14

13

33

35

28

13

0 10 20 30 40 50

All sectors

Crafts & trade

Health services

Business services

ICT services

Tourism

Retail

Transport

Electronics

Chemicals

Textile

21

4

11

23

40

9

21

32

14

22

20

14

0 10 20 30 40 50

Total (EU-5)

250+ empl.

50-249 empl.

10-49 empl.

0-9 empl.

PL

EE

UK

IT

FR

ES

DE


Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


B.5: Use of ERP systems

An Enterprise Resource Planning (ERP) system is a multi-module application usually including (and linking) product planning, parts purchasing, inventory management, order tracking and finance.



By sector

19

5

9

12

21

7

13

72

45

48

18

0 25 50 75

All sectors

Crafts & trade

Health services

Business services

ICT services

Tourism

Retail

Transport

Electronics

Chemicals

Textile

19

4

12

21

35

5

14

10

17

23

10

30

0 10 20 30 40 50

Total (EU-5)

250+ empl.

50-249 empl.

10-49 empl.

0-9 empl.

PL

EE

UK

IT

FR

ES

DE


Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


B.6: Collaborative product design (online)Companies can use special online applications for co-operative product design with business partners and suppliers. They are mostly used in the automotive industries and by ICT service firms.



By sector

15

5

7

14

40

11

11

44

20

15

11

0 10 20 30 40 50

All sectors

Crafts & trade

Health services

Business services

ICT services

Tourism

Retail

Transport

Electronics

Chemicals

Textile

15

9

10

17

21

18

12

18

13

16

12

14

0 5 10 15 20 25

Total (EU-5)

250+ empl.

50-249 empl.

10-49 empl.

0-9 empl.

PL

EE

UK

IT

FR

ES

DE


Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


C.1: Online purchasing intensity

A significant share of enterprises from most sectors has started to purchase supply goods electronically. However, in many cases this is still a sideline, accounting for less than 5% of total purchases.



By sector

13

15

27

20

19

23

34

29

28

17

9

18

13

8

17

13

10

6

9

13

7

9

10

10

6

23

7

7

6

7

23

4

6

13

11

4

5

0 25 50 75 100

All sectors

Crafts & trade

Health services

Business services

ICT services

Tourism

Retail

Transport

Electronics

Chemicals

Textile

< 5% 5-10%11 to 25% > 25%

31

28

19

12

11

24

29

14

21

13

26

13

8

13

6

10

6

14

6

8

8

6

8

6

8

23

4

11

10

12

4

5

4

8

6

7

4

4

7

7

7

5

0 25 50 75

Total (EU-5)

250+ empl.

50-249 empl.

10-49 empl.

0-9 empl.

PL

EE

UK

IT

FR

ES

DE

< 5% 5-10%11 to 25% > 25%


Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


C.2: Types of goods / services purchased onlineCompanies purchase direct production goods (components of their own products) online, but also goods for maintenance, repair and operations (MRO), such as office supplies.

Base: enterprises purchasing online, EU-5 (DE, ES, FR, IT, UK). N=1916 for all sector total.Weighting: Totals, sectors and countries in % of employment. Size-bands in % of enterprises.Source: e-Business W@tch (2004)


By sector

60

63

59

70

60

55

68

72

59

62

41

59

49

55

54

60

50

40

6249

43

59

0 25 50 75 100

All sectors

Crafts & trade

Health services

Business services

ICT services

Tourism

Retail

Transport

Electronics

Chemicals

Textile

Direct producion goodsMRO goods

61

68

64

6058

53

75

47

45

50

53

42

54

48

34

51

57

70

45

76

6249

45

47

0 25 50 75 100

Total (EU-5)

250+ empl.

50-249 empl.

10-49 empl.

0-9 empl.

PL

EE

UK

IT

FR

ES

DE

Direct producion goodsMRO goods


Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


C.3: Make online purchases on electronic B2B marketplacesThe vast majority of companies that make online purchases buys from the website of suppliers. Special marketplaces on the Internet, operated by third parties, are also used, but to a lesser extent.



By sector

11

5

5

7

22

10

9

32

28

12

4

0 10 20 30 40 50

All sectors

Crafts & trade

Health services

Business services

ICT services

Tourism

Retail

Transport

Electronics

Chemicals

Textile

11

6

11

11

14

4

3

8

6

7

9

20

0 5 10 15 20 25

Total (EU-5)

250+ empl.

50-249 empl.

10-49 empl.

0-9 empl.

PL

EE

UK

IT

FR

ES

DE


Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


C.4: IT system integration with suppliersProcurement related inter-firm connectivity is highest among manufacturers, sectors with a comparatively long tradition of using EDI (retail) and in ICT services sectors.



By sector

8

6

3

6

19

7

11

14

12

6

2

0 5 10 15 20 25

All sectors

Crafts & trade

Health services

Business services

ICT services

Tourism

Retail

Transport

Electronics

Chemicals

Textile

8

5

6

6

12

3

12

9

8

7

8

8

0 5 10 15 20 25

Total (EU-5)

250+ empl.

50-249 empl.

10-49 empl.

0-9 empl.

PL

EE

UK

IT

FR

ES

DE


Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


C.5: Use of SCM systems

Supply chain management (SCM) solutions promise to give firms an intergrated view of their supply processes, including the movement of materials, related information (ordering status) and finances.



By sector

6

2

3

7

13

2

4

5

3

4

13

7

0 5 10 15 20 25

Total (EU-5)

250+ empl.

50-249 empl.

10-49 empl.

0-9 empl.

PL

EE

UK

IT

FR

ES

DE

6

3

6

11

3

5

19

10

13

7

1

0 5 10 15 20 25

All sectors

Crafts & trade

Health services

Business services

ICT services

Tourism

Retail

Transport

Electronics

Chemicals

Textile


Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


D.1: Website and content managementExcept for micro enterprises, a vast majority of firms has some sort of a website. The use of a Content Management System (CMS) indicates that a site is regularly updated and has importance for a firm.



By sector

6

12

28

38

26

17

23

28

17

7

44

50

50

35

66

59

67

40

22 44

30

27

0 25 50 75 100

All sectors

Crafts & trade

Health services

Business services

ICT services

Tourism

Retail

Transport

Electronics

Chemicals

Textile

Website with CMSWebsite w/o CMS

37

19

14

9

52

24

46

38

44

32

44

30

57

16

30

28

19

19

25

17

22 44

59

54

0 25 50 75 100

Total (EU-5)

250+ empl.

50-249 empl.

10-49 empl.

0-9 empl.

PL

EE

UK

IT

FR

ES

DE

Website with CMSWebsite w/o CMS


Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


D.2: Use of CRM systems

Online interaction with customers can collect a wealth of data on customers' behaviour and needs. Customer relationship management (CRM) solutions promise the ability to synthesize this data.



By sector

13

3

6

13

36

14

7

26

23

16

7

0 10 20 30 40 50

All sectors

Crafts & trade

Health services

Business services

ICT services

Tourism

Retail

Transport

Electronics

Chemicals

Textile

13

3

9

17

21

6

15

17

8

12

7

15

0 5 10 15 20 25

Total (EU-5)

250+ empl.

50-249 empl.

10-49 empl.

0-9 empl.

PL

EE

UK

IT

FR

ES

DE


Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


D.3: Online sales intensity

The share of enterprises that sell their products online and the volume of goods traded online is still comparatively low. Tourism is outstanding in this respect, with more than 35% of firms selling online.



By sector

4

5

13

13

9

4

6

7

4

11

6

5

5

4

6 7

11

7 4

0 10 20 30 40 50

All sectors

Crafts & trade

Health services

Business services

ICT services

Tourism

Retail

Transport

Electronics

Chemicals

Textile

< 5% 5-10%11 to 25% > 25%

9

9

6

4

5

4

4

5

6

4

5

8

4

7

6

9

3

7 4

4

6

0 5 10 15 20 25

Total (EU-5)

250+ empl.

50-249 empl.

10-49 empl.

0-9 empl.

PL

EE

UK

IT

FR

ES

DE

< 5% 5-10%11 to 25% > 25%


Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


D.4: Use of secure server capability Companies can use specific protocols to ensure privacy in transactions on the Internet, typically Secure Sockets Layer (SSL) or its successor, Transport Layer Security (TLS).



By sector

9

6

8

16

18

9

8

8

5

4

1

0 5 10 15 20 25

All sectors

Crafts & trade

Health services

Business services

ICT services

Tourism

Retail

Transport

Electronics

Chemicals

Textile

9

4

7

9

14

3

7

13

6

6

9

9

0 5 10 15 20 25

Total (EU-5)

250+ empl.

50-249 empl.

10-49 empl.

0-9 empl.

PL

EE

UK

IT

FR

ES

DE


Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


D.5: Business process automation of online sales In most cases, business processes related to e-commerce are not yet electronically integrated with the backend system. Large companies and firms from manufacturing sectors are forerunners.

Base: enterprises selling online, EU-5 (DE, ES, FR, IT, UK). N=598 for all sector total.Weighting: Totals, sectors and countries in % of employment. Size-bands in % of enterprises.Source: e-Business W@tch (2004)


By sector

48

18

12 64

79

50

63

50

74

35

70

51

22

9

7

8

8

12

5

38

13

41

12

39

13

19

33 53

64

42

5

4

6

5

9

7

8

5

4

4

4

6

10

7

6

0 25 50 75 100

Total (EU-5)

250+ empl.

50-249 empl.

10-49 empl.

0-9 empl.

PL

EE

UK

IT

FR

ES

DE

Back-end system E-mailFax Other forms

33

34

20

43

79

56

39

17

57

51

63

45

10

26

43

70

19

7

11

7

9

7

9

16

33 53

93

74

4

5

5

5

5

0 25 50 75 100

All sectors

Crafts & trade

Health services

Business services

ICT services

Tourism

Retail

Transport

Electronics

Chemicals

Textile

Back-end system E-mailFax Other forms


Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


D.6: IT system integration with customersOnly few companies have integrated their IT systems with that of a business customer for processing orders, for example by using EDI or through an extranet.



By sector

5

2

4

12

9

4

10

3

4

2

0 5 10 15 20 25

All sectors

Crafts & trade

Health services

Business services

ICT services

Tourism

Retail

Transport

Electronics

Chemicals

Textile

5

3

2

5

7

3

11

6

4

3

5

5

0 5 10 15 20 25

Total (EU-5)

250+ empl.

50-249 empl.

10-49 empl.

0-9 empl.

PL

EE

UK

IT

FR

ES

DE


Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


E.1: Impact on internal work processesThe e-Business W@tch asked companies to assess the impact of e-business on their internal work processes. About one in three companies says that these have changed due to e-business.



By sector

16

16

12

8

12

27

36

28

26

27

27

23

17

65

83

76

57

48

60

66

68

61

72

79

4

5

5

5

4

10 26

19

13

0 25 50 75 100

All sectors

Crafts & trade

Health services

Business services

ICT services

Tourism

Retail

Transport

Electronics

Chemicals

Textile

significant somewhat no

13

11

9

9

23

16

31

27

30

20

25

21

27

65

56

68

60

64

69

69

65

13

5

10

16

6

10

9

10 26

27

34 54

61

68

75

0 25 50 75 100

Total (EU-5)

250+ empl.

50-249 empl.

10-49 empl.

0-9 empl.

PL

EE

UK

IT

FR

ES

DE



Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


E.2: Impact on offers of products/ servicesThe perception that ICT and e-business have changed the offer of products and services is strongest in service sectors, particularly in tourism, business services and ICT services.



By sector

15

19

12

6

8

19

24

23

14

19

12

8

10

75

86

85

66

57

66

80

77

80

88

86

5

4

4

9 16

12

11

0 25 50 75 100

All sectors

Crafts & trade

Health services

Business services

ICT services

Tourism

Retail

Transport

Electronics

Chemicals

Textile


12

7

6

9

16

13

22

26

19

18

20

14

10

75

62

64

71

69

70

77

85

16

10

10

13

9

8

5

9 16

15

18 70

77

77

79

0 25 50 75 100

Total (EU-5)

250+ empl.

50-249 empl.

10-49 empl.

0-9 empl.

PL

EE

UK

IT

FR

ES

DE



Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


E.3: Satisfaction with the effects and success of e-BusinessOn the whole, companies are fairly satisfied with their e-business activities, but not enthusiastic. Only about 9% admit that they are fairly or very disappointed with the outcome.

Base: enterprises expressing that they do e-business, EU-5 (DE, ES, FR, IT, UK). N=2349 for all sector total.Weighting: Totals, sectors and countries in % of employment. Size-bands in % of enterprises.Source: e-Business W@tch (2004)

Byregionand firm size

By sector

13

16

19

21

22

14

10

13

10

9

74

68

71

75

80

76

78

81

9

11

8

7

10

6

11

9

11

12

9

16 75

76

76

0 25 50 75 100

All sectors

Crafts & trade

Health services

Business services

ICT services

Tourism

Retail

Transport

Electronics

Chemicals

Textile

very satisfied fairly satisfiedfairly disappointed very disappointed

17

12

13

19

78

73

70

87

73

71

73

71

79

9

26

11

20

19

15

25

10

16 75

78

74

7

10

11

10

5

4

8

9

9

8

0 25 50 75 100

Total (EU-5)

250+ empl.

50-249 empl.

10-49 empl.

0-9 empl.

PL

EE

UK

IT

FR

ES

DE

very satisfied fairly satisfiedfairly disappointed very disappointed


Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


E.4: Expenditure on e-business technologiesAbout a third of firms reports that they intend to increase their budgets for e-business technologies during the 12 months period ahead. Most of the rest say they will keep the current level of spending.



By sector

21

24

37

43

39

29

35

42

45

28

60

72

69

55

49

55

62

61

52

52

66

34

0 25 50 75 100

All sectors

Crafts & trade

Health services

Business services

ICT services

Tourism

Retail

Transport

Electronics

Chemicals

Textile

increasing decreasingcurrent level

41

36

32

28

60

45

64

52

53

64

51

72

35

30

41

39

30

40

34

23

65

63

59

51

0 25 50 75 100

Total (EU-5)

250+ empl.

50-249 empl.

10-49 empl.

0-9 empl.

PL

EE

UK

IT

FR

ES

DE

increasing decreasingcurrent level


Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


E.5: Significance of e-business todayCompanies representing about 60% of employment in the EU say that e-business has already at least some significance for their business activities. Even more than 50% of SMEs say so.


Byregionand firm size

By sector

6

6

17

31

18

7

6

14

7

7

51

51

44

41

75

53

52

30

39

59

52

30

18

36

50

20

32

40

59

12 47

39

32

0 25 50 75 100

All sectors

Crafts & trade

Health services

Business services

ICT services

Tourism

Retail

Transport

Electronics

Chemicals

Textile

significant part some partdoes not play a role

14

14

12

12

45

32

36

44

52

36

42

31

57

39

34

46

36

41

51

46

33

28

9

10

20

7

18

10

12 47

47

58 27

37

41

52

0 25 50 75 100

Total (EU-5)

250+ empl.

50-249 empl.

10-49 empl.

0-9 empl.

PL

EE

UK

IT

FR

ES

DE

significant part some partdoes not play a role


Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


Timing and Scope

The e-Business Survey 2003 was split into two parts. The first part consisted of 3,515 telephone interviews with decision-makers in enterprises from five EU countries which were conducted in March 2003. The second part had a scope of 4,570 interviews in the EU, 100 interviews in Norway and 2,632 interviews in the 10 new EU Member States (NMS) and was conducted in November 2003. The questionnaires used in the two parts of the survey were largely the same. A few new questions were added in the second part in order to cover issues of special topical interest for policy.

Fieldwork

The field work of the surveys in the EU-15 and in Norway was carried out by Ipsos Germany in co-operation with its partner organisations on behalf of the e-Business W@tch. Fieldwork in the 10 new Member States was carried out by NFO Aisa (Czech Republic) and its network.

Interview method

The fieldwork was carried out using mostly computer-aided telephone interview (CATI) technology. Face-to-face interviews were used in Lithuania, and a mixed approach in Malta. The decision-maker in the enterprise targeted by the survey was normally the person responsible for ICT within the company, typically the IT manager. Alternatively, particularly in small enterprises without a separate IT unit, the managing director or owner was interviewed.

Methodology of the e-Business Survey


Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


Population coverage and sampling

The highest level of the population for the e-Business Survey was the set of all enterprises which are active at the national territory of one of the respective countries and which have their primary business activity in one of the sectors specified by NACE Rev. 1 categories. The selection and composition of sectors took into account their economic importance and the relevance of e-business activities.

Sectors covered by the e-Business Survey 2003


No. NACE Rev. 1 Sector Name

Section Division/Group

01 D 17, 18, 19 Manufacture of textiles and textile products, leather and leather products

02 D 24, 25 Manufacture of chemicals and chemical products 03 D 30, 31, 32 Manufacture of electrical machinery and electronics 04 D 34, 35 Manufacture of transport equipment 05 D Parts of 17-20, 30-

32, 34-36, 45 Crafts and trade

06 G 52 Retail 07 H / I / O 55, 62.1, 63.3, 92 Tourism 08 K 74 Business services 09 I / K 64.2, 72 Telecommunications and computer-related services 10 N 85 Health and social services


Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


Weighting principles

Two weighting schemes were applied for the presentation of data:

(a) Values that are reported as weighted by employment should be read as "enterprises comprising x% of employees". To give an example: The indicator "percentage of companies selling online" – if weighted by employment – is defined as "companies comprising x% of employees sell online". The reason for using employment weighting is that there are very many more micro enterprises than non-micro enterprises. The unweighted figure would effectively represent mainly the smallest sizes of firm.

(b) Values that are reported in "% of enterprises" reflect the share of enterprises as legal entities but not their relative economic importance in terms of employment.

Weighting was based on the latest available universe figures by Eurostat. Missing or undisclosed universe data had to be imputed. The imputation procedures depended on auxiliary or proxy data availability, taking into account where available information about higher industry aggregations, nearest neighbour data, turnover-employment correlation and secondary sources other than Eurostat

Further background information

More information about the methodology, the full questionnaire and lists of the fieldwork organisations that carried out the survey in the various countries as well as of the directories used for sampling can be downloaded from the e-Business W@tch website (http://www.ebusiness-watch.org).



Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


Acknowledgements

This Chart Report has been prepared on behalf of the European Commission, Enterprise Directorate General, by empirica Gesellschaft für Kommunikations- und Technologieforschung mbH.

It is a publication in the context of the "European e-Business W@tch", which is implemented by empirica GmbH in co-operation with Berlecon Research, DIW Berlin (German Institute for Economic Research), Databank Consulting, IDATE, PLS RAMBØLL Management and Saatchi & Saatchi Business Communications.

Editors: Hannes Selhofer, Alexander Mentrup (empirica GmbH)

Disclaimer

Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use which might be made of the following information. Nothing in this report implies or expresses a warranty of any kind. Results from this report should only be used as guidelines as part of an overall strategy.

Copy-right notice

Material from this Chart-Report can be freely used but not commercially resold and, if used or quoted, the source must be clearly acknowledged.

© European Commission / e-Business W@tch (April 2004)

Acknowledgements


Methodology

A.1 A.2 A.3

HOME

B.1 B.2 B.3

B.4 B.5 B.6

C.1 C.2 C.3

C.4 C.5

D.1 D.2 D.3

D.4 D.5 D.6

E.1 E.2 E.3

E.4 E.5

e-Business W@tch

Summary

A. Infrastructure




E. Impacts


Publications

• The E-Business Report 2003 • E-Business Sector Impact Studies (2002 – 2004, for 17 sectors)• Statistical Pocketbooks (2003, 2004)• Proceedings of e-Business W@tch Workshops (presentations)

Database of e-Business Indicators

• Databases by sectors (2002, 2003) • Cross-sector and cross-country comparisons

All publications and databases can be downloaded for free from the e-Business W@tch website at

http://www.ebusiness-watch.org

The e-Business W@tch is an initiative of the

European CommissionEnterprise Directorate General

Other resources published by the e-Business W@tch

Methodology A.1A.2A.3 HOME B.1B.2B.3 B.4B.5B.6 C.1C.2C.3 C.4C.5 D.1D.2D.3 D.4D.5D.6 E.1E.2E.3 E.4E.5 e-Business W@tch Summary A. Infrastructure B. Internal.

Documents

ebusiness survey

information ebusiness

use of e

e leaders

ebusiness intensive

e intensive sectors

business services

late eadopters