New eMarketer B2B Report Sees Growing Momentum Behind Business-to-Business E-Commerce - Brief Article - Statistical Data Included

Information Superhighways Newsletter, August, 2001

A new report by New York-based eMarketer reveals that although the economic slowdown in the US has slowed technology spending, many businesses have begun to substantially increase their on-line trading activity. Direct purchasing via supplier Web sites is leading the way, while consortia-led exchanges and private marketplaces are still under development.

With NorthAmerica presently accounting for7 1 percent of on-line trade, eMarketer estimates that worldwide business-to-business e-commerce will reach $2.7 trillion by 2004. Other regions of the world are expected to rapidly catch up to North America, with on-line B2B e-commerce expected to surpass $797 billion in Europe and $300 billion in Asia within the next three years.

"Several companies are now announcing the results of their early e-business efforts," said Steve Butler, senior analyst at eMarketer. "For example, IBM has done more than $43 billion in electronic procurement during 2000, while Boeing is now processing more than 20,000 daily transactions via its Web site."

eMarketer reports that global companies such as Ford, General Electric, and Eastman Chemical have begun to drive e-commerce adoption in several countries in which they do business. Private and public exchange initiatives such as GE's SupplyNet or the auto industry's Covisint will see increased activity in the coming months, as companies build upon their e-business foundations.

"Although the bubble has burst for many independent B2B exchanges," said Butler, "the majority of large enterprises continue to see e-business as a long-term strategy, and they are already moving into the next-generation of their e-business implementations."

Highlights from eMarketer's B2B Report include:

- Line56 Research has found that more than 81 percent of businesses are buying on-line directly from suppliers' Web sites, while 35 percent are purchasing via public exchanges

- 47 percent of survey respondents to a study by AMR Research said that their company has plans to join a public exchange, while 16 percent are already participating in one

- Purchasing magazine has found that 78 percent of professional buyers in the US have done some online buying in 2001.