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E-COMMERCE SURVEY OF S.E. MASSACHUSETTS BUSINESSES. Fahri Karakaya, Ph. D. Charlton College of Business Department of Marketing/BIS University of Massachusetts Dartmouth. Umass Dartmouth ranked 5th. among northern public universities by. Number of Internet Users.
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E-COMMERCE SURVEY OF S.E. MASSACHUSETTS BUSINESSES Fahri Karakaya, Ph. D. Charlton College of Business Department of Marketing/BIS University of Massachusetts Dartmouth Umass Dartmouth ranked 5th. among 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)
AP 9% Other 8% Japan 9% WE 36% US 38% 327B Web Users By Region(Millions at Year end 1999) Source: ICMM V6.1, IDC 2000
Web Users By Segment Small Bus 13% Med/Lrg Bus 18% Home 55% Ed/Gov 15% Total:327B Source: ICMM V6.1, IDC 2000
Users & Devices On The Web (worldwide)(Millions at Year end) 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 Source: 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 Measure: 0=never, 1=occasionally, 2=almost always, 3=always
CONCLUSIONS • A great majority of the responding firms use the Internet (92%). • 73% has web-sites.
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. MASSACHUSETTS BUSINESSES Fahri Karakaya, Ph. D. Charlton College of Business Department of Marketing/BIS University of Massachusetts Dartmouth Umass Dartmouth ranked 5th. among northern public universities by