Internet Potential Recognised by European Businesses
European companies are harnessing the true potential of the internet according to a MORI study released today. The study commissioned by Cisco Systems reveals that around half the companies surveyed who have internet access claim significant increases in productivity and efficiency as a result of applying the internet to their overall business strategy.
According to the survey, European businesses are using the internet for more sophisticated business activities. Over half the companies interviewed with internet access are not only providing public information over the internet but also running serious business applications in areas such as customer service and recruitment.
The study, carried out across six European countries (UK, France, Italy, Spain, The Netherlands and Germany) involved 900 telephone interviews with directors across a variety of job functions.
James Richardson, President of Cisco Europe, said: "The MORI research indicates that companies are developing internet business applications and clearly leveraging the internet's potential. They are looking beyond electronic commerce transactions and understand that the real winner for them is the efficiency and productivity improvements they can gain by running segments of their business over the internet."
Historically, European businesses have utilised the internet to communicate with staff, customers and suppliers via e-mail. The MORI study demonstrates that almost one out of four (24%) of the companies with internet access are using the internet for online trading and 28 per cent are taking advantage of the internet as a way of further servicing their clients.
Spain is leading in the provision of customer service via the internet with an impressive 38 per cent of businesses using the internet in this way. The UK (31%) and the Netherlands is fast on Spain's heels followed by France (24%), Germany (21%) and Italy (24%).
Just under half (43%) of European businesses with internet access feel that their use of the internet has had a positive impact on their overall customer service levels. A higher proportion of Italian and Spanish companies (58%) claim their use of the internet in terms of customer service has had a positive effect.
For electronic commerce transactions, the survey shows that a significant proportion of those companies with internet access have started conducting business electronically and have high expectations for increasing the amount of revenue generated via the internet. These companies are also anticipating their electronic commerce transactions to increase by 24 per cent over the next twelve months.
Around Europe, France and Italy are optimistic with two out of three (67 per cent) businesses expecting their use of electronic commerce to increase over the next year. Specifically, France and the UK expect their revenues to increase by 42 per cent and 34 per cent over the next year respectively.
By 1999 78 per cent of the total sample European companies will have internet access.
Technical details
The MORI survey was conducted among senior level executives at European businesses employing 20 or more people to assess the extent to which companies are embracing the internet. 900 telephone interviews were undertaken by On-Line Telephone Surveys Ltd. between 24 February and 24 March 1998 in six European countries: UK, France, Germany, the Netherlands, Italy and Spain.
