UK businesses need to refocus on e-business benefits, says Compaq

Businesses are still focusing their e-business investment too much on their customers, according to research just released by Compaq aimed at assessing the status of e-business in the UK. The firm says building closer relationships with customers is seen as key, but argues that more value would come from investing in IT linking front and back-end infrastructures – in particular supply chains. “This would help businesses cut costs and streamline processes,” it says. The research also find that CEOs, CIOs and financial directors remain sceptical of the opportunities which e-business can generate, and says this threatens to stall the development of e-business in the UK. Says the firm, “We must avoid that scepticism preventing UK plc from capitalising on exciting new … opportunities. The advent of the wireless revolution is an example of how Europe, and particularly the UK, is ahead of the game. “It is concerning, therefore that, none of the companies questioned highlighted wireless as either a risk or an opportunity. Businesses who missed the first e-business wave should now be questioning whether they are best placed to exploit the opportunities offered by the second wave – namely wireless – technology.” Compaq claims it acknowledges the complexity of e-business technology and the fears surrounding issues such as security and adopting inappropriate technology. “The complexities of integrating the supply chain are clearly a problem, but Compaq has the necessary experience of integrating new technology with legacy systems to help companies overcome this barrier.” The firm now believes the technology industry has fallen victim to its own hype. It says the failure of the dot.coms was not down to e-business, but poor management and direction. “What is now required of all companies is to re-group and focus on the original principle: that e-business is about cost savings and revenue generation through better relationships with customers.”