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UK ICT CONNECTIVITY INDEX AND PERCEIVED IMPORTANCE OF ICTs, BY SELECTED SECTORS (%)AdvertisingUK ICT connectively index, by sector%UK companies who think ICTs will have a keyor important impact on competitivenesswithin the next 2 years, by sector%82 Advertising85Chemicals81Chemicals82VehiclecomponentsDefence75Vehiclecomponents7473 Defence72Insurance72Insurance85ClothingRetailingRoad haulage54 Clothing674543RetailingRoad haulage5954Source: Spectrum International Benchmarking Study, 1999 Figure 8.4this area. Assessments should be co-ordinatedwith the regulatory reviews suggested inrecommendation 7.16 and build upon theexcellent work of the DTI/OST ‘TechnologyForesight’ teams.8.17 The e-envoy (chapter fourteen), shouldmonitor the overall programme and facilitateexchange of best practice between thedifferent sectoral approaches. Lessons fromthese assessments can then be disseminatedthrough the PR campaign described inrecommendation 8.1.UK ATTITUDES TO E-COMMERCEGeneral UK business attitude is positive......but there seems to be a problem among senior managementCompanies that believe ICTs will have akey or important impact on their businessin the next two years%Germany72Quotations from UK business“It’s a communicationsmedium”“We understandthis trend, but ourbusiness is notaffected”UKJapan6866“We are experimenting,and the results aredue back at the endof the year”“This is US bubbletype”Canada65USItalyFrance505765“Only 2% of UK Board directorsbelieve that Internet poses a seriouscompetitive threat, compared with 23%in Norway, 17% in Germany and 14%in the US”IoD, 1999Source: Spectrum International Benchmarking Study, 1999, IoD; Richard Sharp, Goldman Sachs International (City conference Figure 8.5organised by Worshipful Company Information Technologists, June 1999)E-commerce@its.best.uk47
E-commerce@its.best.uk48Recommendation 8.3: work withkey business influencers to increaseboardroom recognition of the strategicchallenges of e-commerce.8.18 General UK attitudes to ICTs arepositive; for example 67% of businessesbelieve that ICTs will have a key impacton their businesses in the next two years,putting the UK second in the G7 on thismeasure. But for many businesses this beliefhas not resulted in a strategic level responseto the opportunities and threats posed bye-commerce. A study of UK manufacturing,distribution and retailing companies in 1998found that while 83% believed e-commerceto be crucial to competitiveness, only 21%were developing an e-business strategy. 3Research which focuses on business directorssuggests that this may be because UK topmanagement lags behind overseascompetitors in its understanding of thestrategic impact that e-commerce can haveon business competitiveness (see figure 8.5).8.19 One indication of this problem is thatUK businesses tend not to appoint seniordirectors to manage e-commerce activities.Research by the Institute of Directors last yearreported that only 8% of UK businesses havean IT Director on the board, compared with67% of US businesses. 4 And more recentresearch shows that whereas 62% of UKbusinesses believe it is vital to appoint anexecutive sponsor to manage theintroduction and adoption of e-commerce,76% of businesses have not done so. 58.20 While the DTI is taking actions to targetSMEs, there are currently no initiatives withinGovernment which are explicitly aimed ataddressing top management in largercompanies (although the ISI’s work on supplychains has some benefits in this area).8.21 A campaign should be initiatedimmediately to create an awareness of theopportunities and threats of e-commerceamong company directors, reporting findingsin June 2000. This campaign should involveall the key groups able to bring effectiveinfluence to bear on company directors,including:promoting awareness through nonexecutivedirectors as part of goodcorporate governance;3Durlacher Quarterly Internet Report, Quarter 3, 19984Institute of Directors/Oracle Blueprint for Business, 19985PFA, 1999, sample size = 183using the influence of the financialinstitutions (for example through thenew e-Minister convening a seminar one-commerce with City analysts, fundmanagers etc. to help them assess thepotential opportunities – and threats –of e-commerce and the need forDirector-level leadership); andapproaching the CBI (perhaps as partof their “Fit for the Future” campaign),and Chambers of Commerce to lead anawareness campaign focused on boarddirectors, working closely with thee-Minister.Recommendation 8.4: develop amulti-channel marketing strategyto influence SMEs/micro businesses.8.22 There is evidence that poorunderstanding is concentrated in certaingroups of businesses, notably SMEs (andmicro businesses in particular, i.e. thosewith 1-10 employees, see figure 8.6), whopotentially have the most to gain fromnew opportunities.8.23 To increase support for SMEs, theCompetitiveness White Paper in December1999 announced that the existingInformation Society Initiative would beextended, investing around £20m ofadditional funding over three years.Previously, the Initiative had focused onputting in place an infrastructure of LocalSupport Centres to which SMEs could turnto for advice. Under the new Initiative,greater emphasis is being given to a rangeof awareness and marketing activities and toimproving the environment of support fromall business advisors, in banks, accountancyfirms as well as ICT suppliers and ISI localsupport centres (through an advisor skillsinitiative). Other elements in the strategyare represented in figure 8.7. These areaimed at achieving a target of 1.5 millionSMEs making regular use of networkingtechnologies by 2002, with 1 millionactually trading on-line.
Page 1 and 2: f or m a nc ea n do nu n itCABINETO
Page 3 and 4: CONTENTS1. Executive Summary.......
Page 5 and 6: … but the UK is missingout1.6 Man
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Page 9 and 10: 6E-commerce@its.best.ukPRIORITISATI
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Page 13 and 14: 3. THE ECONOMIC IMPORTANCEOF E-COMM
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Page 17 and 18: telephone or Internet (70% and 30%r
Page 19 and 20: 4. CURRENT UK POSITIONE-commerce@it
Page 21 and 22: Marketing Association to promote UK
Page 23 and 24: BASIC E-COMMERCE PERFORMANCE - MAJO
Page 25 and 26: BASIC E-COMMERCE PERFORMANCE BY COM
Page 27 and 28: 5. DEFINING A FRAMEWORK FORUK SUCCE
Page 29 and 30: which accord with general principle
Page 31 and 32: 6. VISIONE-commerce@its.best.uk28Su
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Page 35 and 36: E-commerce@its.best.ukan enterprise
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Page 39 and 40: However, other analysts 5 suggest t
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Page 43 and 44: Recommendations onregulation7.50 E-
Page 45 and 46: of suppliers and their customers. T
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foundations for e-commerce (acompet
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E-commerce@its.best.uk100“state o
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as with all recommendations, pilot
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12.25 Increased use of e-commerce w
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106E-commerce@its.best.ukIMPACT OF
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TITLE 13. ACTIONS BY THEDEVOLVED AD
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comprehensive action plan aimed at
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COUNTRYUnited StatesCO-ORDINATION M
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small core group of departments wit
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TITLE 15. ACTION PLAN15.1 This chap
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118E-commerce@its.best.ukNO. RECOMM
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E-commerce@its.best.uk124DfEEDigita
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E-commerce@its.best.uk126RAuRDASEUS
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APPENDICESA1. Role of the PIUA2. Pr
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