eBusiness Services Firms Need to Diversify

The amount of
money customers spend on ebusiness services is increasing at a torrid pace —
from nearly $28 billion in 1999 to $290 billion in 2004, according to market intelligence firm IDC. However, ebusiness
services providers that have extensive expertise in only one or two solution
areas might lose out on this hot opportunity.

IDC says companies must have
integrated practices in each solutions area — Internet services, ecustomer
relationship management (eCRM), e-enterprise resource management (eERM),
esupply chain management (eSCM), and eknowledge management (eKM) — if they
are to be leading providers.

“Although many companies position themselves as ‘ebusiness solutions
providers,’ the reality is many are offering only a few select solutions,”
said Brian Bingham, senior analyst for IDC’s eCustomer Care and Customer
Relationship Management Services program. “To be successful in the ebusiness
market, companies must make the most out of their opportunity alignment, which
means having a strong brand, a global presence, leading-edge technological
skills, and flawless execution and unwavering commitment to customer
satisfaction.”

With ebusiness services growing to represent 68% of total solutions
(including CRM, KM, ERM, SCM, and Internet services) revenue by 2004, vendors
will need to rely on more than their brand recognition to gain market share,
IDC says.

IDC is the foremost global market intelligence and advisory firm helping
clients gain insight into technology and ebusiness trends to develop sound
business strategies. IDC is a division of IDG, the world’s leading IT media, research and
exposition company.

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