eBusiness Services Firms Need to Diversify
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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.