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E-COMMERCE SURVEY OF S.E. MASSACHUSETTS BUSINESSES. Fahri Karakaya, Ph. D. Charlton College of Business Department of Marketing/BIS University of Massachusetts Dartmouth. Umass Dartmouth ranked 5th. among northern public universities by. Number of Internet Users.

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e commerce survey of s e massachusetts businesses
E-COMMERCE SURVEY OF S.E. MASSACHUSETTS BUSINESSES

Fahri Karakaya, Ph. D.

Charlton College of Business

Department of Marketing/BIS

University of Massachusetts Dartmouth

Umass Dartmouth ranked 5th.

among northern public universities by

number of internet users
Number of Internet Users
  • 148.7 million users in North America
  • 86.6 million users in Western Europe
  • 57.6 million users in Asia Pacific,
  • 10.8 million users in South/Central America,
  • 9.5 million users in Eastern Europe, and
  • 7.5 million users in Middle East/Africa.

Source: Business Week (Sept. - 1999)

web users by region millions at year end 1999

AP 9%

Other 8%

Japan 9%

WE

36%

US

38%

327B

Web Users By Region(Millions at Year end 1999)

Source: ICMM V6.1, IDC 2000

web users by segment
Web Users By Segment

Small Bus

13%

Med/Lrg Bus

18%

Home

55%

Ed/Gov

15%

Total:327B

Source: ICMM V6.1, IDC 2000

users devices on the web worldwide millions at year end
Users & Devices On The Web (worldwide)(Millions at Year end)

756M devices

602M users

Source: ICMM V6.1, IDC 2000

digital homes consumers
Digital Homes & Consumers
  • 40% of US homes now online
  • 26M homes with broadband by 2003

Source: CyberDialogue

ecommerce on the web
Ecommerce on the Web
  • University of Texas at Austin\'s & Cisco Systems Inc., study showed that the size of the Internet economy was $524 billion last year (U.S.).
  • The same study forecasted that the revenue could reach $850 billion this year if current trends continue.
  • This year the web will see almost 100 million unique web buyers.
  • The number of publicly accessible Web pages is expected to grow from 800 million in 1999 to 8 billion by 2002.
b2b marketplace opportunity
B2B Marketplace Opportunity
  • Estimates (worldwide)
    • Forrester - $1.3 trillion by 2003 and 92% of all Internet commerce
    • Goldman Sachs - $1.5 trillion by 2004
    • IDC - $1.1 trillion by 2003
  • Huge efficiency gains possible
s e mass e commerce survey may 2000
S.E. Mass. E-Commerce Survey (May 2000)
  • Objective: to assess the e-commerce use and the needs of the area businesses in S.E. Massachusetts.
  • The survey was funded by a grant from UMD Foundation.
  • Using the area zip codes, selected 490 companies from a computer database.
  • Mailed a personalized letter, return envelope and survey.
  • Ninety-four companies responded to the survey (19%).
demographics of the responding firms
Demographics of the Responding Firms
  • 54% manufacturers 20% service firms, 10% distributors, 8% retailers, and 9% other.
  • On average only 6.3 % of the responding firms’ sales is attributable to e-commerce business.
  • 58% (50 organizations) indicated that 0% of their sales is attributable to e-commerce.
demographics of the responding firms1
Demographics of the Responding Firms
  • Only five companies attributed 25 percent or more of their sales to e-commerce.
  • On average, the responding firms have engaged in e-commerce for 17 months (range= 0-5 years).
  • Sales and profits - in the range of very good and good.
  • The average size of the responding firms was 127 employees (0 -1954)
using internet e commerce
Using Internet - E-Commerce
  • 92% use internet
  • 73 % has web-sites
  • However, on average, only one out of four companies (25%) utilize the Internet regularly in conducting business - online promotion, sales, purchase, - customer service, - gathering marketing, vendor, and distributor data online.
  • Overall, most businesses use the Internet to provide information about their products and services.
internet use by area firms
Internet Use by Area Firms

Measure: 0=never, 1=occasionally, 2=almost always, 3=always

conclusions
CONCLUSIONS
  • A great majority of the responding firms use the Internet (92%).
  • 73% has web-sites.
conclusions1
CONCLUSIONS
  • Only a small percentage uses the Internet/E-Commerce tools extensively.
  • Most web-sites only provide company and product information.
  • Majority of the firms surveyed use e-mail to a great extent.
conclusions2
CONCLUSIONS
  • Most of the area businesses feel that the UMass Dartmouth could assist them through: - e-commerce seminars/workshops; - networking; - special projects; - e-commerce related problems, and - on-site e-commerce consulting
conclusions3
CONCLUSIONS
  • There is potential to increase Internet usage and conduct e-commerce to improve business operations.
  • It is also clear that the S.E. businesses are very interested in E-Commerce
e commerce survey of s e massachusetts businesses1
E-COMMERCE SURVEY OF S.E. MASSACHUSETTS BUSINESSES

Fahri Karakaya, Ph. D.

Charlton College of Business

Department of Marketing/BIS

University of Massachusetts Dartmouth

Umass Dartmouth ranked 5th.

among northern public universities by

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