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The European e-Business Report 2004 - Berlecon Research GmbH

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<strong>The</strong> <strong>European</strong> E-<strong>Business</strong> <strong>Report</strong> <strong>2004</strong>Large firms continue to drive the development – but SMEs catch upIncreasing the efficiency of business processes, for example reducing processing costs related tocommercial transactions, is a major objective driving companies to implement e-business. This appliesto companies from all size-bands, but fixed costs for technology implementation and maintenancetend to be relatively higher for small companies. Larger firms, which can afford more powerfulsolutions, are more likely to benefit from efficiency gains. In fact, the diffusion of ICT infrastructure andof advanced e-business software solutions for automating business processes (such as ERP solutionsand SCM software) increases steadily by company size.Exhibit 1.1-3:<strong>The</strong> e-<strong>Business</strong> Index by firm size(eEurope 2005 benchmarking indicator 11 )A) ICTInfrastructureB) E-<strong>Business</strong>ActivityMicro (0-9) 34 38Small (10-49) 58 60Medium (50-249) 79 71Large (250+) 100 100E-<strong>Business</strong> Index (2003/04)(Benchmark)250+ empl.50-249 empl.10-49 empl.0-9 empl.0 20 40 60 80 100355877100Source: e-<strong>Business</strong> W@tch (<strong>2004</strong>)<strong>The</strong> ICT systems of large companies obviouslytend to be more complex and sophisticated thanthose of small firms. This translates into moreintensive and advanced electronic businesspractices. Good examples are companies in thetransport equipment manufacturing sector andthe chemical industries. In these sectors inparticular, there is a significant digital dividebetween the large, often multinational firms,which are international leaders in e-businessadoption, and the many small supply companieswhich often adhere to much more traditionalforms of trading.On the other hand, there are many SMEs thathave specialised in trading online, mostly overthe Internet, particularly in the retail and tourismsectors. <strong>The</strong> share of firms conducting morethan 5% of their transactions online is, in fact,highest among the small enterprises (10-49employees), both for selling and for procuringonline. In retail, the percentage of companiesthat makes online sales is consistent acrosssize-bands with the exception of micro-firms.Many "e-traders" among smallcompanies …Some SMEs try to specialise in tradingonline, mostly over the Internet, particularlyin the retail and tourism sectors.<strong>The</strong> share of firms conducting more than5% of their transactions online is quiteconsistent across size-bands. Onlymicro-enterprises (with

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