Volume 80, Number 49
CENEAR 80 49 p. 21
ISSN 0009-2347
E-BUSINESS
NEWS UPDATES FOR THE WORLD OF BUSINESS ONLINE
Companies
Dow Chemical is marketing caustic soda on the ChemConnect electronic marketplace, placing two to five regular postings on the site beginning this month. According to ChemConnect, Dow is taking the lead in developing an online market for caustic soda and is the first producer of the chemical to make a major commitment to the site. Dow will continue to market caustic soda through existing direct and third-party channels. Separately, H.B. Fuller has signed on to use ChemConnect's marketplace for online strategic sourcing and sales initiatives. The marketplace automates business processes with features such as auction tools and online requests for quotes, proposals, and information. Fuller says about half of its North American sales have been converted to its own "e-stores" and that more than 70% of its purchasing activities occur online.
Bayer and Degussa have executed electronic transactions, via the Elemica network, with a leading tire manufacturer. The transactions are the first use of the link between Elemica's network of chemical suppliers and its connection to the tire and rubber industry website, RubberNetwork. The sites announced their hub-to-hub connection in June. The two chemical producers say the link will let them interact electronically with global customers and gain mutual benefit from supply-chain collaboration and integration.
Eastman Chemical has been using Web-based software from Inquisite to conduct customer surveys and measure customer satisfaction. In 2001, Eastman created about 30 customized surveys polling between 100 and 2,000 respondents each; the number of surveys jumped to more than 95 this year. The software avoids having to manually enter data from paper-based surveys and offers more flexibility in survey design, says Lynn Peterson, who works in online customer satisfaction and market research at Eastman.
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Services
SectorSTAR is a new online tool designed to help batch chemical manufacturers and others access environmental information, tools, and resources. The free network of sector-specific resources comes from the Global Environment & Technology Foundation and was made possible through a cooperative agreement with EPA's Office of Policy, Economics & Innovation as part of its Industry Sector Performance Program. The website aims to support improved environmental performance by businesses and industries. Included are publications, databases, and company success stories; environmental management system templates, guides, and contacts; information on federal, state, and privately run programs; and State-Scan Online, which gives detailed information on key priorities, sector-based programs, and contacts for all 50 states.
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SURVEY SAYS
Several information technology and business consulting firms recently released surveys on e-business, IT, and other online business trends. Most looked across many industries, including chemicals. Here are some of their findings:
- Booz Allen Hamilton has identified the U.S., the U.K., and Canada as having the best overall environments for e-commerce among the G-7 countries. This includes up-to-date communication infrastructures and supportive government policies. "Business e-maturity," or the adoption and use of online technologies to change how business works, is most developed in the U.S. and Sweden. Citizens in Canada, Sweden, and the U.S. are the most involved in the e-economy, combining a high level of readiness with high uptake and impact.
- Pembroke Consulting found that only 43% of business-to-business exchanges in eight industries open in 2000 were still running in July 2002. Out of an estimated 1,500 operating in 2000, fewer than 200 are likely to survive through 2003 if the current shakeout continues. Only a handful have capitalized on the Internet's possibilities, the consultants say, and while most thought they had a great idea, they actually misjudged the advantage versus existing ways of doing business. Examples mentioned in the chemical industry include Chemdex, SciQuest, and Envera, which, respectively, closed down, changed focus, and was acquired. Winners will include adaptable survivors who find a protected niche supporting existing business relationships.
- IDC has found that e-mail is used for 90 to 95% of all business collaborations, despite its problems and limitations. E-mail is used to coordinate critical business processes even when there are concerns about productivity, security, and backup and recovery costs. Tools such as groupware, instant messaging, conferencing, and virtual work spaces are used only 5 to 10% of the time and rarely for inter-enterprise collaboration. Collaborative software provider Groove Networks sponsored IDC's survey of large companies in the professional services, high-tech, drug, financial, and manufacturing industries, as well as separate interviews with Groove Workspace users such as Pfizer.
- Chief information officers will not be spending their entire 2002 IT budgets, AMR Research has learned, and it's likely that 2003 budgets at best will be flat or rise just 0.2%. IT departments have made cuts in head count, training, outsourced services, and telecommunications capacity and thus will probably spend just 92% of their 2002 budgets. Spending in 2003 is expected to go toward enterprise performance management analytics and metrics, customer fulfillment, and supply-chain management applications. Spending on infrastructure will include systems integration, data warehousing, and security.
- Gartner and SoundView Technology Group say 2003 IT budgets are expected to remain flat, compared with 2002, based on a poll of 846 IT users and business executives. Although draconian budget cuts seen in the past two years have stopped, Gartner says, demand continues to build. Thus, there will be a gap between demand for technology products and spending for the next six to 12 months. Certain product areas--including application integration and development, storage, and network and desktop hardware--are expected to grow in 2003.