Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

E-commerce tipped to embrace 30% of NZ business

E-commerce tipped to embrace 30% of NZ business within three years

New Zealand corporate and government IT directors expect revenues from e-commerce to approach 30% of total business revenues within three years and e-commerce transaction volumes to reach 35%. But despite that they rate their organisations behind the eight-ball in comparison with international competitors.

That result from Fairfax’s Strategic Research in its latest MIS MarketTrends 2000 survey of New Zealand’s IT leaders.

Despite dot.com crashes and an apparent failure in the business to consumer or e-tailing space, corporate organisations continue to back e-commerce projects as a core competitive differentiator and the key to increased market share and efficiency.

While revenue and transaction volume expectations over the next three years are high, the take-off in local e-commerce won’t happen immediately or evenly.

“Respondents predict only marginal increases in e-commerce revenues and transcations over the next year,” says Strategic’s New Zealand analyst Rob O ’Neill. “Early indications from the research show a large number of e-commerce-related projects under way, especially in the development of secure intranets as an enabler of business-to-business transactions.”

New Zealand IT managers are even more bullish on e-colmmerce than their Australian counterparts. In Australia it is expected that in two years 21% of transactions and 31% of revenues will be derived from e-commerce systems.

Notable in both results is the difference between expectations in transaction numbers and revenue - a clear indicator that e-commerce systems are geared for the delivery of more commoditised products and services rather than highly value-added differentiated products and services.

Indeed,as has been claimed, e-commerce capabilities can in many instances act as a driver of commoditisation through its ability to admit new competitors to markets dominated by incumbents.

Y2K appears to have posed a significant barrier to e-commerce development. New Zealand IT managers, as with their Australian counterparts, clearly rate their e-commerce efforts to date as behind global best practice.

“In total 65% of organisations in the survey rated themselves behind the e-commerce eight-ball, while only 7.9% rated themselves ahead,” O’Neill says.

In total 111 organisations, across a broad range of industries, responded to the MIS MarketTrends 2000 report in New Zealand.

Contact: Rob O’Neill Research Analyst Strategic Research +09 379 3880

Strategic Research is a division of Strategic Publishing Group, a Fairfax company, which publishes MIS Magazine, CFO, the marketing magazine P4+ and MISWeb. Strategic Research launched its demand-side MIS MarketTrends research in 1993. It was subsequently sold to the Gartner Group and reacquired in April 1999. In addition to the MIS MarketTrends research in the Asia Pacific region, Strategic Research also provides MarketBase enterprise user databases in 13 countries.


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Mycoplasma Bovis: More Properties Positive

One of the latest infected properties is in the Hastings district, the other three are within a farming enterprise in Winton. The suspect property is near Ashburton. More>>

ALSO:

Manawatū Gorge Alternative: More Work Needed To Choose Route

“We are currently working closely and in partnership with local councils and other stakeholders to make the right long-term decision. It’s vital we have strong support on the new route as it will represent a very significant long-term investment and it will need to serve the region and the country for decades to come.” More>>

ALSO:

RBNZ: Super Fund Chief To Be New Reserve Bank Governor

Adrian Orr has been appointed as Reserve Bank Governor effective from 27 March 2018, Finance Minister Grant Robertson says. More>>

ALSO:

ScoopPro: Helping PR Professionals Get More Out Of Scoop

Scoop.co.nz has been a fixture of New Zealand’s news and Public Relations infrastructure for over 18 years. However, without the financial assistance of those using Scoop in a professional context in key sectors such as Public Relations and media, Scoop will not be able to continue this service... More>>

Insurance: 2017 Worst Year On Record For Weather-Related Losses

The Insurance Council of New Zealand (ICNZ) announced today that 2017 has been the most expensive year on record for weather-related losses, with a total insured-losses value of more than $242 million. More>>

ALSO: