AMR research says B2B e-commerce will reach $5.7 trillion by 2004

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Companies without aggressive B2B e-commerce strategies will fail, according to WHAT: AMR Research.  E-commerce will be adopted at a more accelerated rate than many companies realize, reaching $5.7 trillion by 2004.

The firm estimates that industry leaders will move 60 to 100 per cent of their transactions to the internet over the next two years, and companies that do not prepare for digital marketplaces will lose customers and ultimately fail.

The projection is based on the US Department of Commerce's measurement of the value of all shipments of companies doing business in the United States.

The firm says the B2B e-commerce momentum is being led by:

*Trading exchanges: these are marketplaces for B2B commerce, which allow smaller companies to solicit customers, respond to bids, and take orders via the internet with minimal investment in technology.

*Cost savings: good internet business practices save money

*EDI commerce volume: much of the current electronic data interchange (EDI) will gradually move to the internet.

*Supply chain management (SCM): companies need to improve their internal SCM and realize that e-commerce is the next step in the evolution of SCM, not its replacement.

AMR Research provides independent advice on e-business strategy and infrastructure. It maintains research and analysis on more than 2000 software, technology infrastructure, and service providers, using it to help companies select and manage new systems.

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