largest numbers of outlets are most likely to have the
investment resources, skilled personnel, scale and sophis-
tication of logistical and technical infrastructure necessary
to successfully support e-commerce.
The DTI’s International benchmarking study (2004) also
found size to have an effect on web site adoption, with
almost 95% of large companies having active sites. It
should be noted however, that in recent years, small and
medium size enterprises (SMEs) have begun to take
advantage of the falling costs of going online. In the UK,
the rate of adoption of the Internet by SMEs is surpassing
official targets and the UK government continues to invest
in comprehensive programmes designed to get UK busi-
nesses online (Simpson and Docherty, 2004). Many SMEs
are taking advantage of easier-to-use web applications
and lower-cost outsourcing of web development and site
hosting particularly to serve marketing communications
objectives. Therefore, size may well continue to be a
useful predictor of the level and extent of Internet adop-
tion but as the Internet becomes more accessible a wider
range of companies are looking to benefit from becoming
involved with the online trading environment to serve an
increasing range of business objectives.
The Department of Trade and Industry has been specifi-
cally monitoring the dispersionof use of ITC among UK and
International Businesses and in doing so the eighth study
has concluded there is a strong link between effective use
of ITC and productivity. The study looked at a range of
industries (see Table 11.2) in 11 different countries.
Major trends potentially affecting the growthrate of adop-
tion of Internet technologies identified by the study are:
More businesses are measuring the impactof technology
in order to determine how to deploy resources effectively.
More businesses are discriminative, selectiveand
focusedon the use of the technology in order to facili-
tate more efficient usage.
Businesses are becoming more responsiveto cus-
tomer needs and in doing so are concentrating on the
needs and expectations of the markets they serve.
The growth rateof e-commerce is slowing as busi-
nesses seek to realise a wider range of benefits from
technology adoption including initiatives focusing on
improved efficiency, speed of access and customer
communications. In the UK 19% of the total sales of
businesses selling online are made through the online
channel, up just 5% from 2003.
Major trends relating to the dispersionof Internet tech-
nologies identified by the study are:
Significant differences in general levels of technology
adoptionacross industry sectors: 96% of UK financial
services businesses have a web site compared with
80% of construction businesses and 74% of UK pri-
mary businesses. This level of uptake is slightly higher
than the average of the other ten nations surveyed –
Australia, Canada, France, Germany, Italy, Japan, the
Republic of Ireland, South Korea, Sweden and the USA- where the figures were 88%, 60% and 68% for each
of the sectors respectively.
The number of companies with Internet accessis reach-
ing saturation. Some 95% of all companies in countries
surveyed had Internet access (see Figure 11.6.). In most
countries the proportion of companies with web sites
CASE STUDY 11Table 11.2Industrial sector analysis
Sector Description
Government Public administration, education,
health care
Financial services Banking, insurance, pensions
Manufacturing Food, drink, tobacco, textiles,
clothing, motor vehicles, furniture
Transport and Freight, post, telecoms
communication
Services Accountants, advertising, computing
activities, estate agents, legal
services, vehicle hiring
Primary industry Agriculture, chemicals, mining, utilities
Retail/wholesale Distribution, repairs, hotels, catering
Construction ConstructionFigure 11.6Proportion of business with
Internet access100Internet access%90
80
70
60
50
40
30
20
10
0
1997
Key UK1998 1999 2000 2001 2002High2003 2004
Ger USA Fra
Jap Can Ita Swe
Aus ROI SKoLow