EC Still Not Yet Fully Accepted, Says IDC

According to a recent IDC (Framingham, MA) report, electronic commerce (EC) has yet to cozy up to Corporate America. The report,

Web Sellers Speak, surveyed 50 companies which are either rolling out or have deployed a Web-based sales strategy. What do the results say? "Don't fire your direct sales force just yet," said Caroline Robertson, director of IDC's Internet Commerce Services research program and author of the survey report. Most companies still use the Internet as an extension of their current distribution strategies, not as a new revenue stream, the report indicates. The high costs associated with EC has caused companies to be cautious in proceeding with their EC plans; firms are spending an average of $256,500 for Internet commerce platforms and systems. Also, the companies' efforts are aimed at decreasing internal costs and streamlining processes, not bringing in revenues from a new arena. "Today, with more knowledge and experience, firms are hedging their bets and turning to the Internet to support ­ not supplant ­ their existing distribution strategy," said Robertson. Most of the companies surveyed are anticipating revenue growth between 50% and 400% over the next 12 months.