Chart Report 2007/08 (*ppt)

Chart ReportChart ReportThe Sectoral e-Business Watch Survey 2007The Sectoral e-Business Watch Survey 2007

Version 1.0Version 1.0

European Commission

Directorate General Enterprise and Industry

Chemicals Steel Furniture Retail Transport

Home | About SeBW | Methodology

About the Sectoral eBusiness Watch

Background

The Sectoral e-Business Watch" (SeBW) studies the adoption, implications and impact of electronic business practices in different sectors of the economy. It continues activities of the preceding "e-Business W@tch" which was launched by the European Commission, DG Enterprise and Industry, in late 2001, to support policy in the fields of ICT and e-business. The SeBW is based on a Framework Contract and Specific Contract between DG Enterprise and Industry and empirica GmbH, running until June 2008, with a possible extension of 16 months for two times.

Objectives

In ICT-related fields, DG Enterprise and Industry has a twofold mission: to enhance the competitiveness of the ICT sector, and to facilitate the efficient uptake of ICT for European enterprises in general. The services of the SeBW contribute to achieving these goals, by supporting informed policy decision-making in these fields. Specific objectives are:• to assess the impact of ICT on enterprises and industries• to highlight barriers for ICT uptake• to identify policy challenges • to provide a platform for debate of related issues.

Contact and further information

e-Business Watch European Commission c/o empirica GmbH DG Enterprise & Industry Oxfordstr. 2, 53111 Bonn BE-1049 Brussels Germany BelgiumFax: (49-228) 98530-12 Fax: (32-2) 2967019 [email protected] [email protected].

Approach

The SeBW uses a combination of methods for data collection and analysis, including case studies, representative telephone surveys among decision-makers in European enterprises ("e-Business Survey") and econometric analysis.

In 2007/08, six sector studies and four cross-sector studies on specific ICT topics have been conducted.

This Chart Report presents results of the e-Business Survey 2007 in manufacturing sectors (in the chemical, steel and furniture industries), in the retail and in the transport & logistics services industries. The sector studies with more background and analysis, and further resources such as brochures and Table Reports, can be downloaded from the website at www.ebusiness-watch.org.



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1

Innovations eSkillsBarriers &

Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3

e-Process automation

C.2C.1

C.3

e-Commerce

D.2D.1

e-Skills &investments

Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4

Sector profile: The chemical, rubber and plastics industry

In the chemical, rubber and plastics (CRP) industry, the main impact of ICT is as an enabler of process innovation in production, supply chain management and B2B trading processes. As international competition increases, notably from Asian competitors, the correct e-business strategy will be important to establish a global market presence.

Companies in the CRP industries use ICT for a broad range of applications along the value chain: for procurement, in production, to support inbound and outbound logistics, for marketing, sales and customer service. However, there is still a substantial digital divide between the advanced practices of large firms and the simpler forms of e-business predominant in most of the small companies. This creates a "chicken-and-egg" problem: asked why they do not use e-business more intensively, 60% of those companies said it was "because their customers and suppliers are not yet prepared for it". As a result, 45% of the sector's firms report that their data exchanges with business partners are still mainly paper-based.

Further progress in standardised data exchange will, however, be important for the sector's competitiveness. It is a pre-condition for optimising supply chain management. Legacy systems are an issue: close to 50% of large firms and 30% of medium-sized ones use EDI. XML-based exchange formats such as those offered by CIDX (the Chemical Industry Data Exchange) could facilitate e-business uptake. Outsourcing business processes as well as connecting to other companies via specialised "B2B hubs" such as Elemica is another opportunity for companies.

The manufacture of chemicals, rubber and plastics covers business activities as specified in NACE Rev. 2 Divisions 20 and 22.

NACE 24

NACE 25

Chemicals, chemical products and man-made fibresRubber and plastic products

Total employment (EU-27, 2004): about 3 million

% of employees working in SMEs: 37 %

While the chemical industry, and in particular the manufacture of basic chemicals, is dominated by large enterprises, the rubber and plastics products industries are characterised by a much larger number of small and medium-sized enterprises, many of which are highly specialised. The sector is a major supplier to many other industries, thus playing an important role in industrial competitiveness as a whole.

(Source: Eurostat SBS, most recent available figures)

Fact Box



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4

Base: All enterprises; EU-7 (DE, ES, FR, IT, PL, SE, UK) and USA, N=911 (total); for A3: Question A1=Yes (firms with internet access), excl. Don’t know, N=777.

Weighting: Data for sectors & countries are weighted by employment (firms representing x% of employment in the sector/country); data for size-bands in % of firms.

Survey questions:A.1a: "Does your company have access to the internet?"; A3: “What is the maximum bandwidth of your internet connection available for download?”; A.1b: “What percentage of your employees have access to the internet at their workplace?

A.1 Internet access and connection type

Chart A.1b: % of employees with internet access at their workplace

Chart A.1a: % of companies with internet and broadband access

100

100

100

99

100

100

100

46

63

34

38

44

50

47

0 20 40 60 80 100

CRP (EU-7)

Chemicals

Rubber & Plastic

10-49

50-249

250+

USA

Internet access Bandwidth: > 2Mbit/s

45

61

35

0

35

38

50

64

24

24

0 15 30 45 60 75

CRP (EU-7)

Chemicals

Rubber & Plastic

10-49

50-249

250+

USA

Steel (EU-7)

Furniture (EU-7)



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4

A.2 Intranet and extranet adoption

Base: All enterprises; EU-7 (DE, ES, FR, IT, PL, SE, UK) and USA; N=911 (total).


Survey questions: A4: "Does your company have (a) a Local Area Network, that is a LAN; (b) a Wireless LAN; (c) its own website on the internet; (d) an Intranet within your business with access restricted to employees; (e) an Extranet with access restricted to business partners?"

Chart A.2a: % of companies with an Intranet Chart A.2b: % of companies with an Extranet

69

79

63

0

36

58

85

82

36

31

0 20 40 60 80 100

CRP (EU-7)

Chemicals

Rubber & Plastic

10-49

50-249

250+

USA

Steel (EU-7)

Furniture (EU-7)

24

33

17

0

12

19

31

17

10

9

0 10 20 30 40 50

CRP (EU-7)

Chemicals

Rubber & Plastic

10-49

50-249

250+

USA

Steel (EU-7)

Furniture (EU-7)



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4

A.3 Wireless LAN adoption and remote access



Survey questions:A4: "Does your company have (b) a Wireless LAN?“A5: "Can employees of your company access your computer system remotely from outside the company, for instance from home, from a hotel or while travelling?

Chart A.3a: % of companies with a wireless LAN Chart A.3b: % of companies enabling remote access to their computer network

58

66

52

0

32

47

70

80

30

30

0 20 40 60 80 100

CRP (EU-7)

Chemicals

Rubber & Plastic

10-49

50-249

250+

USA

Steel (EU-7)

Furniture (EU-7)

77

81

75

0

39

68

90

89

37

30

0 20 40 60 80 100

CRP (EU-7)

Chemicals

Rubber & Plastic

10-49

50-249

250+

USA

Steel (EU-7)

Furniture (EU-7)



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4

B.1 Adoption of MRP and ERP systems



Survey questions:A11: " Do you use an MRP system, that is Material Requirements Planning?" A7: "Do you use… (a) an ERP system, that is Enterprise Resource Planning?“

Chart B.1a: % of companies with an MRP system Chart B.1b: % of companies with an ERP system

49

60

41

0

13

34

62

35

16

12

0 15 30 45 60 75

CRP (EU-7)

Chemicals

Rubber & Plastic

10-49

50-249

250+

USA

Steel (EU-7)

Furniture (EU-7)

68

68

67

0

27

61

80

36

33

21

0 20 40 60 80 100

CRP (EU-7)

Chemicals

Rubber & Plastic

10-49

50-249

250+

USA

Steel (EU-7)

Furniture (EU-7)



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4

B.2 Adoption of SCM and CRM systems



Survey questions:A7: "Do you use… (b) a Supply Chain Management system; (c) a CRM software system, that is a customer relationship management system?“

Chart B.2a: % of companies with an SCM system Chart B.2b: % of companies with a CRM system

39

44

36

0

12

24

52

36

14

10

0 15 30 45 60 75

CRP (EU-7)

Chemicals

Rubber & Plastic

10-49

50-249

250+

USA

Steel (EU-7)

Furniture (EU-7)

40

44

38

0

18

30

53

35

13

14

0 15 30 45 60 75

CRP (EU-7)

Chemicals

Rubber & Plastic

10-49

50-249

250+

USA

Steel (EU-7)

Furniture (EU-7)



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4

B.3 Use of CAD and CAM systems



Survey questions:A10: "Do you use (a) a CAD - Computer Aided Design system?”A11: " Do you use …(a) a CAM system, that is Computer Aided Manufacturing?"

Chart B.3a: % of companies with a CAD system Chart B.3b: % of companies with a CAM system

63

51

71

0

34

57

73

58

54

55

0 15 30 45 60 75

CRP (EU-7)

Chemicals

Rubber & Plastic

10-49

50-249

250+

USA

Steel (EU-7)

Furniture (EU-7)

31

32

31

0

13

22

36

27

15

20

0 10 20 30 40 50

CRP (EU-7)

Chemicals

Rubber & Plastic

10-49

50-249

250+

USA

Steel (EU-7)

Furniture (EU-7)



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4

58

54

55

64

57

22

10

16

26

45

25

12

18

29

36

0 15 30 45 60 75

CRP (EU-7)

10-49

50-249

250+

USA

eInvoicing (receiving): as PDF documents

eInvoicing (receiving): system-to-system

eInvoicing (receiving): web based

C.1 e-Invoicing

Chart C.1a: % of companies sending eInvoices Chart C.1b: % of companies receiving eInvoicesBase: All enterprises; EU-7 (DE, ES, FR, IT, PL, SE, UK) and USA; N=911 (total).


Survey questions:B5: “’Which of the following do you do when you send invoices? (a) send invoices as PDF documents?, (b) directly from your computer system to that of a customer?, (c) issue online-invoices?" B6: And when you receive invoices from suppliers? (a) receive invoices from suppliers as PDF documents?, (b) send invoices directly from their computer system to your system?, (c) issue online invoices?“

49

35

48

54

41

33

13

25

40

43

5

2

4

8

27

0 15 30 45 60 75

CRP (EU-7)

10-49

50-249

250+

USA

eInvoicing (sending): as PDF documents

eInvoicing (sending): system-to-system

eInvoicing (sending): web based



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4

C.2 Methods of data exchange – electronic vs. paper-based

Chart C.2a: % of electronical data exchange Chart C.2b: Share of e-Business processesBase: All enterprises; EU-7 (DE, ES, FR, IT, PL, SE, UK) and USA; N=911 (total).


Survey questions:B11: “ Are your orders and related messages… (1) mostly processed and exchanged electronically, (2) mostly processed and exchanged in paper based format, (3) mostly electronically processed internally, but then exchanged in a paper-based format.“F1: “Would you say that most of your business processes are conducted as e-business, a good deal of them, some, or none?”

27

17

28

31

47

34

50

35

28

17

39

33

37

41

36

0 20 40 60 80 100

CRP (EU-7)

10-49

50-249

250+

USA

Data exchange: mostly electronically

Data exchange: mostly paper based

Data exchange: mixed

8

5

11

9

12

20

16

19

24

19

46

47

45

44

46

26

32

25

23

23

0 20 40 60 80 100

CRP (EU-7)

10-49

50-249

250+

USA

eBiz share: most processes

eBiz share: good deal of processeseBiz share: some processes

eBiz share: none



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4

C.3 Impact of suppliers & customers on e-business



Survey questions:B13: "Has your company ever experienced pressure from customers that your ICT solutions or data exchange formats should be adapted to comply with their requirements?”B15: "Has your company experienced pressure from suppliers that your ICT solutions or data exchange formats should be adapted to comply with their requirements?“

21

26

17

0

5

20

24

14

5

8

0 10 20 30 40 50

CRP (EU-7)

Chemicals

Rubber & Plastic

10-49

50-249

250+

USA

Steel (EU-7)

Furniture (EU-7)

Chart C.3a: % of companies which experienced pressure from suppliers to adapt their ICT systems or data exchange formats

59

66

53

0

60

61

61

94

34

52

0 20 40 60 80 100

CRP (EU-7)

Chemicals

Rubber & Plastic

10-49

50-249

250+

USA

Steel (EU-7)

Furniture (EU-7)

Chart C.3b: % of companies which experienced pressure from customers to adapt their ICT systems or data exchange formats



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4

D.1 Companies placing orders online

Base: All enterprises; EU-7 (DE, ES, FR, IT, PL, SE, UK) and USA; N=911 (total); for D.1b: Question B1 = Yes (firms ordering online), excl. Don’t know, N=562.


Survey questions:B1: "Does your company use the internet or other computer-mediated networks to order goods or services from suppliers online, not counting manually typed e-mails?";B2: "Please estimate the percentage of orders your company places online.“

Chart D.1b: % of companies (out of those that order online) saying that the share of goods ordered from suppliers online is … % of their total orders

Chart D.1a: % of companies ordering online

26

13

134

44

Share of orders placedonline: <5%

Share of orders placedonline: 5-10%



Share of orders placedonline: >50%

70

68

71

0

58

70

71

72

58

54

0 20 40 60 80 100

CRP (EU-7)

Chemicals

Rubber & Plastic

10-49

50-249

250+

USA

Steel (EU-7)

Furniture (EU-7)



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4

D.2 Companies receiving orders online

Base: All enterprises; EU-7 (DE, ES, FR, IT, PL, SE, UK) and USA; N=911 (total). for D.2b: Question B3 = Yes (firms ordering online), excl. Don’t know, N=294..


Survey questions:B3: "Can customers order goods or services from your company online on the internet or through other computer-mediated networks?"; B4: "Please estimate the percentage of orders you receive online."

Chart D.2b: % of companies (out of those that receive orders online) saying that the share of orders received online is … % of total orders

Chart D.2a: % of companies accepting orders from customers online

18

11

16

29 26

Share of orders receivedonline: <5%

Share of orders receivedonline: 5-10%



Share of orders receivedonline: >50%

33

31

34

0

33

35

34

65

25

31

0 15 30 45 60 75

CRP (EU-7)

Chemicals

Rubber & Plastic

10-49

50-249

250+

USA

Steel (EU-7)

Furniture (EU-7)



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4

D.3 Use of e-catalogues and Secure Server Technology



Survey questions:C2: "Does your company have an electronic catalogue which describes your products or services based on a certain industry standard for e-catalogues?“C5: " Is your company using secure server technology, for example SSL, TLS or a comparable technical standard?“

Chart D.3b: % of companies using Secure Server Technology (such as SSL or TLS)

Chart D.3a: % of companies with an e-catalogue

14

14

15

0

18

17

15

35

15

24

0 10 20 30 40 50

CRP (EU-7)

Chemicals

Rubber & Plastic

10-49

50-249

250+

USA

Steel (EU-7)

Furniture (EU-7)

58

62

55

0

35

53

66

84

34

34

0 20 40 60 80 100

CRP (EU-7)

Chemicals

Rubber & Plastic

10-49

50-249

250+

USA

Steel (EU-7)

Furniture (EU-7)



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4

D.4 e-Collaboration with business partners



Survey questions:B9: "Does your company share information on inventory levels or production plans electronically with business partners?"B10: "Does your company use software applications OTHER THAN e-MAIL to collaborate with business partners in the design of new products or services?“

Chart D.4b: % of companies using software to collaborate with business partners in the design of new products or services

Chart D.4a. % of companies sharing information on inventory levels with business partners

24

27

22

0

10

18

31

21

12

9

0 10 20 30 40 50

CRP (EU-7)

Chemicals

Rubber & Plastic

10-49

50-249

250+

USA

Steel (EU-7)

Furniture (EU-7)

23

29

19

0

10

18

28

41

10

10

0 10 20 30 40 50

CRP (EU-7)

Chemicals

Rubber & Plastic

10-49

50-249

250+

USA

Steel (EU-7)

Furniture (EU-7)



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4

E.1 Employment of ICT practitioners and outsourcing of ICT services



Survey questions:E1: "Does your company currently employ ICT practitioners? These are persons who were hired primarily to take care of the company's ICT infrastructure.“E4: "In the past 12 months, has your company outsourced any ICT services to external service providers which were previously conducted in-house?“

Chart E.1b: % of companies having outsourced ICT services in the past 12 months

Chart E.1a: % of companies employing ICT practitioners

45

50

42

0

14

40

59

47

24

18

0 15 30 45 60 75

CRP (EU-7)

Chemicals

Rubber & Plastic

10-49

50-249

250+

USA

Steel (EU-7)

Furniture (EU-7)

30

31

28

0

26

34

35

33

22

21

0 10 20 30 40 50

CRP (EU-7)

Chemicals

Rubber & Plastic

10-49

50-249

250+

USA

Steel (EU-7)

Furniture (EU-7)



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4

E.2 ICT budget trend and ICT investmentsBase: All enterprises; EU-7 (DE, ES, FR, IT, PL, SE, UK) and USA; N=911 (total).


Survey questions:E6: "In the forthcoming financial year, do you expect your company’s ICT budget to increase, decrease or will it roughly stay the same?"; E7:"Will it increase up to 10% or more than 10%?"; E8: "Will it decrease up to 10% or more than 10%?"; E9: "Did your company make investments in ICT during the past 12 months, for example for new hardware, software or networks?“

Chart E.2b: % of companies having made investments in hardware / software in the past 12 months

Chart E.2a: % of companies planning to increase / decrease their ICT budget

11

77

13 8ICT budget: increase by>10%

ICT budget: increase by 1-10%

ICT budget: remainsunchanged

ICT budget: decrease by 1-10%

ICT budget: decrease by>10%

83

83

83

0

66

84

88

72

70

64

0 20 40 60 80 100

CRP (EU-7)

Chemicals

Rubber & Plastic

10-49

50-249

250+

USA

Steel (EU-7)

Furniture (EU-7)



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4

F.1 ICT and innovationBase: All enterprises; EU-7 (DE, ES, FR, IT, PL, SE, UK) and USA; N=911 (total); D2/4 only asked when D1/3 = Yes, N=396/409.


Survey questions:D1: "During the past 12 months, has your company launched any new or improved products or services?“; D2: "Have any of these been directly related to or enabled by ICT?“; D3: "During the past 12 months, has your company introduced any new or improved internal processes?“; D4: "Have any of these been directly related to or enabled ICT?"

Chart F.1b: % companies having introduced new processes in the past 12 months

Chart F.1a: % of companies having introduced new products in the past 12 months

20

24

18

13

15

27

15

55

57

54

38

50

61

35

0 15 30 45 60 75

CRP (EU-7)

Chemicals

Rubber & Plastic

10-49

50-249

250+

USA

ICT enabled product innovation

Product innovation

41

41

40

19

37

48

21 30

62

53

38

57

54

56

0 15 30 45 60 75

CRP (EU-7)

Chemicals

Rubber & Plastic

10-49

50-249

250+

USA

ICT enabled process innovation

Process innovation



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4

F.2 Perceived importance of emerging technologies



Survey questions:F7: "How relevant are the following technological developments for your company? Is the topic of (…) very relevant, partly relevant, or not relevant for you? And the topic of (...)? (b) mobile applications, for example data communication via mobile devices, (c) Web 2.0, for example blogs and social networking technologies?"

2

1

3

3

4

3

15

21

22

20

17

19

24

29

0 10 20 30 40 50

CRP (EU-7)

Chemicals

Rubber & Plastic

10-49

50-249

250+

USA

Web 2.0: highly relevant Web 2.0: partly relevant

Chart F.1a % of companies seeing Web 2.0 as highly / partly relevant for their business

27

38

19

10

23

34

28

39

31

44

39

41

37

50

0 20 40 60 80 100

CRP (EU-7)

Chemicals

Rubber & Plastic

10-49

50-249

250+

USA

Mobile applications: highly relevant

Mobile applications: partly relevant

Chart F.1b: % of companies seeing mobile applications as highly / partly relevant for their business



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4

37

42

33

22

37

42

33

32

27

35

37

37

29

34

0 15 30 45 60 75

CRP (EU-7)

Chemicals

Rubber & Plastic

10-49

50-249

250+

USA

Future ICT impact on administration and accounting (high)

Future ICT impact on administration and accounting (medium)

G.1 Expected ICT impact on management and administration



Survey questions:F6: "Do you expect that ICT will have a high impact, medium impact, low impact or no impact on the following business functions in your company in the future? What about ... (a) management and controlling, (b) administration and accounting, (c) research and development, (d) production processes, (e) marketing, (f) logistics, (g) customer service?"

Chart G.2a: % of companies expecting a high / medium impact of ICT on administration and accounting

31

37

27

14

32

37

22

29

22

34

33

34

28

35

0 15 30 45 60 75

CRP (EU-7)

Chemicals

Rubber & Plastic

10-49

50-249

250+

USA

Future ICT impact on management and controlling (high)

Future ICT impact on management and controlling (medium)

Chart G.1a: % of companies expecting a high / medium impact of ICT on management and controlling



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4

G.2 Expected ICT impact on production and logistics




Chart G.2a: % of companies expecting a high / medium impact of ICT on production

Chart G.2b: % of companies expecting a high / medium impact of ICT on logistics

27

25

27

17

30

31

21

33

39

29

28

29

34

39

0 15 30 45 60 75

CRP (EU-7)

Chemicals

Rubber & Plastic

10-49

50-249

250+

USA

Future ICT impact on production (high)

Future ICT impact on production (medium)

43

53

37

17

39

52

16

25

20

28

32

34

20

45

0 15 30 45 60 75

CRP (EU-7)

Chemicals

Rubber & Plastic

10-49

50-249

250+

USA

Future ICT impact on logistics (high)

Future ICT impact on logistics (medium)



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4

G.3 Expected ICT impact on marketing and customer services




Chart G.3b: % of companies expecting a high / medium impact of ICT on customer sevice

Chart G.3a: % of companies expecting a high / medium impact of ICT on marketing

24

28

21

21

27

25

10

40

36

43

34

38

42

46

0 15 30 45 60 75

CRP (EU-7)

Chemicals

Rubber & Plastic

10-49

50-249

250+

USA

Future ICT impact on marketing (high)

Future ICT impact on marketing (medium)

33

44

26

22

27

39

28

36

33

38

32

42

35

17

0 20 40 60 80 100

CRP (EU-7)

Chemicals

Rubber & Plastic

10-49

50-249

250+

USA

Future ICT impact on customer service (high)

Future ICT impact on customer service (medium)



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition

SteelChemicals Furniture Retail Transport


Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4

Sector profile: The steel industry

In the steel industry, the main impact of ICT is on process efficiency along the value chain. However, the use of ICT directly for transactions, i.e. for procurement and sales, is limited. The steel industry is currently experiencing an unprecedented upturn, but international competition is increasing, notably from China. e-Business may be important for European steel enterprises to remain competitive.

Steel firms use ICT mainly for streamlining business processes. For example, the majority (76%, employment-weighted) have a software application to manage the placement or receipt of orders, and 59% have an Enterprise Resource Planning (ERP) system. However, the use of ICT for direct transactions is limited. Steel firms representing 66% of the sector’s employment procure goods online, but raw materials are mainly bought offline. Due to the complex specificities of steel products, only 28% of the steel companies (employment-weighted) sell goods online. e-Marketplaces, which were supposed to facilitate steel trade, were not successful in the industry.

A main driver to adopt ICT and e-business may be competition. Two thirds (65%) of the steel companies in the survey said that “rivalry in the market is increasing”. Demands from customers to adopt particular e-business solutions also play a role in the steel industry, as 22% of the firms confirmed. In any case, compared to competitors in the US, European steel companies need to catch up in terms of e-business. For example, the level of steel firms procuring online is considerably higher in the US (firms representing 92% of employment versus 66% in the EU).

The manufacture of basic steel and iron products covers business activities as specified in NACE Rev. 2 Groups 24.1-3 and Classes 24.51-52.

NACE 27.1

NACE 27.2+3

NACE 27.51+52

Manufacture of basic iron and steel and of ferro-alloys

Manufacture of tubes, pipes, hollow profiles and related fittings, of steel + other first processing of iron and steel

Casting of iron + steel

Total employment (EU-27, 2004):

776,800

% of employees working in SMEs:

34% (in complete Division 24 of NACE Rev. 2,i.e. including basic metals other than iron andsteel)

While small and medium-sized enterprises (SMEs) account only for around 20% of the value added in NACE Rev. 2, 24.1-3 (manufacture and first processing of ferrous metals), the contribution of SMEs to value added in group 27.5 (foundries) is much larger, more than 50%. The steel industry is a major supplier to many other industries, in particular automobiles, construction and household appliances. It thus plays an important role for the general competitiveness of the European economy.


Fact Box



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4

30

25

25

38

22

26

29

45

36

24

0 10 20 30 40 50

Steel (EU-7)

NACE 27.1

NACE 27.2+3

NACE 27.5

10-49

50-249

250+

USA

Chemical (EU-7)

Furniture (EU-7)



Survey questions:A.1a: "Does your company have access to the internet?"; A3: “What is the maximum bandwidth of your internet connection available for download?”; A.1b: “What percentage of your employees have access to the internet at their workplace?”



100

99

100

100

99

99

34

0

37

51

31

70

40

39

100

0 20 40 60 80 100

Steel (EU-7)

10-49

50-249

250+

USA

Chemical (EU-7)

Furniture (EU-7)





Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4





71

66

75

70

22

48

86

79

43

31

0 20 40 60 80 100

Steel (EU-7)

NACE 27.1

NACE 27.2+3

NACE 27.5

10-49

50-249

250+

USA

Chemical (EU-7)

Furniture (EU-7)

21

24

14

25

8

10

21

26

15

9

0 10 20 30 40 50

Steel (EU-7)

NACE 27.1

NACE 27.2+3

NACE 27.5

10-49

50-249

250+

USA

Chemical (EU-7)

Furniture (EU-7)




Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4



Survey questions:A4: "Does your company have (b) a Wireless LAN?“A5: "Can employees of your company access your computer system remotely from outside the company, for instance from home, from a hotel or while travelling?”

Chart A.3a: % of companies with a wireless LAN Chart A.3b: % of companies with remote access

49

50

44

53

23

36

56

79

38

30

0 20 40 60 80 100

Steel (EU-7)

NACE 27.1

NACE 27.2+3

NACE 27.5

10-49

50-249

250+

USA

Chemical (EU-7)

Furniture (EU-7)

63

56

68

64

22

60

69

92

49

30

0 20 40 60 80 100

Steel (EU-7)

NACE 27.1

NACE 27.2+3

NACE 27.5

10-49

50-249

250+

USA

Chemical (EU-7)

Furniture (EU-7)




Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4




Chart B.1a: % of companies with an MRP system Chart B.1b: % of companies with an ERP system

49

34

52

59

6

25

54

26

20

12

0 15 30 45 60 75

Steel (EU-7)

NACE 27.1

NACE 27.2+3

NACE 27.5

10-49

50-249

250+

USA

Chemical (EU-7)

Furniture (EU-7)

59

68

55

56

21

47

71

45

38

21

0 20 40 60 80 100

Steel (EU-7)

NACE 27.1

NACE 27.2+3

NACE 27.5

10-49

50-249

250+

USA

Chemical (EU-7)

Furniture (EU-7)




Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4





27

27

29

24

9

17

37

57

17

10

0 15 30 45 60 75

Steel (EU-7)

NACE 27.1

NACE 27.2+3

NACE 27.5

10-49

50-249

250+

USA

Chemical (EU-7)

Furniture (EU-7)

21

16

33

13

7

21

26

33

23

14

0 10 20 30 40 50

Steel (EU-7)

NACE 27.1

NACE 27.2+3

NACE 27.5

10-49

50-249

250+

USA

Chemical (EU-7)

Furniture (EU-7)




Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4





83

81

75

92

41

68

89

79

41

55

0 20 40 60 80 100

Steel (EU-7)

NACE 27.1

NACE 27.2+3

NACE 27.5

10-49

50-249

250+

USA

Chemical (EU-7)

Furniture (EU-7)

30

12

25

50

10

22

31

39

16

20

0 15 30 45 60 75

Steel (EU-7)

NACE 27.1

NACE 27.2+3

NACE 27.5

10-49

50-249

250+

USA

Chemical (EU-7)

Furniture (EU-7)

B.3 Use of CAD and CAM systems



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4



Survey questions:B5: “’Which of the following do you do when you send invoices? (a) send invoices as PDF documents?, (b) directly from your computer system to that of a customer?, (c) issue online-invoices?" B6: And when your company receives invoices from suppliers? (a) receive invoices from suppliers as PDF documents?, (b) send invoices directly from their computer system to your system?, (c) issue online invoices?“

39

34

43

34

53

24

8

16

27

52

0

2

1

0

19

0 15 30 45 60 75

Steel (EU-7)

10-49

50-249

250+

USA




48

50

59

42

60

15

6

11

18

58

17

12

14

15

52

0 15 30 45 60 75

Steel (EU-7)

10-49

50-249

250+

USA




C.1 e-Invoicing



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4



Survey questions:B11: “ Are your orders and related messages… (1) mostly processed and exchanged electronically, (2) mostly processed and exchanged in paper based format, (3) mostly electronically processed internally, but then exchanged in a paper-based format.“F1: “Would you say that most of your business processes are conducted as e-business, a good deal of them, some, or none?

31

11

16

38

45

26

59

48

23

9

43

31

36

39

47

0 20 40 60 80 100

Steel (EU-7)

10-49

50-249

250+

USA





10

2

3

16

0

11

12

22

10

14

49

46

48

45

64

31

40

27

30

22

0 20 40 60 80 100

Steel (EU-7)

10-49

50-249

250+

USA



eBiz share: none



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4






18

20

21

13

1

7

20

45

10

8

0 10 20 30 40 50

Steel (EU-7)

NACE 27.1

NACE 27.2+3

NACE 27.5

10-49

50-249

250+

USA

Chemical (EU-7)

Furniture (EU-7)

43

22

43

61

12

35

45

45

26

14

0 15 30 45 60 75

Steel (EU-7)

NACE 27.1

NACE 27.2+3

NACE 27.5

10-49

50-249

250+

USA

Chemical (EU-7)

Furniture (EU-7)




Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4

Base: All enterprises; EU-7 (DE, ES, FR, IT, PL, SE, UK) and USA; N=449 (total). for D.1b: Question B1 = Yes (firms ordering online), excl. Don’t know, N=255..





66

58

63

75

52

67

73

92

62

54

0 20 40 60 80 100

Steel (EU-7)

NACE 27.1

NACE 27.2+3

NACE 27.5

10-49

50-249

250+

USA

Chemical (EU-7)

Furniture (EU-7)

35

101

8

47









Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4

Base: All enterprises; EU-7 (DE, ES, FR, IT, PL, SE, UK) and USA; N=449 (total). for D.2b: Question B3 = Yes (firms ordering online), excl. Don’t know, N=116.





28

30

19

35

25

23

28

39

34

31

0 10 20 30 40 50

Steel (EU-7)

NACE 27.1

NACE 27.2+3

NACE 27.5

10-49

50-249

250+

USA

Chemical (EU-7)

Furniture (EU-7)

255

22

1829









Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4




Chart D.3b: % of companies using Secure Server Technology (auch as SSL or TLS)


27

27

23

29

10

20

30

33

18

24

0 10 20 30 40 50

Steel (EU-7)

NACE 27.1

NACE 27.2+3

NACE 27.5

10-49

50-249

250+

USA

Chemical (EU-7)

Furniture (EU-7)

54

73

54

38

26

41

63

79

41

34

0 20 40 60 80 100

Steel (EU-7)

NACE 27.1

NACE 27.2+3

NACE 27.5

10-49

50-249

250+

USA

Chemical (EU-7)

Furniture (EU-7)




Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4

25

4

20

45

5

17

22

33

13

10

0 10 20 30 40 50

Steel (EU-7)

NACE 27.1

NACE 27.2+3

NACE 27.5

10-49

50-249

250+

USA

Chemical (EU-7)

Furniture (EU-7)






21

24

16

23

7

19

23

58

13

9

0 15 30 45 60 75

Steel (EU-7)

NACE 27.1

NACE 27.2+3

NACE 27.5

10-49

50-249

250+

USA

Chemical (EU-7)

Furniture (EU-7)




Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4






52

29

66

57

11

38

61

13

22

18

0 15 30 45 60 75

Steel (EU-7)

NACE 27.1

NACE 27.2+3

NACE 27.5

10-49

50-249

250+

USA

Chemical (EU-7)

Furniture (EU-7)

19

13

37

6

23

19

24

14

28

21

0 10 20 30 40 50

Steel (EU-7)

NACE 27.1

NACE 27.2+3

NACE 27.5

10-49

50-249

250+

USA

Chemical (EU-7)

Furniture (EU-7)




Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4






12

69

0118

ICT budget: increase by>10%





85

79

91

83

62

81

88

47

72

64

0 20 40 60 80 100

Steel (EU-7)

NACE 27.1

NACE 27.2+3

NACE 27.5

10-49

50-249

250+

USA

Chemical (EU-7)

Furniture (EU-7)

E.2 ICT budget trend and investments



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4

Base: All enterprises; EU-7 (DE, ES, FR, IT, PL, SE, UK) and USA; N=449 (total). D2/4 only asked when D1/3 = Yes, N=116/154.


Survey questions:D1: "During the past 12 months, has your company launched any new or improved products or services?" ; D2: "Have any of these been directly related to or enabled by ICT?”; D3: "During the past 12 months, has your company introduced any new or improved internal processes?“; D4: "Have any of these been directly related to or enabled ICT?"

20

30

13

18

5

16

23

19

41

63

34

22

34

30

48

26

0 15 30 45 60 75

Steel (EU-7)

NACE 27.1

NACE 27.2+3

NACE 27.5

10-49

50-249

250+

USA


Product innovation

26

26

24

27

13

28

31

38 45

44

34

48

31

37

54

41

0 15 30 45 60 75

Steel (EU-7)

NACE 27.1

NACE 27.2+3

NACE 27.5

10-49

50-249

250+

USA


Process innovation

Chart F.1a: % companies having introduced new products in past 12 months

Chart F.1b: % companies having introduced new processes in past 12 months

F.1 ICT and innovation



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4

23

18

15

34

5

17

24

14

48

50

64

31

39

43

52

71

0 20 40 60 80 100

Steel (EU-7)

NACE 27.1

NACE 27.2+3

NACE 27.5

10-49

50-249

250+

USA








0

1

0

0

2

1

0

13

14

23

10

10

12

12

18

59

0 15 30 45 60 75

Steel (EU-7)

NACE 27.1

NACE 27.2+3

NACE 27.5

10-49

50-249

250+

USA





Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4




Chart G.1a: % of companies expecting high / medium impact of ICT on management and controlling

Chart G.2b: % of companies expecting high / medium impact of ICT on administration and accounting

36

43

28

38

11

30

48

1

39

43

34

39

31

32

33

14

0 20 40 60 80 100

Steel (EU-7)

NACE 27.1

NACE 27.2+3

NACE 27.5

10-49

50-249

250+

USA



51

48

44

60

23

32

51

8

35

41

35

32

30

35

41

20

0 20 40 60 80 100

Steel (EU-7)

NACE 27.1

NACE 27.2+3

NACE 27.5

10-49

50-249

250+

USA



G.1 Expected impact on management and administration



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4




Chart G.2a: % of companies expecting high / medium impact of ICT on production

42

31

42

50

9

23

51

14

30

42

22

28

29

32

27

20

0 20 40 60 80 100

Steel (EU-7)

NACE 27.1

NACE 27.2+3

NACE 27.5

10-49

50-249

250+

USA



51

48

55

51

9

29

61

14

29

36

14

39

24

32

27

14

0 20 40 60 80 100

Steel (EU-7)

NACE 27.1

NACE 27.2+3

NACE 27.5

10-49

50-249

250+

USA



Chart G.2b: % of companies expecting high / medium impact of ICT on logistics

G.2 Expected impact on production and logistics



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4




25

28

22

25

11

29

22

1

30

36

26

28

27

25

36

26

0 15 30 45 60 75

Steel (EU-7)

NACE 27.1

NACE 27.2+3

NACE 27.5

10-49

50-249

250+

USA



34

37

48

18

13

25

40

2

32

24

26

45

30

33

25

33

0 15 30 45 60 75

Steel (EU-7)

NACE 27.1

NACE 27.2+3

NACE 27.5

10-49

50-249

250+

USA



Chart G.3a: % of companies expecting high / medium impact of ICT on marketing

Chart G.3b: % of companies expecting high / medium impact of ICT on customer service

G.3 Expected impact on marketing and customer services



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition

FurnitureSteelChemicals Retail Transport


Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4

Sector profile: The furniture industry

In the furniture industry, the main impact of ICT is as an enabler of process innovation in design, production, supply chain management and B2B trading processes. A rapidly changing environment is increasing pressure on EU furniture manufacturers. Product innovation and reduced lead times are the key success factors to remain competitive.

In the furniture industry, e-business is adopted to a lower extent than in the other manufacturing sectors analysed. Fewer individual workers in furniture companies have access to the internet at their workplace than in similar sized companies. The sector's installed base of ERP (enterprise resource planning) systems, an important backbone for B2B integration and cooperation, is low, particularly among small and medium-sized firms. The usage of ICT for B2B exchanges along the value chain for procurement, supply chain management and marketing & sales is also limited, even among the largest companies.

Furniture companies, however, are relatively advanced in the adoption of sector-specific applications in the area of design: CAD systems, 2D and 3D modelling applications. Now the goal is not only to increase the efficiency of the design process, but to foster overall integration with manufacturing and marketing & sales activities, and to exploit design and modelling tools for customer-driven innovation.

Further progress in standardised data exchange will be important for the sector's competitiveness. Furniture manufacturers and retailers may benefit from improved interoperability and standardisation both for the integration of business processes and for the development of B2C and B2B commerce.

The manufacture of furniture covers business activities as specified in NACE Rev. 2 Divisions 36.1

NACE 36.12 NACE 36.13 NACE 36.14

Manufacture of office and shop furnitureManufacture of kitchen furnitureManufacture of other furniture


about 1.2 million


51%

The furniture industry is characterised by a large number of small and medium-sized enterprises, many of which are specialised in one type of furniture.


Fact Box



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4



Survey questions:A.1a: "Does your company have access to the internet?"; A3: “What is the maximum bandwidth of your internet connection available for download?”; A.1b: “What percentage of your employees have access to the internet at their workplace?”



100

100

99

99

100

100

99

46

44

47

37

42

54

71

0 20 40 60 80 100

Furniture (EU-7)

NACE 36.12+13

NACE 36.14

10-49

50-249

250+

USA



26

33

23

0

23

29

25

33

36

24

0 10 20 30 40 50

Furniture (EU-7)

NACE 36.12+13

NACE 36.14

10-49

50-249

250+

USA

Chemical (EU-7)

Steel (EU-7)



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4






45

50

43

0

26

51

63

45

43

36

0 15 30 45 60 75

Furniture (EU-7)

NACE 36.12+13

NACE 36.14

10-49

50-249

250+

USA

Chemical (EU-7)

Steel (EU-7)

14

17

13

0

7

16

23

28

15

10

0 10 20 30 40 50

Furniture (EU-7)

NACE 36.12+13

NACE 36.14

10-49

50-249

250+

USA

Chemical (EU-7)

Steel (EU-7)



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4






47

54

44

0

25

52

66

68

38

30

0 20 40 60 80 100

Furniture (EU-7)

NACE 36.12+13

NACE 36.14

10-49

50-249

250+

USA

Chemical (EU-7)

Steel (EU-7)

50

61

44

0

24

56

67

75

49

37

0 20 40 60 80 100

Furniture (EU-7)

NACE 36.12+13

NACE 36.14

10-49

50-249

250+

USA

Chemical (EU-7)

Steel (EU-7)



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4




Chart B.1a: % of companies with a MRP system Chart B.1b: % of companies with an ERP system


23

30

19

0

9

25

42

18

20

16

0 10 20 30 40 50

Furniture (EU-7)

NACE 36.12+13

NACE 36.14

10-49

50-249

250+

USA

Chemical (EU-7)

Steel (EU-7)

39

38

40

0

16

41

71

20

38

33

0 15 30 45 60 75

Furniture (EU-7)

NACE 36.12+13

NACE 36.14

10-49

50-249

250+

USA

Chemical (EU-7)

Steel (EU-7)



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4





B.2 Use of SCM and CRM systems

15

16

15

0

9

15

23

24

17

14

0 10 20 30 40 50

Furniture (EU-7)

NACE 36.12+13

NACE 36.14

10-49

50-249

250+

USA

Chemical (EU-7)

Steel (EU-7)

25

24

26

0

12

23

44

27

23

13

0 10 20 30 40 50

Furniture (EU-7)

NACE 36.12+13

NACE 36.14

10-49

50-249

250+

USA

Chemical (EU-7)

Steel (EU-7)



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4






72

85

66

0

50

79

93

68

41

54

0 20 40 60 80 100

Furniture (EU-7)

NACE 36.12+13

NACE 36.14

10-49

50-249

250+

USA

Chemical (EU-7)

Steel (EU-7)

26

33

23

0

17

28

35

26

16

15

0 10 20 30 40 50

Furniture (EU-7)

NACE 36.12+13

NACE 36.14

10-49

50-249

250+

USA

Chemical (EU-7)

Steel (EU-7)



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4



Survey questions:B5: “’Which of the following do you do when you send invoices? (a) send invoices as PDF documents?, (b) directly from your computer system to that of a customer?, (c) issue online-invoices?" B6: And when your company receives invoices from suppliers? (a) receive invoices from suppliers as PDF documents?, (b) send invoices directly from their computer system to your system?, (c) issue online invoices?“

57

46

54

78

39

12

11

14

11

33

17

12

17

22

33

0 20 40 60 80 100

Furniture(EU-7)

10-49

50-249

250+

USA




45

33

46

65

48

18

10

16

32

20

2

2

3

0

18

0 15 30 45 60 75

Furniture(EU-7)

10-49

50-249

250+

USA




C.1 e-Invoicing



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4



Survey questions:B11: “ Are your orders and related messages… (1) mostly processed and exchanged electronically, (2) mostly processed and exchanged in paper based format, (3) mostly electronically processed internally, but then exchanged in a paper-based format.“F1: “Would you say that most of your business processes are conducted as e-business, a good deal of them, some, or none?”

26

16

23

39

18

43

61

38

30

50

31

23

39

31

32

0 20 40 60 80 100

Furniture(EU-7)

10-49

50-249

250+

USA





10

7

8

16

5

20

12

27

21

10

45

47

41

43

55

26

34

24

21

30

0 20 40 60 80 100

Furniture(EU-7)

10-49

50-249

250+

USA



eBiz share: none



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4

49

60

47

0

51

57

39

72

61

34

0 20 40 60 80 100

Furniture (EU-7)

NACE 36.12+13

NACE 36.14

10-49

50-249

250+

USA

Chemical (EU-7)

Steel (EU-7)

11

4

14

0

7

14

13

20

10

5

0 10 20 30 40 50

Furniture (EU-7)

NACE 36.12+13

NACE 36.14

10-49

50-249

250+

USA

Chemical (EU-7)

Steel (EU-7)









Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4





20

15

8

10

47







64

68

63

0

50

68

76

51

62

58

0 20 40 60 80 100

Furniture (EU-7)

NACE 36.12+13

NACE 36.14

10-49

50-249

250+

USA

Chemical (EU-7)

Steel (EU-7)




Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4





15

16

14

11

44







32

30

33

0

32

27

33

37

34

25

0 15 30 45 60 75

Furniture (EU-7)

NACE 36.12+13

NACE 36.14

10-49

50-249

250+

USA

Chemical (EU-7)

Steel (EU-7)




Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4




Chart D.3b: % of companies using Secure Server Technology (such as SSL or TLS)



30

36

28

0

22

32

46

30

18

15

0 10 20 30 40 50

Furniture (EU-7)

NACE 36.12+13

NACE 36.14

10-49

50-249

250+

USA

Chemical (EU-7)

Steel (EU-7)

44

52

40

0

30

49

55

57

41

34

0 15 30 45 60 75

Furniture (EU-7)

NACE 36.12+13

NACE 36.14

10-49

50-249

250+

USA

Chemical (EU-7)

Steel (EU-7)



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4





14

13

14

0

7

12

22

15

13

12

0 10 20 30 40 50

Furniture (EU-7)

NACE 36.12+13

NACE 36.14

10-49

50-249

250+

USA

Chemical (EU-7)

Steel (EU-7)

17

19

17

0

9

16

29

29

13

10

0 10 20 30 40 50

Furniture (EU-7)

NACE 36.12+13

NACE 36.14

10-49

50-249

250+

USA

Chemical (EU-7)

Steel (EU-7)





Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4





33

26

36

0

13

39

49

11

22

24

0 15 30 45 60 75

Furniture (EU-7)

NACE 36.12+13

NACE 36.14

10-49

50-249

250+

USA

Chemical (EU-7)

Steel (EU-7)

24

21

25

0

20

29

26

20

28

22

0 10 20 30 40 50

Furniture (EU-7)

NACE 36.12+13

NACE 36.14

10-49

50-249

250+

USA

Chemical (EU-7)

Steel (EU-7)





Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4




2557

1115

ICT budget: increase by>10%






75

80

72

0

61

77

87

46

72

70

0 20 40 60 80 100

Furniture (EU-7)

NACE 36.12+13

NACE 36.14

10-49

50-249

250+

USA

Chemical (EU-7)

Steel (EU-7)





Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4



Survey questions:D1: "During the past 12 months, has your company launched any new or improved products or services?"; D2: "Have any of these been directly related to or enabled by ICT?“; D3: "During the past 12 months, has your company introduced any new or improved internal processes?“; D4: "Have any of these been directly related to or enabled ICT?"

20

21

20

13

22

28

14 27

52

50

39

49

42

47

0 15 30 45 60 75

Furniture (EU-7)

NACE 36.12+13

NACE 36.14

10-49

50-249

250+

USA


Product innovation

32

35

31

19

39

44

25

48

46

49

36

52

59

34

0 15 30 45 60 75

Furniture (EU-7)

NACE 36.12+13

NACE 36.14

10-49

50-249

250+

USA


Process innovation






Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4




4

6

4

3

4

7

8

23

18

25

16

20

33

43

0 15 30 45 60 75

Furniture (EU-7)

NACE 36.12+13

NACE 36.14

10-49

50-249

250+

USA


24

28

23

13

23

41

25

37

32

40

31

48

30

41

0 15 30 45 60 75

Furniture (EU-7)

NACE 36.12+13

NACE 36.14

10-49

50-249

250+

USA








Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4





Chart G.2a: % of companies expecting high / medium impact of ICT on administration and accounting

27

25

27

21

27

37

11

41

49

37

32

49

43

25

0 20 40 60 80 100

Furniture (EU-7)

NACE 36.12+13

NACE 36.14

10-49

50-249

250+

USA



39

42

37

29

37

48

15

37

39

36

36

40

31

42

0 20 40 60 80 100

Furniture (EU-7)

NACE 36.12+13

NACE 36.14

10-49

50-249

250+

USA






Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4




Chart G.2a: % of companies expecting high / medium impact of ICT on production


33

34

32

23

31

47

10

35

37

34

29

42

36

34

0 20 40 60 80 100

Furniture (EU-7)

NACE 36.12+13

NACE 36.14

10-49

50-249

250+

USA



31

27

33

20

34

43

6

36

39

35

29

44

38

40

0 20 40 60 80 100

Furniture (EU-7)

NACE 36.12+13

NACE 36.14

10-49

50-249

250+

USA



G.2 Expected impact on production and logistics



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

Competition



Sector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3 G.3

F.1 F.2E.1 E.2

D.3 D.4




Chart G.3b: % of companies expecting high / medium impact of ICT on customer service

Chart G.3a: % of companies expecting high / medium impact of ICT on marketing

34

35

34

25

25

60

10

34

32

35

38

40

23

35

0 20 40 60 80 100

Furniture (EU-7)

NACE 36.12+13

NACE 36.14

10-49

50-249

250+

USA



34

37

33

24

34

50

12

28

25

29

32

31

21

26

0 15 30 45 60 75

Furniture (EU-7)

NACE 36.12+13

NACE 36.14

10-49

50-249

250+

USA



G.3 Expected impact on marketing and customer services

RetailChemicals Steel Furniture Transport


Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1

CompetitionSector profile

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3

F.1E.1 E.2

D.3

Sector profile: The retail industry

According to the Sectoral e-Business Watch survey, approximately one quarter of retail firms offer customers the possibility to shop online over the internet. However, more than half of those firms report that the share of orders received online is fewer than 5% of total orders received. By contrast, 4% have specialised in online retailing and sell more than 50% of their goods online.

Internet retail sales across Europe are still low compared to the overall sales volume in stores; there is still significant growth potential for online retailing. For small and medium-sized retailers especially, selling through the internet could provide opportunities for business growth: the majority of these retail companies traditionally depend on regional markets. Yet, survey data indicate that online orders received by these types of firms, and indeed across the retail sector, are evenly split between regional and national orders. This supports the notion that retailers - and smaller ones in particular - could expand their market reach through the internet.

Close to half of all retail firms (by their share of employment) report that at least "some" of their business processes are conducted as e-business. More than 20%, however, do not conduct any e-business processes. A divide linked to firm size is apparent: while only 14% of large retail firms say they do e-business, the proportion is 35% for micro firms, and 28% for small firms. Of those retailers that report that only some or none of their business processes are e-enabled, about half think that their firm is "too small to benefit from e-business activities" and 64% think that their "suppliers or customers are not prepared for e-business".

The retail industry sector study covers business activities defined in NACE Rev. 2 Division 47: 'retail trade, except motor vehicles and motorcycles; and repair of personal and household goods'.

NACE 52.12, 52.3, 52.4, 52.5NACE 52.11, 52.2NACE 50.5, 52.6

Retailers that sell non-food items in store (= non-food)

Retail sale of food items in store (= food)Retail sale of automotive fuel in

specialised stores, retail sales not in-store, stalls or markets


16,971,100


64%

The retail industry is one of the largest economic sectors in Europe, providing employment to about 17 million people, and services to some 480 million consumers in the European Union. The industry is dominated by large global players and small firms engaging in a wide array of activities. Two types of retail activities are dominant in the EU: the sale of non-food items in stores, and the sale of food items in stores.


Fact Box



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1


ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3

F.1E.1 E.2

D.3

Base: All enterprises; EU-7 (DE, ES, FR, IT, PL, SE, UK) and USA; N=1151 (total); for A3: Question A1=Yes (firms with internet access), excl. Don’t know, N=839.


Survey questions:A.1: "Does your company have access to the internet?"; A3: “What is the maximum bandwidth of your internet connection available for download?”; A.2: “What percentage of your employees have access to the internet at their workplace?”



97

95

96

99

100

97

97

44

31

44

45

61

63

31

0 20 40 60 80 100

Retail (EU-7)

1-9

10-49

50-249

250+

USA

T&L (EU-7)


48

59

27

43

69

46

32

37

50

53

0 15 30 45 60 75

Retail (EU-7)

NACE 52.12, 52.3, 52.4, 52.5

NACE 52.11, 52.2

NACE 50.5, 52.6

1-9

10-49

50-249

250+

USA

T&L (EU-7)




Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1


ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3

F.1E.1 E.2

D.3





50

43

63

55

27

41

56

73

56

24

0 20 40 60 80 100

Retail (EU-7)

NACE 52.12, 52.3, 52.4, 52.5

NACE 52.11, 52.2

NACE 50.5, 52.6

1-9

10-49

50-249

250+

USA

T&L (EU-7)

20

13

30

29

7

12

17

35

23

6

0 10 20 30 40 50

Retail (EU-7)

NACE 52.12, 52.3, 52.4, 52.5

NACE 52.11, 52.2

NACE 50.5, 52.6

1-9

10-49

50-249

250+

USA

T&L (EU-7)




Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1


ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3

F.1E.1 E.2

D.3





40

39

36

56

25

34

44

57

51

22

0 15 30 45 60 75

Retail (EU-7)

NACE 52.12, 52.3, 52.4, 52.5

NACE 52.11, 52.2

NACE 50.5, 52.6

1-9

10-49

50-249

250+

USA

T&L (EU-7)

45

46

39

53

22

28

45

68

44

24

0 15 30 45 60 75

Retail (EU-7)

NACE 52.12, 52.3, 52.4, 52.5

NACE 52.11, 52.2

NACE 50.5, 52.6

1-9

10-49

50-249

250+

USA

T&L (EU-7)




Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1


ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3

F.1E.1 E.2

D.3

Chart B.1a: % of companies with an ERP system Chart B.1b: % of companies with an SCM system



Survey questions:A9: "Does your company use any of the following software packages for e-business? (a) an ERP system, that is Enterprise Resource Planning; (b) a Supply Chain Management system; (c) a CRM software system, that is a customer relationship management system; (d) a software application to manage the placing or receipt of orders; (e) a warehouse or depot management system; (f) RFID technology; (h) a Bar coding system?”

16

15

17

23

10

29

37

33

6

6

0 10 20 30 40 50

Retail (EU-7)

NACE 52.12, 52.3, 52.4, 52.5

NACE 52.11, 52.2

NACE 50.5, 52.6

1-9

10-49

50-249

250+

USA

T&L (EU-7)

19

20

17

16

5

9

18

35

35

6

0 10 20 30 40 50

Retail (EU-7)

NACE 52.12, 52.3, 52.4, 52.5

NACE 52.11, 52.2

NACE 50.5, 52.6

1-9

10-49

50-249

250+

USA

T&L (EU-7)

B.1 Adoption of ERP and SCM systems



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1


ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3

F.1E.1 E.2

D.3

Chart B.2a: % of companies with a CRM system Chart B.2b: % of companies with an application for Warehouse Management




20

17

24

29

9

13

23

38

35

10

0 10 20 30 40 50

Retail (EU-7)

NACE 52.12, 52.3, 52.4, 52.5

NACE 52.11, 52.2

NACE 50.5, 52.6

1-9

10-49

50-249

250+

USA

T&L (EU-7)

51

52

47

60

42

43

52

65

46

15

0 15 30 45 60 75

Retail (EU-7)

NACE 52.12, 52.3, 52.4, 52.5

NACE 52.11, 52.2

NACE 50.5, 52.6

1-9

10-49

50-249

250+

USA

T&L (EU-7)

B.2 Adoption of CRM systems and applications for Warehouse Mangement



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1


ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3

F.1E.1 E.2

D.3




Chart B.3a: % of companies with a Bar coding system

Chart B.3b: % of companies using RFID

59

54

71

58

35

53

66

81

69

0 20 40 60 80 100

Retail (EU-7)

NACE 52.12, 52.3, 52.4, 52.5

NACE 52.11, 52.2

NACE 50.5, 52.6

1-9

10-49

50-249

250+

USA

8

4

14

17

0

2

6

15

15

2

0 10 20 30 40 50

Retail (EU-7)

NACE 52.12, 52.3, 52.4, 52.5

NACE 52.11, 52.2

NACE 50.5, 52.6

1-9

10-49

50-249

250+

USA

T&L (EU-7)

B.3 Adoption of Bar coding systems and RFID



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1


ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3

F.1E.1 E.2

D.3



Survey questions:B7: "Does your company send electronic invoices to customers, for example, in PDF format through email?"B8: "Does your company receive electronic invoices from suppliers, for example, in PDF format through email?“

28

28

25

34

27

22

27

29

39

25

0 10 20 30 40 50

Retail (EU-7)

NACE 52.12, 52.3, 52.4, 52.5

NACE 52.11, 52.2

NACE 50.5, 52.6

1-9

10-49

50-249

250+

USA

T&L (EU-7)

48

52

32

71

43

55

55

55

61

46

0 15 30 45 60 75

Retail (EU-7)

NACE 52.12, 52.3, 52.4, 52.5

NACE 52.11, 52.2

NACE 50.5, 52.6

1-9

10-49

50-249

250+

USA

T&L (EU-7)

C.1 e-Invoicing



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1


ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3

F.1E.1 E.2

D.3

Chart C.2a: % of electronical data exchange Chart C.2b: Share of e-Business processes



Survey questions:B10: “Is data in your company…(a) mostly transmitted verbally; (b) mostly processed and exchanged in paper based format; (c) mostly electronically processed internally, but then exchanged in a paper-based format; (d) mostly processed and exchanged electronically?“; F1: “Would you say that most of your business processes are conducted as e-business, a good deal of them, some, or none?"


26

25

20

15

18

30

35

30

26

25

22

20

25

29

43

22

20

24

29

14

0 20 40 60 80 100

Retail (EU-7)

10-49

50-249

250+

USA

Data exchange: mostly verbal

Data exchange: mostly in paper based format

Data exchange: electronically processed, but exchanged inpaper based formatData exchange: mostly electronically

11

9

9

15

8

20

16

18

22

21

47

46

50

48

44

22

28

24

14

27

0 20 40 60 80 100

Retail (EU-7)

10-49

50-249

250+

USA



eBiz share: none



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1


ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3

F.1E.1 E.2

D.3



Survey questions:B11a: "Has your company ever experienced pressure from customers to adopt e-commerce, which is the sale of products and services over the internet?"B13: "Has your company experienced pressure from suppliers that your ICT solutions or data exchange formats should be adapted to comply with their requirements?"

11

13

9

12

9

8

15

13

14

0 10 20 30 40 50

Retail (EU-7)

NACE 52.12, 52.3, 52.4, 52.5

NACE 52.11, 52.2

NACE 50.5, 52.6

1-9

10-49

50-249

250+

USA

12

13

10

11

10

12

14

13

32

8

0 10 20 30 40 50

Retail (EU-7)

NACE 52.12, 52.3, 52.4, 52.5

NACE 52.11, 52.2

NACE 50.5, 52.6

1-9

10-49

50-249

250+

USA

T&L (EU-7)






Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1


ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3

F.1E.1 E.2

D.3





55

55

60

46

52

63

67

58

70

41

0 20 40 60 80 100

Retail (EU-7)

NACE 52.12, 52.3, 52.4, 52.5

NACE 52.11, 52.2

NACE 50.5, 52.6

1-9

10-49

50-249

250+

USA

T&L (EU-7)

188

3526

14










Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1


ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3

F.1E.1 E.2

D.3





38

37

36

44

26

24

35

45

56

30

0 15 30 45 60 75

Retail (EU-7)

NACE 52.12, 52.3, 52.4, 52.5

NACE 52.11, 52.2

NACE 50.5, 52.6

1-9

10-49

50-249

250+

USA

T&L (EU-7)

19

6

12

16

47










Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1


ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3

F.1E.1 E.2

D.3



Survey questions:A11: "Is your company using secure server technology, for example SSL, TLS or a comparable technical standard?“B9: "Does your company share information on inventory levels electronically with business partners?"

Chart D.3b: % of companies sharing information on inventory levels

Chart D.3a: % of companies using Secure Server Technology (such as SSL or TLS)

48

43

44

77

29

46

49

58

60

30

0 20 40 60 80 100

Retail (EU-7)

NACE 52.12, 52.3, 52.4, 52.5

NACE 52.11, 52.2

NACE 50.5, 52.6

1-9

10-49

50-249

250+

USA

T&L (EU-7)

15

14

17

17

9

16

22

23

32

4

0 10 20 30 40 50

Retail (EU-7)

NACE 52.12, 52.3, 52.4, 52.5

NACE 52.11, 52.2

NACE 50.5, 52.6

1-9

10-49

50-249

250+

USA

T&L (EU-7)

D.3 Use of Secure Server Technology and information sharing



Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1


ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3

F.1E.1 E.2

D.3





23

26

16

20

10

15

32

48

42

8

0 10 20 30 40 50

Retail (EU-7)

NACE 52.12, 52.3, 52.4, 52.5

NACE 52.11, 52.2

NACE 50.5, 52.6

1-9

10-49

50-249

250+

USA

T&L (EU-7)

56

58

53

49

45

59

63

67

45

45

0 15 30 45 60 75

Retail (EU-7)

NACE 52.12, 52.3, 52.4, 52.5

NACE 52.11, 52.2

NACE 50.5, 52.6

1-9

10-49

50-249

250+

USA

T&L (EU-7)





Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1


ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3

F.1E.1 E.2

D.3



Survey questions:E6: "In the forthcoming financial year, do you expect your company’s ICT budget to increase, decrease or will it roughly stay the same?"E9: "Did your company make investments in ICT during the past 12 months, for example for new hardware, software or networks?"

Chart E.2a: ICT budget trend

74

76

68

81

56

69

73

91

54

56

0 20 40 60 80 100

Retail (EU-7)

NACE 52.12, 52.3, 52.4, 52.5

NACE 52.11, 52.2

NACE 50.5, 52.6

1-9

10-49

50-249

250+

USA

T&L (EU-7)

3

58

34

ICT budget increase

ICT budget decrease

ICT budget roughly staythe same





Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1


ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3

F.1E.1 E.2

D.3



Survey questions:D1: "During the past 12 months, has your company launched any new or improved products or services?" ; D2: "Have any of these been directly related to or enabled by ICT?“; D3: "During the past 12 months, has your company introduced any new or improved internal processes?" ; D4: "Have any of these been directly related to or enabled ICT?"

22

27

8

28

13

11

16

29

24 51

30

41

44

25

21

18

36

32

0 15 30 45 60 75

Retail (EU-7)

NACE 52.12, 52.3, 52.4, 52.5

NACE 52.11, 52.2

NACE 50.5, 52.6

1-9

10-49

50-249

250+

USA


Product innovation

36

35

31

55

17

30

40

57

29 42

52

61

68

45

25

38

45

45

0 15 30 45 60 75

Retail (EU-7)

NACE 52.12, 52.3, 52.4, 52.5

NACE 52.11, 52.2

NACE 50.5, 52.6

1-9

10-49

50-249

250+

USA


Process innovation






Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1


ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3

F.1E.1 E.2

D.3



Survey questions:F6: "Do you expect that ICT will have a high impact, medium impact, low impact or no impact on the following business functions in your company in the future? What about ... (a) management and controlling; (b) administration and accounting; (c) marketing and customer services; (d) Logistics?"



29

32

27

20

19

27

25

38

20

19

0 10 20 30 40 50

Retail (EU-7)

NACE 52.12, 52.3, 52.4, 52.5

NACE 52.11, 52.2

NACE 50.5, 52.6

1-9

10-49

50-249

250+

USA

T&L (EU-7)

35

42

21

29

24

40

41

43

22

29

0 10 20 30 40 50

Retail (EU-7)

NACE 52.12, 52.3, 52.4, 52.5

NACE 52.11, 52.2

NACE 50.5, 52.6

1-9

10-49

50-249

250+

USA

T&L (EU-7)




Sector profile

Connection types

A.2A.1

eBusiness systems

B.2B.1

B.4B.3

eMarketing

C.2C.1

C.3

eStandards

D.2D.1


Drivers

G.2G.1


ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.2G.1

A.3

F.1E.1 E.2

D.3




Chart G.2a: % of companies expecting high / medium impact of ICT on marketing and customer services


34

36

27

39

28

36

31

39

31

21

0 15 30 45 60 75

Retail (EU-7)

NACE 52.12, 52.3, 52.4, 52.5

NACE 52.11, 52.2

NACE 50.5, 52.6

1-9

10-49

50-249

250+

USA

T&L (EU-7)

32

34

28

36

17

34

35

49

22

0 15 30 45 60 75

Retail (EU-7)

NACE 52.12, 52.3, 52.4, 52.5

NACE 52.11, 52.2

NACE 50.5, 52.6

1-9

10-49

50-249

250+

USA

G.3 Expected impact on customer services and logistics

TransportChemicals Steel Furniture Retail


Sector profile

A.2A.1 C.1

C.3

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.1

A.3

F.1E.1 E.2

D.3

Sector profile: The transport and logistics services industry

The availability of high quality transport and logistics (T&L) services is of paramount importance for growth and competitiveness of the European economy. Strengthening the competitiveness of the sector itself therefore offers leverage that European and national policy makers could exert to enhance the economy in general. Enhanced use of ICT is a highly relevant tool to achieve this objective.

In a heterogeneous sector such as T&L, ICT applications and their impact differ widely between sub-sectors. In rail and road transport, companies make use of ITS (Intelligent Transport Systems), e-ticketing (in passenger transport) or Fleet Control Systems (in freight transport).

In the logistics sector, the concept of "e-freight" is gaining momentum. It refers to the vision of a paperless electronic exchange of freight transport-related documentation. ICT-based applications that are used by logistics service providers include Automated Warehouse Systems (AWS), Supply Chain Management (SCM), Enterprise Resource Planning (ERP) and Document Management Systems (DMS).

The T&L sector is characterised by a pronounced digital divide between small and large companies. While most of the large service providers use sophisticated systems to manage their - often global - operations, many of the small transport firms are still using hardly any ICT. For example, close to 70% of the large enterprises said in the e-Business Survey 2007 that they used a Warehouse Management System, compared with only about 20% of the small firms (with 10-49 employees). A similar pattern was found for other e-business systems.

The transport & logistics sector covers business activities as specified in NACE Rev. 2, Divisions 49 and 52.

NACE 60.21+23

NACE 60.24NACE 63

Passenger land transport (scheduled/non-scheduled)

Freight transportLogistics (cargo handling, warehousing and

support activities for transportation)

Subsector Share in total freight transport (%)

Share in total passenger transport (%)

Road transport 44 85

Rail transport 10 7

The transport and logistics sector is characterised by a few global players at one end and a multitude of small operators at the other. The sector is a major service provider to many other industries, thus playing an important role in industrial competitiveness as a whole.


Fact Box



Sector profile

A.2A.1 C.1

C.3

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.1

A.3

F.1E.1 E.2

D.3



Survey questions:A.1: "Does your company have access to the internet?"; A3: “What is the maximum bandwidth of your internet connection available for download?”; A.2: “What percentage of your employees have access to the internet at their workplace?”



99

97

98

100

100

100

95

41

29

44

46

51

45

32

0 20 40 60 80 100

TL (EU-7)

1-9

10-49

50-249

250+

USA

Retail (EU-7)


39

34

33

54

55

34

36

33

59

68

0 15 30 45 60 75

TL (EU-7)

NACE 60.21+22+23

NACE 60.24

NACE 63.x

1-9

10-49

50-249

250+

USA

Retail (EU-7)




Sector profile

A.2A.1 C.1

C.3

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.1

A.3

F.1E.1 E.2

D.3





52

49

42

71

23

26

55

77

70

28

0 20 40 60 80 100

TL (EU-7)

NACE 60.21+22+23

NACE 60.24

NACE 63.x

1-9

10-49

50-249

250+

USA

Retail (EU-7)

24

16

20

37

5

9

23

42

31

8

0 10 20 30 40 50

TL (EU-7)

NACE 60.21+22+23

NACE 60.24

NACE 63.x

1-9

10-49

50-249

250+

USA

Retail (EU-7)




Sector profile

A.2A.1 C.1

C.3

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.1

A.3

F.1E.1 E.2

D.3



Survey questions:A5: "Does your company have (b) a Wireless LAN?“A4: "Can employees of your company access your computer system remotely from outside the company, for instance from home, from a hotel or while travelling?


39

35

33

51

20

33

43

52

73

25

0 15 30 45 60 75

TL (EU-7)

NACE 60.21+22+23

NACE 60.24

NACE 63.x

1-9

10-49

50-249

250+

USA

Retail (EU-7)

49

38

47

62

23

32

57

74

73

22

0 15 30 45 60 75

TL (EU-7)

NACE 60.21+22+23

NACE 60.24

NACE 63.x

1-9

10-49

50-249

250+

USA

Retail (EU-7)




Sector profile

A.2A.1 C.1

C.3

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.1

A.3

F.1E.1 E.2

D.3

Chart B.1a: % of companies with an ERP system Chart B.1b: % of companies with an SCM system



Survey questions:A9: "Does your company use any of the following software packages for e-business? (a) an ERP system, that is Enterprise Resource Planning; (b) a Supply Chain Management system; (c) a CRM software system, that is a customer relationship management system; (d) a software application to manage the placing or receipt of orders; (e) a warehouse or depot management system; (f) RFID technology?”

21

16

17

30

6

8

23

41

16

11

0 10 20 30 40 50

TL (EU-7)

NACE 60.21+22+23

NACE 60.24

NACE 63.x

1-9

10-49

50-249

250+

USA

Retail (EU-7)

21

5

17

41

6

8

16

36

13

6

0 10 20 30 40 50

TL (EU-7)

NACE 60.21+22+23

NACE 60.24

NACE 63.x

1-9

10-49

50-249

250+

USA

Retail (EU-7)

B.1 Adoption of ERP and SCM systems



Sector profile

A.2A.1 C.1

C.3

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.1

A.3

F.1E.1 E.2

D.3

Chart B.2a: % of companies with a CRM system Chart B.2b: % of companies with an application for Warehouse Management




17

17

15

21

10

10

22

26

16

10

0 10 20 30 40 50

TL (EU-7)

NACE 60.21+22+23

NACE 60.24

NACE 63.x

1-9

10-49

50-249

250+

USA

Retail (EU-7)

42

42

33

59

13

22

45

69

41

42

0 15 30 45 60 75

TL (EU-7)

NACE 60.21+22+23

NACE 60.24

NACE 63.x

1-9

10-49

50-249

250+

USA

Retail (EU-7)

B.2 Adoption of CRM systems and applications for Warehouse Mangement



Sector profile

A.2A.1 C.1

C.3

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.1

A.3

F.1E.1 E.2

D.3

Chart B.3a: % of companies using RFID

13

12

12

14

2

5

7

24

20

8

0 10 20 30 40 50

TL (EU-7)

NACE 60.21+22+23

NACE 60.24

NACE 63.x

1-9

10-49

50-249

250+

USA

Retail (EU-7)

B.3 Adoption of RFIDBase: All enterprises; EU-7 (DE, ES, FR, IT, PL, SE, UK) and USA; N=1097 (total).





Sector profile

A.2A.1 C.1

C.3

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.1

A.3

F.1E.1 E.2

D.3



Survey questions:B7: "Does your company send electronic invoices to customers, for example, in PDF format through email?"B8: "Does your company receive electronic invoices from suppliers, for example, in PDF format through email?“

33

26

26

52

24

28

38

39

65

27

0 15 30 45 60 75

TL (EU-7)

NACE 60.21+22+23

NACE 60.24

NACE 63.x

1-9

10-49

50-249

250+

USA

Retail (EU-7)

55

54

48

66

45

53

63

56

64

44

0 15 30 45 60 75

TL (EU-7)

NACE 60.21+22+23

NACE 60.24

NACE 63.x

1-9

10-49

50-249

250+

USA

Retail (EU-7)

C.1 e-Invoicing



Sector profile

A.2A.1 C.1

C.3

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.1

A.3

F.1E.1 E.2

D.3

10

5

11

11

6

23

21

23

28

17

41

41

40

43

49

25

33

26

18

28

0 20 40 60 80 100

TL (EU-7)

10-49

50-249

250+

USA



eBiz share: none



Survey questions:B10: “Is data in your company (a) mostly transmitted verbally; (b) mostly processed and exchanged in paper based format; (c) mostly electronically processed internally, but then exchanged in a paper-based format; (d) mostly processed and exchanged electronically?“, F1: “Would you say that most of your business processes are conducted as e-business, a good deal of them, some, or none?"


26

31

18

16

31

36

40

30

35

16

15

15

26

18

28

23

14

26

31

25

0 20 40 60 80 100

TL (EU-7)

10-49

50-249

250+

USA

Data exchange: mostly verbal

Data exchange: mostly in paper based format

Data exchange: electronically processed, but exchanged inpaper based formatData exchange: mostly electronically



Sector profile

A.2A.1 C.1

C.3

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.1

A.3

F.1E.1 E.2

D.3



Survey questions:B11a: "Has your company ever experienced pressure from customers to adopt e-commerce, which is the sale of products and services over the internet?"B13: "Has your company experienced pressure from suppliers that your ICT solutions or data exchange formats should be adapted to comply with their requirements?"

14

8

12

24

9

4

16

19

11

10

0 10 20 30 40 50

TL (EU-7)

NACE 60.21+22+23

NACE 60.24

NACE 63.x

1-9

10-49

50-249

250+

USA

Retail (EU-7)

C.3 Impact of suppliers on e-business




Sector profile

A.2A.1 C.1

C.3

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.1

A.3

F.1E.1 E.2

D.3





58

50

56

67

39

53

61

75

68

52

0 20 40 60 80 100

TL (EU-7)

NACE 60.21+22+23

NACE 60.24

NACE 63.x

1-9

10-49

50-249

250+

USA

Retail (EU-7)

15

1654

8

7










Sector profile

A.2A.1 C.1

C.3

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.1

A.3

F.1E.1 E.2

D.3





35

40

28

43

30

33

39

36

38

26

0 15 30 45 60 75

TL (EU-7)

NACE 60.21+22+23

NACE 60.24

NACE 63.x

1-9

10-49

50-249

250+

USA

Retail (EU-7)

19

13

12

15

42










Sector profile

A.2A.1 C.1

C.3

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.1

A.3

F.1E.1 E.2

D.3



Survey questions:A11: "Is your company using secure server technology, for example SSL, TLS or a comparable technical standard?“B9: "Does your company share information on inventory levels electronically with business partners?"

Chart D.3b: % of companies sharing information on inventory levels

Chart D.3a: % of companies using Secure Server Technology (such as SSL or TLS)

48

46

32

70

29

31

43

58

65

31

0 20 40 60 80 100

TL (EU-7)

NACE 60.21+22+23

NACE 60.24

NACE 63.x

1-9

10-49

50-249

250+

USA

Retail (EU-7)

19

4

19

32

3

8

22

38

29

10

0 10 20 30 40 50

TL (EU-7)

NACE 60.21+22+23

NACE 60.24

NACE 63.x

1-9

10-49

50-249

250+

USA

Retail (EU-7)

D.3 Use of Secure Server Technology and information sharing



Sector profile

A.2A.1 C.1

C.3

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.1

A.3

F.1E.1 E.2

D.3





35

45

25

46

7

9

33

14

11

0 10 20 30 40 50

TL (EU-7)

NACE 60.21+22+23

NACE 60.24

NACE 63.x

1-9

10-49

50-249

250+

USA

Retail (EU-7)

56

56

50

65

43

51

72

66

38

46

0 15 30 45 60 75

TL (EU-7)

NACE 60.21+22+23

NACE 60.24

NACE 63.x

1-9

10-49

50-249

250+

USA

Retail (EU-7)





Sector profile

A.2A.1 C.1

C.3

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.1

A.3

F.1E.1 E.2

D.3



Survey questions:E6: "In the forthcoming financial year, do you expect your company’s ICT budget to increase, decrease or will it roughly stay the same?"E9: "Did your company make investments in ICT during the past 12 months, for example for new hardware, software or networks?"

Chart E.2a: ICT budget trend

359

33ICT budget increase

ICT budget decrease

ICT budget roughly staythe same

76

76

72

82

55

63

81

92

54

57

0 20 40 60 80 100

TL (EU-7)

NACE 60.21+22+23

NACE 60.24

NACE 63.x

1-9

10-49

50-249

250+

USA

Retail (EU-7)





Sector profile

A.2A.1 C.1

C.3

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.1

A.3

F.1E.1 E.2

D.3



Survey questions:D1: "During the past 12 months, has your company launched any new or improved products or services?“, D2: "Have any of these been directly related to or enabled by ICT?“, D3: "During the past 12 months, has your company introduced any new or improved internal processes?“, D4: "Have any of these been directly related to or enabled ICT?"

19

9

17

29

7

10

19

35

15

25

23

20

12

17

38

34

25

20

0 10 20 30 40 50

TL (EU-7)

NACE 60.21+22+23

NACE 60.24

NACE 63.x

1-9

10-49

50-249

250+

USA


Product innovation

32

25

26

48

13

21

39

52

22 32

52

63

65

36

20

36

31

43

0 15 30 45 60 75

TL (EU-7)

NACE 60.21+22+23

NACE 60.24

NACE 63.x

1-9

10-49

50-249

250+

USA


Process innovation






Sector profile

A.2A.1 C.1

C.3

ICT networks

A.2A.1

Software systems

B.2B.1

B.3


C.2C.1

C.3

e-Commerce

D.2D.1


Innovation & trends

ICT impacts

G.1

A.3

F.1E.1 E.2

D.3





Chart G.1b: % of companies expecting high / medium impact of ICT on marketing and customer services

39

30

42

39

29

28

39

50

23

25

0 10 20 30 40 50

TL (EU-7)

NACE 60.21+22+23

NACE 60.24

NACE 63.x

1-9

10-49

50-249

250+

USA

Retail (EU-7)

25

21

23

31

20

22

30

31

13

29

0 10 20 30 40 50

TL (EU-7)

NACE 60.21+22+23

NACE 60.24

NACE 63.x

1-9

10-49

50-249

250+

USA

Retail (EU-7)

G.1 Expected impact on administration and marketing



Methodology I

Background and scope

The Sectoral e-Business Watch collects data relating to the use of ICT and e-business in European enterprises by means of representative surveys. The e-Business Survey 2007, which was the fifth survey after those of 2002, 2003, 2005 and 2006, had a scope of 5,486 telephone interviews with decision-makers from five industry sectors in nine EU countries and the USA.

Interviews were carried out from August to October 2007, using computer-aided telephone interview (CATI) technology. The overall survey was divided into four separate projects (each with a different questionnaire), which focused on different sectors and specific topics. This chart report summarises the results of Projects 1 and 2, which comprised the chemicals, rubber and plastic industry, the steel sector and the furniture sector (aggregated under Project 1 ‘Manufacturing’) and the Retail and Transport & Logistics sector (Project 2 ‘Retail and transport’). The interviews conducted in these five sectors accounted for 4,369 of all interviews.

The questionnaires of all e-Business Watch surveys since 2002 can be downloaded from the project website (www.ebusiness-watch.org/about/methodology.htm).

Sampling frame and method

The sample drawn (for each sector) was a random sample of companies from the respective sector population in each of the countries, with the objective of fulfilling minimum strata with respect to company size-bands per country-sector cell (see Exhibit).

The survey was carried out as an enterprise survey: data collection and reporting focus on the enterprise, defined as a business organisation (legal unit) with one or more establishments. Due to the small population of enterprises in some of the sector-country cells, target quota could not be achieved (particularly in the larger enterprise size-bands) in all sectors and countries.

Size-bandTarget quota specified

Manufacturing Retail & transport

Micro enterprises (up to 9 employees) -- up to 30%

Small companies (10-49 employees) up to 40-50% at least 30%

Medium-sized companies (50-250 employees)

at least 40-45% at least 25%

Large companies (250+ employees) at least 10-15% at least 15%



Methodology II

Population

As in 2005 and 2006, the survey considered only companies that used computers. For the first time, a cut-off was introduced with regard to company size: in Project 1 (manufacturing), only companies with at least 10 employees were interviewed. In Project 2, the population also included micro-companies with fewer than 10 employees, reflecting the high importance of micro companies in retail and transport services. Therefore, sector totals are not directly comparable between the two projects.

The highest level of the population was the set of all computer-using enterprises (and, in Project 1, with at least 10 employees) which were active within the national territory of one of the eight countries covered, and which had their primary business activity in one of the five sectors specified on the basis of NACE Rev. 1.1. Evidence from previous surveys shows that computer use can be expected to be 99% or more in all sectors among medium-sized and large firms.

No. Sector name NACE Rev. 1.1 activities covered

Population definition

No. of interviews conducted

Project 1 – Manufacturing

1.1 Chemicals, rubber & plastics

24, 25Companies which have at least 10 employees and use computers

911

1.2 Steel 27.1-3, 27.51-52 449

1.3 Furniture 36.12-14 761

Project 2 – Retail and transport

2.1 Retail 52

Companies that use computers

1,151

2.2 Transport services and logistics

60.10, 60.21+23+24 63.11+12+40

1,097



Methodology III

Fieldwork

Fieldwork was coordinated by the German branch of Ipsos GmbH (www.ipsos.de) and conducted in cooperation with its local partner organisations.

The two sector surveys had a total scope of 4,369 interviews, spread across eight countries and five industries. In each of the eight countries, all five sectors were covered. The target was to spread interviews as even as possible across sectors; however, due to the comparatively small population of companies in the steel and (in some countries) in the furniture industries, some interviews had to be moved, either between countries (within a sector) or between sectors (i.e. from steel or furniture to larger sectors, notably to the retail industry). The table shows the final distribution of interviews across sectors and countries.

Sector

Country DE ES FR IT PL SE UK USA Total

Project 1 – Total 305 290 235 303 254 170 264 300 2,121

1.1 Chemical 100 120 135 105 120 105 126 100 911

1.2 Steel 100 50 20 87 24 30 38 100 449

1.3 Furniture 105 120 80 111 110 35 100 100 761

Project 2 – Total 250 259 316 250 292 372 284 225 2,248

2.1 Retail 120 131 166 126 151 184 148 125 1,151

2.2 Transport 130 128 150 124 141 188 136 100 1,097



Methodology IV

Weighting schemes

Due to stratified sampling, the sample size in each size-band is not proportional to the population numbers. If proportional allocation had been used, the sample sizes in the 250+ size-band would have been extremely small, not allowing any reasonable presentation of results. Thus, weighting is required so that results adequately reflect the structure and distribution of enterprises in the population of the respective sector or geographic area. The Sectoral e-Business Watch applies two different weighting schemes: weighting by employment and by the number of enterprises :

• Values that are reported as weighted by employment should be read as "enterprises comprising x% of employees". The reason for using employment weighting is that there are many more micro and small enterprises than others. Unweighted figures would therefore effectively represent mainly the smallest sizes of firm.

• Values that are reported as enterprise-weighted figures are to be read as "x% of enterprises", reflecting the number of enterprises as legal entities but not their relative economic importance in terms of employment.

Statistical accuracy

A 'confidence interval' is a measure that helps to assess the accuracy that can be expected from data. The confidence interval is the estimated range of values on a certain level of significance.

The confidence intervals for industry totals (EU-7) differ considerably depending on the industry and the respective value; on average, it is about +/- 5 percentage points (in both weighting schemes). Differences lying within these intervals should not be emphasised.

Confidence intervals are highest for the steel industry, due to the small number of observations. Data for this industry are therefore indicative.

More information

For more information, please visit www.ebusiness-watch.org/about/methodology.htm.

Questionnaires, as well as comprehensive methodology reports are available for download.