Study: Internet Reduces Industrial Equipment Manufacturer's Costs

Compiled By Deborah Austin Brick-and-mortar industrial equipment manufacturers could reduce costs up to 6% across their value chains by using the Internet's full potential -- achieving e-sales growth of 8% to 10% -- says the recent study "eTransform IndustrialEquipment" by Roland Berger Strategy Consultants. Only 15% of the industry uses eTransformation's full potential, says the study. It identifies four current e-business implementation levels:

  • Information Provider -- more than 50% of companies surveyed -- using the Web as limited-interaction marketing tool.
  • Breaker of Rules -- 35% -- using the Web for business or customer transactions.
  • Company-wide eTransformer -- 15% -- fundamentally transforming key processes along the value chain to efficiently use Web-based applications' benefits.
  • Virtual Champion -- very few -- completely redefining business models to create innovative revenue streams using the Web.
Roland Berger is headquartered in Munich, Germany.
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