ICT usage in enterprises, 1999

In 1999 8 per cent of the enterprises with at least ten employees and access to the Internet, had turnover from orders received through the Internet. This is an increase from 1998, when 5 per cent of the enterprises had turnover from the Internet. According to the enterprises plans the share is expected to rise this year, and will reach 15 per cent during year 2000.

66 per cent of Norwegian enterprises with 10 or more persons employed had access to the Internet by the end of 1999. Another 11 per cent of the enterprises are planning to link up to the Internet in 2000.

For the most part orders received through the Internet in 1999 came from customers located in Norway, but 26 per cent of the enterprises stated that they also received orders from abroad. 28 per cent of the enterprises expect to receive orders from abroad during this year.

The share of enterprises with orders received through the Internet is highest within the hotel and restaurant industry. Within this industry some 14 per cent of the enterprises with access to the Internet had turnover from electronic commerce during 1999. Banking and finance is second with 13 per cent. At the opposite end of the scale, we find construction with 4 per cent and retail trade with 5 per cent.

For the enterprises with access to Internet the share with turnover from electronic commerce vary very little by enterprise size. In 1999 10 per cent of the enterprises with more than 100 employees had turnover from e-commerce, while the share for enterprises with 10 to 19 employees was at 8 per cent.

Low turnover shares from Internet

Turnover originating from orders received on the Internet was relatively low compared to total turnover in 1999. For almost half of the enterprises with Internet commerce, the turnover share amounted to only 1-2 per cent of the enterprises total turnover. For 69 per cent of the enterprises with e-commerce in 1999, the e-commerce shares amounted to less than 10 per cent of the enterprises total turnover. A turnover share of 25 per cent or more, was reported by only 8 per cent of the enterprises in 1999.

The survey also shows that 13 per cent of the enterprises that had Internet turnover in 1999 also received payment through the Internet. More enterprises expect to use this form of transaction in year 2000, and according to plan some 23 per cent will receive payment for goods and services through Internet this year.

Business-to-business is important

Enterprises with turnover from electronic commerce during last year, were also asked to report the importance of different customer groups. There are 34 per cent of the enterprises reporting that other enterprises are the most important customer group, while 29 per cent report that private consumers are of great importance. Following thereafter are public institutions and other organisations with 20 and 14 per cent respectively.

Improved customer service and flexibility

The survey also asked for factors of importance for the enterprise activities concerning electronic commerce. The most important motivation was to yield better customer service and achieving improved flexibility. 57 per cent of the enterprises that had e-commerce in 1999 state that this factor was of great importance. Opportunities to reach more/new customers, together with the aim not to loose market shares to other companies already using electronic commerce, were also important factors. 49 and 44 per cent respectively state that these factors were important to the enterprise e-commerce strategy. Gaining access to new suppliers was reported of importance by only 17 per cent of the enterprises.

Goods not suited for Internet sales the biggest barrier

Among enterprises with no turnover from Internet in 1999, the most important barrier was that the goods/services of the enterprise were not suited for Internet sales. Of the enterprises with no Internet sales in 1999, 27 per cent state that this barrier was important. Other barriers are too small customer potential and that the opportunities to yield service to the customer are poorer. 16 and 15 per cent respectively report these barriers as being of great importance for the e-commerce strategy. The barrier least frequently reported is expense due to internal readjustments, 8 per cent report this important.

Access to Internet and the general use of homepages on the Internet by enterprises were also covered in this survey. Results were published in separate articles 29 February and 7 March.

Tables:

• Table 1 The relative number of Internet turnover among enterprices that have e-commerce. 1998-2000. Per cent of enterprises with e-commerce
• Table 2 Different customer groups importance to enterprises with e-commerce. 1999. Per cent of enterprises with e-commerce
• Table 3 Factors with importance for the enterprises e-commerce activites. 1999. Per cent of enterprises with e-commerce
• Table 4 Barriers importance for current and future electronic commerce. 1999. Per cent of enterprises without e-commerce