In the past couple of hours I've received a number of messages that indicate they
are up to about ten days old.
The SMTP headers originally on the message below seem to indicate that
mail.bizserve.com received this message on 27 December 1999 and just forwarded it
on.
Anyone know what's up?
Thanks,
Jack Glazko
[EMAIL PROTECTED]
Alan Kotok wrote:
> TO: XML/EDI Group:
>
> Last week, Boston Consulting Group released a study on the size and scope
> of business data exchange that includes EDI. Results are interesting; see
> below.
>
> Alan Kotok
> [EMAIL PROTECTED]
> +1 703-518-4174
>
> ============================
>
> BUSINESS-TO-BUSINESS E-COMMERCE
> Online penetration and projected growth higher than current estimates
>
> Toronto/Boston December 21, 1999 - One-fourth of all U.S.
> business-to-business purchasing will be done online by 2003, predicts a new
> study of the business-to-business e-commerce market by The Boston
> Consulting Group (BCG). In research released today, BCG estimates that
> between 1998 and 2003, U.S. business-to-business e-commerce will grow by
> 33% per year and reach $2.8 trillion in transaction value.
>
> "In 1998, U.S. business-to-business e-commerce was $671 billion, comprising
> $92 billion in Internet-based transactions and $579 billion in transactions
> using Electronic Data Interchange (EDI) over private networks," says BCG
> Senior Vice President David Pecaut, who co-heads the firm's global
> e-commerce practice. "By 2003, the transaction value of
> business-to-business e-commerce over the Internet will be $2.0 trillion,
> and an additional $780
> billion in purchases will be made over private networks using EDI."
>
> US Market Size and Growth
>
> BCG's research shows that the size of the business-to-business e-commerce
> market is far greater than is commonly reported, in part because it
> recognizes the established base of Electronic Data Interchange (EDI) over
> private networks and its extensions to the Internet. While EDI over private
> networks represented the lion's share of 1998 volume (86%), nearly all of
> the additional volume in 2003 (90%, or $2.0 trillion) will be
> Internet-based transactions.
> BCG predicts that business-to-business e-commerce will account for 24% of
> total business-to-business commerce by 2003.
>
> BCG Vice President Andy Blackburn notes, "BCG developed this forecast by
> focusing on the total purchasing process. We counted all of the
> intermediate transactions in the supply chain, and considered direct and
> indirect purchases separately to accurately reflect adoption rates. The
> result is much higher penetration than had been previously understood."
>
> Global Business-to-Business E-Commerce
>
> While business-to-business e-commerce is a global phenomenon, the North
> American market currently dominates. The $700 billion North American market
> is twice the size of business-to-business e-commerce in the rest of the
> world combined ($330 billion).
>
> North America will likely retain its significant lead over the next few
> years, but the global dynamics of business-to-business e-commerce will
> shift. In Western Europe, which lags 18 months behind North America in
> business-to-business e-commerce adoption, several countries have
> accelerated their e-commerce investments and will significantly close this gap.
>
> Asia and Latin America remain further behind, but this may change rapidly
> as global supply chains go online. For local suppliers in local markets,
> business-to-business e-commerce presents significant growth opportunities,
> as they expand their networks and customer bases by accessing new export
> markets.
>
> Growth will be strong in every market:
>
> In North America e-commerce penetration will triple from 7% to
> 24%. In Western Europe it will grow from 3% to 11%. In Asia Pacific it
> will grow from 2% to 9%. Latin America will move from 2% to 7%.
>
> By 2003, North America will reach $3.0 trillion in business-to-business
> e-commerce and the rest of the world will reach $1.8 trillion.
>
> U.S. Industry Highlights
>
> By 2003, over 65% of all business-to-business e-commerce purchases will be
> made by six sectors - retail, motor vehicles, shipping, industrial
> equipment, high tech, and government. Cost savings, rather than
> strategic opportunities, will drive most of the initial adoption.
> Companies which have moved aggressively into business-to-business
> e-commerce report cost savings on materials of up to 15%. Reported
> transaction cost savings alone, in the purchase and ownership of indirect
> materials, could reach almost 65% as buyers' internal purchasing and record
> keeping processes are simplified.
>
> BACKGROUNDER: SIZING THE INTERNET MARKET
>
> BCG's methodology for estimating the size and growth of
> business-to-business e-commerce is distinctive in several ways:
>
> BCG's methodology relies on usage, rather than the number of network
> connections, as a more meaningful metric for estimating size and
> growth. BCG's definition of business-to-business e-commerce includes
> Electronic Data Interchange (EDI) over proprietary networks, EDI over the
> Internet, and pure Internet transactions to arrive
> at total market size estimates.
>
> Internet activities, such as information gathering that influences
> offline purchases, were not included. Non-sales related transactions, such
> as e-mail exchanges of proposed product specifications and drawings, are
> important business facilitators, but do not result directly in a commercial
> transaction. BCG's estimates also exclude purchases of financial capital,
> labor and benefits such as health insurance, all of which are migrating
> online.
>
> Rather than focusing on the final sale value, BCG's model reflects the
> fact that, unlike in the business-to-consumer market, inputs are often sold
> several times before the final sale. Each industry has different ratios of
> total to net transaction value. BCG used total, not net commerce figures
> and built up these values industry-to-industry.
>
> BCG focused on penetration from the buyer's perspective. BCG used
> in-depth interviews in all major industries to understand the buying
> behavior and the sources of real benefit to purchasing organizations. BCG
> then modeled, industry-by-industry, the adoption rate for purchases of
> direct and indirect goods.
>
> For sizing global markets, BCG built from the usage-based methodology
> for the U.S. and extended it to Canada, Europe, Asia, and Latin America,
> based on case studies, interviews, and estimates of lag rates from the U.S.
>
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