E-business Applications Must Start to Deliver Real Value Says Survey

Managers Want to Invest but Still Don't Trust Technology

20 May 2003 - The market is ready and willing to put its money into e-business applications - but is still not confident that the technology is giving good value, according to a Vanson Bourne survey.

The study found that e-business was the number one IT investment priority for the first half of 2003, despite the current economic climate. An average of 68 per cent (74 per cent in larger organisations) of 100 IT managers surveyed said they were looking at the implementation of new web-related projects during this time - far more than were considering investing in CRM, ERP or supply chain management.

However, those surveyed agreed that web technologies must start delivering payback. Only 18 per cent of IT managers thought that current e-business projects were showing good return on investment. This number dropped to 8 per cent in the finance sector and, when smaller companies were questioned, it plummeted to 0 per cent.

This begs the question - why is e-business still failing to deliver? Post-relational database provider InterSystems says one of the main reasons is that some developers are still using outdated technologies, rather than taking advantage of the new breed especially designed for the tough demands of web applications.

"We're not at all surprised by the survey results," says InterSystems UK manager director, Graham Frost. "Web applications demand ultra-fast performance and extensive scalability and many traditional technologies are just not up to the job."

"In database and application development technology, our specialist field, we see many examples where budgets are being wasted and applications are simply not delivering as promised, all for want of the right technologies." says Frost.

Frost concludes: "IT managers contemplating e-business projects in the next few months should ensure that the technologies used have been optimised for the Internet. This ensures that complex web applications can be developed in less time, contributing to faster ROI and continuing revenue generation from their projects."

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