Firms shy about doing business online

By ADAM GIFFORD

More New Zealand companies now have websites, but the number taking orders and transactions on their sites is relatively low.

This is one of the findings of a Waikato Management School study on e-business adoption. It is part of a wider study on the impact of information and communication technology.

Associate Professor Delwyn Clark, a study co-author, said the number of firms with websites had increased 8.8 per cent to 63.4 per cent compared with a year ago.

Most sites provided lists of products and services, and 68 per cent had company data.

"However, when we looked at what people are actually doing with those sites, only about one in five sites can take orders and only one in 12 can take payments online," Clark said.

"Those are the basics for working online and the percentages haven't really changed since last year."

Firms doing electronic commerce had tempered their optimism. In last year's survey, they expected a 15 per cent increase in website sales or buying. Those targets were not met and they were now predicting about 11 per cent growth.

"In terms of motives for initiating e-business, the ones that have increased are all to do with efficiency, streamlining business processes and reducing costs."

There is a big difference between what companies with and without websites rate as challenges. Companies with websites said what stopped them doing more online was low customer use of e-commerce and the high cost of computing and networking technology.

Companies without sites said they were not sure where the return would be on their investment, and whether they had the resources to run a site.

"The interesting thing is there has been almost no uptake of the initiatives the Government has in place for e-business," Clark said.

"Only 2 per cent considered using Government advisers or the BIZInfo service."

Information and Communication Technology research project