MILAN, Italy, August 1, 2002 -According to a recent report from IDC, market liberalization is the single major trend driving the implementation of ebusiness projects in the Western European utility sector. While differences remain between countries with long traditions in deregulation and those without, utilities throughout Western Europe show a significant propensity for investing in IT projects that meet short-term objectives and guarantee a quantifiable return on investment.
"European utilities are developing ebusiness strategies driven by the need to adapt to market competition. The degree of market opening is directly related to the IT sophistication of utility organizations. Utility companies operating in the more liberalized European energy markets -such as the UK, Germany and the Nordics - have progressed their ebusiness strategies beyond those operating in countries at an early stage of deregulation," said Claudia Lonardi, Research Analyst with the European Vertical Markets group.
IDC expects organizations in the utility sector to gradually increase their interest in IT solutions that help to enhance their relations with both suppliers (eprocurement, emarkeplaces) and customers (customer facing systems).
Electronic procurement is generally limited to the purchase of mainly indirect goods and services via online catalogues. There is a growing trend, however, towards the use of more sophisticated procurement solutions that are integrated with the company's back-end system.
In the customer-facing area, although investments by utilities are still generally behind those seen in other industries, such as finance and communications, there has been a strong activity in the creation of Web sites targeted at clients with the objective of establishing an extra communications and customer care channel. However, utilities are still lagging other industries in the adoption of solutions that support integrated CRM strategies.
A key issue that emerges from the case studies included in this report is the integration of legacy systems with newly implemented eprocurement or customer-facing applications. One of the prerequisites for the effective implementation of ebusiness in general demands the availability of an IT platform that is highly integrated and up to date.
eBusiness In Utilities: Best Practices in eProcurement and Customer-Facing Systems (IDC #PT02J) focuses on significant case studies of utilities that have implemented electronic procurement and customer-facing solutions in support of their business strategies. The main benefits and issues faced by these companies when developing their IT projects are identified and analyzed. This report is available to purchase from your local IDC office.
About IDC
IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at www.idc.com.
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For more information, contact:
Claudia Lonardi
+44 20 8987 7225
clonardi@idc.com
Explore new economic landscapes, technology solutions, and strategies for IT investments at IDC's European IT Forum.
Date: September 16-17, 2002
Location: Grimaldi Forum, Monaco
For more information, visit http://www.idc.com/itforum02.