Lost That Lovin' Feelin'

Yankee Group reports that corporate managers have lack-luster view of Web importance

Boston  September 5, 2001  All major periods of hype are followed by a backlash. Welcome to the Anti-Internet Revolution.

The dot-com fallout and the current economic slump are two of the major factors contributing to this backlash, according to the recently released Yankee Group Report, Doing Business on the Internet: Where Are We Today? A survey conducted for this report reveals that corporate managers are viewing the Web quite differently than last year. More specifically, the survey reported that the number of Web strategists who believe management does not consider the Web important to their company's business strategy doubled during the past year. The inability to measure site success was cited as the top reason why the Web isn't important to business objectives.

"Today, corporate executives want proof that online investments pay off and Web site [return on investment] is not just a fantasy. To address this issue, companies must incorporate measurement into Internet strategies, whether it be measuring traffic and usage, marketing campaigns, or internal efficiencies gained from using the site as a new channel," said Lisa Melsted, analyst, Internet market strategies.

In addition to the challenges of measuring site ROI, the survey also revealed:

§         Site traffic is still driven by primarily offline methods.

§         e-Commerce functionality will grow over the next 12 months.

§         Nearly 50 percent of companies surveyed do not offer online customer support.

§         Integration of next-generation technologies, such as multimedia or XML, into Web sites is limited.

The Report recommends strategies to address management skepticism regarding the Web, reveals implications that the survey has for several vertical markets, and is based on the Yankee Group's annual Doing Business on the Internet Survey of Web strategists at approximately 200 mid- to large-sized U.S. companies. The survey identifies trends and issues in Internet business and e-commerce strategies as well as Web site features and functionality.

To find out more about this Yankee Group report, go to www.yankeegroup.com.