Internet is still a prudent investment

`E or be eaten" is a scare-tactic phrase that has hit the business world, urging businesses to get into e-commerce

`E or be eaten" is a scare-tactic phrase that has hit the business world, urging businesses to get into e-commerce. A Web-presence, it is argued, is now a vital part of operating any business but in Ireland figures from some surveys indicate business Internet connectivity is low.

A survey of Irish business Internet connectivity published in the Irish Banking Review in June found that e-mail use and website ownership was very low. Only 8 per cent of the 127,900 businesses surveyed in the Republic had an e-mail address and just 4.3 per cent had their own websites.

Earlier this month a Bank of Ireland commissioned survey of 200,000 businesses found that less than 5 per cent of businesses in Ireland had websites and fewer than 10 per cent could receive email.

The lowest levels of connectivity were found in retail and distribution, and in the hospitality, leisure and recreation sectors. Higher rates were recorded among the newer, knowledge-based sectors.

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Other surveys, however, portray a healthier picture - Mr Mike Fagan manager of the IEDR (IE Domain Registry), which recently passed the 19,000 mark, said that in a "straw poll" of the top 5,000 companies, upwards of 90 per cent had their own e-mail addresses and 70 per cent had their own domain names.

Some 70-75 per cent of companies "appear to have websites of one kind or other", he added. The figures for companies outside the top 5,000 with websites drop dramatically.

An Information Society Commission survey published in September, showed that 77 per cent of Irish businesses had websites but engagement with ecommerce remained low. The primary reasons for having a website were advertising and marketing (77 per cent) and information distribution (40 per cent). Just 20 per cent of companies with websites cited business communications or on-line sales as among the reasons for having a website.

Ms Sile de Burca from the Information Society Commission warns that any business without an e-commerce strategy, "is in serious danger and will be left behind".

"There would be a general sense amongst the main organisations that awareness is high about the Internet, e-business and e-commerce." However, smaller organisations mainly wouldn't realise how relevant it is to them.

This is a problem for indigenous SMEs, whereas the multinationals and big companies in Ireland, she says, are all very clued into e-commerce and have their strategies in place.

Superquinn is one of these "big companies" that has definitely gained from implementing an online shopping option on shopping portal Buy4Now.ie. It has attracted additional revenue and visitors that would not have shopped with Superquinn before. Director Mr Frank Murphy says that business is growing at a very good pace and increasing steadily.

Mr Jim Curran, head of research at ISME says we have gone through the awareness stage with regard to e-commerce; the next stage is actually highlighting the benefits of using the websites efficiently and sufficiently to promote products and services. He believes there should be more awareness about the benefits of a website.

"Companies should be aware of how to actually market their website. In other words there is no point having a website there if nobody knows it is there and it is not used for the reasons it should be."

The Chambers of Commerce of Ireland e-commerce projects manager, Ms Karen Hynes, says that having a website is important for any SME that would like to expand its market base. For those who would like to move from trading locally to nationally or internationally it is a very cost-effective way to reach a whole new market area.

"From a marketing aspect it's very important. Increasingly a lot of the larger suppliers and large companies as well are expecting smaller companies to be on-line and have some sort of Web presence. It improves the image of a company as well, that they are dynamic, that they are aware of the new technologies, the advantages and opportunities that it has to offer."

It is not recommended that companies go and spend a fortune on a website. It is something they have to research and plan in stages, says Ms Hynes. "E or be eaten," Ms Hynes says, is scare mongering and can make businesses rush into creating their on-line presence when it should be planned carefully.

Mr Frank Cronin, CEO of the Irish Internet Association, believes nowadays "it's particularly embarrassing for a company not to have e-mail or a Web-presence".

A Web presence is very useful for prospective clients and is a good way of vetting a company, he says. It is also a sales tool and ideal for extending a company's reach. A Web presence "helps smaller players compete". A slick site can polish up a company's image and make a small company look bigger than it is. A website is for life, he insists, and has to be updated regularly. "It's a good way of focusing a company's direction."

According to Mr Cronin there are three key aspects to a successful website: fresh and relevant content; a valid reason to return; and accurate information."