 
Continued…
The study sums that companies should
not be deceived by the current climate of gloom and uncertainty. In trial there
is opportunity and in quiet, time. Companies should seize the lull to define
their strategies, understand the Internet and determine how it can be leveraged
to deliver unique competitive advantage. This is the ideal time to invest,
build and develop new capabilities and products.
The report also maps out the landscape where a number of factors
contribute to the region’s high potential for eCommerce initiatives. Firstly,
the vast, yet mostly untapped markets see an unrelenting surge in Internet
users for individual countries. Secondly, mobile phone usage is increasing
exponentially, paving the way for cutting-edge opportunities for mCommerce; and
thirdly, Asia’s key role as a factory of the world creates ample opportunities
for the region to reap large gains resulting from the online migration of
suppliers and back-end manufacturing processes.
However, Asia is found to be a region existing in a state of flux with
eCommerce capabilities varying widely across companies. This indication
underscores the hesitant steps taken by companies in embarking on eCommerce
initiatives. Whilst many see the value of engaging in eCommerce, most are
complacent with using the Internet for customer interaction, relegating
priorities on other efforts such as back-office streamlining or supply-chain
management. Survey respondents added that barriers to eCommerce went beyond
technological complexities to include the reluctance by management and
employees to change working habits and attitudes.
Fortunately, respondents regarded change to be selective. Guanxi is
expected to remain in some form. The traditional middleman system will also
continue to exist as a bastion of Asian business, become more nimble and
competitive. Another bolster to eCommerce is its expected increase in usage in
back-office areas such as purchasing and logistics in the near future.
Encouraging findings further point to successful companies pursuing
collaborative efforts across the supply chain to improve their effectiveness in
areas such as product design, forecasting, scheduling, inventory management and
purchasing.
Asia also shows remarkable potential to be a pioneer in the realm of
mobile technologies. Mobile phones and wireless applications in Asia will
significantly drive mCommerce and wireless revenues in the near future as their
usage surpasses that of other parts of the world.
In light of these opportunities, survey respondents are preparing
themselves for greater competition with close to half of them admitting to
tightening their internal processes. Along those lines, many businesses will
reshape themselves to gain economies of scale while leveraging leading-edge
capabilities stemming from an increased dependency on outsourcing,
collaboration, and networking.
In pursuit of increased business and cost efficiencies, Asian companies
will need to place greater emphasis on using eCommerce to streamline
supply-chain operations and integrate internal processes in order to reinforce
its competitive position as factory of the world. On the flipside, revenue
generation from eCommerce initiatives remain the prize of merely 45 percent of
the companies surveyed.
Even though the market downturn has crippled a number of online
competitors, few firms can afford to ignore the real possibilities that the
Internet has to offer. The Internet constantly provides new technological
advances and opportunities, and the first mover advantage is on the verge of
being extended to many new areas.
Competitive pressures will continue to exist and companies who want to
dominate must endeavour to devise innovative ways to invoke the appropriate
strategic response. “The nature of competition itself has been altered by
eCommerce, making it more transparent, faster and more global than ever before.
The forward march cannot be halted. All Asian companies can do is to embrace
the opportunities and challenges brought on by these changes with confidence
and imagination.”
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