Businesses fail to learn from e-failures

The survey, conducted by research firm Ipsos-RSL on behalf of AMS (American Management Systems), had a sample base of 131 large European corporations. It found that half had not prepared a business case for their ebusiness investments, and less than one in six regarded their projects as a success.

In contrast, 85 per cent of respondents acknowledged that companies would lose their competitive edge without an effective ebusiness strategy. Industry commentators say a lack of properly implemented online strategies will certainly damage businesses.

Unsurprisingly, the figures published show a strong correlation between those businesses that set out objectives for their ebusiness ventures and those that are eventually successful.

Jim Armstrong, business consultant at AMS, told silicon.com that companies discovering that their ebusiness projects were failing had prompted the survey.

He said the results were shocking: "It is absolutely vital that companies plan and measure ebusiness projects because without that they won't have focus. They will be unable to ascertain whether they are successful, and whether the projects contribute to overall growth."

Armstrong said: "Firms are under a lot of pressure to form ebusiness strategies and roll them out quickly, but it doesn't mean you can ignore the business basics."

Graham Avory, marketing and communications manager at UK ebusiness standards organisation E-Centre, said: "If UK businesses fail to learn these lessons they are not going anywhere. Firms must plan, get their business practice right, and then monitor their projects. They need to do that, or they will fail."

James Heath of the British Chambers of Commerce, said: "This is a huge challenge for UK management. We need to realise that we need not only greater use of ICT strategies, but also much more intelligent use, especially within the traditional bricks and mortar companies."