PwC Survey Results

NEW YORK, January 29, 2001 — As they navigate at warp speed into 2001, leaders of a majority of large technology businesses still do not have an agreed-upon enterprise plan for becoming an e-business-- and they are generally not satisfied with their e-business progress to date. However, viewed separately, their peers with an agreed-upon transition plan are not only growing faster, but forecasting a doubling of e-business revenues over the next 12 months. These are highlights from PricewaterhouseCoopers’ latest “Technology Barometer,” released today.

Currently, leaders of only 46 percent of large technology businesses say their operation has an agreed-upon plan for becoming an e-business; 38 percent acknowledge not having such a plan, and the remaining 16 percent are not sure.

Likewise, 43 percent say they are satisfied with their company’s progress in making the conversion to an e-business; 32 percent are not satisfied, and a jarringly high number, 25 percent, are not sure.

“But the good news is the vast majority (57 percent) of those that do have an agreed-upon, enterprise-wide plan are satisfied with progress toward becoming an e-business,” said Frank Doyle, global e-business leader for PricewaterhouseCoopers. “The operative words are ‘agreed-upon,’” he emphasized. “With senior management buy-in and funding, it’s harder to get sidetracked. When there’s agreement, there are mutually acknowledged mileposts for tracking the achievement of success. We found that without an agreed-upon plan and senior management tracking, only 18 percent are satisfied with how their e-business transition is going; and, at best, the majority say they are uncertain about their own company’s satisfactory progress.”

The Big Payoff

In 4Q interviewing, those with an agreed-upon e-business transition plan said they are on-track to achieve higher overall revenue growth in calendar 2000 than those without. And, over the next 12 months they expect to grow 27 percent faster: 18.6 percent versus 14.7 percent, respectively.

“Revenues are the ultimate measuring stick,” said Mr. Doyle. “Those with such a plan expect the Net will account for 10.9 percent of their total revenues over the next 12 months -- 5.6 percent through direct sales, and 5.3 percent through indirect sales where the transaction is completed off-line. In contrast, those without a generally-accepted plan expect the Net to provide only 4.3 percent of total revenues in the year ahead-- 1.7 percent through direct sales, and 2.6 percent through indirect sales. In sum, those tracking an agreed-upon plan expect to do 2½ times better than those without.

“It’s been said, ‘The Internet changes everything,’” added Mr. Doyle. “Without an agreed-upon plan sponsored by senior management, companies are in danger of being late to realize significant benefits.”

PricewaterhouseCoopers’ quarterly “Technology Barometer” focuses on rapidly growing technology businesses of all sizes. It incorporates the views of 369 top industry executives: 150 CFOs and managing directors of large, publicly-held businesses, including technology subsidiaries and divisions, and 219 CEOs from smaller, privately-held companies.

PricewaterhouseCoopers' "Technology Barometer" is developed and compiled with assistance from the opinion and economic research firm of BSI Global Research, Inc..

PricewaterhouseCoopers (www.pwcglobal.com) is the world's largest professional services organization. Drawing on the knowledge and skills of more than 150,000 people in 150 countries, we help our clients solve complex business problems and measurably enhance their ability to build value, manage risk and improve performance in an Internet-enabled world.

If you have a question about this "Technology Barometer" survey, please contact Pete Collins, survey director, at 212-259-4496, or e-mail to pete.collins@us.pwcglobal.com

For more information about Barometer surveys, including recent economic trend data and topical issues, please visit our web site: www.barometersurveys.com