The forecast this year has been gloomy. With
a softened economy teetering on recession, companies left and right have
limited technology spending, and e-commerce initiatives are taking the hit.
According to IDC, spending on e-commerce software is expected to increase
only a modest 17 percent this year to $5.8 billion, as compared to the triple-digit
growth seen in previous years.
At a time when uncertainty reigns, however, companies are looking at B2B (business-to-business) e-commerce to keep business on course.
Take Handspring, an innovative manufacturer of handheld PDAs, for example. The company is transforming its e-commerce site from a strictly consumer-oriented space to a site that also supports its increasing work with corporations, government agencies, and educational institutions. Says Kendall Fargo, the company's vice president of e-commerce, "adding B2B functionality is critical. We know that a lot of corporate customers want to purchase via our Web site on credit terms and we need to fulfill those orders in an easy and efficient fashion."
Handspring is on the cusp of what Shawn Willett, a principal analyst with Current Analysis, Inc., in Sterling, VA, sees as the next e-commerce wave. "There's a huge untapped market right now," explains Willett. "We're in a bit of a slowdown, but it's going to pick up again because there are such obvious benefits of automating some of these [B2B] processes."
For Handspring, a B2B e-commerce site will provide its enterprise customers individualized attention, including the ability to order custom bundles at negotiated prices and access to a private portal for background on products and services pertinent to their business needs. Fargo believes that the ability to customize its B2B site for each enterprise is paramount to their success,
"e-commerce only works if it meets the customer's needs and the customer finds it easier to use than any other form of communication with our company."
