The extent of integration of Internet applications with internal databases or ERP systems is as
low in Germany (55.2% reporting little to no integration ) as in the global sample (52.5%)
(Table 17). The same low extent of integration can be observed in the area of electronic
integration of customers and suppliers, where 72.2% of the German sample reported little to no
integration on par with 72.1% of the global sample. Regarding the percentage of firms reporting
a great deal of back end integration, more German firms are able to benefit from it. Fully 26.9%
(Germany) compared to 23.9% of the global sample estimate that they actively use such
integration solutions, while the percentage with only some integration is below the global
sample. Most German firms seem to wait until they can benefit from Internet application
integration, but they integrate completely if they see any advantage in doing so.
The electronic integration of customers and suppliers follows similar rules: do it or forget it,
especially in the retail/wholesale sector. Nearly double the percentage of German firms as in the
global sample, i.e. 17.1% in comparison to 9.6%, respectively, have integrated their business
partners electronically.
Nevertheless, at the industry level different degrees of implementation are observable. In the
banking/insurance industry, only 23.1% of German firms have achieved a great deal of back end
integration, compared to 40% of the firms in the global sample. This may be explained by the
prevailing concerns about security issues accompanying the integration of open networks with
their back end systems, but it may also be an expression of the current economic slowdown in
this sector. Most network effects benefits occur on the customer side while, conversely, banks
are not able to reduce costs by using Internet technology.
TABLE 17 Enterprise Application Strategy
Banking/
Manufacturing
a
Wholesale/Retail
Distribution
a
Insurance
a
Total
a
Extent to which Internet
applications are electronically
integrated with...
GER
Global
b
GER
Global
b
GER
Global
b
GER
Global
b
Internal databases and
information systems:
Percent little to none
65.1
60.6
53.5
49.8
45.6
39.4
55.2
52.5
Percent some
16.4
23.8
16.0
23.9
31.3
20.6
17.3
23.6
Percent a great deal
15.5
15.6
30.5
26.3
23.1
40.0
26.9
23.9
Those of suppliers and
business customers:
Percent little to none
82.9
72.6
68.7
72.6
78.1
66.2
72.2
72.1
Percent some
16.6
19.1
8.8
18.2
13.4
15.8
10.7
18.3
Percent a great deal
0.4
8.3
22.4
9.1
8.5
17.9
17.1
9.6
Notes:
a
Responses were weighted based on the total number of establishments by employee size within the sector for each
country.
b
Consists of weighted survey responses in 10 countries combined: United States, Mexico, Brazil, Germany, France,
Denmark, Singapore, Taiwan, China and Japan.
Source: CRITO Global E Commerce Survey, 2002
Very heterogeneous responses are also observable when asked about the extent of customer and
supplier integration. The retail/wholesale industry is most advanced in its front end integration of
Internet applications, with 22.4% of firms reporting a great deal of integration, compared to only
9.1% in the global sample. Although the retail/wholesale industry has made great efforts to
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