markets can be denied with an error probability of 0.001%. Thus, efficient establishments 

reported more often that IT has a high importance for their strategic goals than inefficient ones.  

Online business has different impacts on German firms, as Figure 18 indicates. Important 

impacts (above average) are the improvement of internal processes (41.8%), the external 

improvement of customer service (35.5%), and widened sales at the national (31.5%) and 

international levels (28%). Comparatively low impact is reported for cost oriented 

improvements, e.g., inventory costs decreased (6.2%) or procurement costs decreased (11.2%). 

In total, positive impacts of online business are reported with 22.95%.

FIGURE 18  Impact of Doing Business Online; Percent Indicating Impact is a Great Deal 

Internal processes more efficient

41.8%

Customer service improved

35.5%

Sales area widened

31.5%

International sales increased

28.0%

Competitive position improved

23.1%

Sales increased

19.1%

Staff productivity increased

18.6%

Coordination with suppliers improved

14.5%

Procurement costs decreased

11.2%

22.95%

Inventory costs decreased

6.2%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Source. CRITO Global E Commerce Survey, 2002; weighted by the total number of establishments.

As Table 25 indicates, the number of distribution channels increased significantly in all 

industries in comparison to the global sample, with the greatest difference being observed in the 

retail/wholesale sector.  Most establishments use online business not as a substitute, but as a 

complement to existing channels. While the number of suppliers or competitors increased less 

than the global sample in the manufacturing and retail/wholesale industries, a significant increase 

is observable in the banking/insurance industry. Again, the finance sector seems to be more 

affected by increasing competition and changing customer requests than other industries. Due to 

this, the German finance sector is, in contrast to the global finance average, even more affected 

by increasing competition than other countries.  

44