B2B to increase by 83%

Business-to-business (B2B) e-commerce is continuing to grow at an astronomical rate, and IDC is predicting that, worldwide, it will be worth $4.3 trillion by 2005.

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By  Matthew Southwell Published  October 31, 2001

Business-to-business (B2B) e-commerce is continuing to grow at an astronomical rate according to IDC, as it predicts that the total worldwide value of goods and services purchased by businesses through e-commerce solutions will catapult from $282 billion in 2000 to $4.3 trillion by 2005.

The analyst house believes that the key to this continued growth will be the shift in business philosophy from creativity to innovation. "Innovation in information exchange between companies rather than basic e-commerce transactions will be much more important to long-term e-business success," explains Richard Villars, vice president for IDC's Internet and e-commerce strategies.

“Over the next four years, B2B purchases will be focused on products rather than services, and cultural differences will affect the adoption of B2B models in regions,” he adds.

In the near term, IDC predicts faster-than-expected adoption by volume procurement managers will protect e-commerce solutions from the potential purchasing slowdown currently affecting many businesses.

"While overall purchasing may diminish or remain flat, the percentage purchased via online solutions will continue to increase at a significant rate," says Villars.

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