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Definitions For Use With ISM / Forrester Research Report on eBusiness Quarterly Survey


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Definitions


Question 1

GENERAL eBUSINESS ADOPTION - Defined as the amount of progress that has been made in using the Internet as a proportion of all changes that are expected to be made. The use of the Internet includes all aspects of procurement, including: identifying suppliers, selecting products or services, making purchase commitments, completing financial transactions, obtaining service, using exchanges, and e-marketplaces. Does not refer to email-only adoption.

Question 2
INDIRECT GOODS/SERVICES PURCHASED OVER THE INTERNET - Defined as the dollar value of goods/services that don't go into final manufactured products. This typically includes many purchases for non-manufacturing firms.

Question 3
DIRECT GOODS/SERVICES PURCHASED OVER THE INTERNET - Defined as the dollar value of goods/services that go into final manufactured product. May not be applicable to non-manufacturing firms.

Question 4
USED THE INTERNET AS PART OF AN RFP PROCESS - Defined as purchases where the Internet played a significant part in managing the process of issuing requests for proposals to suppliers and selecting a winning bid from those suppliers. Could include an email-based system for soliciting proposals.

Question 5
PURCHASED GOODS/SERVICES THROUGH AN ONLINE AUCTION - Defined as purchases where products were bought after inviting suppliers to place a bid over the Internet.

Question 6
PURCHASED GOODS/SERVICES THROUGH AN ELECTRONIC MARKETPLACE OR PRIVATE HUB - Defined as purchases where transactions are placed through a private or public Web site that aggregates product content from multiple suppliers.

Question 7
PURCHASED GOODS/SERVICES THROUGH AN ENTERPRISE-WIDE PROCUREMENT TOOL THAT INCORPORATES THE INTERNET - Defined as purchases where transactions are placed through an enterprise-wide application that manages the internal purchasing process, including approvals, and connects to the Internet to transmit orders to suppliers.

Question 8
COLLABORATED WITH SUPPLIERS USING INTERNET-BASED SUPPLY CHAIN TOOLS - Defined as activities where the Internet, through the use of a software system, is used to work with suppliers as part of a supplier management and interactive planning process. Could include exchanging forecasts and inventory information, requesting product shipment, and scheduling production, among others.

Question 9
IMPORTANCE OF INTERNET IN OVERALL PURCHASING PLANS - Defined as the impact expected over the next 12 months as compared to other initiatives within purchasing.

Question 10
IMPACT ON TOTAL COST OF OWNERSHIP OF PRODUCTS OR SERVICES - The dollar value of the impact that the Internet and related software or tools has had on all of the expenses associated with purchasing; includes: changes in product prices, savings from increased purchasing efficiency, reduction in errors, and decreases in inventory holding costs.

Question 11
ONLINE CAPABILITIES OF CURRENT PREFERRED PRODUCT OR SERVICES SUPPLIERS - Defined as the percentage of times that suppliers provide the desired level of support over the Internet; includes: catalog content, product selection tools, Web-based ordering functionality, and online customer service.

Question 12
CHANGED INTERNAL PURCHASING PROCEDURES - Defined as the amount of changes within the purchasing department -- processes and organization -- that can be linked to the Internet and related software or tools.


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