FOR IMMEDIATE RELEASE
|Kristen Kioa||Mariko Zapf|
|ISM||Forrester Research, Inc.|
|+1 800/888-6276, extension 3015||+1 617/613-6225|
TEMPE, Ariz., and CAMBRIDGE, Mass., April 16, 2003 . . . The Institute for Supply Management™ (ISM) and Forrester Research, Inc. (Nasdaq: FORR) announce the release of the 10th ISM/Forrester Research Report on eBusiness, a first-of-its-kind report that tracks online activity for both manufacturing and non-manufacturing organizations. The primary finding in the latest Report is that adoption of the Net for purchasing is marching onward. The number of organizations purchasing both direct and indirect materials continued to grow over the previous quarter.
"Purchasing of all materials and services has increased for the first quarter of 2003," said Edith Kelly-Green, spokesperson for ISM and vice president and chief sourcing officer for FedEx. "While cost-reduction issues remain critical to many survey respondents, comments included: 'eBusiness projects have been postponed because of cost-cutting measures,' 'Corporate cost-reduction initiatives are driving enhanced use of eBusiness tools,' and 'With the drive to reduce costs both internally and to our clients, there is a push toward using more Internet-based tools.'"
"Nearly twice as many large-volume purchasers reported that the Net is critical in their overall purchasing plans -- from 11.3 percent in Q4 2002 to 20.5 percent in Q1 2003," said Jennifer Chew, senior analyst at Forrester. "In light of the poor economic conditions, companies are relying on the Internet more and more to make their business processes and relationships as efficient and productive as possible."
The report also found that all respondents increased their online spending of indirect materials as a percentage of total spending. Spending online for direct materials also grew on the whole, as a 1.9 percent drop in spending by larger purchasers was offset by a 2.4 percent increase in online spending by small-volume purchasers.
For the Report on eBusiness, ISM and Forrester Research received survey replies from supply management executives from both manufacturing and non-manufacturing organizations. To understand the difference in online behaviors of these organizations, the Report analyzes three areas: the results of all organizations; the comparison of manufacturing and non-manufacturing organizations; and the comparison of organizations that procure more than $100 million on direct and indirect materials per year with those that purchase less than $100 million per year. To track the adoption of different activities over time, ISM and Forrester created the eBusiness Adoption Momentum (eBAM) index.
The ISM/Forrester Research Report on eBusiness, developed in fall 2000, measures the adoption of Internet-based procurement. ISM and Forrester Research developed the survey jointly and will issue the Report every three months in a manner similar to the monthly ISM Report On Business®.
The Institute for Supply Management™, established in 1915, is the world's leading educator of supply management professionals and is a valuable resource for decision makers in major markets, companies, and government. ISM has provided a rich history of economic data for over 67 years on the U.S. economy with its Manufacturing ISM Report On Business® and the PMI. Since June 1997, ISM has also been publishing the Non-Manufacturing ISM Report On Business®. Both surveys can be found at www.ism.ws.
Forrester Research enables companies to understand the impact of technology on business. Forrester's WholeView™ Research, Strategic Services, and Events help clients understand how technology change affects their customers, strategy, and technology investment. Giga, through its Giga Advisory®, Giga Consulting™, and Events, provides objective research, pragmatic advice, and personalized consulting to global IT professionals. Established in 1983, Forrester is headquartered in Cambridge, Mass. For additional information, visit www.forrester.com.
Information concerning the quarterly release of the ISM/Forrester Research Report on eBusiness may be obtained via the ISM Web site at www.ism.ws and the Forrester Research Web site at www.forrester.com under "Press Releases."
The next release of the ISM/Forrester Research Report on eBusiness will be July 16, 2003.
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