Just as the scarcity of rain has failed to replenish our nation's aquifers and reservoirs, the lack of a concrete economic recovery is leaving company revenue streams thirsting for sales. But purchasing dollars haven't dried up entirely. In fact, despite difficult business conditions, online sales are proving resilient and are holding their own in relation to 2001 revenue levels.

That's according to the latest wave of InformationWeek Research's multiyear E-Business Agenda Study, Wave 6: Still Waters Run Deep. The study has tracked E-business trends and achievements for the past four years. Of the 375 IT executives interviewed in June, nearly three in five report an increase in E-business transactions in the last 12 months.

Among the study's 191 companies that have seen a change in E-business transactions, large sites reported the strongest surge. Nearly 40% of sites with annual revenue of $1 billion or more have seen a significant rise in E-business transactions during the past 12 months. Smaller companies aren't faring quite as well, with just one in five companies with revenue of less than $100 million reporting dramatic boosts in online sales. Midsize companies more frequently report minor rather than major revenue growth from E-business operations. Only 15% of sites surveyed with annual revenue of $100 million to less than $1 billion tell of significant E-business upswings in the last 12 months, substantially fewer than the 76% reporting minor increases.

Regardless of size, companies aren't expecting the use of mobile devices to perk up E-business performance anytime soon, at least not in a major way. A quarter of the study's small companies expect sales transactions from wireless devices in the next 12 months. Orders from mobile devices are anticipated by two in five midsize and large sites. And among those companies betting on wireless sales revenue, few are expecting related transactions to be substantial enough to make a major financial contribution to E-business operations. Only 3% of small, 5% of midsize, and 8% of large sites anticipate substantial wireless sales in the coming 12 months.

How are your online efforts directly benefiting your company's bottom line? Let us know at the address below.

Roma Nowak
Manager Editor, Online
rnowak@cmp.com

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Time Will Tell
Online sales continue to be a part of companies' revenue streams. E-business transactions are having a noticeable impact on total revenue, but they're not dominant in most industry sectors. Web sites and extranets of the study's large companies generated an average of 15% of total revenue. That figure rises to 16% for midsize companies and 18% for small companies. But market instability, stock-value declines, and continued tightening of corporate spending are sure to play a role in shaping customer confidence and spending behavior going forward. It will be interesting to see how these numbers change if the economy takes its time turning around or if companies faced with difficulties find it necessary to cut and suspend cash layouts further.