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CIES EXECUTIVE CONGRESS

DUBLIN, Ireland -- Food retailers and manufacturers aren't prepared to fully capitalize on e-commerce opportunities both on the business-to-business and business-to-consumer levels, according to a report unveiled here.The report, based on an international survey of food-industry executives, found that many respondents believe their organizations are unprepared for challenges. The report provides a

DUBLIN, Ireland -- Food retailers and manufacturers aren't prepared to fully capitalize on e-commerce opportunities both on the business-to-business and business-to-consumer levels, according to a report unveiled here.

The report, based on an international survey of food-industry executives, found that many respondents believe their organizations are unprepared for challenges. The report provides a set of recommendations to help move companies further along the e-commerce path.

The research was sponsored by the Management Development Programme of CIES, which is composed of young executives (defined as those under 36 years old) who are on track to become the future top managers of their organizations. The study was facilitated by Andersen Consulting and presented at the CIES Executive Congress here. It polled more than 100 executives, split about evenly among chief executive officers, information-technology directors and young, future senior managers.

"Your management and IT directors and future managers are not equipped to make e-commerce happen for you," concluded Matthew Crane, director of format development at Safeway Stores, U.K.

In presenting the findings, Crane and others provided a picture of an industry that was in disagreement about its e-commerce preparedness. While CEOs responding to the survey largely expressed confidence about their company's e-commerce competitive position, only 8% of IT directors said their companies are ahead of the pack on a global basis.

Moreover, 64% of respondents said their companies did not have adequate e-commerce strategies in place.

On the issue of senior-management commitment to e-commerce, CEOs and IT directors said they believe the top brass has given its support, while young managers as a whole are less convinced.

Company executives are divided on the question of the commitment of people resources to e-commerce. When asked how many people are devoted to this area, CEOs gave the highest-number responses while IT directors and younger executives provided much lower numbers.

The study found varying views on how e-commerce would affect different sectors of the industry. CEOs said all aspects of the business would be affected while younger executives saw the reverberations more on the business-to-consumer side.

Retailer respondents were more concerned than manufacturers about how their profits would be affected by e-commerce. A total of 36% of retailers said e-commerce would erode their margins, compared with only 4% of manufacturers.

But on the question of customer loyalty, the overwhelming number of respondents -- some 76% -- said their relationship to customers would be helped by e-commerce.

The study's recommendations focus on how companies can build their e-commerce readiness and communicate progress throughout their organizations. Companies were advised to:

Establish a sense of direction and understanding about the changing e-commerce environment. "You must recognize things are changing rapidly," said Crane.

Appoint an e-leader, who will be "your authority for e-commerce," Crane said. "Let that person travel and get free rein. That person will need your support and must be seen as the authority within the company."

"The person must have freedom to go to the CEO and say 'we must do that,"' said Jonathan Ackerman, general manager for franchise at Pick 'N Pay Stores, South Africa.

Encourage the evolving strategy and share it with others.

Convert the strategy into action. "Don't be afraid to make mistakes," Crane said. "Be ready to fail and learn."

Communicate to all involved. "Make sure everyone knows you are taking this initiative seriously," Crane said.

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