BW/HARRIS POLL: WEAVING THE NET INTO CORPORATE STRATEGY

Nearly everyone's doing it -- doing business on the Internet, that is. For the 
most part, though, companies aren't actually buying and selling products 
electronically. Much more often, executives told a Business Week/Harris poll, 
they're distributing product information, advertising, or supporting customer 
service.

Just 45% of execs said their companies actually sell to customers on the Net -- 
and most of those who don't said have no plans to start. Why not? Too often, 
they said, electronic commerce conflicts with another sales channel, or  the 
Internet simply doesn't fit their products and services. Another big concern: 
online security. On the other hand, a large majority of those who do buy or 
sell online say they reach a broader base of customers, communicate with 
suppliers more easily, and save on transaction costs.


Nearly Everyone's Surfin'

Does your company use the Internet, the World Wide Web, or some other online 
method to:
                                      YES      NO    DON'T KNOW

Provide potential customers           87%      13%      0%
with product information

Advertise or do brand marketing       72%      27%      1%

Provide customer service              61%      36%      3%

Sell products or services             45%      54%      1%
directly to customers

Bring buyers and sellers together     43%      52%      5%

Buy products or services              41%      47%     11%

Those Who Don't, Won't

If your company doesn't now sell online, do you have any plans to sell products 
or services online, or not?

Have plans            27%
Do not have plans     64%
Don't know             9%


How Long to the Net?

If so, within how many years does your company plan to sell products or 
services online?

0 years               16%
1 year                30%
2 years               36%
3 years                7%
5 years                5%
Don't know             6%

Road Blocks

If your company doesn't now sell online, which one of these, if any, is your 
company's single biggest obstacle?

Conflict with existing sales channel    28%
Internet not applicable                 27%
Lack of adequate customer base online   17%
Lack of security                        10%
Customer perceptions of security risk    7%
The cost of running a Web site           2%
Something else                           3%
Don't know                               6%


The Upside

Are the following a major benefit that your company gains from buying or 
selling online, a minor benefit, or no benefit at all?

                                   MAJOR    MINOR    NO    DON'T
                                  BENEFIT  BENEFIT BENEFIT KNOW

Reaching customers directly         42%      46%     9%     3%

Reaching a broader base             36%      48%    15%     1%
of customers

More easily communicating and       28%      51%    17%     4%
transacting with suppliers

Savings on transaction costs        17%      51%    28%     4%

Cutting out middlemen               13%      45%    38%     4%

Savings on marketing                 9%      46%    40%     5%


Pricing Stability

When doing business online, does your company change prices more often, less 
often, or about as often compared to your traditional non-online transactions?

More often             5%
Less often             3%
About as often        68%
Don't know            24%


No Online Premium

When doing business online, are your company's average prices higher, lower, or 
about the same compared to your traditional non-online transactions?

Higher                 4%
Lower                 10%
About the same        65%
Don't know            21%


Jobs Impact

As a result of your company's use of the Internet, the World Wide Web, or some 
other online method, have you increased employment, reduced employment, or kept 
employment about the same?

Raised employment                18%
Reduced employment                3%
Kept employment about the same   75%
Don't know                        4%


Employment to Come?

In the next year, do you anticipate increasing employment, reducing employment, 
or keeping employment about the same as a result of your company's use of the 
Internet, the World Wide Web, or some other online method?

Will increase employment              22%
Will reduce employment                 6%
Will keep employment about the same   66%
Don't know                             6%


Security Angst

Are concerns about security slowing down your company's plans to move more 
business online, or not?

Yes           34%
No            61%
Don't know     5%


Survey of 308 senior executives at large public corporations. Interviews were 
conducted May 27 to June 5, 1998, for Business Week by Louis Harris & 
Associates Inc.