BUSINESSWEEK ONLINE : DECEMBER 13, 1999 ISSUE
BUSINESS WEEK E.BIZ -- COVER STORY

How IBM Uses the Net


e-Care
Getting customers to use the Net to help themselves means big savings. For every service call handled through ibm.com, the company saves 70% to 90% of the cost of having a person take that call. This year, IBM expects to handle 35 million online service requests, saving an estimated $750 million in customer support costs.

e-Commerce
Through the first three quarters of 1999, e-commerce revenue--from sales of everything from PCs to mainframe software--totaled $9.7 billion, up from $977 million during the same period last year. By yearend, e-commerce revenue is expected to be between $10 billion and $15 billion, vs. $3.3 billion in 1998.

e-Learning
IBM estimates that for every 1,000 classroom days converted to electronic courses delivered via the Web, more than $400,000 can be saved. For the year, the company expects 30% of its internal training materials will be delivered online, with anticipated savings of more than $120 million.

e-Procurement
In 1999, IBM expects to buy $11 billion in goods and services over the Web, saving at least $240 million. So far this year, IBM has plugged more than 6,700 suppliers into its online procurement system. Now, IBM can cut out rogue buying--employees who buy from suppliers that aren't pre-approved.



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