E-business evolves

What follows is an update of the year's off-highway Internet-based activities intended to streamline operations along the supply chain and speed engineering product development.

The bottom line for most companies moving into 2002 and beyond is that conducting e-business is no longer a question of when but to what degree. The Construction Industry Manufacturers Association (CIMA) conducted a survey of construction OEM's Internet usage and determined that most equipment makers have plans to expand their current website capabilities-plans that involve more online support to dealers, customers, and suppliers, including more information, communication, and transactional capabilities. While the off-highway industry as a whole has not been among the pioneering adopters of e-business, nearly half of the survey's respondents (48%) agreed that “e-business is a survival issue,” and “without an e-commerce strategy, companies will not be able to compete in the future.”

Komatsu America International Co. was among the earliest of off-highway companies to exploit the Internet, having expanded its customer-oriented website in 1998 to help shorten its sales cycles by providing detailed equipment information to the customer online. Other like-minded off-highway manufacturers have followed suit by launching similar sites with product details and performance ratings, finance options, parts and service information, and distribution networks, the appeal being to educate the customer before they enter a dealership. If consumers request additional information, websites can also give manufacturers a detailed profile of the potential customer that can later be used in marketing campaigns. And for some companies, gaining a link on another manufacturer's or dot.com's site could be an ideal arrangement to garner increased exposure. Komatsu is among the companies that value such online alliances as a way to broaden their Web presence.