The Business And Information Technologies (Bit) Survey In Korea Annual Report 2006

The Korean BIT team of The Logistics, Service, and Operations Management (LSOM) Center at Korea University Business School has taken part in the BIT project since 2004. In this report, the Korean BIT team presents the results from the survey conducted in Korea in 2006. The key results of the survey were as follows:• The most widely adopted technologies are websites/E-commerce, Enterprise Resource Planning (ERP), groupware/productivity tools; the least adopted technologies are biometrics, business intelligence, Enterprise Instant Messaging (IM), and business process modeling.• Workers need retraining constantly to keep up with changing technologies, and the proportion of employees facing a screen has increased significantly. However, neither teleconferencing nor telecommuting is widely used by the organizations.• The structure of the organization is changing due to technology. The monitoring of customer-facing interactions is the most significant trend, and the span of control for most managers is widening. Thus, automated monitoring of workforce productivity is increasing.• The most frequently outsourced business functions are IT programming and IT network management; the least outsourced business functions are RFP, Bids & contract management, finance, accounting, payroll, and order fulfillment.• Organizations favor using face-to-face, phone, and e-mail to contact customers over online intermediary and screen pops.• Organizations use customer profiling, statistical data mining, demand forecasting to integrate voices of customers, while text mining and fraud detection are not widely used.• Organizations use web banners, incentives in printed material, and pop-up windows for advertising. Only a small number of organizations have changed their logo, slogan, branding concept, and name to go online.• For CRM functions, a quarter of the organizations use order tracking/fulfillment, order placement, and customer complaints management, but sales calls automation and help desk are not widely used.• Online business shows lower sales volume, cost of products, pricing, and products/services than traditional business while higher data collection, revenue, and operating margins.• Small numbers of the organizations use Electronic Data Interchange (EDI), web-enabled communications, XML-based communications and E-procurement.• Direct purchasing, long-term purchasing contracts and catalogs are frequently used. Aggregators, buy side exchange/hub, exchange/E-exchange, sell side exchange/ hub and OEM links/hubs are least used.• Due to technology, internal communication costs, market research costs, commercial costs, customer service costs, and production costs have decreased. However, new product's failure risks, technology costs, R&D costs, and revenues have increased.• Organizations have expanded and are planning to expand their business operations in South East (SE) Asia, East Asia, and the United States. Trade in other countries, the number of production/service bases and the number of countries in supplier base have increased.