AnswerThink Study Reveals That Many Finance Organizations Lag in eBusiness Innovation.

Business Editors & High-Tech Writers

HUDSON, Ohio--(BUSINESS WIRE)--March 22, 2000

A recent study by AnswerThink (Nasdaq:ANSR) shows that the typical company's finance function is falling behind in eBusiness implementation at a time when the rest of the organization is gearing up for the "e" explosion.

According to the study by Hackett Benchmarking & Research, AnswerThink's best-practices research arm, a disconnect in eBusiness exists between philosophy and tactical implementation. For example, 93 percent of participating companies in the study predict that online business will have a significant impact on future strategies and 70 percent see eBusiness investments expanding substantially over the next two years.

However, while most companies participating in the study predict eBusiness spending will rise in the coming years, few have implemented initiatives to increase it by a meaningful amount. In fact, the study found that 20 percent of participating finance organizations currently have no eBusiness capabilities and nearly two-thirds consider their eBusiness usage to be low.

"A reality check is certainly in order for finance," said Richard T. Roth, managing director of Hackett Benchmarking & Research. "For the finance function to remain a viable, value-adding part of the organization, it must reinvent itself to become eEnabled. While data shows that eBusiness finance investment is on the rise, it is nowhere near its potential."

Other statistics from the Hackett study demonstrate Roth's point: eBusiness is not even considered a corporate priority for 20 percent of the survey's finance participants; cost is viewed as a primary obstacle to implementation for another 10 percent; and internal integration is also lagging behind, as 37 percent of finance organizations consider electronic integration with other systems to be low.

Even if these statistics were more favorable, companies would still face the challenge of gaining acceptance as organizations struggle to manage priorities in the wake of Enterprise Resource Planning (ERP) and Y2K, according to Roth. More than two-thirds of those surveyed consider corporate culture and politics to be major impediments to implementation, and more than half of them cite a lack of internal readiness.

"eBusiness solutions do not come easily, but they are essential to unlocking the potential competitive advantages of tomorrow and beyond," said Roth. "The promises of eBusiness cannot be realized until finance formulates strategies and spending plans that support its implementation, which demands they recognize the Internet as a critical component in future business operations."

All hope for finance is not lost, Roth notes. Projected spending on eBusiness initiatives is expected to increase 75 percent over the next 2-3 years. Furthermore, while only about 25 percent of quarterly and annual forecasts are currently submitted electronically, participants predicted a 15 percent jump in online forecasting within the next year. Electronic billing should also see rapid growth by 2001, with electronic data interchange (EDI) and Internet usage for the process increasing by 20 percent and online remittance processing growing by 40 percent. Furthermore, spending on eProcurement is one of the fastest growing eBusiness applications and, based on participant responses, should increase by nearly 25 percent in the next two years. Of course, this is the best-case scenario and "can only be achieved if companies get their acts together," said Roth.

"In spite of media hype for eBusiness, these advances are currently happening at an extremely slow pace, despite the fact that internal and external organizational boundaries continue to change dramatically as a result the Internet," said Roth. "eBusiness will affect every aspect of the enterprise, even going so far as enabling finance laggards to leapfrog current top-performing organizations."

For more information about Hackett's eBusiness survey or to speak with Richard Roth, please contact:

Jim Kenny

AnswerThink

[phone] ext. 5349

[e-mail]

About Hackett Benchmarking & Research

Part of AnswerThink, an integrated eBusiness consulting firm, Hackett Benchmarking & Research evaluates best-practices in finance, human resources, information technology, planning and performance measurement, procurement, shared services, customer contact centers and eBusiness. Hackett's database is considered the world's foremost source of benchmarking and best-practices information related to knowledge workers. More than 1,400 global organizations have participated in the firm's ongoing studies, including 80 percent of the Dow Jones Industrials, two-thirds of the Fortune 100 and one-third of the Fortune 500.

About AnswerThink

AnswerThink (www.answerthink.com) is a leading eBusiness solutions provider. With its recent merger with THINK New Ideas, the Company now helps design, build, market and support the e-business efforts of a growing list of Global 1000 and dot-com clients. AnswerThink offers a wide range of integrated solutions, including eBusiness strategy, interactive marketing, Web design, best practices benchmarking and business modeling, custom application development, software package implementation, e-commerce and decision support technology.

The Company's end-to-end focus provides its clients with a unique combination of marketing, business and technology expertise that spans multi-functional areas that include brand and product development, supply chain, sales and marketing, customer support, finance, human resources and information technology. For more information, call 1-877-423-4321.