MARKET RESEARCH.

Majority Of US Internet Users Say They Want Personalized Information

A new survey from Privacy & American Business, a non-partisan think tank, indicates a majority of US Internet users want information tailored to their needs, and are willing to provide information about their preferences to receive personalized advertisements if they are given notice and choice. The survey, conducted by Opinion Research Corp., explored Internet users's willingness to provide individualized data or have it acquired from other sources in return for personalized messages when notice and "opt out" choice were provided. Key findings include:

* Of Internet users surveyed, 61 percent are interested in receiving banner advertisements that are tailored to their personal preferences.

* Between 51-68 percent of users (representing 47 to 63 million Americans) would agree to have information based on their offline and online transactions used to personalize banner ads to them when they are informed how their information would be used and are given the chance to "opt out" of uses they did not approve.

* Most Internet users (71-78 percent) who are interested in online personalization expect companies to follow privacy policies that ensure consumers notice and choice.

"The survey findings validate previous research indicating that Internet users expect assurances of notice and choice when engaging in online information exchange," says Privacy & American Business Publisher Alan Westin. "This survey is unique in revealing that a majority of Internet users would allow companies to use information about their preferences from both online and offline sources in return for personalized messages."

The survey tested Internet users' opinions of six information sources used for online personalization. In each case, a majority found it acceptable for companies to use individualized information to present banner ads to them when given notice and choice:

* Sixty-eight percent of users would provide personal information.

* Fifty-eight percent of respondents would agree to have their web site visits used.

* Fifty-one percent of users would agree to have their online purchase information used.

* Fifty-three percent of users would be willing to have their offline purchase information from catalogs and stores used.

* Fifty-two percent would agree to have their off and online purchasing information combined.

* Fifty-three percent say they would agree to the combination of personal information, web site visits and on/offline purchases.

The findings are based on a survey of 474 Internet users drawn from a representative national sample of 1,011 respondents aged 18 and over.

Supply Chain Management Spawns Opportunities For Services Vendors

Supply chain management is creating a host of new opportunities for service vendors. This is the key message of a recent International Data Corp. (IDC) report entitled What Is the Definition of Supply Chain Services?

"The reality of ecommerce and the Internet has unleashed an unexplored field for services and alliances around supply chain deployment and management," says Nelly Zaharinov, a senior analyst with IDC's Supply Chain Services research program. "Internet-based supply chain management is in the position to drive the overall market for supply chain services worldwide." IDC defines the supply chain as the group of processes that plan, design, source, make, store, and move organizations' products and services in the marketplace.

"Supply chain management services focus on helping clients use technology to plan and solve the integration, automation, and synchronization of the four major flows -- physical, financial, information, and decision -- at the enterprise level or across multiple enterprises," Zaharinov says.

According to IDC, market opportunities for supply chain services are grouped around strategy, business process, and technology solutions, and they will grow considerably through 2003. "In the last two years, higher executive-level officers, and even CEOs, have been involved in supply chain projects because companies realize these projects mean more than operations efficiency and cost optimization," Zaharinov says. "The supply chain focus has shifted to creating sustainable competitive advantage in terms of higher customer satisfaction, better financial performance, and ultimately gains in shareholder value."

Competition In MEMs-Based Sensor Sector Pushes Suppliers To Seek Profitable Niche Markets 

Across the board, applications for microelectromechanical-based sensors (MEMs) have grown at a remarkable rate. These applications, which include the automotive, defense and aerospace, and industrial medical markets, are expected to continue developing as technology improves, research projects give birth to new innovations, and as recognition of the advantages offers by these devices increases.

According to new report from Frost & Sullivan, US MEMs-Based Sensor Markets, revenue growth rates for the market are predicted to gradually slow down, even as new application growth areas emerge and as improved price-performance ratios continue to assist future market growth. In 2005, total revenue is expected to increase to $1.16 billion, up from $538.4 million in 1998.

The US MEMs-based market is currently witnessing a rise in unit shipments and revenues, a trend F&S says is expected to continue. However, with the majority of MEMs-based sensors being sold to the automotive market (61 percent), prices are expected to stabilize in the next few years. Competition is expected to increase in the more established markets, and product performance enhancements, rather than price reduction, will be the key competitive strategy.

Of the more than 50 companies active in the US MEMs-based sensor market, a number are start-ups from research laboratories or institutes, either marketing a product or technology, or entering partnerships with other industry participants. While large semiconductor/sensor manufacturers and captive automotive component OEMs dominate most of the market, F&S says many smaller companies operate within emerging and niche markets and offer custom, application-specific manufacturing for various industries. The main challenge facing manufacturers, says the report, is the identification of these niche markets that have the capability to expand rapidly and grow into mass markets.

Collaborations are becoming more common place in the MEMs market as the need to cut costs and to gain knowledge, technology and expertise increases. "Technological evolution is the main driving force behind the growth of the US MEMs-based sensors market," says Frost & Sullivan analyst Sanju Khatri. "Advancements in wafer technology and batch manufacturing and packaging, and increased penetration of mass markets by technology providers, have all made this technology more accessible at an achievable cost."