e-Business Applications in the European Food & Beverages Industry: Managerial & Economic Implications

Until recently, companies in the food and beverages industry have used e-business mainly to improve their internal processes and procedures. Applications most commonly used both by small and large enterprises are e-mail, websites and online banking. These basic tools are followed, at a considerable distance in terms of adoption rates, by Electronic Data Interchange (EDI) and Enterprise Resource Planning (ERP) systems. However, the growing complexity of the industry is driving companies to adopt more effective solutions in response to new strategic challenges. Most important issues that are likely to have a big influence on Information and Communication Technologies (ICT) investment decisions in the future are food safety and the full digital integration of the value chain. Investments in supply chain integration [both internally and in Business to Business (B2B) processes], including Radio Frequency Identification (RFID) technologies, are a focus of ICT adoption in the industry. Integration of internal processes, Customer Relationship Marketing (CRM) and Supply Chain Management (SCM) are also likely to gain momentum. The main opportunities companies hope to exploit through e-business are improvements in customer service, increased efficiency of internal processes, 2