Gartner predicts e-business will force companies into partnering

E-business is set to transform the traditional structure of UK business and drive an increasing number of business partnerships.

E-business is set to transform the traditional structure of UK business and drive an increasing number of business partnerships.

Hazel Ward

Speaking ahead of iEB Europe conference organised by analyst firm Gartner, the company's vice-president of the business management group Alexander Drobik said the online economy was in a period of transition.

"At the moment, the market is going through a process of disillusionment but companies are beginning the transformation into 'Net-liberated organisations' meaning they will free up their business models and use partners significantly more than before," Drobik said.

"Doing that will reduce the organisation's size and will build up their ability to add value and reduce costs."

Research showed that large companies with a huge number of business processes are increasingly looking for ways to focus on their core competencies and are turning to strategic partnerships to do the rest, Drobik said, pointing to Ericsson's recent decision to stop manufacturing mobile phones.

Under the terms of the deal, the US mobile phone manufacturer Flextronics will take over Ericsson's production lines and supply chain management in April, which will allow Ericsson to focus on the development of mobile network systems.

"Ericsson is getting a third party to build the phones because it's better for it to focus on leading in marketing, design and sales and leave the manufacturing to a third party," Drobik said.

"E-business has become sufficient in technological terms to really unlock a lot of these processes so companies can change the shape of their organisations and move a lot faster," he added.

hazel.ward@rbi.co.uk

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