New York, Oct 6: Citing unexplored opportunities in Internet commerce, IBM on Monday launched a new line of services to help companies conduct business on the worldwide web.

While droves of companies already enjoy an online presence, most of their sites serve as little more than brochures, according to vice-president of network computing at IBM's Global Services division, Neil Isford.

In the hopes of cashing in on burgeoning demand for electronic commerce over the Internet, IBM has standardised its services in this area, offering everything from seminars on how to convert a read-only Web page into an interactive shopping site, to re-alignment of existing technologies, to management of the sites once they are up and running.

IBM has been offering these aids for some time on a case-by-case basis, but Monday's launch of what it calls ``E-business'' marks the first time the computer giant has targeted such a large swath of companies with an end-to-end, pre-packaged service product.

``IBM is the first traditional service provider who is putting a stake in the ground and actually has put together a methodology, a marketing plan and a service offering around not just electronic commerce, but the whole Internet world,'' said an analyst for Forrester Research Inc Julie Meringer.

Forrester predicts that electronic commerce will skyrocket in coming years. What is today an $8 billion business in Internet trade will account for $327 billion in revenues by 2002, according to figures by the Massachusetts-based research company.

``The problem is that these folks don't have the infrastructure to continue that growth spurt,'' Meringer said.

IBM will happily fill the gap.

The company's own research shows that more than 95 per cent of Fortune 500 companies do not use their Internet sites to conduct core business transactions.

Using the analogy of an airliner, Isford said 18 per cent of companies are posting their flight schedules on Web sites, while 4 per cent are actually booking tickets there. The lag, he said, can be attributed to several factors.

``How am I going to manage this system ? As I add more and more volume, is this going to perform in such a way that my customers aren't going to be inconvenienced ?

How am I going to handle security ? All those issues now are becoming information technology issues,'' Isford said.

``We believe this will drive incremental revenue (for IBM),'' he added.IBM's Global Services division accounted for $22.9 billion in revenue in 1996, almost a third of IBM's total revenue of $75 billion that year.

The E-business programme also extends to other forms of communications. A company may send orders to its suppliers, as Kmart Corp does for example, using IBM's electronic data interchange (EDI).With new enhancements, that capability will also be available to smaller companies using just a browser.

``It's particularly suited to the small and mid-sized companies,'' said Dataquest analyst of E-business, Allie Young.

Companies in these categories may need walking through the process of mounting an Internet trade vehicle, while larger companies may have the expertise in-house, she said.

IBM's service initiative also may have an impact on some of the smaller companies that already specialise in Web technology.As a result of the new programme, said Meringer, ``You may see some of the big six remake their technology practices by acquiring some small, nimble, start-up shops that are doing a lot of Web development right now. ''

Prices for E-business services vary depending on individual company needs. Isford said a two- or three-day seminar on location at a mid-sized company may run between $10,000 and $14,000. (Reuter)

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