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| GartnerG2 Edge Economy Report Urges Businesses to Link Processes to Customers and Suppliers |
| Edge Economy companies to dominate 95 percent of all markets by 2010 |
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STAMFORD, CONN., June 20, 2001 — GartnerG2, a research service from Gartner, Inc. (NYSE: IT and ITB) is urging businesses to move all company operations as close to customers and suppliers as possible. Further, processes that do not directly impact customers or suppliers should be outsourced. GartnerG2's report, titled "The Edge Economy: Give Up Control, Gain Revenue," defines an Edge Economy company as one that concentrates at least 80 percent of its resources on the touchpoints it has with customers and suppliers to grow revenue.
The report states that by 2010, Edge Economy companies will dominate 95 percent of all markets. In addition, by 2005, nearly half of all large business failures will be caused by the inability to properly manage the transition to the Edge Economy. "Gartner recommends that companies remap all business processes to link directly to customers, partners and suppliers, and abandon or outsource all processes that do not create value with those constituencies," said Van Baker, GartnerG2 research vice president. "In addition, companies that are moving toward the Edge Economy should prioritize resources and planning decisions based on their impacts on relationships with customers, partners and suppliers." GartnerG2 research found several dynamics that define an Edge Economy company's business practices. The Edge Economy philosophy calls for three overriding mandates:
"Our research has found that companies that move to the Edge Economy will benefit greatly through increased revenues and profit margins as well as improved employee productivity," continued Baker. "Companies that ignore Edge Economy business practices will be at a significant competitive disadvantage in terms of product quality, value and services." Additionally, the Internet and related technologies provide companies with the tools to increase speed, accuracy and efficiency. An Edge Economy company creates flexible technology systems to provide a straightforward process for changing suppliers and billing in a way that customers and suppliers prefer. Such companies provide tools that employees need for their work, including wireless phones, personal digital assistants and notebook computers, and high-bandwidth services for remote connectivity. The combination of technology and flexibility is a powerful tool to attract and retain talented employees. GartnerG2 is a new research service from Gartner that helps business strategists guide and grow their businesses. For more information, visit www.gartnerg2.com. About Gartner, Inc. Gartner, Inc. is a research and advisory firm that helps more than 10,000 clients understand technology and drive business growth. Gartner's divisions are Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, and consists of 4,600 associates, including 1,400 research analysts and consultants, in more than 80 locations worldwide. The company achieved fiscal 2000 revenues of $859 million. For more information, visit www.gartner.com. |
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Contact: Mike McCabe Middleberg Euro 212-699-2752 mikem@middleberg.com |
Contact: Danielle Westling Gartner 203-316-6754 danielle.westling@gartner.com |
