Security and access control remains the top technology challenge in building intranets, though the 19 percent of respondents for this reason is down slightly from 22 percent in 1997. Other technology challenges include keeping content up to date, keeping up with the changing technology and industry trends, developing content, integrating existing applications, managing and controlling the site and developing applications.

Bringing Non-IS Staff Into the Fray

Many different groups within organizations are responsible for maintaining data on intranets, with most companies placing primary responsibility with the IS department. But this year's survey indicates that non-IS departments are taking on more of the work keeping intranets up to date than a year ago. About 82 percent of the companies this year said IS/networking is responsible, down from 88 percent in 1997. Nearly all other groups mentioned, human resources (cited by 29 percent), sales and marketing (27 percent), engineering (25 percent), research and development (24 percent), and education/training (24 percent) and corporate management (20 percent), had sharp increases from last year.

Not surprisingly, U.S. companies are spending a lot more money on their intranets. This year's average intranet expenditure is $1,929,000, up 70 percent from $1,137,000 in 1997. While still a very small minority, the biggest spenders--those laying out $20 million or more for their intranets--nearly doubled to 4.5 percent from 2.3 percent last year.

At the same time corporate intranets become more common, the number of companies making their presence known on the Internet continues to rise. Some 86 percent of the companies surveyed said they are operating Web sites, 5.3 percent are rolling out or piloting sites, 6 percent are planning to deploy sites in the next 12 months, and 3 percent plan to deploy sites but have no timetable.

The most common offering on company Web sites remains company product and service information, mentioned by 90 percent of the respondents. Other services include marketing and press materials, customer support, communication with organization's departments, company financial information, electronic commerce, order-taking and fulfillment, customer training and order-tracking. Comparison with last year's survey reflects the growth of electronic business: The number of companies conducting e-commerce, customer support and customer training via their Web sites all increased.

Managing Web Site Projects

Companies said the biggest business challenges to building Web sites are similar to those encountered in building intranets. They include keeping up with the organization's demands for Web projects and deployment (24 percent), aligning business and technology goals of the site (17 percent), cooperation of departments involved in building the Web site (12 percent), costs of building and maintaining the site (11 percent) and measuring the return on investment (9 percent).

As is the case with intranets, security and access control is the top technology challenge in building Web sites (18 percent). Other key technology concerns are keeping content up to date, keeping up with the pace of change in technology and the IT industry, content development, ability to manage and control the site, application development and integrating existing applications.

About 72 percent of the companies said their IS/networking department is responsible for maintaining information on their Web sites, down from 82 percent in 1997. Other groups, such as sales/marketing, corporate management, engineering, research and development, human resources, education training and accounting/finance, showed increases in Web-maintenance responsibilities.