Many companies have not seen the benefits of internet technologies despite ploughing millions into their websites, according to a report published today.

The Chartered Institute of Purchasing and Supply, Institute of Logistics and Transport and Institute of Management study found many commercial web initiatives are driven by hype rather than clear business logic.

"Businesses need to seek independent advice before embarking on [over] ambitious schemes," said Professor Andrew Cox, lead author of the report.

The E-business 2001 report revealed half the companies surveyed had seen no increase in sales from e-business strategies.

About two thirds of businesses believed e-commerce sites, email marketing and other technological strategies would bring them new business. But only a third said they had found new markets via the internet.

Poor staff internet training and lack of organisational change after websites had been set up were cited as two reasons for e-business failure.