by Patrick Seditio (NAPSA)—Having a successful e-business takes more than a slick Web site. The companies that succeed will be those that exploit all the benefits of the relationships between suppliers and customers. Setting up a Web site and transacting business is becoming a simpler task, even for small and medium-sized businesses. The challenge todayis to create an integrated process where Web transactions automatically drive back-end operations, such as accounting, ordering and shipping. A networked world, drawing on sophisticated process and information technology, rakes it possible to do business in a whole new way. As more and more growing enter- prises invest to full-fledged e-busi- ness, their ability to transact business within their own supply chain and outside of it will be multiplied—B2B will become BSBsquared. Soon, businesses with fully integrated supply chains will connect seamlessly with all of the links along the chain, starting with the commodity broker that supplies their supplier, to the retailer who is supphed by their wholesaler. For example, IBM understands the distinction between e-commerce--selling on the Web-—-and ebusiness—using technology to integrate supply chain processes to filfill customer needs sraoothly and quickly. Buying decisions will be influenced by accessibility and responsiveness. The best integrators are adding a whole newlevel of value to their business; and they are spending a lot to gain that advantage. The supply chain management solutions industry is growing at an annual compound growth rate of more than 40 percent, according to IDC. In a few years, it’s projected to be a $140 billion industry. Perhaps the greatest growth will be in midmarket sectors. The estimated 70,000 companies that make up this sector employ over 17 million people and rely heavily on supply chain solutions. As a result, server, software and support services growth is higher True e-business doesn’t end with the transaction. lt also involves supplies and shipping. 1 among midmarket businesses than among larger cornpanies. As the owner of a midmarket business, the first thing that you must recognize is that your cuar- rent supply chainis not a chain, but a pile of links—separate pieces with walls around them hat only connect when the immeciate situation demands if. Businesses are blending the operations of suppliers and customers. Today, the Web is enabling dramatic changes that will benefit customers and their supphers. Tomorrow, the walls will come tambling down. TBMis putting e-business to work inside and out. In addition to supporting mid-size husinesses, we provide our Large Enterprise custorners with dedicated Web sites ta fulfill each customer’s specific Information Technology needs. Customers will soon be able to order products at a prenegotiated price and with guaranteed dehivery based on world class backoffice processes and tools. Data from the transactions will be “mined” to operate more efficiently. Within a year, we will be able to offer similar programs to even more customers and business partners. Technology is changing our culture by eliminating unnecessary work, improving tearawork and productivity, and improving our bottom line. Patrick Sedillo is the Industrial Sector Executive for IBM’s Small and Medium Business. To learn more about e-business applications, visit www.IBM.com.
