Business Basics of Electronic Commerce.

• Author: STRUTZ, RICHARD
• Position: Brief Article

Succeeding in today's economy takes more than good products.

IT TAKES THE RIGHT PARTNER.

In the wake of the dot-corn bust, companies are increasingly turning their focus to real world business with a close attention to efficiency. And the Internet is still a criticial tool when it comes to driving efficiencies within an organization. Indeed, corporate spending on Web-enabling technologies is likely to reach roughly $500 billion world wide this year en route to $1.5 trillion by 2003, according to the worldwide Internet research group IDC.

Established companies that can effectively leverage the Internet to realize efficiencies and service their customers are likely to beat out their more traditional competitors.

One of the first steps a company can take to harness the power of the Internet is to focus on its financial management systems. Today, 84 percent of financial professionals at middle market and large corporations are turning to the Internet to obtain cash management, credit services and investment management, according to the Association of Financial Professionals. These professionals are seeking a trustworthy partner to help them establish flexible payment options and links to customers and suppliers.

Keeping Coins in Your Corporation's Pocketbook

It is vital that your company partner with financial institutions that understand the nature of your business and offer services that not only will save time, but also will reduce the time staff spends on routine operations, so they can focus on those that will take your business to the next level. One example of an easy step toward efficiency is adopting an online procurement system, which enables you to shop for goods and services over the Internet, manage all supplier relationships and eliminate supplier management costs. According to the Aberdeen Group, mid-sized companies can save an average of almost $2 million per year using online procurement, by reducing purchase order processing cycles and cost by over 70 percent, reducing off-contract spending by over 50 percent, and paying 5 percent to 10 percent less on goods and services.

In fact, conducting all your business banking online can save you time--and time is money. The ability to access your accounts in real time--whether depository, loan or brokerage--as well as conduct all your domestic and international transactions from a single Web site, anytime, anywhere, allows you to make sounder and more timely investment decisions. The...