SPECIAL SECTION: HARNESSING THE INETERNET.

• Author: Jordan, Dr. John M.
• Position: Brief Article

With the initial waves of hype and giddiness worn off, established businesses in every sector are discovering that the Internet and related technologies are here to stay.

While the dot-coms and their financial backers were wrong in projecting infinite growth curves -- the familiar hockey sticks -- the core belief that information networks would transform business and society still holds true. What's different now is both a willingness of enterprise managers to see this dynamic and their insistence on tangible, if unconventional, evidence of business value.

As e-commerce "comes of age" in enterprises seeking to utilize its particular advantages, several things are happening. Most importantly, businesses are moving Internet-related technologies farther and farther into the back office. As managers recognize the power of network effects and efficient information flows, customer-facing processes rely more than ever on accurate feedback loops for backup in providing customer value. If there's a Web site with on-line loan application, for example, hand-carrying the completed application form for entry into the rating engine wastes effort, introduces delays and the potential for error and generally undermines the promise of customer self-service.

Another reason why Internet technologies will include the back office reflects the benefits of real-time information, delivered via a standardized, easy-to-learn interface -- an easy sell in contrast to klunky proprietary applications, frequently run in overnight batch mode. Examples include both wireless technologies and increasingly sophisticated business-to-business commerce tools designed to address cross-enterprise coordination issues.

A case in point brings these two messages home. A number of months ago, a major bank announced a two-fold commitment to wireless technologies, targeting both internal constituencies and consumer applications. The executive in charge was surprised at the outcome: despite nearly unanimous "expert" predictions of wildfire adoption, consumer wireless services have been almost universally ignored, and the bank's customers were no exception. In contrast, and in defiance of the predictions, "wireless has been hailed by our corporate customers because it enables quick-hit connectivity for CFOs and treasurers who are always on the move. Cash management, it seems, demands considerable real-time attention (for obvious reasons)." The executive goes on to assert that "these two...