Which e-business is Right for Your Supply Chain?

The Internet is revolutionizing the way companies conduct business. Or is it? We argue that the value of the internet for a firm is strongly dependent on the firm's industry and on the strategy it pursues. A survey of firms with an online presence displays wide disparities in performance. while Dell has succesfully used the internet to boost revenues and earnings, Amazon lost $585 million on revenues of $1.6 billion in 1999. Firms that fully exploit the revenue enhancements and cost reduction opportunities offered by the interent and optimally integrate e-business with existing channels are likely to be the big winners in the internet age.