The business plan; with sophisticated networks, companies can make their operations a lot simpler
Article Abstract:
Corporations are employing sophisticated network computing technologies to simplify their operations. Recent innovations, such as the Internet, intranets and groupware, are enabling corporations to deal more directly with the consumer, bypassing layers of corporate processes and changing the way these organizations operate. Companies are employing intranets and the Internet itself to handle non-core operations and to save money in the process. Corporations who handle their operations electronically can reduce the average costs of handling a purchase order from $150 to just $5. Network technologies are connecting internal operations in ways that were previously impossible, as well as establishing connections with outside suppliers. Intranets are also changing corporate decision-making processes, enabling people who are lower in the organization to have an impact. Networks can also reduce the number of employees needed by the organization.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1996
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Think big; the Net gives small businesses a reach they once only dreamed of
Article Abstract:
Small firms are finding ample international business opportunities using the Web because they can now have the same kind of reach enjoyed by huge conglomerates. Traditional barriers to entering a global or national market do not exist with electronic commerce, such as shelf-space costs, distribution and marketing. The cost of advertising is limited to initiating a home page, which costs under $1,000, so anyone can quickly reach global audiences. However, the Internet does not guarantee success. Any firm must have clever strategies and use ingenuity to stand out. In addition, customers can readily comparison shop viewing prices on a global basis. Finally, electronic commerce is just beginning, so no one is achieving huge financial payoffs yet. More realistically, the Web is still a break-even proposition when firms take into account the costs of maintaining a Web site.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1996
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Inside story
Article Abstract:
Intranets are quickly emerging as the next step in the effort to encourage companies to support electronic commerce. The internal networks typically start out as ways to connect personnel to company data, such as fringe benefits or product prices. Few firms have moved beyond this stage, but some companies are now using intranets to connect suppliers, customers and company employees to conduct business via automated techniques. Cisco Systems, for example, already forecasts that its resellers will have the ability to purchase any of its products via Cisco's intranet by the end of 1996. Cyrix will soon provide for online purchases on its intranet. Business Research Group indicates that the amount of midsize and large companies introducing some kind of intranet has increased to 55% in 1996 compared to 11% in 1995, and the amount will reach 70% by Jan 1997.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1996
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Comment about this article or add new information about this topic:
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