Chapter 22, E-Business Summary and Analysis

GE enters the Internet revolution late, but it already has an established brand, does not require increased advertising, and does not need to build warehouses to ship goods. E-Business allows GE to expand markets and find new customers. The supplier base will become more global.

New and younger technology/Internet-savvy talent is recruited. The biggest cost benefits come from using the Internet to streamline internal processes. GE finds a new route to more efficiency. "The buy," "the make," and "the sell" opportunities increase through greater access to more suppliers. Paper is reduced, which enhances customer services.

Part of the annual $50 billion in goods and services is transferred to online auctions, gaining greater access to more suppliers and lower costs. Backroom operations that generate mounds of paper are also minimized. Customer service is also improved. Orders are filled faster, and...