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THE FIRST phase in the development of e-commerce worldwide was when people woke up and saw the potential of the Internet. The issue today, however, is the emerging developments in e-business and how to join in the new Internet economy.

Businesses are becoming more and more serious in putting the Internet in their marketing efforts. Computer giant IBM recently stressed during its business-to-business (B2B) e-commerce evangelization tour how it would capitalize on B2B since this is not only on the rise but is "on the verge of a major growth cycle.''

IBM stressed that although B2B e-commerce is in its early stages in Asia Pacific, the benefits for buyers and sellers are "profound.''

And since B2B will revolutionize the way businesses are run, incumbents are predicted to be caught off-guard. That's why local companies and conglomerates are urged to wake up from their stupor lest they would want to remain as awed spectators of these rapid developments.

In the meantime, startups are increasingly gaining investment community support and are lining up to exploit inherent inefficiencies in conglomerate-controlled, B2B-ignorant supply chains. One advantage of startups is that they are "less constrained by legacy management techniques and brick-and-mortar assets.''

IBM Asia Pacific's e-business marketing manager Steve Stine noted that since e-commerce is overturning the rules of business, conglomerates are getting scared-scared of the potential B2B e-commerce transactions even in smaller companies.

The "incumbents'' in Asia, on the other hand, have the choice to benefit from B2B since these are companies with extensive and diversified holdings in need of closer integration. Their focus now would be on reducing operating costs in order to recapture productivity and profitability. Stine added that these companies have a relatively low adoption of ERP systems, clearing the way for early adoption of Web-based solutions.

These changes, added Stine, are some of the reasons why Asia is ripe for B2B.

Now with e-commerce basking at the richness of a global, trillion-dollar market potential, the country is still gearing up on the initial "getting-to-know-you'' stage of e-commerce. Few companies are still willing or are capable of exploiting e-commerce advantages to the fullest. Stine reminds Filipino companies that the awareness stage is already finished and that it's now "show time." By this time, companies would have geared up for serious matters, such as transacting e-business on the web. IBM stressed that changing business values among Filipino companies constitute a rethinking of their old ways, such as getting rid of inefficient processes that prevent them in becoming a more profitable company.

IBM urged companies to embrace B2B e-commerce or risk being left behind. Stine stressed that there is massive opportunity for companies to improve unproductive procedures in their bid to be more profitable. He stressed that web technologies, businesses and industries-even those with wasteful and unsystematic processes-can improve their operations and increase their profitability.

Stine also added that the greatest potential for profit lies in B2B. He cited industry estimates that showed B2B is approaching $60 trillion globally.

Stine advises companies to increase their investment in e-business "to be able to defend their turf.''

"In a world where companies are directly linking and talking to their customers using the Web, businesses need an integrated e-business strategy that addresses market changes,'' Stein stressed.

Stein said that the Asia Pacific region has enormous room to benefit from their kind of e-commerce. He outlined, chronologically, what he believed are the initial drivers of e-business:

o Technology becomes pervasive based on price and ease of use

o First movers create competitive pressures

o The global economy presents opportunities and force greater value propositions.