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Can Small Business Use Web Services (#396)
Posted: 8/11/2002; 8:18 PM by Terry Frazier
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If you have any experience with the printing and publishing industries you know that, outside of a small handful of billion-dollar companies, business automation is a pipe dream. The print industry is largely made up of companies $20 million and smaller -- with net profits as low as 1 percent -- and the idea of EDI-based supply chain operations, electronic invoicing, and real-time inventory management is just beginning to occur to most of them.

Even when it does occur, the implementation is most often a straight routinization of their old manual process -- it is exceedingly rare for a printer or publisher to completely re-engineer a process to take advantge of the inherent a nature of EDI and B2B e-commerce.

I don't know whether these initiatives will lead directly to services that the average small enterprise can use -- BEA and IBM tend to focus on gargantuan implemenations no small business can afford. But if they can get the groundwork right, and seed the tide of easily accessible services for things like invoicing, POs, order confirmations, etc., it could make a major difference in the way the print industry operates in the future.

WEB SERVICES FOR SMALL BUSINESS AUTOMATION

For years it has been extremely expensive for a small business to automate key aspects of its supply chain. Unless driven by a large customer (Wal-Mart and Procter & Gamble mind) small businesses seldom took advantage of EDI feeds of order acknowledgements, accounts payable invoices, etc. Instead, many well run small businesses printed purchase orders and faxed them, hand-entered receipts of goods and manually keyed in invoices for supplier shipments.

Web services has the potential to bring on dramatic change. With today's generation of accounting and business management software, small businesses are prepared to remove much of the human intervention that was required in the supply chain. This article shows that the trend starts in the BigCo's, but the prospects for the Forgotten 5000 are clear.

Tech giants back new Web services. Microsoft, IBM and BEA Systems plan to announce new specifications that they hope will spur use of emerging software designed to foster business interaction over the Internet. [CNET News.com] [Rodent Regatta]

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