06.29.98.tw4.html -
[Cached Version]
Published on: 5/8/2001
Last Visited: 5/8/2001
In one session , Gary Cross , vice president of travel and transportation resources for IBM , discussed how the Internet is altering relationships within the transportation business.
The Web enables three types of attacks on traditional business models , he said.
The first type of attack comes from what Mr. Cross calls channel disrupters. These are businesses that get between a carrier and its customers -- third part logistics suppliers , logistics divisions of large carriers and online freight exchanges like the National Transportation Exchange.
The second type of attack comes from gorilla competitors.These are big companies like UPS that have invested heavily in information technology and are poised to dominate electronic businesses.
The third type of attack comes from stealth companies -- those that don't necessarily have specific knowledge of transportation but know how to apply Web technology to different business models.
Unless a carrier devises an electronic business strategy , it is vulnerable to attacks from these competitors , Mr. Cross implied.You have to add services and expand your breadth of services through the Internet , he said.
For companies considering the future of their electronic business , Mr. Cross suggested asking these questions :.
What are the specific changes likely in my company's future environment.Who is going exploit electronic business around me and how.Is my current position a safe place to defend in the future.What kinds of services do I need to provide in the future.What kind of relationships do I need to establish in the future.How do I implement the new services and relationships.
...
Mr. Cross added that Web technology will open up electronic data interchange participation to small carriers.EDI is poised to take off , except over the Internet , he said.