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For all logistic companies, it is assumed they control a global logistic chain of their customers and, therefore, are dependent on the successful implementation of informatization technologies, which leads to the decrease of inventory costs, better customer retention, asset management, etc.

2. Business renovation toward e-business

Business-process reengineering was a favorite managerial buzzword of the 90s, but it seems that a new popular term for this decade is business-model re-engineering . The traditional old economy companies urgently need to build on and re-evaluate their current business models and create new ones. Accordingly, e-business initiatives have truly strategic imperatives: creating a totally different business model. An e-business model generally means the adapting of a company s current business model to the Internet economy.

E-business represents a shift in the business doctrine that is changing traditional organizational models, business processes, relationships and operational models that have been dominant for the past 20 years. The new doctrine of e-business requires an enterprise to integrate and synchronize the strategic vision and tactical delivery of products to its customers with the information technology and service infrastructure needed to meet that vision and process execution. In the next few years, successful enterprises will restructure their organization, process and technology infrastructure for successful e-business execution.

Business Renovation (BR) or business process renovation and informatization efforts integrate a radical strategic method of Business Process Reengineering (BPR) and more progressive methods of Continuous Process Improvement (CPI) with adequate Information Technology (IT) infrastructure strategies. Process renovation is a re-engineering strategy that critically examines current business policies, practices and procedures, rethinks them through and then redesigns the mission-critical products, processes, and services (Prasad 1999).

We observe that IT is now taking significant roles in business processes -- creating new needs, causing new product development and commanding new procedures. Following full implementation of IT in an organization, these internal changes may also lead to broader shifts in products, markets, and society as a whole