Most companies have probably already begun to experiment with the Internet and the Web. Small-scale exploration and experimentation, however, is very different from a serious commitment to change your company from a traditional business to an Internet or Web-based business. The commitment to change is a commitment to reengineer the company, to change company business processes, and to create new systems and new ways of doing business that will take advantage of the Internet. Some theorists now distinguish between first-generation Web applications and second-generation e-business applications. First-generation Web applications can be constructed without making major changes in a company's existing enterprise systems. In effect, a Web application is simply a Web site that is more or less independent of the company's other applications. E-business applications, however, require much more extensive changes, and they normally need to be integrated with a company's legacy applications. Thus, the decision to create a company Web site is easy, but the decision to undertake major changes in core business processes and to develop second-generation ebusiness systems is a serious matter.

A serious effort cannot begin or proceed without the commitment of senior management. Companies that are serious about making the transition usually begin by creating a committee that includes the CEO, COO, CIO, and most of the company's division or department heads. If you are talking about changing the very nature of the company, all of these individuals must be involved in the discussions that lead up to the commitment. Once...