Like other utilities, Tennessee Valley Authority is transitioning from an industrial-era environment of stable, predictable growth to a process-centered, information-intensive environment characterized by strong customer focus and real-time decision making. While our product line and customer base may be limited by federal legislation, our innovative use of technology to sustain our competitive advantage isn't. Evolution of the market because of regulatory changes, an awakening of our need to strengthen our customer relationships, and the availability of new technologies have been our catalysts to move proactively into the E-business arena.

Our path toward E-business has been typical of most large enterprises. Individual business units presented the need to extend their processes to customers and suppliers, and one by one, Web-based systems were built to form an extranet structure. A consistent application of technology was needed to present one face to the customer. The process involved truly understanding the business requirements and developing an organizational strategy. Clearly, a portal would present one face to the customer, and consensus was sought within the business units to move forward.

We began by defining the technical characteristics of the portal and making decisions about buying an off-the-shelf portal product or developing the application internally. It was important that we clearly identified customer requirements and the potential level of interest in Web communications. The portal had to be a complement to, and not a replacement for, the personal relationship that we maintain with our customers. Knowing that we had the appropriate skill sets available, and that this would be the most prudent investment in a new application, we decided to build the portal infrastructure in-house. The result is TVA Online Connection.

Through this portal, our business partners have secure, immediate access to billing, real-time pricing, usage summaries, energy and environment news, weather forecasts, and a digital marketplace that leverages TVA volume contracts. We provide information in a fashion that lets customers personalize their portal displays. The goal: to increase the avenues of communication between TVA, its customers, and suppliers. Planned future enhancements are scheduled to include contract information, economic data, a customer information management system, as well as online billing and payment, Web-hosted bond offerings, and additional functionality for online power trading.

The adoption of a customer portal strategy marked a change in TVA's direction of application development and marketing initiatives. Now that TVA Online Connection is in place, all future development must take into consideration Web accessibility and customization aspects. Whatever is developed going forward will be part of the overall portal strategy.

The two most frequently visited areas on the portal are the secure real-time pricing system and the digital marketplace. Through partnership arrangements with application service providers elcom Inc. and Pantellos, TVA has created something unique to the utility industry: a public-private E-marketplace. Eventually, this marketplace will extend our internal supply chain to our customers and suppliers and integrate with our work-management system, providing new options for information transfer. This will make it easier for customers and suppliers to locate and manage materials and services, improve the procurement process, optimize operations, and reduce costs.

At TVA, we know that business needs, marketplace adjustments, and technology enhancements will cause us to continually reshape our portal strategy. But we've built a solid foundation that supports the flexibility and agility needed to meet our goals going forward.

Diane Bunch is VP of IS at Tennessee Valley Authority.