There's no doubt the adoption of Web technology provides a company the opportunity to change its relationships with the organizations and individuals with which it does business--from trading partners to suppliers, from internal customers to end customers. As I work with our trading partners, customers, and associates in extending the use of the Internet, it's apparent that relationship changes are falling into four distinct but highly related categories: collaboration, communication, customer service, and cost efficiency. The result: operation efficiencies and reduced costs.

Perhaps the greatest opportunity for change lies in the collaborative capabilities the Internet provides. The Internet supports the transition of transacting business through discrete, predictable, serial processes to a more cyclical, dynamic approach. The Internet provides a means to readily adapt technology that lets all parties work from the same system, using the same information, in a real-time environment.

The poster child for the value of collaboration is the Voluntary Interindustry Commerce Standards Association's collaborative planning, forecasting, and replenishment process. While this concept has been defined and in limited production for several years, the advent of Web-based trading exchanges has spurred interest in CPFR.

The successful implementation of CPFR is based to great extent on the ability of companies to change their business processes to achieve the value of collaboration. The sharing of information, which is key to the process, can actually be done manually using spreadsheets on diskette or via EDI. But the timeliness of the information and the ability to standardize the process and communication of information using the Internet enhance the value of CPFR, as well as facilitate its implementation.

Consider the ability to share information regarding product development: A manufacturer alerting everyone immediately of a delay and reflecting this delay on the shipment schedule in real time gives retailers, transportation companies, and importers the opportunity to take corrective measures.

Communicating status and changes regarding product-development schedules is just one way in which the Internet is changing business relationships. The Internet has given us at Sears the ability to increase our communication to our internal and external customers and break down perceived barriers to management. Sears associates, for example, can receive updates from the chairman via the Internet, as well as talk directly with him through regular Web chats. Through broadcasts over the Web, we hear the message delivered at financial-analyst meetings at the same time the analysts are receiving it.

The Internet also permits retailers to become more customer focused and responsive. External customers now have the power to determine when they shop, what they want to shop for, and how they want to receive the goods (by mail, by truck, or for pickup at the nearest store). At the same time, information directly collected about customers' buying habits assists retailers in tailoring product offerings and promotions to individuals.

With the Internet, the cost of entry for a new vendor to communicate electronically with Sears is significantly reduced, as is the time frame to establish new vendors. Our extranet has given more control to our vendors, allowing them to readily access data-entry screens to set themselves up on our systems. This saves Sears the time spent on correcting data erroneously entered by individuals not familiar with the information.

Indeed, the Internet impacts all relationships. Easy access to timely, accurate, and targeted information by businesses and their suppliers, partners, and customers fosters relationships that are one to one rather than one to many. The personalization, communication, and functionality that are the outcome enhance and reinforce relationships in ways not possible in the past. Further implementation and extension of these principles will extend and enhance business relationships well into the future.

Jerry Miller is CIO at Sears, Roebuck and Co.