Connectivity enables communications and transactions. With loosely coupled solutions, implementation is fast. Within days, partners share data and conduct business via the Internet. Value-added network fees are eliminated and paper-based communication is minimized, significantly reducing costs. The benefits of e-commerce are realized and successful integration is assured.

In contrast, companies that integrate their supply organization without addressing connectivity first will struggle to bridge the gap between them and their trading partners. They'll end up dealing with incompatible proprietary systems. Costs will escalate and integration will become an ideal accessible only by top-tier trading partners. Smaller suppliers will remain disconnected.

Where should companies turn? Internet portal solutions won't support a fully integrated solution. Internet-based value-added networks lower the cost of transmission but don't eliminate it, keeping smaller suppliers out of the network. What's needed is a solution that enables partners to transact business via the Internet, migrate at their own pace and achieve integration across the network.

To accomplish that, companies must focus on connecting as many participants as possible in a short time. But how can that be achieved?

The answer lies in open, interoperable e-business connectivity platforms that take into account supplier differences. The solution must offer fast connectivity and a quick return on investment and embrace all suppliers. The best solution will stratify suppliers, taking into account individual needs, and offer a solution that addresses supplier connectivity first.

For example, larger suppliers already transacting business electronically and integrating electronic data interchange (EDI) into their back-end systems will want secure server-based solutions capable of handling high-volume transactions. This group can migrate EDI transactions to the Internet.

The next group of suppliers may use EDI to do business, but unlike the first group, EDI may not be an integral component of their strategy. This group may be more interested in complying with buyer initiatives than with joining the new economy. Their focus may be on immediate return, not future investment.

At the other end of the spectrum are vendors that use manual processes to transact business with partners. Those vendors are candidates to use a Web-based form as an alternative to paper-based transactions. They stand to benefit by reduced errors, faster turnaround of invoices and the ability to archive and retrieve past purchase orders.

All of these suppliers can benefit from connectivity. And it's likely that without trading-partner connectivity, true integration may never become a reality.

Kian Saneii is Senior Vice President, Worldwide Marketing and Business Development for Ipnet Solutions Inc. (Newport Beach, Calif.), a provider of E-business software and services that create virtual trading communities.