Business-to-business electronic commerce (EC) is an area of intense interest for national and multinational organizations. Red Herring magazine estimates that EC market revenue for 1997 was $10.6 billion, a number projected to increase rapidly. The importance of the topic has generated significant research interest. Joint industry/university research endeavors have been the most productive; hence, the motivation for initiating a joint industry/university research project on international EC.

The Institute of Public Policy (TIPP) has taken the lead in organizing and implementing a two-phased research experiment on international EC. The objective of the experiment is to establish a virtual laboratory to foster experiments in business-to-business EC. The primary focus is on supply chain integration, including large and small- and medium-sized enterprises (SMEs) participating in integrated electronic business across international boundaries.

"This electronic commerce project is one example of a new type of partnership between the university and the corporate world: working together to create new knowledge and practical applications of that knowledge that will significantly enhance economic development and productivity," says Joy Hughes, vice president for information technology.

Ele ctronic business transactions are executed through integrated systems, known as enterprise resource planning (ERP) systems, a relatively standard implementation in large organizations. The unique aspect of this research project is that the large business solution is extended to the SMEs in the supply chains of the large organizations.

TIPP's Thomas Gulledge, professor of public policy and engineering, and Rainer Sommer, associate research professor, both in the Policy Analysis Center, lead the project. The countries participating in the experiment are the United States, Peru, South Korea, and the Republic of China. The project focus in each country center on prominent universities: George Mason University, the University of Lima, Chung-Ang University, and National Tsing Hua University. Each university has industry (and perhaps government) partners, as it deems appropriate.

Gulledge says that a number of companies in the United States are already implementing electronic commerce solutions, but his project is the first international effort of such magnitude with a focus on SMEs. However, he adds, the most complicated issues in EC are not those dealing with technology and infrastructure, but those deal ing with laws, cultures, Asian languages, and payments. "TIPP thrives on these policy issues," he says.

The Mason team includes Oracle Corporation, Great Plains Software, Inc., and O-Tech International. The teams in other countries are composed of other technology firms, providing the opportunity to experiment with diverse technology environments.

Oracle is the world's second largest software company, and the leading supplier of software for information management. With annual revenues of more than $6.3 billion, the company offers database, tools, and applications products, along with related consulting, education, and support services, in more than 140 countries. Oracle is one of the first software companies to implement network computing-capable databases and products, and the first major software company to make full-featured products available on the Internet.

Great Plains Software is a leading provider of Windows NT- and Microsoft SQL Server-based client/server financial management software for the midmarket. The company's products and services automate essential accounting and other business functions and enhance the strategic value of financial information. Great Plains's products are sold and implemented exclusively through its extensive network of independent sales and support organizations throughout the world.

O-Tech is a Northern Virginia firm providing a variety of services to companies involved in international business ventures. Its expansive foreign network, its experience in cross-cultural activities, and its understanding of doing business abroad make O-Tech an excellent partner for this experiment.

This project will be showcased at the upcoming World Congress on Information Technology that will be held this June at George Mason, and again in two years when the congress is held in Taipei.

For additional information about the project, please contact Gulledge at gulledge@gmu.edu or Sommer at rsommer@gmu.edu.