enable the IT systems in the supply chain to inter-operate with each other, that allow governments to participate in these types of processes, and that also allow individuals to participate. EC utilizes a range of inter-enterprise initiatives(business, industry, and government) that enable EC users to exchange information in standard formats so that the IT systems of any participant can recognize ne electronic information being exchanged. These standards initiatives include messages (standard invoices, customs declarations, etc. ) codes(product codes, bar codes, location codes. g airports and airlines, size and measurement codes, business practices, etc. tomatic identity technology such as scanning, wireless ID/transponders and GPS systems most of all. ec initiatives make possible JIT (ust-in-Time inventory control), QR Response retail replenishment ), ECR(Efficient Consumer Response for the supermarket industries), and a range of systems in which governments participate, such as trade facilitation for automating customs and port processes, electronic tax lodgment, and electronic government and governance In the context of small states, EC and IT can be deployed for these tasks, among others (1) Efficiencies of industry and government, leading to productivity improvements and economic growth. In particular, there are opportunities for improved macroeconomic management and introduction of practical public expenditure/budget management and monitoring systems (2) Participation in globalize industries, leading to process improvement, business development, industry diversification, and employment opportunities (3) Opportunities to perform high-value operations at lower costs than in developed countries, thereby transferring employment opportunities, since EC in particular makes geographical location irrelevant (4) Trade process reform, including ports and customs, technical controls(prohibitions and restrictions, government trade licensing and approvals, and other non-tariff barriers), trade professionals and traders. This can lead to increased trade efficiencies and the ability to handle smaller consignments more efficiently and more often. It can also lead to efficiencies and competitive advantages in transshipment, transit and free port or duty-free zone operations (5) Increased tax revenues due to increased economic activity and improved government efficiencies, including SOES, GBEs. The technologies can offer many other potential benefits, but even this first look illustrates that It and eC are no longer restricted to the big players. Properly planned and managed, they can be very effective in any environment They can induce and introduce efficiencies that may have been considered to be impractical before, they can introduce new revenue opportunities for both the public and the private sector, and they can generate new employment opportunities. But to make the most of the technologies, it is necessary to make adjustments to traditional ways of doing business, in both government and the private sector organizations 11.3. 1 The basic procedure for electronic commerce logistics Electronic commerce requires workflow support. Actually, electronic commerce has been around for many years in the form of Electronic Data Interchange(EDI). However, EDI is limited to business-to-business(B-to-B) commerce and is based on structured document formats(called transaction sets), which are transmitted over value-added networks. Electronic commerce over the Internet, or Internet commerce, has opened up new possibilities of business-to-consumer(B-to-C) commerce by obviating the need for value added networks. In the first step, the Internet serves as a router for communications between trading partners, but more importantly, in a broader sense it can lead to the creation of new types of value chains between partners. An electronic commerce application must also provide support for notification and negotiation. Parties must be able to negotiate before reaching a commitment, on price, delivery date, etc. Notification is another important feature. After a customer places an online trade, the broker should notify him or her as soon as the trade is executed rather than the customer checking the web site continuously to find out if the order has been executed. Similarly, a package delivery service such as Federal Express should notify the customer( both sender and receiver)as soon as a package is delivered at a site All these electronic commerce activities point to the importance of workflow automation as further exemplified in the next few subsections hanye t the enterprise level, the logistics agent interacts with the customer about an order. To this order, logistics has to decompose it into activities such as manufacturing assembly, transportation, etc. Then it negotiates the execution of these activities with the available plantsenable the IT systems in the supply chain to inter-operate with each other, that allow governments to participate in these types of processes, and that also allow individuals to participate. EC utilizes a range of inter-enterprise initiatives (business, industry, and government) that enable EC users to exchange information in standard formats so that the IT systems of any participant can recognize the electronic information being exchanged. These standards initiatives include messages (standard invoices, customs declarations, etc.), codes (product codes, bar codes, location codese. g. airports and airlines, size and measurement codes, business practices, etc.), and automatic identity technology such as scanning, wireless ID/transponders and GPS systems. But most of all, EC initiatives make possible JIT (Just-in-Time inventory control), QR (Quick Response retail replenishment), ECR (Efficient Consumer Response for the supermarket industries), and a range of systems in which governments participate, such as trade facilitation for automating customs and port processes, electronic tax lodgment, and electronic government and governance In the context of small states, EC and IT can be deployed for these tasks, among others: （1） Efficiencies of industry and government, leading to productivity improvements and economic growth. In particular, there are opportunities for improved macroeconomic management and introduction of practical public expenditure/budget management and monitoring systems. （2） Participation in globalize industries, leading to process improvement, business development, industry diversification, and employment opportunities. （3） Opportunities to perform high-value operations at lower costs than in developed countries, thereby transferring employment opportunities, since EC in particular makes geographical location irrelevant. （4） Trade process reform, including ports and customs, technical controls (prohibitions and restrictions, government trade licensing and approvals, and other non-tariff barriers), trade professionals and traders. This can lead to increased trade efficiencies and the ability to handle smaller consignments more efficiently and more often. It can also lead to efficiencies and competitive advantages in transshipment, transit and free port or duty-free zone operations. （5） Increased tax revenues due to increased economic activity and improved government efficiencies, including SOEs, GBEs. The technologies can offer many other potential benefits, but even this first look illustrates that IT and EC are no longer restricted to the big players. Properly planned and managed, they can be very effective in any environment. They can induce and introduce efficiencies that may have been considered to be impractical before, they can introduce new revenue opportunities for both the public and the private sector, and they can generate new employment opportunities. But to make the most of the technologies, it is necessary to make adjustments to traditional ways of doing business, in both government and the private sector organizations. 11.3.1 The basic procedure for electronic commerce logistics Electronic commerce requires workflow support. Actually, electronic commerce has been around for many years in the form of Electronic Data Interchange (EDI) . However, EDI is limited to business-to-business (B-to-B) commerce and is based on structured document formats (called transaction sets), which are transmitted over value-added networks. Electronic commerce over the Internet, or Internet commerce, has opened up new possibilities of business-to-consumer (B-to-C) commerce by obviating the need for value added networks. In the first step, the Internet serves as a router for communications between trading partners, but more importantly, in a broader sense it can lead to the creation of new types of value chains between partners. An electronic commerce application must also provide support for notification and negotiation. Parties must be able to negotiate before reaching a commitment, on price, delivery date, etc. Notification is another important feature. After a customer places an online trade, the broker should notify him or her as soon as the trade is executed rather than the customer checking the web site continuously to find out if the order has been executed. Similarly, a package delivery service such as Federal Express should notify the customer (both sender and receiver) as soon as a package is delivered at a site. All these electronic commerce activities point to the importance of workflow automation as further exemplified in the next few subsections. At the enterprise level, the logistics agent interacts with the customer about an order. To handle this order, logistics has to decompose it into activities such as manufacturing, assembly, transportation, etc. Then it negotiates the execution of these activities with the available plants