How important is an intranet for a business engaging in e-commerce?

An intranet aids in the management of internal corporate information that may be
interconnected with a company’s e-commerce transactions (or transactions conducted
outside the intranet). Inasmuch as the intranet allows for the instantaneous
flow of internal information, vital information is simultaneously processed and
matched with data flowing from external e-commerce transactions, allowing for the
efficient and effective integration of the corporation’s organizational processes. In
this context, corporate functions, decisions and processes involving e-commerce
activities are more coherent and organized.
The proliferation of intranets has caused a shift from a hierarchical command-andcontrol
organization to an information-based organization. This shift has implications
for managerial responsibilities, communication and information flows, and
workgroup structures.