E-business is emerging in Newfoundland and Labrador

Today Operation ONLINE Inc. and the Avalon Development Alliance announced the results of a unique e-business initiative.

It's a first for Newfoundland and Labrador, and it has captured the attention of industry and governments from across the country and as far away as Ireland. The partnership will see development of world class approaches for small businesses to compete in an Internet economy.

The project is e)MERGE. It is a response to a rapidly-growing need to prepare small and medium-sized enterprises (SMEs) to develop sound e-business practices and capitalize on opportunities to use the Internet to reach new customers and markets.

"We feel that e-business will be a significant component of the growth of the information technology industry in this province," said Jack Botsford, president and CEO of Operation ONLINE. "While Operation ONLINE focuses much of its efforts on the information technology sector itself, this project is an example of how we work with other agencies and organizations to promote the application of IT in all economic sectors. Many countries around the world are recognizing the importance of e-business; however, very few are putting in place aggressive actions like this to more fully develop its potential. What we learn from this project will set the tone for future initiatives down the road."

e)MERGE has two key elements:

1. A project to assist 30 small businesses in the adoption of e-business practices. This includes web sites, transaction systems, marketing plans and training.
   
   
2. An e-business portal site (www.emergewithus.com) as well as online training programs and best practices based upon the lessons learned from the project.

The results will be applied in the development of a model for similar initiatives in the future, in this province and possibly other parts of Canada and the world. The Memorial University of Newfoundland Faculty of Business is assisting in this process.

Project coordinators include Operation ONLINE and the Avalon Development Alliance, which comprises four regional economic development boards on the Avalon Peninsula of Newfoundland: Capital Coast Development Alliance Inc., Avalon Gateway Regional Economic Development Inc., Mariner Resource Opportunities Network Inc. and Irish Loop Regional Economic Development Board.

"There is huge potential for growth in the knowledge-based economy in Newfoundland and Labrador," said Bill Matthews, MP for Burin-St. George's on behalf of Brian Tobin, Minister of Industry Canada. "Through our support for such partnerships as the one demonstrated here today, we are working to improve e-business adoption in small to medium-sized enterprises and are supporting businesses in their transition to the networked economy."

"Newfoundland and Labrador has always been a leader in pioneering rural technology and embracing the new opportunities they create," said Sandra C. Kelly, Minister of Industry, Trade and Technology. "Our province is breaking new ground once again with the launch of the e)MERGE project, which benefits local companies and also has an international focus as we work together with our partners in Ireland to share this expertise."

A total of 30 small businesses in the greater Avalon area participated in the project, each with varying levels of e-commerce readiness. Of those, 20 companies worked directly with ZeddComm Inc. and NewTel Communications, which together provided complete e-business solutions. These companies now have the capacity to conduct secure transactions or accept electronic reservations on their web sites. As well, each company has received extensive training as well as a marketing strategy tailored to its business needs.

The remaining 10 companies participated on an individual basis, receiving support tailored to their specific needs and circumstances. These companies already have a presence on the Internet, a high level of understanding of e-business and have put significant investment into their businesses outside of this project.

The e)MERGE portal site offers a wide range of services to current and future project participants, and provides a stronger focus for their marketing efforts. The site, which was designed and developed by Cyber Zone of St. John's, offers links to the small business sites, along with a number of useful support resources for e-business.

Christine Hollett, Executive Director of the Capital Coast Development Alliance, said that this project has been an excellent partnership between business, government and the community. "The four participating zones are quite excited about this project, and its outcomes," Hollett said. "We have identified a strong demand for e-business support in our zones. The zonal boards are proposing a second phase of the project and expect to take an expanded role, through the addition of an e-commerce specialist. We want to expand the project to more companies and additional sectors, reflecting the strategic direction established by each of the zonal boards."

The project was developed and delivered with funding support from Industry Canada, the Atlantic Canada Opportunities Agency (ACOA), the provincial Department of Development and Rural Renewal, and Operation ONLINE which is funded through the Canada/Newfoundland Agreement on Economic Renewal.

For further information, contact:

Lori Churchill, Operation ONLINE, (709) 729- 4230
Geoff Meeker, CCL Milestone, (709) 739-9995
Julie Clarke, Atlantic Canada Opportunities Agency, (709) 772-2941
Jackie Simon, Dept. of Industry, Trade and Technology, (709) 729-0050

The zonal representatives are:

Jason Whiteway, Capital Coast Development Alliance, (709) 753-5554
Colleen Hickey, Mariner Resource Opportunities Network Inc., (709) 596-6217
Jamilee Browne, Avalon Gateway Regional Economic Development Inc., (709) 227-5456
Kate Pennell, Irish Loop Regional Economic Development Board, (709) 438-2898

2000 01 24              11:30 a.m.