The Internet has been described as the most radical innovation of the 20th century — a technology poised to transform every aspect of business. For some companies, that interpretation certainly seems accurate. With their constant network access; standardized and automated online processes; and user-driven, online support services, “Internetworked” businesses operate faster, more flexibly and more precisely than their technology-shy rivals. Such companies also create higher quality products or services at lower cost.In light of these benefits, we might expect every company in every industry to make the leap to the New Economy. Yet a recent study reveals that there is surprisingly slow overall progress toward Internet-based organization. Drawing on international fieldwork and questionnaire responses from 399 industry executives (primarily from large, well-established corporations), the authors set out to define what it means to be Internetworked, uncover why progress in that direction is slow and generate ideas for accelerating the transition.To be sure, large companies that already have an IT orientation have long been deeply Internetworked. Specifically, these Internet generation companies (IGCs) have moved management of five key functions — human resources, supplier/ partner dealings, finance, purchasing, and customer and supply-chain operations —online.