Eventually, families learned more about television, saw how it worked and determined that it could provide value (entertainment, bonding) for their investment. Suddenly, everyone had to have a "magic box" and stores could not keep it in stock. They quickly became a staple of American life.

Within the multifamily industry, our industry is kind of at the same stage as it was in the 50s when talking about technology. Our industry is still at the stage of looking through the store window and saying to ourselves, "What is it?" and "What can it do for me?" Sure, the industry may have Web sites and e-mail capabilities, but has it really understood what today's innovations can do? As a whole, I believe that we have been a little slow to embrace technology and the benefits of e-procurement.

The time is now for the industry to take a long hard look at the benefits of Internet technology and buying online. Part of any analysis required to make an informed business decision resides in finding the facts and dispelling the perceived myths. That's what we did with television. That's what we need to do now.

Myth: It is too hard to use. My people won't know how to use it.
A common rationale for not trying something new. As consumer Internet use tells us, the World Wide Web has become a major force in communication, purchasing and fact-finding. Millions of people each day login to their favorite sites and buy personal products with little training or fear. While it is true that employees will have to change the way they perform their job, in the long run, Internet technology will make their jobs easier and more productive.

Today's software packages and online procurement sites have been designed to maximize the user's experience. The use of drop down screens, navigation bars and online instruction simplify the online process as it guides the user from screen to screen. Additionally, procurement sites offer online training sessions and support to assist employees work within a site. These user friendly tools help the employee achieve a comfort level with the new technology as they personally see the benefits of the new "way of doing things."

Myth: I will have to completely change the way I do business.
While technology does have an influence, it is the business owner who decides the pace of change. Part of being a good businessperson is to identify ways to make your product stronger and your people more productive. Once that method is discovered, it's the owner who decides when and how much of it will be incorporated. It is important that before spending your first dollar, you must have a plan or vision on what you want the technology to accomplish for your business and your customers. Set goals, objectives and timetables. Then find the right technology device that best suits your plan. Companies often do this in reverse and find themselves in trouble because they selected the hardware first and then tried to adapt their plan to the hardware's capabilities. With this methodology, you can limit yourself or, worse, pay for things you really don't need for your business.

With the Internet, it often makes sense to start small and work your way up the technology ladder. That's why buying supplies on the Internet makes so much sense. Today's online marketplace sites for your employees are easy to use. As the business owner, you will see a difference in your employee's productivity as well as added control over your budget.

The Internet is not merely a change for the sake of change, it is a business tool that you have at your disposal to better manage budgets, reduce maverick purchases, track buying patterns and make employees more productive. Remember, you control how much you want your employees to handle and by which means to execute it.

Myth: It costs a lot of money.
Capital investments are a vital part of every business strategy for long-term growth and success. However, as discussed earlier, you must have a plan or it will cost you a lot of money. Obviously, if you are going to buy computers for every person on your staff, then it will be a large expense on your balance sheet. But costs associated with technology are coming down across the board. Why? Competition. From computers to personal data organizers to procurement sites, competition is making technology affordable for everyone. Unlike 10 years ago, now has never been a better time to invest in hardware for your organization.

Even so, you still have to make that initial investment. It is what you do with the computers to reduce that spike is how Internet technology pays off. Once you have a sound plan, you will see that Internet technology can actually help you save money. As an example, you need to buy a hammer, paint and pool supplies. In the past, your property manager would have to review numerous catalogs to compare pricing, fill out purchase orders and manually place that order via phone, fax or even mail. If he/she couldn't find the right product, they might travel to the nearest supply store and buy it off the rack. This process could take an hour or more to complete. More importantly, the cost per unit ends up much higher once the manager's time is figured into the equation. With the Internet, the property manager could go to one site, type in a keyword (e.g., hammers), compare pricing on one screen, select that product for purchase, and move onto the next product. This process can take minutes, thus freeing up more time for your manager to coordinate other projects. The fees of such online purchases range from site to site. Depending on the site's policies, they will typically charge a vendor and user a membership fee for joining the virtual marketplace. The fee for bringing access, convenience and competitive pricing for vendors and buyers can range anywhere from hundreds of dollars to thousands per year and is typically paid on a monthly basis. A transaction fee may also be negotiated on all goods and/or services sold/bought in the marketplace. Normally, this fee is based on a percentage of sales generated from the virtual marketplace. This percentage can range from a fractional percentage up to five percent.

Myth: It will hurt my vendor's business if I buy online.
Strong relationships are what successful companies require to secure their own future. This is the way it is has been and always will be. The multifamily industry is not different in that we have forged partnerships with trustworthy vendors who deliver value (price, delivery, service) to us. The perception is that if we go online to buy, we are hurting the partner who helped us succeed in the past. So why fix it if it isn't broken? Simply put, incorporating an Internet strategy can produce a win-win situation for both you and your vendor. For your business, you can expand your vendor base, obtaining competitive bids in the process, by using MRO procurement sites. This is especially handy when you only have one current vendor in a category and want alternatives to your current situation. For your vendors, they can join the supplier network and get exposed to additional customers they otherwise would not have had access to. In the end, you would be doing a favor for all parties through Internet procurement.

Myth: It takes years to see results.
It is our nature to incorporate programs in a one-, two- or five-year program. In this process, year-end reviews and analysis are generated to determine program effectiveness. While quarterly reports are often done, the true impact of a program is not often felt until all numbers are accounted for.

For this reason, Internet technology can make an impact from day one. Maverick, or spot, purchases are a main culprit in depleting a budget. These purchases are made outside of vendor ties because it is more convenient to run to a store to pick-up a product. However, with convenience comes added price. These maverick buys are not often seen or felt until the fourth quarter, which by then is too late to make budget adjustments.

Internet technology has been developed that can help curb these type of purchases. Some sites allow you to set purchase limits in terms of the item, supplier or amount spent. When a manager has exceeded that limit, the electronic purchase order is sent via the Internet to an executive at a higher level for approval. Since the routing is done electronically, approvals are granted faster than the traditional method of filling out requests, placing it in someone's in-box, waiting for approval, and having it sent back through the same channels. With faster approvals, the impulse to buy off contract is diminished.

Additionally, Internet technologies help the property manager monitor and track the entire purchase cycle. Information such as location, buyer, item, supplier, date and amount spent are typically captured. With the Internet, electronic record keeping and reporting are almost instantaneous. Therefore, budget adjustments and allocations can be made more quickly to avoid shortfalls in the fourth quarter.

Myth: It is safer to keep information to myself than through cyber space.
Security is a major factor in every business. From property to keys to records, property owners face a continual battle for securing their assets. But as owners have taken steps into securing their personal assets, so too has the Internet industry through firewarlls and encrypted coding.

Generally, firewalls are configured to protect against unauthenticated interactive logins from the ``outside'' world. This, more than anything, helps prevent hackers from logging into machines and sensitive files/spreadsheets on your network. More elaborate firewalls block traffic from the outside to the inside, but allow users on the inside to communicate freely with the outside.

Firewalls also provide an important logging and auditing function; often they provide summaries to the administrator about what kinds and amount of traffic passed through it, how many attempts there were to break into it, etc.

While firewalls protect from hackers getting into your files, encrypting protects your credit card information when your purchase online. Through secure socket layers, encryption coding scrambles your credit card number when you submit an order, making it completely unreadable as it travels over the Internet. For an additional layer of security, many e-commerce sites encrypt every credit card number they store in its database. Securing passwords is essentially the same process to ensure no one has access to your account.

Through these two measures, and others not mentioned, technology has made using the Internet safe and secure for all multi-housing users. Conclusion

As with any innovation, there is a large learning curve before a comfort level is achieved. We witnessed that with television and we are experiencing it with the Internet. The Internet should not be feared, it should be embraced. The benefits of using its technology to make your business more efficient and controlled are at your doorstep right now. Open the door and welcome it.