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To: T A P who wrote (9925)	3/22/1999 4:00:00 AM
From: 2MAR$	Respond to of 15987

Allied Signal: Another big fish announces it's goin' E-commerce: (ALD) 3/21 AlliedSignal to Use Internet to Better Service, Boost Revenue Morris Township, New Jersey, March 21 (Bloomberg) -- AlliedSignal Inc., the world's 10th-largest aerospace company, plans to tap the Internet to better serve its customers and, ultimately, boost its revenue. The company is looking to electronic commerce on the 'Net as a means of growth, said Chief Operating Officer Frederic Poses. He said AlliedSignal is still in the early phases of developing its Internet strategy and couldn't provide more specifics such as financial projections. AlliedSignal joins a growing list of companies who wouldn't traditionally be associated with the Internet that are using the information superhighway to better their business. General Electric Co., for example, said last year it expects to conduct about $5 billion of its supply transactions over the Internet by the end of 2001 and will build virtual ordering systems for its 11 main divisions. ''E-commerce is going to be an example where people capitalize fast or slow and it's going to have monumental changes,'' Poses said in an interview at AlliedSignal's headquarters in Morristown, New Jersey. ''You think of the power of e-commerce and the potential to change the rules of the game.'' New Products GE said it expects to save as much as $750 by cutting administrative and supply expenses as well as well as error rates through the Internet system. Poses foresees AlliedSignal customers using the Internet to interact with the company over designs of new products. The customer could provide specifications on a certain design over the Internet and AlliedSignal could make a prototype that could me either mailed or be sent digitally over the Internet. ''Our challenge is where are the opportunities for AlliedSignal in e-commerce and where are the risks for AlliedSignal in e-commerce,'' Poses said. ''We are not going to sell engines'' on the Internet. While AlliedSignal might not sell huge items like engines over the Internet, it's definitely considering selling smaller aircraft parts and other similar items. ''If we don't do it, someone else will do it to us,'' Poses said. AlliedSignal already has a Web site, www.AlliedSignal.com, though like many large corporations, it just lists information about the company such as its history and products and services it offers. Other Areas of Growth Besides the Internet, AlliedSignal sees other areas of internal growth that wouldn't necessarily be associated with the maker of aircraft equipment, plastics and truck brakes. AlliedSignal, which had $15.1 billion in sales last year, wants to increase sales by 8 percent year-over-year through internal growth. The company currently has more than 1,500 projects in progress, the top 50 of which are expected to account for $4.5 billion in sales during the next three years. Two areas that AlliedSignal sees as having strong prospects for increased revenue are making turbogenerators and producing chemical ingredients for drugmakers ranging from over-the-counter medications to prescription drugs. AlliedSignal has been in the pharmaceutical business in recent years and is brand new to the turbogenerator business. Turbogenerators, which are compact power sources, can be used by supermarkets, fast-food chains, office buildings, hotels, hospitals, schools and medium-sized factories, for off-grid power generation, stand-by power, portable power and other power needs. AlliedSignal expects sales of its turbogenerators to be $500 million to $1 billion by 2003. McDonald's Corp. and Citigroup Inc. have announced their plans to test the turbogenerator this year in the Chicago area. AlliedSignal, which last year had about $300 million in sales in its pharmaceutical business, wants to take a bigger piece of drug companies' outsourcing needs. ''There is a big opportunity in pharmaceutical intermediates as drug companies start to outsource their products,'' Poses said. Currently, the global pharmaceutical bulk actives and intermediates market is about $20 billion, of which $3 billion is from outsourcing. The outsourcing portion is expected to grow 8 percent to 10 percent annually, AlliedSignal said. 10:46:33 03/21/1999