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Intelligent Systems

Volume VII, Number 2, May, 2000

A quarterly newsletter for clients and friends of Chenault Systems

North Dallas Chamber E-Commerce Seminar, May 4th

At Chenault Systems, we are becoming more involved in the concepts of e-commerce. On Thursday, May 4, 2000, Chenault Systems, along with Main Street Internet and ICL, will present a seminar on "Beyond the Web Page: The Internet Revolution's Impact on Your Business" at the North Dallas Chamber of Commerce.

How will the Internet revolution and the growth of e-commerce impact your business? How will it change the competitive landscape in your industry? What can it do for your bottom line? Is it right for your company? There is little doubt that e-commerce will change the way many companies currently conduct business. It will create new opportunities, while at the same time force business owners to examine their current business models with an eye toward taking advantage of the Internet revolution. This informational seminar will address the following topics:

Keith Youngblood, Comerica Bank
Phillip Price, Chief Marketing Officer, Mainstreet Internet
Stace Hunt, Director of Business Development, ICL
Tom Chenault, President, Chenault Systems, Inc.

North Dallas Chamber seminars are presented from 7:30 - 9:00 a.m. located at 10707 Preston Road. The cost is $15 for members and $25 for non-members and includes a continental breakfast. Please RSVP to secure a reservation by using:

Web site:
Phone: 214-368-6696

Is Dot.Com the Right Choice for your Organization?

More often our clients and prospective clients ask us if they should participate in the electronic boom. Some parts of the media keep referring to the "old economy" and the "new economy". They even refer to words like "brick and mortar" and "brick and click." We would like to refer to these as the "real economy", where profit is the cornerstone. The old economy and the new economy need each other. The old economy brings financial capital, brand names and a strong history of customer service to the table. The new economy brings efficiencies via business to consumer and business to business e-commerce unprecedented in history, providing enormous cost savings.

E-commerce is nothing more than offering products and services over the Internet (on-line). However, there are many issues, including a potentially high investment in time and money, with an integrated e-commerce system. We have come up with four questions that should be assessed before you take the first step:.

If you have answered all four questions yes, then you are a possible candidate for e-commerce.

New Article about Chenault Systems

Stacey Closser, staff writer for the Dallas Business Journal, has written an article about Chenault Systems and our prospects for the year 2000. This is an update to the article written about us in the Dallas Business Journal in January of 1998.

To view this article on the Web, please refer to:

A Technology Driven Economy

Because of the rapidly growing economy driven by technology and the private sector, the public sector may be greatly diminished in the next 20 years, making many forms of taxes potentially obsolete. Much more efficient private charity systems may replace government social services. As more people become affluent, they may vote for tax cuts instead of government support. In the past March 30 issue of the Dallas Business Journal, an editorial was published that addressed these issues. It is refreshing to see a newspaper take a strong stand for the private technology sector of the economy.

The following editorial appeared in the Dallas Business Journal issue of March 24-30 18, 2000.

Money for nothing
By Huntley Paton
Publisher of the Dallas Business Journal

I don't get it. Taxes at all levels of government combined are higher today than they were during the Great Society days of the 1960s, and yet city and state governments would have us believe that they soon will suffer profound funding shortfalls unless they are permitted to impose new taxes on Internet commerce.

That's not the part that confuses me - governments always seem to want more money - but I can't understand why so may people are eager to buy into their sky-is-falling rhetoric. Last week's e-commerce summit in Dallas was encouraging in that no consensus for new taxes emerged. But the tax addicts and their apologists, including (regrettably) The Dallas Morning News, will keep whining, so the fight is far from over.

Cities such as Dallas worry that tax-free transactions over the Internet will devastate the sales tax revenue they depend upon to provide basic services. OK. But the Internet is no more a threat to Dallas than is the new mall being built in Frisco. Every time a Dallas resident leaves the city limits to buy something, Dallas loses the sales tax. You don't see Dallas cops pulling over residents as they drive back into the city to make them pay a duty on the toys they purchased at the Toys R Us in Plano. Yet that is precisely what Dallas Mayor Ron Kirk would like to do to his constituents who shop on the Internet.

The movement to tax e-commerce violates a basic premise of taxation, which is, taxes should be collected for services provided. If I, while sitting at my computer in Dallas, order a gift from the Internet merchant in New York for delivery to my father in Arizona, what service has city of Dallas provided in that transaction? None. Yet Kirk, an influential figure in the national debate, would have us believe that the city of Dallas is entitled to a cut of that deal.

To me, that kind of thinking moves the taxation debate into a scary new area, one in which governments have your wallet tied to a tether, as if they are entitled to a piece of everything you do, earn, or buy, no matter where you go. Up to now, cities have thrived or dived based on their ability to attract businesses, residents and visitors.

They shouldn't be able to collect taxes for doing nothing. Mayor Kirk likes to use the pothole argument, which is that cities won't have enough money to fix potholes unless they can tax Internet commerce. But let's turn that argument around. If Dallas can collect sales taxes for doing absolutely nothing, what motivation does it have to worry about potholes in the first place? Think about it.

This Internet-phobia, particularly as it manifests itself in the Metroplex, in nothing short of preposterous. The Internet revolution has been a bonanza for North Texas, spawning thousands of new companies, jobs and residents, all of which has pumped record levels of tax money into government hands. As always, it's not enough for the politicians who feel they are more entitled to your money than you are.

Reprinted with permission of The Dallas Business Journal copyright 2000 American City Business Journals. All rights reserved.

Quotes Worth Noting

"The rich adopt novelties and become accustomed to their use. This sets a fashion which others imitate. Once the richer classes have adopted a certain way of living, producers have an incentive to improve the methods of manufacture so that soon it is possible for the poorer classes to follow suit. Thus luxury furthers progress. Innovation is the whim of an elite before it becomes a need of the public. The luxury today is the necessity of tomorrow. Luxury is the roadmaker of progress: it develops latent needs and makes people discontented. In so far as they think consistently, moralists who condemn luxury must recommend the comparatively desireless existence of the wild life roaming in the woods as the ultimate ideal of civilized life." -- Ludwig von Mises

"What is wanted is not the will to believe, but the wish to find out, which is the exact opposite." -- Bertrand Russell

"It is far better to dare mighty things, to win glorious triumphs, even when checkered by failure, than to rank with those poor spirits who neither enjoy much, nor suffer much, for they live in a twilight that knows neither victory or defeat." 
-- Theodore Roosevelt


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Chenault Systems, Inc.
2407 Glen Morris
Carrollton, TX 75007

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