As a newly emerging trend in information technology (IT) applications, Internet not only represents a different form of IT application, but also a rapidly forming, new culture and new life style. In the meantime, commerce modernization is considered a critical measure leading to enhanced national economic competitiveness and improved life quality. After several years'development and active promotion, most progression in this area still tends to focus on automation of transactions processing, lagging far behind the situation in more progressive countries. Since those countries are continuing to pursue even more sophisticated utilization of IT, we are facing a real possibility of lagging even more behind, unless we do something about it. There needs to be a dramatic breakthrough in both perception and understanding, based on which major actions may be devised and implemented. This conceptual article discusses the new economics of information under Internet's impact, innovative applications of intranets and extranets, a future-oriented perspective of strategy, and the role of intranets in nurturing organiztional culture. The suggestions presented herein may provide some guidance for the further progression of the commerce modernization effort.