This paper presents a four phase model of EC business transformation constructed from analysis of 34 Australian SME case studies. The model explores the relationships between degrees of organisational transformation and potential benefits to be derived from EC. The model illustrates that potential benefit from investment in EC activities increase where enterprises engage in a process of organisational transformation. By exploring two identifiable stages in the strategic use of EC the model is extended to highlight that optimal benefit from EC activities is linked to strategic decisions to align organisational structures to leverage EC related competitive edge.