Australia’s health industry is grasping the need to use IT and telecommunications with e‐commerce strategies for improved cost‐effective services to its key stakeholders. Addresses the changes occurring in Australia’s healthcare industry influenced by experiments in e‐commerce and focussed on the Project Electronic Commerce and Communication for Healthcare (PeCC). Initiated in 1997, as a joint activity of both government and industry, PeCC was developed to introduce e‐commerce practices into the health sector with almost 700 suppliers, automating pharmaceutical and other supplies to hospitals. Supply chain communication will be facilitated by an Internet‐based platform, allowing more efficient interaction between the pharmaceutical industry’s outlets (retail and hospital pharmacies), wholesalers, suppliers and manufacturers. Promoting and demonstrating e‐commerce for the pharmaceutical industry supply chain, the project connects manufacturers, wholesalers, suppliers and hospitals. Examines lessons in change management and communication that emanate from this health sector case, emphasising the issue of improving communication with key stakeholders about e‐commerce and changes to the health system, and ensuring appropriate communication practices (including media selection) through the different phases of the project over time.