In China Steel Corporation(CSC) of Taiwan, cash and local L/C were the only two methods for shipping payment for the past 30 years. This didn¡¦t change until year 2001 when a financial crisis in Taiwan resulted in inadquatecy of credit line within Taiwanese domestic steel companies. Many companies were faced with the credit problems for procuring materials. Thus, CSC decided to develop an e-factoring system with the state-of-art e-commerce technologies to help its customers overcoming the problems. In this research, a study was conducted to investiage this e-factoring system. The results indicated that CSC¡¦s e-factoring system not only created a new operating model but also became a successful strategic information system. IT was an innovation that was fully integrated with CSC¡¦s ERP system and work flows. It provided an convenient payment method to secure customers transaction in the business activity growing period and played the role of IT as to provide a secure and convenient trading platform. Finally, the e-factoring system was expanding under the protection of government laws. Thus, we conclude that CSC¡¦s e-factoring system was a success because its development began with a specific focus of resolving specific customers¡¦ problem but later transits into a successful strategic information system through its convenience and effeciency in supporting and retaining target customers.