Preface to the First Version[edit]

One of many many challenges going through the nations within the Asia-Pacific immediately is making ready their societies and governments for globalization and the data and communication revolution. Coverage-makers, enterprise executives, NGO activists, teachers, and peculiar residents are more and more involved with the necessity to make their societies aggressive within the emergent info financial system.

The e-ASEAN Process Drive and the UNDP Asia Pacific Improvement Info Programme (UNDP-APDIP) share the assumption that with enabling info and communication applied sciences (ICTs), nations can face the problem of the data age. With ICTs they’ll leap forth to increased ranges of social, financial and political improvement. We hope that in making this leap, coverage and decision-makers, planners, researchers, improvement practitioners, opinion-makers, and others will discover this sequence of e-primers on the data financial system, society, and polity helpful.

The e-primers purpose to supply readers with a transparent understanding of the varied terminologies, definitions, traits, and points related to the data age. The primers are written in easy, easy-to-understand language. They supply examples, case research, classes discovered, and greatest practices that may assist planners and resolution makers in addressing pertinent points and crafting insurance policies and techniques applicable for the data financial system.

The current sequence of e-primers contains the next titles:

  1. The Info Age
  2. Nets, Webs and the Info Infrastructure
  3. e-Commerce and e-Enterprise
  4. Authorized and Regulatory Points for the Info Financial system
  5. e-Authorities
  6. ICT and Training
  7. Genes, Know-how and Coverage: An Introduction to Biotechnology

These e-primers are additionally out there on-line at http://www.apdip.internet/publications/iespprimers

The primers are delivered to you by UNDP-APDIP, which seeks to create an ICT enabling setting by means of advocacy and coverage reform within the Asia-Pacific area, and the e-ASEAN Process Drive, an ICT for improvement initiative of the 10-member Affiliation of Southeast Asian Nations. We welcome your views on new matters and points on which the e-primers could also be helpful.

Lastly, we thank all who’ve been concerned with this sequence of e-primers-writers, researchers, peer reviewers and the manufacturing staff.

Roberto R. Romulo
Chairman (2000-2002)
e-ASEAN Process Drive
Manila, Philippines

Shahid Akhtar
Program Coordinator
UNDP-APDIP
Kuala Lumpur, Malaysia
http://www.apdip.internet

Introduction[edit]

Within the rising world financial system, e-commerce and e-business have more and more change into a vital element of enterprise technique and a robust catalyst for financial improvement. The mixing of data and communications expertise (ICT) in enterprise has revolutionized relationships inside organizations and people between and amongst organizations and people. Particularly, using ICT in enterprise has enhanced productiveness, inspired higher buyer participation, and enabled mass customization, in addition to decreasing prices.

With developments within the Web and Net-based applied sciences, distinctions between conventional markets and the worldwide digital marketplace-such as enterprise capital dimension, amongst others-are regularly being narrowed down. The secret is strategic positioning, the power of an organization to find out rising alternatives and make the most of the required human capital abilities (reminiscent of mental assets) to benefit from these alternatives by means of an e-business technique that’s easy, workable and practicable throughout the context of a world info milieu and new financial setting. With its impact of leveling the taking part in subject, e-commerce coupled with the suitable technique and coverage method allows small and medium scale enterprises to compete with massive and capital-rich companies.

On one other airplane, creating nations are given elevated entry to the worldwide market, the place they compete with and complement the extra developed economies. Most, if not all, creating nations are already taking part in e-commerce, both as sellers or consumers. Nonetheless, to facilitate e-commerce progress in these nations, the comparatively underdeveloped info infrastructure should be improved. Among the many areas for coverage intervention are:

  • Excessive Web entry prices, together with connection service charges, communication charges, and internet hosting costs for web sites with ample bandwidth;
  • Restricted availability of bank cards and a nationwide bank card system;
  • Underdeveloped transportation infrastructure leading to gradual and unsure supply of products and providers;
  • Community safety issues and inadequate safety safeguards;
  • Lack of expert human assets and key applied sciences (i.e., insufficient skilled IT workforce);
  • Content material restriction on nationwide safety and different public coverage grounds, which vastly have an effect on enterprise within the subject of data providers, such because the media and leisure sectors;
  • Cross-border points, reminiscent of the popularity of transactions below legal guidelines of different ASEAN member-countries, certification providers, enchancment of supply strategies and customs facilitation; and
  • The comparatively low price of labor, which means {that a} shift to a relatively capital intensive resolution (together with investments on the advance of the bodily and community infrastructure) just isn’t obvious.

It’s acknowledged that within the Info Age, Web commerce is a robust software within the financial progress of creating nations. Whereas there are indications of e-commerce patronage amongst massive companies in creating nations, there appears to be little and negligible use of the Web for commerce amongst small and medium sized companies. E-commerce guarantees higher enterprise for SMEs and sustainable financial improvement for creating nations. Nonetheless, that is premised on sturdy political will and good governance, in addition to on a accountable and supportive non-public sector inside an efficient coverage framework. This primer seeks to supply coverage tips towards this finish.

What’s e-commerce?[edit]

Digital commerce or e-commerce refers to a variety of on-line enterprise actions for services. [1] It additionally pertains to “any type of enterprise transaction by which the events work together electronically moderately than by bodily exchanges or direct bodily contact.” [2]

E-commerce is normally related to shopping for and promoting over the Web, or conducting any transaction involving the switch of possession or rights to make use of items or providers by means of a computer-mediated community. [3] Although common, this definition just isn’t complete sufficient to seize current developments on this new and revolutionary enterprise phenomenon. A extra full definition is: E-commerce is using digital communications and digital info processing expertise in enterprise transactions to create, rework, and redefine relationships for worth creation between or amongst organizations, and between organizations and people. [4]

Worldwide Information Corp (IDC) estimates the worth of worldwide e-commerce in 2000 at US$350.38 billion. That is projected to climb to as excessive as US$3.14 trillion by 2004. IDC additionally predicts a rise in Asia’s share share in worldwide e-commerce income from 5% in 2000 to 10% in 2004 (See Determine 1).

Determine 1: Worldwide E-Commerce Income, 2000 and 2004 (as a % share of every nation/area)

Eprimer ecom figure 1.jpg

Asia-Pacific e-commerce revenues are projected to extend from $76.Eight billion at year-end of 2001 to $338.5 billion by the top of 2004.

Is e-commerce the identical as e-business?

Whereas some use e-commerce and e-business interchangeably, they’re distinct ideas. In e-commerce, info and communications expertise (ICT) is utilized in inter-business or inter-organizational transactions (transactions between and amongst companies/organizations) and in business-to-consumer transactions (transactions between companies/organizations and people).

In e-business, then again, ICT is used to reinforce one’s enterprise. It contains any course of {that a} enterprise group (both a for-profit, governmental or non-profit entity) conducts over a computer-mediated community. A extra complete definition of e-business is:

“The transformation of a corporation’s processes to ship extra buyer worth by means of the appliance of applied sciences, philosophies and computing paradigm of the brand new financial system.”

Three major processes are enhanced in e-business: [5]

1. Manufacturing processes, which embody procurement, ordering and replenishment of shares; processing of funds; digital hyperlinks with suppliers; and manufacturing management processes, amongst others;

2. Buyer-focused processes, which embody promotional and advertising efforts, promoting over the Web, processing of consumers’ buy orders and funds, and buyer help, amongst others; and

3. Inner administration processes, which embody worker providers, coaching, inside information-sharing, video-conferencing, and recruiting. Digital functions improve info move between manufacturing and gross sales forces to enhance gross sales drive productiveness. Workgroup communications and digital publishing of inside enterprise info are likewise made extra environment friendly. [6]

Is the Web financial system synonymous with e-commerce and e-business?[edit]

The Web financial system is a broader idea than e-commerce and e-business. It contains e-commerce and e-business.

The CREC (Heart for Analysis in Digital Commerce) on the College of Texas has developed a conceptual framework for a way the Web financial system works. The framework exhibits 4 layers of the Web economy-the three talked about above and a fourth referred to as intermediaries (see Desk 1).

Determine 2. Desk 1. Web Financial system Conceptual Body

Eprimer ecom table 1.jpg

Based mostly on Heart for Analysis in Digital Commerce, College of Texas, “Measuring the Web Financial system,” 6 June 2000; out there from http://www.internetindicators.com

This picture is offered below the phrases of GNU Free Documentation License and Artistic Commons Attribution License 2.5

What are the various kinds of e-commerce?[edit]

The foremost totally different sorts of e-commerce are: business-to-business (B2B); business-to-consumer (B2C); business-to-government (B2G); consumer-to-consumer (C2C); and cell commerce (m-commerce).[edit]

What’s B2B e-commerce?

B2B e-commerce is solely outlined as e-commerce between firms. That is the kind of e-commerce that offers with relationships between and amongst companies. About 80% of e-commerce is of this sort, and most consultants predict that B2B e-commerce will proceed to develop sooner than the B2C section. The B2B market has two major elements: e-frastructure and e-markets. E-frastructure is the structure of B2B, primarily consisting of the next:

  • logistics – transportation, warehousing and distribution (e.g., Procter and Gamble);
  • software service suppliers – deployment, internet hosting and administration of packaged software program from a central facility (e.g., Oracle and Linkshare);
  • outsourcing of features within the means of e-commerce, reminiscent of Net-hosting, safety and buyer care options (e.g., outsourcing suppliers reminiscent of eShare, NetSales, iXL Enterprises and Common Entry);
  • public sale options software program for the operation and upkeep of real-time auctions within the Web (e.g., Moai Applied sciences and OpenSite Applied sciences);
  • content material administration software program for the facilitation of Web page content material administration and supply (e.g., Interwoven and ProcureNet); and
  • Net-based commerce enablers (e.g., Commerce One, a browser-based, XML-enabled buying automation software program).

E-markets are merely outlined as Websites the place consumers and sellers work together with one another and conduct transactions.10

The extra widespread B2B examples and greatest apply fashions are IBM, Hewlett Packard (HP), Cisco and Dell. Cisco, as an illustration, receives over 90% of its product orders over the Web.

Most B2B functions are within the areas of provider administration (particularly buy order processing), stock administration (i.e., managing order-ship-bill cycles), distribution administration (particularly within the transmission of delivery paperwork), channel administration (i.e., info dissemination on modifications in operational circumstances), and cost administration (e.g., digital cost techniques or EPS).11

eMarketer tasks a rise within the share of B2B e-commerce in complete world e-commerce from 79.2% in 2000 to 87% in 2004 and a consequent lower within the share of B2C e-commerce from 20.8% in 2000 to solely 13% in 2004 (Determine 3).

Determine 3. Share of B2B and B2C E-Commerce in Whole International E-Commerce (2000 and 2004)

Eprimer ecom figure 2.jpg

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Likewise B2B progress is approach forward of B2C progress within the Asia-Pacific area. Based on a 2001 eMarketer estimate, B2B revenues within the area are anticipated to exceed $300 billion by 2004.

Desk 2 exhibits the projected dimension of B2B e-commerce by area for the years 2000-2004.

Determine 4. Projected B2B E-Commerce by Area, 2000-2004 ($billions)

Eprimer ecom table 2.jpg

This picture is offered below the phrases of GNU Free Documentation License and Artistic Commons Attribution License 2.5

Field 1. Advantages of B2B E-Commerce in Growing Markets

The influence of B2B markets on the financial system of creating nations is obvious within the following:

Transaction prices. There are three price areas which are considerably diminished by means of the conduct of B2B e-commerce. First is the discount of search prices, as consumers needn’t undergo a number of intermediaries to seek for details about suppliers, merchandise and costs as in a standard provide chain. By way of effort, money and time spent, the Web is a extra environment friendly info channel than its conventional counterpart. In B2B markets, consumers and sellers are gathered collectively right into a single on-line buying and selling group, decreasing search prices even additional. Second is the discount within the prices of processing transactions (e.g. invoices, buy orders and cost schemes), as B2B permits for the automation of transaction processes and subsequently, the short implementation of the identical in comparison with different channels (reminiscent of the phone and fax). Effectivity in buying and selling processes and transactions can also be enhanced by means of the B2B e-market’s potential to course of gross sales by means of on-line auctions. Third, on-line processing improves stock administration and logistics.

Disintermediation. By means of B2B e-markets, suppliers are in a position to work together and transact instantly with consumers, thereby eliminating intermediaries and distributors. Nonetheless, new types of intermediaries are rising. As an example, e-markets themselves could be thought-about as intermediaries as a result of they arrive between suppliers and prospects within the provide chain.

Transparency in pricing.Among the many extra evident advantages of e-markets is the rise in worth transparency. The gathering of a lot of consumers and sellers in a single e-market reveals market worth info and transaction processing to contributors. The Web permits for the publication of data on a single buy or transaction, making the data readily accessible and out there to all members of the e-market. Elevated worth transparency has the impact of flattening worth differentials out there. On this context, consumers are supplied rather more time to check costs and make higher shopping for choices. Furthermore, B2B e-markets broaden borders for dynamic and negotiated pricing whereby a number of consumers and sellers collectively take part in price-setting and two-way auctions. In such environments, costs could be set by means of computerized matching of bids and gives. Within the e-marketplace, the necessities of each consumers and sellers are thus aggregated to succeed in aggressive costs, that are decrease than these ensuing from particular person actions.

Economies of scale and community results. The fast progress of B2B e-markets creates conventional supply-side cost-based economies of scale. Moreover, the bringing collectively of a big variety of consumers and sellers gives the demand-side economies of scale or community results. Every extra incremental participant within the e-market creates worth for all contributors within the demand aspect. Extra contributors type a crucial mass, which is vital in attracting extra customers to an e-market.

What’s B2C e-commerce?

Enterprise-to-consumer e-commerce, or commerce between firms and customers, entails prospects gathering info; buying bodily items (i.e., tangibles reminiscent of books or shopper merchandise) or info items (or items of digital materials or digitized content material, reminiscent of software program, or e-books); and, for info items, receiving merchandise over an digital community.12

It’s the second largest and the earliest type of e-commerce. Its origins could be traced to on-line retailing (or e-tailing).13 Thus, the extra widespread B2C enterprise fashions are the net retailing firms reminiscent of Amazon.com, Drugstore.com, Past.com, Barnes and Noble and ToysRus. Different B2C examples involving info items are E-Commerce and Travelocity.

The extra widespread functions of this kind of e-commerce are within the areas of buying merchandise and data, and private finance administration, which pertains to the administration of non-public investments and funds with using on-line banking instruments (e.g., Quicken).14

eMarketer estimates that worldwide B2C e-commerce revenues will enhance from US$59.7 billion in 2000 to US$428.1 billion by 2004. On-line retailing transactions make up a big share of this market. eMarketer additionally estimates that within the Asia-Pacific area, B2C revenues, whereas registering a modest determine in comparison with B2B, nonetheless went as much as $8.2 billion by the top of 2001, with that determine doubling on the finish of 2002-at complete worldwide B2C gross sales beneath 10%.

B2C e-commerce reduces transactions prices (notably search prices) by growing shopper entry to info and permitting customers to search out essentially the most aggressive worth for a services or products. B2C e-commerce additionally reduces market entry obstacles since the price of placing up and sustaining a Web page is less expensive than putting in a “brick-and-mortar” construction for a agency. Within the case of data items, B2C e-commerce is much more engaging as a result of it saves companies from factoring within the extra price of a bodily distribution community. Furthermore, for nations with a rising and strong Web inhabitants, delivering info items turns into more and more possible.

What’s B2G e-commerce?

Enterprise-to-government e-commerce or B2G is usually outlined as commerce between firms and the general public sector. It refers to using the Web for public procurement, licensing procedures, and different government-related operations. This sort of e-commerce has two options: first, the general public sector assumes a pilot/main position in establishing e-commerce; and second, it’s assumed that the general public sector has the best want for making its procurement system simpler.15

Net-based buying insurance policies enhance the transparency of the procurement course of (and reduces the danger of irregularities). Up to now, nevertheless, the scale of the B2G e-commerce market as a element of complete e-commerce is insignificant, as authorities e-procurement techniques stay undeveloped.

What’s C2C e-commerce?

Client-to-consumer e-commerce or C2C is solely commerce between non-public people or customers.

This sort of e-commerce is characterised by the expansion of digital marketplaces and on-line auctions, notably in vertical industries the place companies/companies can bid for what they need from amongst a number of suppliers.16 It maybe has the best potential for creating new markets.

This sort of e-commerce is available in at the least three kinds:

  • auctions facilitated at a portal, reminiscent of eBay, which permits on-line real-time bidding on gadgets being bought within the Net;
  • peer-to-peer techniques, such because the Napster mannequin (a protocol for sharing information between customers utilized by chat boards much like IRC) and different file change and later cash change fashions; and
  • labeled advertisements at portal websites reminiscent of Excite Classifieds and eWanted, Pakwheels.com (an interactive, on-line market the place consumers and sellers can negotiate and which options “Purchaser Leads & Need Adverts”).

Client-to-business (C2B) transactions contain reverse auctions, which empower the patron to drive transactions. A concrete instance of this when competing airways provides a traveler greatest journey and ticket gives in response to the traveler’s put up that she needs to fly from New York to San Francisco.

There may be little info on the relative dimension of worldwide C2C e-commerce. Nonetheless, C2C figures of common C2C websites reminiscent of eBay and Napster point out that this market is kind of massive. These websites produce thousands and thousands of {dollars} in gross sales day by day.

Benefits of C2C websites

Client to shopper e-commerce has many advantages. The first profit to customers is discount in price. Shopping for advert house on different e-commerce websites is pricey. Sellers can put up their gadgets totally free or with minimal cost relying on the C2C web site. C2C web sites type an ideal platform for consumers and sellers who want to purchase and promote associated merchandise. The flexibility to search out associated merchandise results in a rise within the customer to buyer conversion ratio. Enterprise homeowners can cheaply preserve C2C web sites and enhance income with out the extra prices of distribution places. A superb instance of a C2C e-commerce web site is Esty, a web site that enables customers to purchase and promote handmade or classic gadgets and provides together with artwork, pictures, clothes, jewellery, meals, tub and sweetness merchandise, quilts, knick-knacks, and toys.

Disadvantages of C2C websites

There are a few disadvantages to those kind of web sites as effectively.Doing transaction on these kind of internet sites requires co-operation between the customer and vendor.It has been famous many occasions that these two don’t co-operate with one another after a transaction has been made.They don’t share the transaction info which can be by way of credit score or debit card or web banking.This may end up in on-line fraud because the purchaser and vendor should not very effectively versed with one another.This may result in lawsuit being imposed on both ends or additionally on the location if it has not talked about the disclaimer in its phrases and circumstances.This may increasingly additionally hamper the c2c web site’s fame.Corporations which deal with shopper to shopper ecommerce web sites appear to have changing into very cautious to stop on-line scams.

What’s m-commerce?

M-commerce (cell commerce) is the shopping for and promoting of products and providers by means of wi-fi technology-i.e., handheld units reminiscent of mobile telephones and private digital assistants (PDAs). Japan is seen as a world chief in m-commerce.

As content material supply over wi-fi units turns into sooner, safer, and scalable, some consider that m-commerce will surpass wireline e-commerce as the tactic of alternative for digital commerce transactions. This might be true for the Asia-Pacific the place there are extra cell phone customers than there are Web customers.

Industries affected by m-commerce embody:

  • Monetary providers, together with cell banking (when prospects use their handheld units to entry their accounts and pay their payments), in addition to brokerage providers (by which inventory quotes could be displayed and buying and selling performed from the identical handheld gadget);
  • Telecommunications, by which service modifications, invoice cost and account evaluations can all be performed from the identical handheld gadget;
  • Service/retail, as customers are given the power to put and pay for orders on-the-fly; and
  • Info providers, which embody the supply of leisure, monetary information, sports activities figures and site visitors updates to a single cell gadget.17

Forrester Analysis predicts US$3.Four billion gross sales closed utilizing PDA and cell telephones by 2005 (See Desk 3).

Determine 5. Desk 3. Forrester’s M-Commerce Gross sales Predictions, 2001-2005

Eprimer ecom table 3.jpg

This picture is offered below the phrases of GNU Free Documentation License and Artistic Commons Attribution License 2.5

What forces are fueling e-commerce?[edit]

There are at the least three main forces fueling e-commerce: financial forces, advertising and buyer interplay forces, and expertise, notably multimedia convergence.18

Financial forces.Probably the most evident advantages of e-commerce is financial effectivity ensuing from the discount in communications prices, low-cost technological infrastructure, speedier and extra financial digital transactions with suppliers, decrease world info sharing and promoting prices, and cheaper customer support alternate options.

Financial integration is both exterior or inside. Exterior integration refers back to the digital networking of companies, suppliers, prospects/shoppers, and impartial contractors into one group speaking in a digital setting (with the Web as medium). Inner integration, then again, is the networking of the varied departments inside an organization, and of enterprise operations and processes. This permits crucial enterprise info to be saved in a digital type that may be retrieved immediately and transmitted electronically. Inner integration is greatest exemplified by company intranets. Among the many firms with environment friendly company intranets are Procter and Gamble, IBM, Nestle and Intel.

Field 2. SESAMi.NET.: Linking Asian Markets by means of B2B Hubs

SESAMi.NET is Asia’s largest B2B e-hub, a digital change integrating and connecting companies (small, medium or massive) to buying and selling companions, e-marketplaces and inside enterprise techniques for the aim of sourcing out provides, shopping for and promoting items and providers on-line in actual time. The e-hub serves as the middle for administration of content material and the processing of enterprise transactions with help providers reminiscent of monetary clearance and data providers.

It’s strategically and dynamically linked to the International Buying and selling Net (GTW), the world’s largest community of buying and selling communities on the Web. Due to this essential hyperlink, SESAMi reaches an in depth community of regional, vertical and industry-specific interoperable B2B e-markets throughout the globe.


Market forces. Firms are inspired to make use of e-commerce in advertising and promotion to seize worldwide markets, each massive and small. The Web is likewise used as a medium for enhanced customer support and help. It’s a lot simpler for firms to supply their goal customers with extra detailed product and repair info utilizing the Web.

Field 3. Brazil’s Submarino19: Enhancing Buyer Service by means of the Web

Brazil’s Submarino is a basic instance of profitable use of the Web for improved customer support and help. From being a neighborhood São Paulo B2C e-commerce firm promoting books, CDs, video cassettes, DVDs, toys, digital and pc merchandise in Brazil, it expanded to change into the most important firm of its sort in Argentina, Mexico, Spain and Portugal. Near a 3rd of the 1.Four million Web customers in Brazil have made purchases by means of this web site. To boost customer support, Submarino has diversified into providing logistical and technological infrastructure to different retailers, which incorporates expertise and experience in credit score evaluation, monitoring orders and product comparability techniques.

Know-how forces. The event of ICT is a key issue within the progress of e-commerce. As an example, technological advances in digitizing content material, compression and the promotion of open techniques expertise have paved the way in which for the convergence of communication providers into one single platform. This in flip has made communication extra environment friendly, sooner, simpler, and extra economical as the necessity to arrange separate networks for phone providers, tv broadcast, cable tv, and Web entry is eradicated. From the standpoint of companies/companies and customers, having just one info supplier means decrease communications prices.20

Furthermore, the precept of common entry could be made extra achievable with convergence. At current the excessive prices of putting in landlines in sparsely populated rural areas is a disincentive to telecommunications firms to put in telephones in these areas. Putting in landlines in rural areas can change into extra engaging to the non-public sector if revenues from these landlines should not restricted to native and lengthy distance phone costs, but additionally embody cable TV and Web costs. This improvement will guarantee inexpensive entry to info even by these in rural areas and can spare the federal government the difficulty and price of putting in costly landlines.21

What are the elements of a typical profitable e-commerce transaction loop?[edit]

E-commerce doesn’t refer merely to a agency placing up a Web page for the aim of promoting items to consumers over the Web. For e-commerce to be a aggressive various to conventional business transactions and for a agency to maximise the advantages of e-commerce, a variety of technical in addition to enabling points must be thought-about. A typical e-commerce transaction loop entails the next main gamers and corresponding requisites:

The Vendor ought to have the next elements:

  • A company Web page with e-commerce capabilities (e.g., a safe transaction server);
  • A company intranet in order that orders are processed in an environment friendly method; and
  • IT-literate staff to handle the data flows and preserve the e-commerce system.

Transaction companions embody:

  • Banking establishments that supply transaction clearing providers (e.g., processing bank card funds and digital fund transfers);
  • Nationwide and worldwide freight firms to allow the motion of bodily items inside, round and in a foreign country. For business-to-consumer transactions, the system should supply a way for cost-efficient transport of small packages (such that buying books over the Web, for instance, just isn’t prohibitively costlier than shopping for from a neighborhood retailer); and
  • Authentication authority that serves as a trusted third get together to make sure the integrity and safety of transactions.

Customers (in a business-to-consumer transaction) who:

  • Kind a crucial mass of the inhabitants with entry to the Web and disposable earnings enabling widespread use of bank cards; and
  • Possess a mindset for buying items over the Web moderately than by bodily inspecting gadgets.

Corporations/Companies (in a business-to-business transaction) that collectively type a crucial mass of firms (particularly inside provide chains) with Web entry and the aptitude to put and take orders over the Web.

Authorities, to determine:

  • A authorized framework governing e-commerce transactions (together with digital paperwork, signatures, and the like); and
  • Authorized establishments that might implement the authorized framework (i.e., legal guidelines and rules) and defend customers and companies from fraud, amongst others.

And eventually, the Web, the profitable use of which will depend on the next:

  • A strong and dependable Web infrastructure; and
  • A pricing construction that doesn’t penalize customers for spending time on and shopping for items over the Web (e.g., a flat month-to-month cost for each ISP entry and native telephone calls).

For e-commerce to develop, the above requisites and elements must be in place. The least developed issue is an obstacle to the elevated uptake of e-commerce as a complete. As an example, a rustic with a superb Web infrastructure is not going to have excessive e-commerce figures if banks don’t supply help and achievement providers to e-commerce transactions. In nations which have vital e-commerce figures, a constructive suggestions loop reinforces every of those elements.22

How is the Web related to e-commerce?[edit]

The Web permits folks from all around the world to get linked inexpensively and reliably. As a technical infrastructure, it’s a world assortment of networks, linked to share info utilizing a standard set of protocols. Additionally, as an unlimited community of individuals and data, the Web is an enabler for e-commerce because it permits companies to showcase and promote their services on-line and offers potential prospects, prospects, and enterprise companions entry to details about these companies and their services that might result in buy.

Earlier than the Web was utilized for business functions, firms used non-public networks-such because the EDI or Digital Information Interchange-to transact enterprise with one another. That was the early type of e-commerce. Nonetheless, putting in and sustaining non-public networks was very costly. With the Web, e-commerce unfold quickly due to the decrease prices concerned and since the Web relies on open requirements.25

How essential is an intranet for a enterprise participating in e-commerce?[edit]

An intranet aids within the administration of inside company info which may be interconnected with an organization’s e-commerce transactions (or transactions performed exterior the intranet). Inasmuch because the intranet permits for the instantaneous move of inside info, important info is concurrently processed and matched with information flowing from exterior e-commerce transactions, permitting for the environment friendly and efficient integration of the company’s organizational processes. On this context, company features, choices and processes involving e-commerce actions are extra coherent and arranged.

The proliferation of intranets has triggered a shift from a hierarchical command-and-control group to an information-based group. This shift has implications for managerial tasks, communication and data flows, and workgroup constructions.

Except for decreasing the price of doing enterprise, what are the benefits of e-commerce for companies?[edit]

E-commerce serves as an “equalizer”. It allows start-up and small- and medium-sized enterprises to succeed in the worldwide market.

Field 4. Leveling the Taking part in Subject by means of E-commerce: The Case of Amazon.com

Amazon.com is a digital bookstore. It doesn’t have a single sq. foot of bricks and mortar retail flooring house. Nonetheless, Amazon.com is posting an annual gross sales charge of roughly $1.2 billion, equal to about 235 Barnes & Noble (B&N) superstores. Because of the efficiencies of promoting over the Net, Amazon has spent solely $56 million on fastened belongings, whereas B&N has spent about $118 million for 235 superstores. (To be truthful, Amazon has but to show a revenue, however this doesn’t obviate the purpose that in lots of industries doing enterprise by means of e-commerce is cheaper than conducting enterprise in a standard brick-and-mortar firm.)

Nonetheless, this doesn’t low cost the purpose that and not using a good e-business technique, e-commerce might in some instances discriminate towards SMEs as a result of it reveals proprietary pricing info. A sound e-business plan doesn’t completely disregard previous financial system values. The dot-com bust is proof of this.

Field 5. Classes from the Dot Com Frenzy

Based on Webmergers.com statistics, about 862 dot-com firms have failed because the peak of the dot-com bust in January 2000. Majority of those had been e-commerce and content material firms. The shutdown of those firms was adopted by the folding up of Web-content suppliers, infrastructure firms, Web service suppliers, and different suppliers of dial-up and broadband Web-access providers.26

From the attitude of the funding banks, the dot-com frenzy could be likened to a bet the place the massive cash gamers had been the enterprise capitalists and people laying their bets on the desk had been the small traders. The bust was primarily brought on by the gamers’ unfamiliarity with the sector, coupled with failure to deal with the pace of the Web revolution and the quantity of capital in circulation.27

Web entrepreneurs set the costs of their items and providers at very low ranges to achieve market share and entice enterprise capitalists to infuse funding. The crash started when traders began demanding laborious earnings for sky-high valuations. The Web firms additionally spent an excessive amount of on overhead earlier than even gaining a market share.28

E-commerce makes “mass customization” attainable. E-commerce functions on this space embody easy-to-use ordering techniques that enable prospects to decide on and order merchandise in keeping with their private and distinctive specs. As an example, a automobile manufacturing firm with an e-commerce technique permitting for on-line orders can have new vehicles constructed inside a couple of days (as an alternative of the a number of weeks it at the moment takes to construct a brand new automobile) primarily based on buyer’s specs. This may work extra successfully if an organization’s manufacturing course of is superior and built-in into the ordering system.

E-commerce permits “community manufacturing.” This refers back to the parceling out of the manufacturing course of to contractors who’re geographically dispersed however who’re linked to one another by way of pc networks. The advantages of community manufacturing embody: discount in prices, extra strategic goal advertising, and the facilitation of promoting add-on merchandise, providers, and new techniques when they’re wanted. With community manufacturing, an organization can assign duties inside its non-core competencies to factories all around the world focusing on such duties (e.g., the meeting of particular elements).

How is e-commerce useful to the patron?[edit]

In C2B transactions, prospects/customers are given extra affect over what and the way merchandise are made and the way providers are delivered, thereby broadening shopper selections. E-commerce permits for a sooner and extra open course of, with prospects having higher management.

E-commerce makes info on merchandise and the market as a complete available and accessible, and will increase worth transparency, which allow prospects to make extra applicable buying choices.

How are enterprise relationships reworked by means of e-commerce?[edit]

E-commerce transforms previous financial system relationships (vertical/linear relationships) to new financial system relationships characterised by end-to-end relationship administration options (built-in or prolonged relationships).

How does e-commerce hyperlink prospects, staff, suppliers, distributors and opponents?[edit]

E-commerce facilitates group networks, whereby small companies rely on “companion” companies for provides and product distribution to handle buyer calls for extra successfully.

To handle the chain of networks linking prospects, staff, suppliers, distributors, and even opponents, an built-in or prolonged provide chain administration resolution is required. Provide chain administration (SCM) is outlined because the supervision of supplies, info, and funds as they transfer from provider to producer to wholesaler to retailer to shopper. It entails the coordination and integration of those flows each inside and amongst firms. The purpose of any efficient provide chain administration system is well timed provision of products or providers to the subsequent hyperlink within the chain (and finally, the discount of stock inside every hyperlink).29

There are three most important flows in SCM, specifically:

  • The product move, which incorporates the motion of products from a provider to a buyer, in addition to any buyer returns or service wants;
  • The knowledge move, which entails the transmission of orders and the replace of the standing of supply; and
  • The funds move, which consists of credit score phrases, cost schedules, and consignment and title possession preparations.

Some SCM functions are primarily based on open information fashions that help the sharing of information each inside and outdoors the enterprise, referred to as the prolonged enterprise, and contains key suppliers, producers, and finish prospects of a selected firm. Shared information resides in numerous database techniques, or information warehouses, at a number of totally different websites and corporations. Sharing this information “upstream” (with an organization’s suppliers) and “downstream” (with an organization’s shoppers) permits SCM functions to enhance the time-to-market of merchandise and cut back prices. It additionally permits all events within the provide chain to raised handle present assets and plan for future wants.30

Determine 6. Outdated Financial system Relationships vs. New Financial system Relationships

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What’s Google AdSense and the way does it work for e-commerce[edit]

Google AdSense is a service supplied by Google that enables web site publishers to promote on Google. It’s Google’s #1 income. AdSense is used to promote when customers kind in key phrases in Google’s search engine. Adverts are positioned on the appropriate hand aspect of the display screen. The advertisements are textual content primarily based and permit for hyperlinks to the web site on the commercial as effectively.

The AdWords program determines the pricing for key phrases. AdWords relies on a Vickrey public sale system. It’s a sealed-bid public sale, customers submit bids not figuring out what different customers bid. The best bidder wins however the second place individual’s bid is paid. There are execs and cons to this kind of public sale. The winners the overwhelming majority of the time are those who bid the best. A draw back to this kind of system is that there isn’t a worth discovery, which is a market failure referred to as imperfect info.

AdSense customers generate income by having customers click on on their hyperlinks and by having them purchase what is obtainable on their web site. AdSense has been an enormous success for Google and the customers of the system.

E-Commerce Functions: Points and Prospects[edit]

Varied functions of e-commerce are regularly affecting traits and prospects for enterprise over the Web, together with e-banking, e-tailing and on-line publishing/on-line retailing.

A extra developed and mature e-banking setting performs an essential position in e-commerce by encouraging a shift from conventional modes of cost (i.e., money, checks or any type of paper-based authorized tender) to digital alternate options (reminiscent of e-payment techniques), thereby closing the e-commerce loop.

a) Advantages of e-Commerce

  • Expanded Geographical Attain
  • Expanded Buyer Base
  • Improve Visibility by means of Search Engine Advertising
  • Present Clients helpful details about what you are promoting
  • Out there 24/7/365 – By no means Shut
  • Construct Buyer Loyalty
  • Discount of Advertising and Promoting Prices
  • Assortment of Buyer Information

b) Fundamental Advantages of e-Enterprise e-Commerce

  • Improve gross sales – that is the very first thing that individuals contemplate when coping with e-commerce
    • Lowering prices
    • Improve income
      • Understanding that income just isn’t the identical as gross sales
    • Expands the scale of the market from regional to nationwide or nationwide to worldwide
    • Contract the market
    • Attain a slim market
      • Goal market segmentation lets you give attention to a extra
        • Choose group of consumers
      • And subsequently have a aggressive benefits in satisfying them

What are the present practices in creating nations with respect to purchasing and paying on-line?[edit]

In most creating nations, the cost schemes out there for on-line transactions are the next:

A. Conventional Fee Strategies

  • Money on supply. Many on-line transactions solely contain submitting buy orders on-line. Fee is by money upon the supply of the bodily items.
  • Financial institution funds. After ordering items on-line, cost is made by depositing money into the checking account of the corporate from which the products had been ordered. Supply is likewise performed the standard approach.

B. Digital Fee Strategies

  • Improvements affecting customers, embody credit score and debit playing cards, automated teller machines (ATMs), saved worth playing cards, and e-banking.
  • Improvements enabling on-line commerce are e-cash, e-checks, sensible playing cards, and encrypted bank cards. These cost strategies should not too common in creating nations. They’re employed by a couple of massive firms in particular secured channels on a transaction foundation.
  • Improvements affecting firms pertain to cost mechanisms that banks present their shoppers, together with inter-bank transfers by means of automated clearing homes permitting cost by direct deposit.

What’s an digital cost system? Why is it essential?[edit]

An digital cost system (EPS) is a system of monetary change between consumers and sellers within the on-line setting that’s facilitated by a digital monetary instrument (reminiscent of encrypted bank card numbers, digital checks, or digital money) backed by a financial institution, an middleman, or by authorized tender.

EPS performs an essential position in e-commerce as a result of it closes the e-commerce loop. In creating nations, the underdeveloped digital funds system is a severe obstacle to the expansion of e-commerce. In these nations, entrepreneurs should not in a position to settle for bank card funds over the Web as a consequence of authorized and enterprise considerations. The first concern is transaction safety.

The absence or inadequacy of authorized infrastructures governing the operation of e-payments can also be a priority. Therefore, banks with e-banking operations make use of service agreements between themselves and their shoppers.

The comparatively undeveloped bank card {industry} in lots of creating nations can also be a barrier to e-commerce. Solely a small section of the inhabitants should buy items and providers over the Web as a result of small bank card market base. There may be additionally the issue of the requirement of “specific consent” (i.e., a signature) by a card proprietor earlier than a transaction is taken into account valid-a requirement that doesn’t exist within the U.S. and in different developed nations.

What’s the confidence stage of customers in using an EPS?

Many creating nations are nonetheless cash-based economies. Money is the popular mode of cost not solely on account of safety but additionally due to anonymity, which is beneficial for tax evasion functions or retaining secret what one’s cash is being spent on. For different nations, safety considerations have so much to do with a scarcity of a authorized framework for adjudicating fraud and the uncertainty of the authorized restrict on the legal responsibility related to a misplaced or stolen bank card.

In sum, among the many related points that must be resolved with respect to EPS are: shopper safety from fraud by means of effectivity in record-keeping; transaction privateness and security, aggressive cost providers to make sure equal entry to all customers, and the appropriate to alternative of establishments and cost strategies. Authorized frameworks in creating nations must also start to acknowledge digital transactions and cost schemes.

What’s e-banking?

E-banking contains acquainted and comparatively mature electronically-based merchandise in creating markets, reminiscent of phone banking, bank cards, ATMs, and direct deposit. It additionally contains digital invoice funds and merchandise principally within the creating stage, together with stored-value playing cards (e.g., sensible playing cards/sensible cash) and Web-based saved worth merchandise.

Field 7. Fee Strategies and Safety Considerations: The Case of China

In China, whereas banks concern bank cards and whereas many use debit playing cards to attract instantly from their respective financial institution accounts, only a few folks use their bank cards for on-line cost. Money-on-delivery continues to be the most well-liked mode of e-commerce cost. Nonetheless, on-line cost is gaining reputation due to the emergence of Chinapay and Cyber Beijing, which supply a city-wide on-line cost system.

What’s the standing of e-banking in creating nations?

E-banking in creating nations is within the early phases of improvement. Most banking in creating nations continues to be performed the standard approach. Nonetheless, there’s an growing progress of on-line banking, indicating a promising future for on-line banking in these nations. Under is a broad image of e-banking in three ASEAN nations.

The Philippine Expertise

Within the Philippines, Citibank, Financial institution of the Philippine Islands (BPI), Philippine Nationwide Financial institution, and different massive banks pioneered e-banking within the early 1980s. Interbank networks within the nation like Megalink, Bancnet, and BPI Expressnet had been among the many earliest and largest starters of ATM (Automated Teller Machines) expertise.

BPI launched its BPI Specific On-line in January 2000. The most typical on-line monetary providers embody deposits, fund transfers, functions for brand spanking new accounts, Cease Fee on issued checks, housing and auto loans, bank cards, and remittances.

The Singapore Expertise

In Singapore, greater than 28% of Web customers visited e-banking websites in Might 2001. Analysis by NetValue (an Web measurement firm) exhibits that whereas the variety of folks participating in on-line banking in Singapore has elevated, the typical time spent at websites decreased by roughly 4 minutes from March 2001 to Might 2001. This decline could be attributed to the truth that extra guests spend time finishing transactions, which take much less time than shopping totally different websites. Based on the survey, two out of three guests make a transaction. All main banks in Singapore have an Web presence. They provide a variety of merchandise on to customers by means of proprietary Web websites. These banks have shifted from an preliminary give attention to retail-banking to SME and company banking services.

Among the many merchandise supplied are:

  • Fund switch and cost techniques;
  • Built-in B2B e-commerce product, involving product choice, buy order, bill technology and cost;
  • Securities placement and underwriting and capital market actions;
  • Securities buying and selling; and
  • Retail banking.

The Malaysian Expertise

E-banking in Malaysia emerged in 1981 with the introduction of ATMs. This was adopted by tele-banking within the early 1990s the place telecommunications units had been linked to an automatic system by means of using Automated Voice Response (AVR) expertise. Then got here PC banking or desktop banking utilizing proprietary software program, which was extra common amongst company prospects than retail prospects.

On June 1, 2000, the Malaysian Financial institution formally allowed native business banks to supply Web banking providers. On June 15, 2000, Maybank (www.maybank2U.com), one of many largest banks in Malaysia, launched the nation’s first Web banking providers. The financial institution employs 128-bit encryption expertise to safe its transactions. Different native banks in Malaysia providing e-banking providers are Southern Financial institution, Hong Leong Financial institution, HSBC Financial institution, Multi-Function Financial institution, Phileo Allied Financial institution and RHB Financial institution. Banks that supply WAP or Cellular banking are OCBC Financial institution, Phileo Allied Financial institution and United Abroad Financial institution.

The most typical e-banking providers embody banking inquiry features, invoice funds, bank card funds, fund transfers, share investing, insurance coverage, journey, digital buying, and different primary banking providers.37

What market elements, obstacles, issues and points are affecting the expansion of e-banking in creating nations?

Human tellers and automatic teller machines proceed to be the banking channels of alternative in creating nations. Solely a small variety of banks make use of Web banking. Among the many middle- and high-income folks in Asia questioned in a McKinsey survey, solely 2.6% reported banking over the Web in 2000. In India, Indonesia, and Thailand, the determine was as little as 1%; in Singapore and South Korea, it ranged from 5% to six%. Normally, Web banking accounted for lower than 0.1% of those prospects’ banking transactions, because it did in 1999. The Web is extra generally used for opening new accounts however the numbers are negligible as lower than 0.3% of respondents used it for that goal, besides in China and the Philippines the place the figures climbed to 0.7 and 1.0%, respectively.

This gradual uptake can’t be attributed to restricted entry to the Web since 42% of respondents mentioned that they had entry to computer systems and seven% mentioned that they had entry to the Web. The chief impediment in Asia and all through rising markets is safety. That is the principle motive for not opening on-line banking or funding accounts. Apparently, there’s additionally a choice for private contact with banks.

Entry to high-quality merchandise can also be a priority. Most Asian banks are within the early phases of Web banking providers, and most of the providers are very primary.

What are the traits and prospects for e-banking in these nations?

There’s a potential for elevated uptake of e-banking in Asia. Respondents of the McKinsey survey gave the next indications:

1. Lead customers: 38% of respondents indicated their intention to open a web based account within the close to future. These lead customers undertake one-third extra transactions a month than do different customers, and so they are likely to make use of all banking channels extra typically.

2. Followers: An extra 20% confirmed an inclination to finally open a web based account, if their major establishment had been to supply it and if there could be no extra financial institution costs.

3. Rejecters: 42% (in comparison with the combination determine of 58% for lead customers and followers) indicated little interest in or an aversion to Web banking. You will need to word that these respondents additionally most well-liked consolidation and ease, i.e., proudly owning fewer banking merchandise and coping with fewer monetary establishments.

Lower than 13% of the lead customers and followers indicated some curiosity in conducting advanced actions over the Web, reminiscent of buying and selling securities or making use of for insurance coverage, bank cards, and loans. A few third of lead customers and followers confirmed an inclination to undertake solely the essential banking features, like ascertaining account balances and transferring cash between accounts, over the Web. 38

What’s e-tailing?[edit]

E-tailing (or digital retailing) is the promoting of retail items on the Web. It’s the commonest type of business-to-consumer (B2C) transaction.

Field 8. E-Tailing: Pioneering Tendencies in E-Commerce

The yr 1997 is taken into account the primary massive yr for e-tailing. This was when Dell Laptop recorded multimillion greenback orders taken at its Web page. Additionally, the success of Amazon.com (which opened its digital doorways in 1996) inspired Barnes & Noble to open an e-tail web site. Safety considerations over taking buy orders over the Web regularly receded. In the identical yr, Auto-by-Tel bought its millionth automobile over the Net, and CommerceNet/Nielsen Media recorded that 10 million folks had made purchases on the Net.

What are the traits and prospects for e-tailing?

Jupiter tasks that e-tailing will develop to $37 billion by 2002. One other estimate is that the net market will develop 45% in 2001, reaching $65 billion. Profitability will fluctuate sharply between Net-based, catalog-based and store-based retailers. There was additionally a marked discount in buyer acquisition prices for all on-line retailers from a median of $38 in 1999 to $29 in 2000.

An e-retail examine performed by Retail Ahead confirmed that eight of its high 10 e-retailers 40 had been multi-channel-that is, they don’t depend on on-line promoting alone. Determine 7 exhibits the highest 10 e-tailers by revenues generated on-line for the yr 2001.

Determine 7. High 10 E-Retailers 41

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As well as, a examine by the Boston Consulting Group and Store.org revealed that the multi-channel retail market within the U.S. expanded by 72% from 1999 to 2002, vis-àvis a compounded annual progress charge of 67.8% for the overall on-line marketplace for the years 1999-2002.

What’s on-line publishing? What are its commonest functions?[edit]

On-line publishing is the method of utilizing pc and particular kinds of software program to mix textual content and graphics to provide Net-based paperwork reminiscent of newsletters, on-line magazines and databases, brochures and different promotional supplies, books, and the like, with the Web as a medium for publication.

What are the advantages and benefits of on-line publishing to enterprise?

Among the many advantages of utilizing on-line media are low-cost common entry, the independence of time and place, and ease of distribution. These are the the explanation why the Web is thought to be an efficient advertising outreach medium and is commonly used to reinforce info service.

What are the issues and points in on-line publishing?

The issues in on-line publishing could be grouped into two classes: administration challenges and public coverage points.

There are two main administration points:

The revenue query, which seeks to handle how a web based presence could be changed into a worthwhile one and what sort of enterprise mannequin would lead to essentially the most income; and

The measurement concern, which pertains to the effectiveness of a Web page and the equity of costs to advertisers.

The most typical public coverage points must do with copyright safety and censorship. Many publishers are prevented from publishing on-line due to insufficient copyright safety. An essential query to be addressed is: How can present copyright protections within the print setting be mapped onto the net setting? A lot of the options are technological moderately than authorized. The extra widespread technological options embody encryption for paid subscribers, and data utilization meters on add-in circuit boards and complicated doc headers that monitor the frequency and method by which textual content is considered and used.

In on-line advertising, there’s the issue of unsolicited business e-mail or “spam mail.” Junk e-mail isn’t just annoying; it’s also expensive. Except for displacing regular and helpful e-mail, the main motive why spam mail is a giant concern in on-line advertising is that vital prices are shifted from the sender of such mail to the recipient. Sending bulk junk e-mail is so much cheaper in comparison with receiving the identical. Junk e-mail consumes bandwidth (which an ISP purchases), making Web entry shoppers slower and thereby growing the price of Web use.42


How essential is e-commerce to SMEs in creating nations? How massive is the SME e-business market?[edit]

For SMEs in creating nations e-commerce poses the benefits of diminished info search prices and transactions prices (i.e., bettering effectivity of operations-reducing time for cost, credit score processing, and the like). Surveys present that info on the next is most precious to SMEs: prospects and markets, product design, course of expertise, and financing supply and phrases. The Web and different ICTs facilitate entry to this info.43 As well as, the Web permits computerized packaging and distribution of data (together with personalized info) to particular goal teams.

Nonetheless, there’s doubt concerning whether or not there’s sufficient info on the Net that’s related and helpful for the typical SME in a creating nation that might make funding in Web entry possible. Underlying that is the truth that most SMEs in creating nations cater to native markets and subsequently rely closely on native content material and data. Because of this, there’s a must considerably enhance the quantity and high quality of native content material (together with native language content material) on the Web to make it helpful particularly to low-income entrepreneurs.44

Field. 9. ICT-4-BUS: Serving to SMEs Conquer the E-Enterprise Problem45

The Info and Communication Know-how Innovation Program for E-business and SME Improvement, in any other case referred to as the ICT-4-BUS, is an initiative by the Multilateral Funding Fund and the Info Know-how for Improvement Division of the Inter-American Improvement Financial institution (IDB) to reinforce the competitiveness, productiveness and effectivity of micro-entrepreneurs and SMEs in Latin America and the Carribean by means of the supply of elevated entry to ICT options. That is in keeping with the regional and worldwide effort to attain a viable “info society.” Packages and tasks below this initiative embody the dissemination of region-wide greatest practices, pc literacy and coaching applications, and coordination efforts to facilitate crucial entry to credit score and financing for the profitable implementation of e-business options. The initiative serves as a strategic software and a automobile for maximizing the sturdy SME e-business market potential in Latin America manifested within the $23.51 billion e-business revenues reached amongst Latin American SMEs.46

eMarketer estimates that SME e-business revenues will enhance: from $6.53 billion to $28.53 billion in Jap Europe, Africa and the Center East mixed; $127.25 billion in 2003 to $502.69 billion by 2005 within the Asia-Pacific area; $23.51 billion in 2003 to $89.81 billion by 2005 in Latin America; from $340.41 billion in 2003 to $971.47 billion by 2005 in Western Europe; and from $384.36 billion in 2003 to $1.18 trillion by 2005 in Northern America.

How is e-commerce helpful to creating nation entrepreneurs?

There are at the least 5 methods by which the Web and e-commerce are helpful for creating nation entrepreneurs:

1. It facilitates the entry of artisans47 and SMEs to world markets.

2. It facilitates the promotion and improvement of tourism of creating nations in a world scale.

3. It facilitates the advertising of agricultural and tropical merchandise within the world market.

4. It gives avenues for companies in poorer nations to enter into B2B and B2G provide chains.

5. It assists service-providing enterprises in creating nations by permitting them to function extra effectively and instantly present particular providers to prospects globally.

Field 10. IFAT: Empowering the Agricultural Sector by means of B2C E-Commerce

The Worldwide Federation for Various Commerce (IFAT) is a collective effort to empower the agricultural sector of creating nations. It’s composed of 100 organizations (together with 70 organizations in creating nations) in 42 nations. Members of the group collectively market about $200-400 million yearly in handicrafts and agricultural merchandise from decrease earnings nations. As well as, IFAT gives help to creating nation producers by way of logistical help, high quality management, packing and export.

Field 11. Offshore Information Processing Facilities: E-commerce at Work within the Service Sector

Offshore information processing facilities, which offer information transcription and “again workplace” features to service enterprises reminiscent of insurance coverage firms, airways, bank card firms and banks, amongst others, are prevalent in creating nations and even in lowwage developed nations. In actual fact, buyer help name facilities of dot-coms and different ICT/e-commerce firms are thought-about one of many quickest rising elements of offshore providers in these nations. India and the Philippines delight themselves in being the main places of offshore information entry and pc programming in Asia, with India having established a classy software program improvement functionality with extremely expert personnel to help it.48

Growing nation SMEs within the providers sector have expanded their market with the elevated potential to transact instantly with abroad or worldwide prospects and to promote their providers. That is very true for small operators of tourism-related providers. Tourism boards lend help in compiling lists of service suppliers by class of their Websites.

As well as, for SMEs in creating nations the Web is a fast, simple, dependable and cheap means for buying on-line technical help and software program instruments and functions, lodging technical inquiries, requesting repairs, and ordering substitute components or new tooling.49

The Web can also be instrumental in enabling SMEs in creating nations to hitch dialogue teams with their friends throughout the globe who’re engaged in the identical enterprise, and thereby share info, experiences and even options to particular technical issues. That is helpful particularly to entrepreneurs who’re geographically remoted from friends in the identical enterprise.50

What’s the extent of ICT utilization amongst SMEs in creating nations?

Presently the Web is mostly utilized by SME companies in creating nations for communication and analysis; the Web is least used for e-commerce. E-mail is taken into account an essential technique of communication. Nonetheless, the extent of use is proscribed by the SMEs’ recognition of the significance of face-to-face interplay with their consumers and suppliers. The extent of confidence of utilizing e-mail for communication with each suppliers and consumers will increase solely after an preliminary face-to-face interplay. E-mail, subsequently, turns into a way for sustaining a enterprise relationship. It’s sometimes step one in e-commerce, because it permits a agency to entry info and preserve communications with its suppliers and consumers. This may then result in extra superior e-commerce actions.

One of many key obstacles to e-commerce improvement within the creating world is safe cost gateways. Even in Egypt, with a well-developed worldwide tourism market, native SMEs are largely unable to take safe funds on-line. Fee gateway suppliers are nonetheless not working within the creating world, and native banks usually tend to develop customised options moderately than open supply plug ins for internet sites.

ICT utilization patterns amongst SMEs in creating nations present a development from using the Web for communication (primarily e-mail) to make use of of the Web for analysis and data search, to the event of Websites with static details about a agency’s items or providers, and eventually to make use of of the Web for e-commerce.

Field 12. E-Mail and the Web in Growing International locations

Up to now, e-mail is the predominant and most essential use of the Web in creating nations. In Bangladesh, 82% of Web use is attributed to e-mail, vis-à-vis 5% in the USA. The Net accounts for about 70% of Web use within the U.S.51 That is as a result of comparatively excessive Web entry prices in most creating nations. Nonetheless, the Web is taken into account a reasonable, though imperfect, various to the phone or facsimile machine-i.e., it’s cheap as a result of increased pace of data transmission, and imperfect as a result of it doesn’t present two-way communication in actual time not like the phone.52

Many companies use the Web to speak with suppliers and prospects solely as a channel for sustaining enterprise relationships. As soon as companies develop a sure stage of confidence on the advantages of e-mail within the conduct of enterprise transactions and the potential of making gross sales from its use, they normally contemplate the choice of creating their very own Web page.

Research commissioned by The Asia Basis on the extent of ICT use amongst SMEs within the Philippines, Thailand and Indonesia, present widespread use patterns, reminiscent of:

1. broad use of the Web for e-mail due to the acknowledged price and effectivity advantages;

2. use of Websites extra for promotion than for on-line gross sales or e-commerce, indicating that SMEs in these nations are nonetheless within the early phases of e-commerce;

3. widespread use of the Web for primary analysis; and

4. inclination to have interaction extra in offline transactions than in e-commerce due to safety considerations.

SMEs undergo totally different phases in adopting e-commerce. They begin with making a Web page primarily to promote and promote the corporate and its services. When these companies start producing site visitors, inquiries and, finally, gross sales by means of their Websites, they’re prone to interact in e-commerce.

Field 13. Ladies and International Net-Based mostly Advertising: The Case of the Guyanese Weavers’ Cooperative

The Guyanese Weavers’ Cooperative is a company based by 300 ladies from the Wapishana and Macushi tribes in Guyana, northern South America. The cooperative revived the traditional artwork of hammock weaving utilizing 19th century accounts and illustrations of the hammocks made by European vacationers and the cultivation of cotton on small household plots and hand-weaving. The group then employed somebody to create a Web page, which was instrumental in bringing their wares on-line. Not lengthy after, within the mid-1990s, the group of weavers (the Rupununi Weavers Society) was in a position to promote hammocks to Queen Elizabeth, Prince Philip, the Smithsonian Institute, and the British Museum. Since 1998, they’ve bought about 20 hammocks by means of the Web at $1,000 per piece. This case additionally exhibits that SMEs have nice potential to compete in markets for high-end, bespoke merchandise regardless of the low gross sales quantity.

As well as, many Websites offering market and technical info, agronomic recommendation and danger administration instruments for SMEs (to espresso and tea farmers in creating nations, for instance) have emerged.53

What are the obstacles, issues and points confronted by SMEs of their use of ICT in enterprise or in participating in e-commerce?

Based on current surveys performed in choose Southeast Asian nations, the perceived exterior obstacles to e-commerce embody the unfavorable financial setting, the excessive price of ICT, and safety considerations. The interior obstacles are poor inside communications infrastructure inside SME companies, lack of ICT consciousness and data in addition to inadequacy of ICT-capable and literate managers and staff, inadequate monetary assets, and the perceived lack of relevance or value-added of ICTs to their enterprise.

Normally, the principle problems with concern that act as obstacles to the elevated uptake of data expertise and e-commerce are the next:

  • Lack of knowledge and understanding of the worth of e-commerce. Most SMEs in creating nations haven’t taken up e-commerce or use the Web as a result of they miss out on the worth of e-commerce to their companies. Many assume e-commerce is suited solely to massive firms and that it’s a further price that won’t convey any main returns on funding.
  • Lack of ICT data and abilities. Folks play an important position within the improvement of e-commerce. Nonetheless, expertise literacy continues to be very restricted in most creating nations. There’s a scarcity of expert staff amongst SMEs, a key concern in shifting ahead with utilizing info expertise in enterprise. There are additionally doubts about whether or not SMEs can certainly reap the benefits of the advantages of accessing the worldwide market by means of the Web, given their restricted capabilities in design, distribution, advertising, and post-sale help. Whereas the Web could be helpful in accessing worldwide design experience, SMEs should not assured that they’ll command a premium on the costs for his or her items until they provide product improvements. They’ll, nevertheless, capitalize on returns on the premise that they’re the low price suppliers.

Moreover, most of the time, the premium in design has already been captured-for instance, within the textile merchandise industry-by the branded style homes. SMEs doubt whether or not Net presence will facilitate their very own model recognition on a world scale.54

  • Monetary prices. Value is an important concern. The preliminary funding for the adoption of a brand new expertise is proportionately heavier for small than for big companies. The excessive price of computer systems and Web entry is a barrier to the uptake of e-commerce. Confronted with budgetary constraints, SMEs contemplate the extra prices of ICT spending as too massive an funding with out instant returns.

Many SMEs discover advertising on the Web costly. Having a Web page just isn’t equal to having a well-visited Web page. One motive is that there could also be no crucial mass of customers. One more reason is the problem of anonymity for SMEs. Due to the presence of quite a few entrepreneurs within the Web, it appears that evidently model recognition issues in an effort to be aggressive. Furthermore, it isn’t sufficient {that a} Web page is informative and user-friendly; it must also be up to date continuously. Serps should direct queries to the Web page, and information in regards to the web site should be broadly disseminated. Considerably, the expertise of many OECD nations attests to the truth that the perfect e-marketing methods should not higher substitutes for the standard type of media.55 One resolution could also be to encourage a number of SMEs to mixture their info on a standard Web page, which in flip would have the accountability of constructing recognition/branding by hyperlinking or updating, for instance.

  • Infrastructure. The nationwide community/bodily infrastructure of many creating nations is characterised by comparatively low teledensity, a significant barrier to e-commerce. There are additionally comparatively few most important telephone strains for enterprise use amongst SMEs.
  • Safety. Guaranteeing safety of funds and privateness of on-line transactions is vital to the widespread acceptance and adoption of e-commerce. Whereas the suitable insurance policies are in place to facilitate e-commerce, lack of belief continues to be a barrier to utilizing the Web to make on-line transactions. Furthermore, bank card utilization in lots of creating nations continues to be comparatively low.56

Additionally, customers are reluctant to make use of the Web for conducting transactions with SMEs as a result of uncertainty of the SMEs’ return coverage and use of information.

  • Different privacy- and security-related points.57 Whereas safety is often used because the catch-all phrase for a lot of totally different the explanation why people and companies don’t interact in in depth e-commerce and use of Web-based applied sciences, there are different associated causes and unresolved points, reminiscent of tax evasion, privateness and anonymity, fraud adjudication, and authorized legal responsibility on bank cards. In lots of nations, money is most well-liked not just for safety causes but additionally due to a want for anonymity on the a part of these engaged in tax evasion or those that merely are not looking for others to know the place they’re spending their cash. Others fear that there’s lack of authorized safety towards fraud (i.e., there isn’t a provision for adjudicating fraud and there could also be no authorized restrict on legal responsibility, say, for a misplaced or stolen bank card). It’s vital to differentiate these considerations from the final safety considerations (i.e., transaction privateness, safety and safety) since they will not be addressed by the employment of an efficient encryption methodology (or different safety measure).

Is e-commerce useful to the ladies sector? How has it helped in empowering ladies?[edit]

Normally, the Web and e-commerce have empowered sectors beforehand discriminated towards. The Guyanese expertise can attest to this.

Ladies have gained a foothold in lots of e-commerce areas. In B2C e-commerce, most success tales of women-empowered enterprises must do with advertising distinctive merchandise to customers with disposable earnings. The customers are discovered largely in developed nations, implying that there’s a want for ample infrastructure for the supply of merchandise for the enterprise to prosper and set up credibility. For instance, if an enterprise can enterprise into producing digital items reminiscent of music or software program that may be transmitted electronically or if such items could be distributed and/or delivered domestically, then that is the choice that’s extra possible and practicable.

Except for the Guyanese expertise, there are various extra profitable instances of e-commerce ventures that the ladies sector can emulate. Some concrete examples are: Tortasperu.com ( http://www.tortasperu.com.pe), a enterprise involving the advertising truffles in Peru run by ladies in a number of Peruvian cities; Ethiogift ( http://www.ethiogift.com), involving Ethiopians shopping for sheep and different presents over the Web to ship to their households in different components of the nation, thereby allotting with the bodily supply of products overseas; and the Rural Ladies’s Affiliation of the Northern Province of South Africa, which makes use of the Net to promote its chickens to wealthy shoppers in Pietersburg.58

Whereas many of the examples contain B2C e-commerce, it should be famous that ladies are already engaged in wholesale distribution companies in creating nations. Thus, they’ll start to penetrate B2B or B2G markets.

Field 14. Ladies Empowerment in Bangladesh: The Case of the Grameen Village Telephone Community

The Grameen Village Telephone Community is a basic instance of ladies’s empowerment in Bangladesh. Operators of the village telephones are all poor ladies (who’ve been chosen for his or her clear and powerful credit score report). These village telephones are often visited by members of male-dominated villages. Notably, the ladies entrepreneurs (village operators) take pleasure in wider discretion in expending their income from their telephone providers than with their family earnings.

What’s the position of presidency within the improvement of e-commerce in creating nations?[edit]

Whereas it’s typically agreed that the non-public sector ought to take the lead position within the improvement and use of e-commerce, the federal government performs an instrumental position in encouraging e-commerce progress by means of concrete practicable measures reminiscent of:

1. Creating a positive coverage setting for e-commerce; and

2. Changing into a modern person of e-commerce and its functions in its operations, and a supplier to residents of e-government providers, to encourage its mass use.

What’s a positive coverage setting for e-commerce?

Among the many public coverage points in digital commerce that governments ought to take heed of are:

  • “bridging the digital divide” or selling entry to cheap and quick access to info networks;
  • authorized recognition of e-commerce transactions;
  • shopper safety from fraud;
  • safety of customers’ proper to privateness;
  • authorized safety towards cracking (or unauthorized entry to pc techniques); and
  • safety of mental property.

Measures to handle these points should be included in any nation’s coverage and authorized framework for e-commerce. It’s important that authorities undertake insurance policies, legal guidelines and incentives that concentrate on selling belief and confidence amongst e-commerce contributors and creating a nationwide framework that’s suitable with worldwide norms on e-commerce (protecting as an illustration, contract enforcement, shopper safety, legal responsibility project, privateness safety, mental property rights, cross-border commerce, and enchancment of supply infrastructure, amongst others59).

How can authorities use e-commerce60?

Authorities can use e-commerce within the following methods:

  • E-procurement. Authorities businesses ought to have the ability to commerce electronically with all suppliers utilizing open standards-through ‘company enablement’ applications, ‘provider enablement’ applications, and e-procurement info techniques.
  • Customs clearance. With the computerization of customs processes and operations (i.e., digital submission, processing and digital cost; and automatic techniques for information entry to combine customs tables, codes and pre-assessment), one can anticipate extra predictable and extra exact info on clearing time and supply shipments, and elevated respectable revenues.
  • Tax administration. This features a system for digital processing and transmission of tax return info, on-line issuances of tax clearances, permits, and licenses, and an digital course of registration of companies and new taxpayers, amongst others.

As a rule, the e-commerce initiatives of presidency are a barometer indicating whether or not or not the infrastructure helps e-commerce use by non-public companies. Which means that if authorities is unable to have interaction in e-procurement, safe data on-line, or have customs charges remitted electronically, then the non-public sector may also have difficulties in e-commerce uptake. Just about, the advantages from e-commerce accrue to the federal government, because the experiences of some nations mirror.61

Are present authorized techniques ample to guard these engaged in e-commerce?

Sadly, the present authorized techniques in most creating nations should not ample to guard these engaged in e-commerce. As an example, with respect to contracts, present legal guidelines had been conceived at a time when the phrase “writing,” “doc” and “signature” referred to issues in paper type. Alternatively, in immediately’s digital enterprise transactions paper just isn’t used for record-keeping or getting into into contracts.

One other essential and customary authorized concern confronted by many creating nations is uncertainty concerning whether or not the courts will settle for digital contracts or paperwork and/or digital signatures as proof. One view is that the difficulty of admissibility of electronically generated proof is not going to be resolved until a regulation particularly referring to it’s handed. This hole in present authorized techniques has triggered the emergence of at the least two divergent views: one bordering on the conservative interpretation of the phrase “doc” as to exclude non-paper-based ones; and the opposite involving a liberal building, which permits digital counterparts of paperwork.

Within the ASEAN area, solely three countries-Singapore (Singapore Digital Transactions Act), Malaysia (Cyberlaws), and the Philippines (Philippine E-commerce Act)-have a authorized framework for e-commerce. These frameworks present for the authorized recognition of digital paperwork and signatures and penalize widespread crimes and offenses dedicated in our on-line world.

What different related coverage points needs to be addressed?

Different coverage points concern primary stipulations of infrastructure for profitable e-commerce, as follows:

1. Telecoms pricing and efficiency

One of many goals of telecommunications coverage and laws needs to be to make sure that the general public has entry to primary telecommunications providers at an affordable price. The purpose ought to finally be common accessor widespread entry to dependable info and communication providers at an affordable price and its availability at an affordable distance.

To boost the standard of telecommunications providers, insurance policies ought to encourage:

  • open entry, which refers back to the absence of non-competitive practices by community suppliers;
  • open structure, which pertains to the design of a system that facilitates interconnection amongst totally different techniques and providers at the moment and as they develop over time; and
  • versatile entry, which pertains to interconnected and interoperable networks of telecommunications, broadcasting, and digital publishing, the place the format will probably be digital and the bandwidth will probably be adjusted in keeping with the calls for of the person and the character of communications.62

2. High quality and pace of distribution logistics (i.e., roads and bridges)

Roads and bridges, particularly in creating nations, nonetheless type a part of the e-commerce infrastructure. Only a few items are delivered over the data infrastructure or the Web (the exceptions are music and software program). A lot of the items bought over the Web are nonetheless delivered the standard approach (i.e., bodily supply). Therefore, poor roads and bridges, inefficient transport techniques, coupled with the excessive price of worldwide parcel providers and bureaucratic customs clearance processes, are main obstacles within the uptake of e-commerce in creating nations.63 Authorities ought to subsequently create a coverage setting that may:

  • encourage investments within the nationwide bodily and transport infrastructure; and
  • present for digital customs clearance processing to streamline the paperwork and permit for extra clear, predictable and environment friendly customs operations.

Each of those will contribute to the discount of distribution and logistics prices.

How can authorities intervene within the promotion and improvement of e-commerce amongst SMEs?

The next are the extra related areas for presidency intervention with respect to SME uptake of e-commerce:64

E-SME Improvement. The market finally drives e-commerce improvement, however it’s the non-public sector that fuels it. Authorities can present incentives to encourage widespread e-commerce use by SMEs. An “e-SME improvement program” by which varied sectors can present technical help to SMEs to advertise e-commerce uptake, will also be developed. Banks, monetary lending and coaching establishments, and companies needs to be inspired to develop “SME desks” that may deal with the precise wants of SMEs. Particularly, steps needs to be taken to:

  • present incentives to people to change into entrepreneurs by reducing borrowing charges;
  • present incentives to SMEs that intend to make use of e-commerce of their enterprise operations;
  • broaden credit score extension amenities to SMEs to ensure that them to make use of ICT and e-commerce; and
  • supply reductions on enterprise resolution software program packages and software program licenses.

Furthermore, massive companies and companies needs to be inspired to switch expertise to SMEs by providing them free coaching in ICT and e-commerce.

Consciousness Marketing campaign. Proof means that SMEs have inadequate data of data expertise and e-commerce. Many SMEs have recognized their lack of know-how of expertise as one of many most important obstacles to utilizing e-commerce. Authorities and personal sector partnerships can interact in a marketing campaign to disseminate info to SMEs about e-commerce insurance policies, greatest practices, success tales, and alternatives and obstacles referring to using ICTs and e-commerce. These consciousness campaigns might embody free coaching programs and workshops on e-commerce, safety and privateness, awards applications, and data facilities to help SMEs. In the end, this info marketing campaign ought to come within the type of an total e-commerce improvement technique for the financial system, specializing in its varied modern functions for SMEs.

E-Authorities. Authorities needs to be the lead-user of e-commerce if varied enterprise and private-sector associated actions are to be prompted to maneuver on-line. In impact, authorities turns into a constructive affect. E-government can take the type of varied on-line transactions reminiscent of firm registration, taxation, functions for a wide range of employee- and business-related necessities, and the like.

Community Infrastructure and Localization of Content material. A developed nationwide info infrastructure is a vital, although not a ample, situation for e-commerce uptake of SMEs. With out dependable and cheap telecommunications and different info providers, SMEs won’t be able to go surfing. An essential technique on this regard is the development of “telecenters” or digital group facilities that might function a community-shared entry and connectivity platform particularly within the rural areas (e.g., an digital agri-information heart which gives market info to farmers in rural areas). These telecenters will also be a venue for capability constructing, abilities enhancement, coaching, communications and content material improvement.65 Authorities can even undertake agglomerative approaches to Web use to cut back prices (e.g., export aggregators, reminiscent of B2B or B2C portals/exchanges for SMEs, which is able to facilitate buying and selling with fellow SMEs and with different firms within the worldwide market).

Strengthening Client Safety. Among the many extra widespread trust-related points that SMEs pay attention to in contemplating whether or not to have interaction in e-commerce are: the place and the way cost takes place (whether or not actual or digital); when settlement takes place (earlier than, throughout or after the transaction); who settles; whether or not the transaction is B2B or B2C; and whether or not settlement could be traced. Usually, nevertheless, amongst e-commerce customers in creating nations, together with SMEs, there’s very low willingness to supply delicate monetary info over the Web.66 Alternatively, customers have reservations about transacting with SMEs by means of the Web as a result of lack of a transparent coverage on returns and use of information. To deal with this concern, authorities can encourage firms/ SMEs to make their privateness coverage specific of their Websites.

A extra complete measure that authorities can undertake to make sure safety in e-commerce transactions is the institution of a Certification Authority, which verifies vendor and purchaser identities, examines transactions and safety procedures, and points digital certificates to those that are in a position to meet the set safety requirements. A superb instance of this authorities effort is Singapore’s Certification Authority, Netrust. This suggestion does to not low cost the significance of private-driven safety options reminiscent of Websites like Hypermart, which host and construct storefronts for SMEs whereas offering them a standard system for safe funds.68

Field. 15. Information Safety and Transaction Safety

Transaction safety pertains to a few essential elements and associated points, specifically:

  • Transaction Privateness, which implies that transactions should be held non-public and intact, with unauthorized customers unable to grasp the message content material;
  • Transaction Confidentiality, implying that traces of transactions should be dislodged from the general public community and that completely no middleman is permitted to carry copies of the transaction until licensed to take action; and
  • Transaction Integrity, which pertains to the significance of defending transactions from illegal interference-i.e., transactions should be saved unaltered and unmodified. In an open community just like the Web, it appears tough to make sure these. There are, nevertheless, technological options that search to handle these safety considerations. These options normally come within the type of authorization schemes, i.e., applications that make it possible for solely licensed customers can achieve entry to info assets reminiscent of person accounts, information, and databases. Typical examples of authorization schemes are: password safety, encrypted sensible playing cards, biometrics (e.g., fingerprinting, iris-scanning), and firewalls.67 A firewall is a system of cryptographic strategies supported by perimeter guards to make sure the secure arrival and storage of data and its safety from inside and exterior threats. The most typical information and transaction and information safety scheme is encryption, which entails a set of secret codes that defends delicate info crossing over on-line public channels. It makes info indecipherable besides to these with a decryption/decoding key.

Authorities can even present tips for SMEs within the improvement of a system of collaborative rankings, which these entrepreneurs can show on their Websites not solely to tell but additionally to guarantee their customers of safety. As an example, in digital exchanges, prospects ought to have the ability to charge suppliers by way of high quality of services or products and pace of supply, amongst others. To reduce fraud, sure safeguards needs to be constructed into the ranking system like imposing the requirement of presenting proof of buy earlier than one’s ranking can rely, with rankings of standard prospects having extra weight. Tendencies in rankings and feedback needs to be made available to all customers. SMEs must also be inspired by means of applicable authorities incentive schemes to take part in internationally accredited Net-based on-line ranking schemes.69

Authorities can even design and set up a authorized and judiciary framework that gives for minimal requirements of and necessities for transparency, impartiality and timeliness. Whereas in lots of creating nations this can be a really bold purpose, within the medium time period SMEs might use self-regulated codes of conduct protecting, for instance, return coverage, information safety, and acceptable types of content material, which are relevant inside associations, cooperatives or their respective teams of friends and e-entrepreneurs.70 You will need to haven’t solely a ranking system but additionally an enforcement regime that individuals belief.

Human Assets Improvement. The federal government can provoke pilot tasks and applications for capability-building, coaching and e-commerce help providers, reminiscent of Net design. In Kenya, as an illustration, the youth from Nairobi’s slums are being educated in Net design abilities.

Normally, authorities initiatives needs to be in keeping with present efforts within the foregoing areas of concern. Coordination with improvement cooperation businesses is essential to keep away from any duplication of initiatives and efforts.

In regards to the Writer[edit]

Zorayda Ruth B. Andam is an incoming fifth yr (senior) regulation scholar of the College of the Philippines. She has a bachelor’s diploma in Enterprise Economics, additionally from the College of the Philippines. She is co-author of the e-primer: An Introduction to Digital Commerce (2000) and SMEs and e-Commerce in Three Philippine Cities (April 2003). Ms. Andam was a part of the USAID staff that supplied technical help to the Philippine Authorities within the improvement and passage of the nation’s e-Commerce Legislation.

For Additional Studying[edit]

Primers and Studies

Enterprise Software program Alliance. 2001. E-commerce and Growing Markets: Know-how, Commerce and Alternative.

Coward, Chris. August 2002. Obstacles to Growing an Offshore IT-Enabled Providers Trade in Asia: The View from the US. A report ready for the Heart for Web Research, College of Washington.

E-commerce/Web: B2B:2B or Not 2B? Model 1.1, Goldman Sachs Funding Analysis (November 1999 and September 14, 1999 points)

Japan Exterior Commerce Group. February 2002. Digital Commerce in APEC Economies: Specializing in Electrical/Digital Elements Procurements.

Lallana, Emmanuel C, Patricia J. Pascual, Zorayda Ruth B. Andam. April 2002. SMEs and eCommerce in Three Philippine Cities. A examine/report ready for the Asia Basis by Digital Philippines.

________________. January 2002. SMEs and e-commerce. A examine/report ready for The Asia Basis, Fort Asia.

Lallana, Emmanuel, Rudy S. Quimbo and Zorayda Ruth B. Andam. 2000. E-Primer: An Introduction to E-commerce. DAI-AGILE, a USAID-funded challenge.

Mann, Catherine with Sue E. Eckert and Sarah Cleeland Knight. 2000. International Digital Commerce: A Coverage Primer. Washington DC: Institute for Worldwide Economics.

Books

Bonnett, Kendra. 2000. An IBM Information to Doing Enterprise on the Web. U.S.A.: McGraw-Hill.

Cronin, Mary J. 2000. Unchained Worth: The New Logic of Digital Enterprise. U.S.A.: Harvard Enterprise Faculty Press.

Cronin, Mary J., ed. 1998. Banking and Finance on the Web. U.S.A.: John Wiley & Sons.

Evans, Philip and Thomas S. Wurster. 2000. Blown to Bits: How the New Economics of Info Transforms Technique. U.S.A.: Harvard Enterprise Faculty Press.

Kalakota, Ravi and Andrew B. Whinston. 1997. Digital Commerce: A Supervisor’s Information. Addison Wesley Longman, Inc.

Kanter, Rosabeth Moss. 2001. e-Volve: Succeeding within the Digital Tradition of Tomorrow. U.S.A.: Harvard Enterprise Faculty Press.

Lamont, Douglas. 2001. Conquering the Wi-fi World: The Age of m-Commerce. United Kingdom: Capstone Publishing Inc.

Plant, Robert. 2000. eCommerce Formulation of Technique. U.S.A.: Prentice Corridor Inc.

Rosen, Anita. 2000. The E-commerce Query and Reply E-book: A Survival Information for Enterprise Managers. American Administration Affiliation.

Smith, Dayle. 2001. The E-business E-book: A Step-by-Step Information to E-commerce and Past. Princeton: Bloomberg Press.

Tapscott, Don, David Ticoll and Alex Lowy. 2000. Digital Capital: Harnessing the Energy of Enterprise Webs. Nice Britain: Nicholas Brealey Publishing.

Younger, Patrick and Thomas Theys. 1999. Capital Market Revolution: The Way forward for Marlets in an On-line World. Nice Britain: Pearson Training Restricted.

Publications by Catherine Mann

Mann, Catherine. Forthcoming. “Stability and Overlap within the International Digital Market: The UCITA Instance.” Washington College Journal of Legislation & Coverage.

________________. 2002. “Digital Commerce, Networked Readiness, and Commerce Competitiveness.” In Geoffrey Kirkman et al. eds. International IT Readiness Report. Harvard College and World Financial Discussion board.

________________. 2002. “Digital Commerce, the WTO, and Growing International locations.” In Hoekman, Aaditya Mattoo, and Philip English, eds. Improvement, Commerce, and the WTO: A Handbook. Washington DC: The World Financial institution.

________________. October 2000. “Transatlantic Points in E-commerce.” In Isabella Falautano and Paolo Guerrieri, eds. “Past Seattle: A New Strategic Strategy within the WTO 2000,” IAI Quaderni No. 11, Rome. An English model is offered as IIE Working Paper no. 007, October 2000.

________________. August 2000. “International Digital Commerce: Problem and Alternative for Authorities Coverage.” In Firm Secretary. Hong Kong Institute of Firm Secretaries.

________________. July 17, 2000. “International Digital Commerce: Macroeconomic Advantages and Coverage Decisions.” Invited Op-Ed, Nikkei Journal (Tokyo).

________________. 2000. “Digital Commerce in Growing International locations: Points for Home Coverage and WTO Negotiations.” In Robert Stern, ed. Providers

within the Worldwide Financial system: Measurement, Modeling, Sectoral and Nation Research, and Points within the World Providers Negotiations. College of Michigan Press.

________________. October 21, 1999. “Liberalizing Providers: Key to Sooner International Development and the Sustainability of the US Commerce Deficit.” Testimony earlier than the Subcommittee on Worldwide Commerce of the Senate Finance Committee.

________________ with Sarah Cleeland Knight. July 2000. “Digital Commerce within the World Commerce Group.” In Jeffrey Schott, ed. The WTO After Seattle. Institute for Worldwide Economics.

Articles

From The McKinsey Quarterly 2000 (The New World of Private Monetary Providers). No. 3:

– “Will the Banks Management On-line Banking?” by Sandra Boss, Devin McGranahan, and Asheet Mehta, p. 70

– “The Future for Bricks and Mortar” by Matthias M. Bekier, Dorlisa Ok. Flur, and Seelan J. Singham, p. 78

– “Banking on the Machine” by David Maude, Raghunath R, Anupan Sahay, and Peter Sands, p. 86

– “How E-tailing Can Rise from the Ashes” by Joanna Barsh, Blair Crawford, and Chris Grosso, p. 98

– “Constructing Retail Manufacturers” by Terilyn A. Henderson and Elizabeth A. Mihas, p. 110

– “M-Commerce: An Operator’s Handbook” by Nick Barnett, Stephen Hodges, and Michael J. Wilshire, p. 162

– “The Actual Enterprise of B2B” by Glenn Ramsdell, p. 174

From The McKinsey Quarterly 2000 (What Mergers Miss). No. 4:

– “Advertising Classes from E-failures” by Vittoria Varianini and Diana Vaturi, p. 86

– “From Merchandise to Ecosystems: Retail 2010,” p. 108

From The McKinsey Quarterly 2000 (e-performance). No. 1:

– “E-performance: The Path to Rational Exuberance” by Vikas Agrawal, Luis D. Arjona and Ron Lemmens, p. 30

– “B2Basics” by Ryan Kerrigan, Eric V. Roegner, Dennis D. Swinford and Craig C. Zawada, p. 44

– “Past the Enterprise Unit” by Russell Eisenstat, Nathaniel Footye, Jay Galbraith, and Danny Miller, p. 54

CD-ROM

Digital Financial system for Communities and SMEs Improvement, 19–21 June 2002, Siam Intercontinental Lodge, Bangkok, Thailand by APEC Digital Commerce Coaching Heart (Workshop on Digital Commerce Coverage and Regional Cooperation).

Hyperlinks

APEC Process Drive on Digital Commerce homepage. http://www.apecsec.org.sg/apec/apec_groups/som_special_task_groups/electronic_commerce.html

Enterprise Software program Alliance homepage. http://www.bsa.org

E-ASEAN Process Drive homepage. http://www.aseansec.org/14467.htm

Digital Commerce World Journal homepage. http://crec.mccombs.utexas.edu/

Worldwide Commerce Centre UNCTAD/WTO homepage. http://www.intracen.org

United Nations Convention on Commerce and Improvement homepage. http://www.unctad.org

United Nations Worldwide Computing Centre homepage. http://www.unicc.org

World Customs Group homepage. http://www.wcoomd.org

Varian, Hal R. Markets for Info Items (College of California, Berkeley: April 1998, revised October 16, 1998). Out there from http://www.ischool.berkeley.edu/~hal/folks/hal/papers.html

1 Anita Rosen, The E-commerce Query and Reply E-book (USA: American Administration Affiliation, 2000), 5.

2 MK, Euro Data Correspondence Centre (Belgrade, Serbia), “E-commerce-Issue of Financial Development;” out there from http://www.eicc.co.yu/newspro/viewnews.cgi?newsstart3end5; Web; accessed 25 September 2002.

Three Thomas L. Mesenbourg, Measuring Digital Enterprise: Definitions, Underlying Ideas, and Measurement Plans.

Four Definition tailored and expanded from Emmanuel Lallana, Rudy Quimbo, Zorayda Ruth Andam, ePrimer: An Introduction to eCommerce (Philippines: DAI-AGILE, 2000), 2.

5 Ibid.

6 Lallana, Quimbo, Andam, 4. Cf. Ravi Kalakota and Andrew B. Whinston, Digital Commerce: A Supervisor’s Information (USA: Addison Wesley Longman, Inc., 1997), 19-20.

7 Lallana, Quimbo, Andam, 4.

Eight Breakdown of the Worldwide Information Corp.

9 “E-commerce/Web: B2B: 2B or Not 2B?” (Goldman Sachs Funding Analysis, November 1999), v. 1.1, 16,68-71.

10 Ibid.

11 Kalakota and Whinston, 18-19.

12 Lallana, Quimbo, Andam, 4.

13 To be mentioned within the succeeding sections of this primer.

14 Kalakota and Whinston, 20-21.

15 TA Undertaking, “E-commerce;” out there from http://www.tab.fzk.de/en/projekt/skizze/ecommerce.htm; Web; accessed 26 September 2002.

16 Traderinasia.com; out there from http://www.traderinasia.com/classifieds.html; Web; accessed 26 September 2002.

17 whatis.com, searchWebServices.com; out there from http://whatis.com/

18 Cf. Kalakota and Whinston, 7-11.

19 Cf. Enterprise Software program Alliance, eCommerce and Growing Markets, 17-18.

20 For a extra in depth dialogue on convergence, consult with Edwin S. Soriano, Nets, Webs, and The Info Infrastructure.

21 Lallana, Quimbo, Andam, 13.

22 Tailored from the inputs and feedback on this primer of Mr. Chris Coward.

23 Trade Canada, Canada’s Enterprise and Client Web site; out there from http:// strategis.gc.ca; accessed 26 September 2002..

24 Ibid.

25 Lallana, Quimbo and Andam, 2.

26 Michael Chait, “Is the Dot Com Bust Coming to an Finish?” (July 8, 2002); out there from http://www.Internetnews.com/bus-news/article.php/1381331; accessed 26 September 2002.

27 Reshma Kapadia, “What triggered the dot-com bust?”; out there from http://www.information24.com/Information24/Know-how/0,1113,2-13_1142765,00.html; accessed 26 September 2002.

28 Reid Goldscborough, “Viewpoint-Private Computing: Overlook The Dot-Com Bust, There’s Nonetheless Cash To Be Made;” out there from http://www.industryweek.com/Columns/Asp/columns.asp?ColumnId=881; accessed September 26, 2002.

29 whatis.com, searchEBusiness.com.

30 Ibid.

31 Lynda M. Applegate, excerpts type the E-business Handbook (The St. Lucie Press, 2002); out there from http://hbswk.hbs.edu/instruments/print_item.jhtml?id=3007&t=ecommerce; accessed 26 September 2002.

32 Community economies of scale are attained when an mixture of companies or organizations share a standard infrastructure, capabilities and shopper base for sooner, higher and extra cost-efficient manufacturing and distribution of services.

33 Community economies of scope enable companies and/or organizations throughout the identical community/ digital group to share the infrastructure for the manufacturing and distribution of latest services and for creating and/or getting into new markets or launching new companies extra successfully and effectively than opponents.

34 Built-in provide chains allow distributors to hyperlink their suppliers with their enterprise shoppers/prospects.

35 Built-in purchase chains allow distributors to hyperlink producers to customers.

36 NetValue Analysis

37 Suganthi, Balachandher and Balachandran, “Web Banking Patronage: An Empirical Investigation of Malaysia;” out there from http://www.arraydev.com/commerce/jibc/0103_01.htm; accessed 26 September 2002.

38 McKinsey survey.

39 This part is greatest learn in relation to the dialogue on B2C.

40 To be included in Retail Ahead’s High e-retailers, the corporate ought to have generated at the least 50% of its gross sales from direct-to-consumer (DTC) retail.

41 Cf. http://www.emarketer.com/information/article.php?1001447&ref=ed

Determine 8.
Firm On-line Revenues (in billions of {dollars})
Amazon.com 3.12
Workplace Depot 1.60
Staples 0.95
Gateway, Inc. 0.76
Costco Wholesale 0.45
Barnesandnoble.com 0.41
Purchase.com 0.40
QVC.com 0.35
Spiegel Group 0.33
J.C. Penny 0.32

42 CAUCE (Coalition In opposition to Unsolicited Business E-mail); out there from http://www.cauce.org. Accessed 26 September 2002.

43 Andrea Goldstein and David O’Connor, E-commerce for Improvement: Prospects and Coverage Points, (OECD Improvement Centre, September 2000); out there from http://www.oecd.org/dev/publication/tp1a.htm; accessed 26 September 2002.

44 Ibid.

45 Noah Elkin, “Growing International locations Assembly e-business Problem,” February 5, 2003.

46 Based on 2003 figures of AMI-Companions, a analysis group on small enterprise market.

47 Most artisans are ladies dwelling in very distant villages. Their being remoted could also be why their crafts have survived.

48 Goldstein and O’Conner.

49 Ibid

50 Ibid.

51 ITU, 1999.

52 Goldstein and O’Conner.

53 Ibid.

54 Ibid.

55 Ibid.

56 Emmanuel Lallana, Patricia J. Pascual, and Zorayda Ruth Andam, SMEs and E-commerce: The Philippine Case; Cf. SMEs and E-commerce: The Case of Indonesia, ready for The Asia Basis by Fort Asia

57 Tailored from the inputs and feedback on this primer by Dr. Catherine Mann.

58 Nancy Hafkin and Nancy Taggart, “Gender, Info Know-how, and Growing International locations: An Analytical Examine,” June 2001.

59 Ibid.

60 For an in depth dialogue of e-government initiatives, please consult with the primer on “EGovernment” by Patricia J. Pascual.

61 Tailored from the inputs and feedback on this primer by Dr. Catherine Mann. For extra info, consult with “Benchmarking e-Authorities: A International Perspective” by UN-DPEPA and ASPA and “E-Authorities within the Philippines: Benchmarking In opposition to International Greatest Practices” by Emmanual C. Lallana, Patricia J. Pascual and Edwin S. Soriano.

62 Division of Commerce and Communications. “An Infocomms Coverage for the Info Financial system: A Consultative Paper,” December 2000.

63 Lallana, Quimbo and Andam, 14.

64 Lallana, Pascual and Andam; Cf. SMEs and E-commerce: The Case of Indonesia.

65 Ibid.

66 Goldstein and O’Conner.

67 Firewalls act as a filter between a company community and the Web, retaining the company community safe from intruders however permitting authenticated company customers uninhibited entry to the Web (Supply: Kalakota and Whinston).

68 Ibid., Cf. ITC, 2000.

69 Ibid.

70 Ibid.

Acknowledgment[edit]

The creator wish to thank her peer reviewers, Dr. Catherine Mann (Senior Fellow of the Institute for Worldwide Economics), Mr. Chris Coward (Director of the Heart for Web Research) and Mr. Carter Eltzroth (Senior Vice President, International Public Coverage, MIH Group) for his or her helpful inputs to this primer.


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