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E-business – the critical factors
Mikael von Otter
October, 2001
OECD
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Motives for e-commerceLarge Public SME
Expanding market x some
Product shipping x some
CRM x
Product development x x
SCM x x x
Quality control x
Process costs x x
Lower prices x x xCritical
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Requirements for e-commerce
Transport mechanism x Internet
Process standards ? ebXML etc
Information standards ?
System interfaces (?)
Trust ?
Process reengineering skill ?
X = sufficient ? = to a certain extent
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Critical factors
• SME
• Public sector
• Trust
• Information standards
• Process reengineering
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SME drivers and barriers
• All SMEs are not alike– Specialized – mass market– Local – national – international – ”Supplier” – ”vendor
• Different drivers and barriers– What does really motivate a SME? – Affordability– Who is in the drivers seat?
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SME drivers and barriers
• Mobile e-business solutions for the very small (d)
• Increase competition for SMEs (d)
• Integrating e-business and legacy systems (b)
• Different requirements from different ”large customers” (b)
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Public sector
• Has great impact on e business development– Especially SME
• Conflicting objectives– Protecting tax payers money– Welfare and education, not ROI– Not a business culture
• Size of local authorities, of government
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Public sector drivers and barriers
• Single Face To Industry standard (d)
• Demographic situation (d)
• Benchmarking (d)
• Management capacity (b)
• Short term planning period (b)
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Trust
• Necessary for e-business• Regulations not modernized
– ”by writing”, ”document”
• EU e-signature implementation – Who pays? Unlimited damage? Contract or
policy based?
• Myths about Internet security– Payment systems
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Trust drivers and barriers
• Open e signature implementation (d)
• Current e-signature situation (b)
• Micropayment systems (d)
• Legal issues (b)
• Public acceptance (d)
• Copyright and IPR digital products– Technical solutions (b)
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Information and IT standards
• Internet for transport• XML – ”the saviour” – is a language• Where do we standardize processes and
information?– Is it possible?
• Not a critical barrier– Enough solutions are available– But sometimes expensive for SME
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Info. Standard drivers and barriers
• ebXML initiative (d?)
• Market standards (bank, paper, food etc) (d)
• Product code standards (b)
• Revival of EDIfact (d?)
• Systems interface standards (b)
• IT industry participation (b and d)
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Process reengineering
• Change Management capacity and know-how
• Acceptance from staff
• Competence development
• Organizational changes
• Top management commitment
• Finding the technology
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Process reengineering drivers and barriers
• Public sector (b)
• SME (b)
• Demographics force (d)
• Trade unions (?)
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E-business summary
• We have moved …– From why to how– From news to use
• But still …– SME: not only a technical and awareness problem– Public sector: should move much faster, has impact on
the rest– Technology: Information standards? Systems interface?– Trust: e-signatures implementation needs understanding