E-business – the critical factors

Mikael von Otter

October, 2001

OECD

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

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

Critical factors

• SME

• Public sector

• Trust

• Information standards

• Process reengineering

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?

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)

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

Public sector drivers and barriers

• Single Face To Industry standard (d)

• Demographic situation (d)

• Benchmarking (d)

• Management capacity (b)

• Short term planning period (b)

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

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)

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

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)

Process reengineering

• Change Management capacity and know-how

• Acceptance from staff

• Competence development

• Organizational changes

• Top management commitment

• Finding the technology

Process reengineering drivers and barriers

• Public sector (b)

• SME (b)

• Demographics force (d)

• Trade unions (?)

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