SALES TAX EXERCISE 1. Group of 5 2. Assign Reporter 3. Given these principles, outline an acceptable US sales tax program. Address: - Governance - Who makes the rules, - Who collects the money - How should funds be allocated? - Location of customer? - Location of supplier? - Location of server? - Other? - What (if anything) should be tax exempt? - How to enforce? - What about auction sites for individuals? 4. Report back after twenty minutes.
CUSTOMS AND TAXATION US Position: Internet is tariff-free No New Taxes Be consistent with existing principles of international taxation Avoid: Inconsistent national tax jurisdictions Double Taxation Principles: Don’t distort or hinder commerce Don’t discriminate or incent Be simple and transparent Accommodate US and international tax systems Source: “Framework for Global Electronic Commerce,” July ‘97; the White House.
CHARTING E-BUSINESS READINESS Organization EDI Manager in IS Department Internet Steering Committee E-Commerce Managers and Supply Chain Managers in Conflict Business Unit E-C Manager E-Business Sr. VP. Separate Business Unit or Spin-Off ‘94 ‘96 ‘98 ‘00 ‘02 ‘04 Source: Gartner Group, September ‘99
CHARTING E-BUSINESS READINESS Applications EDI - PO’s and Invoices ERP Customer Self Service and Order Mgmt. Integrated/ Extended ERP Integrated Supply Chain and Collaborative Engineering ‘94 ‘96 ‘98 ‘01 ‘04 Source: Gartner Group, September ‘99
CHARTING E-BUSINESS READINESS Technology EDI and EDI/ Internet CGI/HTML Active X, COM/DCOM XML ‘94 ‘96 ‘98 ‘99 ‘02 ‘04 Source: Gartner Group, September ‘99 Distributed Objects
CHARTING E-BUSINESS READINESS Timing represents early-adopter, leading companies; most other firms are in ‘94-’96 timeframe. You being “E-Ready” is of limited value; need to match your most important trading partners. Develop mutually beneficial strategies with select trading partners.
INTERNET IMPACT ON SELECTED INDUSTRIES Industry Computing and Electronics Telecom (Business only) Financial Services (Business only) Energy Travel 1999 $52.8B B % of Total in % E-Business Source: Business Week; Forrester Research, 4 October 1999