E-business – the critical factors Mikael von Otter October, 2001 OECD

Motives for e-commerce LargePublicSME Expanding marketxsome Product shippingxsome CRMx Product developmentxx SCMxxx Quality controlx Process costsxx Lower pricesxxx Critical

Requirements for e-commerce Transport mechanismxInternet 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