1. E-commerce and E-logistics Trends from an European perspective
5th ASEM Conference on E-commerce
E-commerce and E-logistics Trends from an European perspective
Dr. Peter M. Friess
Directorate General Information Society and Media
ICT for Enterprise Networking

2. Challenges for commerce
Increasing international competition
New players on the market
New business models
Overwhelming complexity
Provision of new services requested from customers
Real-time delivery information
Improved after sales services

3. Challenges for logistics
Ever increasing price pressure
Low profit margin of OEM affects suppliers
More and more global competition
More efficient use of space (transport, storage)
Provision of new services requested from clients
Real-time identification services
Assembly services

4. Status of E-commerce and E-logistics
Present challenges
Access to equipment and broadband
Trust (privacy and personal data)
Security of information services
Legislation and taxation issues
Process reengineering
New challenges
New technologies (like RFID, mobile Internet etc.)
New cooperation and partnership models
Crises and instable business situations

5. New opportunities through RFID
Process efficiency
Accuracy 10-30%
Quick response through real-time geographical information
Reduction of loss/theft
E.g. reduction between 11-18% in retail (Metro AG)
Increase of transport security (road, container shipping)
Anti-counterfeiting
In 2004, tampered and counterfeited products account for 7% of world trade (Intern. Chamber of Commerce)
New products and services
Intelligent products
Services based on sensing

6. New opportunities through RFID – con’d
The latest research from IDTechEx shows that RFID market will grow from $2.77Bn in 2006 to $12.35Bn in 2010.
The International Data Corporation (IDC) estimated that the RFID market for related services is expected to reach $2 billion worldwide by 2008.
The Wireless Data Research Group predicts that spending on RFID was about $1 billion in 2003, and will triple by 2007.
The Yankee Group estimates that RFID technology will be a $4.2 billion market by Over the next three years, manufacturers will spend $2 billion on RFID tags and another $1-3 billion on related infrastructure.
Another high-tech market research firm, In-Stat, estimates that worldwide revenues from RFID tags will jump from $300 million in 2004 to $2.8 billion in Security and supply chain applications will take up the largest part of these investments.

7. Core opportunities for customers
Enhanced product freshness
Improved demand-driven availability of goods
Improved accuracy of product information
Ensured product authenticity
Expedited payment – wireless payment
Intelligent products
Better after-sales and lifecycle services

8. Opportunities for logistics
More efficient processes
Improved inventory management
Increasing planning capacities
Increased transport safety
Simplified border control

9. Opportunities for global solution providers
Growing global RFID market
Increasing technical capabilities
Necessity of new and specialised software, networks and services
Growing demand for education and services

10. Challenges Standards Solutions and process reengineering Trust
Frequency and data structures
Security and privacy
Interoperability
Solutions and process reengineering
Change in mindset of business partners
Modification of business processes
New software applications
Trust
Between trade partners
Between customer and supplier
Between public authorities and industry

11. Activities by the European Commission
Close co-operation with standardisation bodies
ETSI, ISO, CEPT etc.
ICT Standardisation Work Programme 2006
complementing the European Standardisation Action Plan and extending the coverage in new domains (e.g. GRID, IPR and counterfeiting, e-Customs, etc)
RFID Public Consultation 2006 (internat. participation)
Towards an European RFID policy with a global scope
IST dialogues with Asian countries
Research, regulatory challenge, security and trust, spectrum etc.
Research co-operation (Framework progr. 6 and 7)
co-operation through research projects
specific calls addressing international co-operation
Worldwide customs RFID pilot project
Increased container safety, simplified operations

12. Conclusion E-commerce and E-logistics need further penetration
Standardisation and legislation
Process reengineering
Adoption and introduction of the RFID technology
Creation of awareness in industry
Co-operation on business and research level