Chapter 2 The strategy of the development of E-Commerce 2. 1 The importance of the development of E-Commerce's research The impact of e-commerce, particularly in business to business(B2B)transactions, continues to grow. Customers increasingly expect to be able to deal with suppliers electronically as a matter of course. Growing numbers of businesses are looking at ways to enhance their operations through the use of electronic technology. This is despite the dotcom crash, which has had the positive effect of allaying the hype surrounding e-commerce, particularly online retailing(or e-tailing It is important to recognize that the Internet, e-commerce and the demands of a knowledge economy are raising the bar of economic participation for everyone across the economy. China businesses operate in an increasingly complex and interconnected global environment requiring a whole new level of sophistication. This includes the need for goods and services to have a higher knowledge"component, rapid development of new products, smarter marketing methods and improved management skills The demand therefore for all Chinese to build their awareness and capability to participate in the electronic world remains as strong as ever 2.2 The environment for the development of E-Commerce 2.2.1 Resource environment China is focusing on building its infrastructure network for the booming electronic commerce, as many state-owned and other enterprises plan to invest more into the field China Telecom, the states top runner of telecommunications business, has established a nationwide cable network which would be the backbone of e-commerce in the coming years, Yang Baosheng, deputy chief of China Telecom's Data Communication Bureau, said Saturday. China Telecom completed expansion of its trunk web, Chinanet, with the an average band of 800 megabits per second and two megabits per second in the Internet portal, Yang said at a specific forum of the 5th China International Electronic Commerce Summit. Meanwhile. the state-owned company helps government bodies and big enterprises construct their own Intranets and provide them with high-standard dialing business. Electronic commerce is a giant system which needs efforts from all trades, Yang said, stressing that cooperation should be the top priority. China Telecom is now cooperating with the customs and taxation, securities and transportation departments to develop technological application Nearly 100,000 businesses in China now use online network for customs declaration, which help the government reap an additional 70 billion Yuan( 8.43 billion U.S. dollars)in customs duties With about 1.5 million e-commerce clients, China Telecom annually earns more than million Yuan from this business, Yang said. Meanwhile, other enterprises are calling for the employment of the satellite network to develop e-commerce, saying that the satellite network is cheaper and more effective than underground or submarine cables. Qi Caiyun, president of Satellite Network Technology Company under Oriental Group, said that the multiple-way wide-band and high-fidelity digital exchange by means of satellite telecommunications is very useful at modern time As for some remote areas where there is a varied topography, digital exchange through satellite network might be the best choice, Qi said. Professor Wang Kehong at Qinghua University paid more attention to development of software for electronic commerce. The computer sciences department at Qinghua has successfully developed electronic foms for al various of electronic commerce, which the professor said is indispensable for anyone engaged in The Shanghai Stock Exchange uses one of the electronic forms to publicize information on listed companies everyday
Chapter 2 The strategy of the development of E-Commerce 2.1 The importance of the development of E-Commerce’s research The impact of e-commerce, particularly in business to business (B2B) transactions, continues to grow. Customers increasingly expect to be able to deal with suppliers electronically as a matter of course. Growing numbers of businesses are looking at ways to enhance their operations through the use of electronic technology. This is despite the dotcom crash, which has had the positive effect of allaying the hype surrounding e-commerce, particularly online retailing (or e-tailing). It is important to recognize that the Internet, e-commerce and the demands of a knowledge economy are raising the bar of economic participation for everyone across the economy. China businesses operate in an increasingly complex and interconnected global environment requiring a whole new level of sophistication. This includes the need for goods and services to have a higher "knowledge" component, rapid development of new products, smarter marketing methods and improved management skills. The demand therefore for all Chinese to build their awareness and capability to participate in the electronic world remains as strong as ever. 2.2 The environment for the development of E-Commerce 2.2.1 Resource environment China is focusing on building its infrastructure network for the booming electronic commerce, as many state-owned and other enterprises plan to invest more into the field. China Telecom, the state's top runner of telecommunications business, has established a nationwide cable network which would be the backbone of e-commerce in the coming years, Yang Baosheng, deputy chief of China Telecom's Data Communication Bureau, said Saturday. China Telecom completed expansion of its trunk web, Chinanet, with the an average band of 800 megabits per second and two megabits per second in the Internet portal, Yang said at a specific forum of the 5th China International Electronic Commerce Summit. Meanwhile, the state-owned company helps government bodies and big enterprises construct their own Intranets and provide them with high-standard dialing business. "Electronic commerce is a giant system which needs efforts from all trades," Yang said, stressing that cooperation should be the top priority. China Telecom is now cooperating with the customs and taxation, securities and transportation departments to develop technological application. Nearly 100,000 businesses in China now use online network for customs declaration, which help the government reap an additional 70 billion Yuan (8.43 billion U.S. dollars) in customs duties. With about 1.5 million e-commerce clients, China Telecom annually earns more than 80 million Yuan from this business, Yang said. Meanwhile, other enterprises are calling for the employment of the satellite network to develop e-commerce, saying that the satellite network is cheaper and more effective than underground or submarine cables. Qi Caiyun, president of Satellite Network Technology Company under Oriental Group, said that the multiple-way, wide-band and high-fidelity digital exchange by means of satellite telecommunications is very useful at modern time. As for some remote areas where there is a varied topography, digital exchange through satellite network might be the best choice, Qi said. Professor Wang Kehong at Qinghua University paid more attention to development of software for electronic commerce. The computer sciences department at Qinghua has successfully developed electronic forms for all various of electronic commerce, which the professor said is indispensable for anyone engaged in e- commerce. The Shanghai Stock Exchange uses one of the electronic forms to publicize information on listed companies everyday
2.2.2 Market environment E-Commerce is a fantastic area of business marketing which is now becoming more popular and is an aspect of our century. All businesses, no matter the size or income, are turning to the internet as a way to communicate to the outer world, and prospective customers. E-Commerce is an asset to all aspiring people and all are welcome to use its facilities and uses. The internet has created more opportunities for new arriving businesses which may not be as big as the large corporate businesses who have already taken advantage of the Internet The internet consists of many drivers for companies looking to"convert"to the web owever it holds as many barriers for companies especially those who are smaller, due to lack of esources or money There are many drivers to the take up of E-Commerce which I have described below. Firstly, the internet is a sort of"encyclopedia"which allows company's to research into specific areas of the business for example products and services that previous companies in the same area of business. have undertook. The ease of information access is also a benefit for an SME. which as a communication channel, the internet allows the sharing of knowledge and data between a number of companies. SMEs can now access information, resources and knowledge which previously were only available to big corporations, such as global marketing tools, and distribution systems Another benefit would be that there is a rapid increase in numbers of people, who are buying, selling, and performing transactions over the web. People are now starting to depend on the internet to carry out tasks which previously would have been done physically. Therefore, the popularity that the internet holds with the public(customers) is definitely a drive for SMES. This is because it is now possible to target a wider range of customers over one wavelength of communication,which is proving to be continuingly popular Concerning SMEs which cater for a niche market, this over channel communication portal allows people to come to you, rather then you chasing them to buy your product. This way, it ensures that you are not wasting much needed budget on advertisement and to attract potential customers, but customers themselves come to you, ensuring a good customer-business interaction, and a better turnout for both sides Another driver would be the cheaper, lower, overheads, for example bricks and mortar".The ced for the simplest objects which are vital to the running of the company for example invoices, paper, stationary, etc, this is all decreased by online transactions which are a more efficient and instant method of web communication between the company and the customer. Changing from the traditional approach of word of the mouth, SMEs are now also gaining more publicity from the internet as publicity can be made in a variety of ways, for example referrals from other web organizations or just simply emailing. Another advantage would be that the internet is an inexpensive source of information for the company and data can be easily exchanged between companies of the same nature. EDI (electronic data interchange) is the sharing of data in the form of electronic mail for data such as invoices, order forms etc. and advantage would be that it provides good means of communicating with businesses interlinked within the Sme for example suppliers. It makes communication more easily available as a majority of company's worldwide uses this facility. However, EDI has its drawbacks which are described further on Another advantage is that support can be available to small businesses that may be looking to expand. IBM provides technical support to companies charging a small fee. If the company is to go online, then technology and computers will be widely used within the business, so simply knowing that help is available when wanted is essential in the daily functions of the business. It is even possible for a government to support a business by encouraging small businesses to take dvantage of the facilities that E-Commerce has to offer Along with the Drivers, the Barriers also play a vital role in the take up of E-Commerce. The barriers must also be taken into consideration by a company, as it may cause them to suffer consequences which could have easily been avoided Above, EDI is seen as an asset to any company. It shows them to be up-to-date in using the latest technology, as well being able to communicate further a field. However, EDI has its drawbacks as any technology does. Firstly, it is too expensive to even take up as it requires purpose built software which is too expensive to buy, and secondly, the payment to the VANS Value added networks) who provide the connectivity between the businesses is far too high for a small business to cope with
2.2.2 Market environment E-Commerce is a fantastic area of business marketing which is now becoming more popular and is an aspect of our century. All businesses, no matter the size or income, are turning to the internet as a way to communicate to the outer world, and prospective customers. E-Commerce is an asset to all aspiring people and all are welcome to use its facilities and uses. The internet has created more opportunities for new arriving businesses which may not be as big as the large corporate businesses who have already taken advantage of the Internet. The internet consists of many drivers for companies looking to “convert” to the web; however it holds as many barriers for companies especially those who are smaller, due to lack of resources or money. There are many drivers to the take up of E-Commerce which I have described below. Firstly, the internet is a sort of “encyclopedia” which allows company’s to research into specific areas of the business for example products and services that previous companies in the same area of business, have undertook. The ease of information access is also a benefit for an SME, which as a communication channel, the internet allows the sharing of knowledge and data between a number of companies. SMEs can now access information, resources and knowledge which previously were only available to big corporations, such as global marketing tools, and distribution systems. Another benefit would be that there is a rapid increase in numbers of people, who are buying, selling, and performing transactions over the web. People are now starting to depend on the internet to carry out tasks which previously would have been done physically. Therefore, the popularity that the internet holds with the public (customers) is definitely a drive for SME’s. This is because it is now possible to target a wider range of customers over one wavelength of communication, which is proving to be continuingly popular. Concerning SME’s which cater for a niche market, this over channel communication portal, allows people to come to you, rather then you chasing them to buy your product. This way, it ensures that you are not wasting much needed budget on advertisement and to attract potential customers, but customers themselves come to you, ensuring a good customer-business interaction, and a better turnout for both sides. Another driver would be the cheaper, lower, overheads, for example “bricks and mortar”. The need for the simplest objects which are vital to the running of the company for example invoices, paper, stationary, etc, this is all decreased by online transactions which are a more efficient and instant method of web communication between the company and the customer. Changing from the traditional approach of word of the mouth, SME’s are now also gaining more publicity from the internet as publicity can be made in a variety of ways, for example referrals from other web organizations or just simply emailing. Another advantage would be that the internet is an inexpensive source of information for the company and data can be easily exchanged between companies of the same nature. EDI (electronic data interchange) is the sharing of data in the form of electronic mail for data such as invoices, order forms etc. and advantage would be that it provides good means of communicating with businesses interlinked within the SME for example suppliers. It makes communication more easily available as a majority of company’s worldwide uses this facility. However, EDI has its drawbacks which are described further on . Another advantage is that support can be available to small businesses that may be looking to expand. IBM provides technical support to companies charging a small fee. If the company is to go online, then technology and computers will be widely used within the business, so simply knowing that help is available when wanted is essential in the daily functions of the business. It is even possible for a government to support a business by encouraging small businesses to take advantage of the facilities that E-Commerce has to offer. Along with the Drivers, the Barriers also play a vital role in the take up of E-Commerce. The barriers must also be taken into consideration by a company, as it may cause them to suffer consequences which could have easily been avoided. Above, EDI is seen as an asset to any company. It shows them to be up-to-date in using the latest technology, as well being able to communicate further a field. However, EDI has its drawbacks as any technology does. Firstly, it is too expensive to even take up as it requires purpose built software which is too expensive to buy, and secondly, the payment to the VANS (Value added networks) who provide the connectivity between the businesses is far too high for a small business to cope with
Another barrier would be that it is less than likely that the business would have a high level of expertise is specific areas such as law which is of great importance to any business, no matter where in the world it is situated. Legal issues which include aspects such as Privacy(Data Protection act), fraud, and Intellectual property rights, are a platform by which each company ha to work alongside. It is vital that the company has the knowledge needed in this area as if the daily functions of the business do not comply with the law, the company could face serious problem which would amount to further problems Another barrier and potential risk is the budget of the actual SME. This leads to the compan having a less risk tolerance then a larger company due to many reasons. One would be that the larger company has more money and a higher capital then the smaller one, and has the ability to be more than flexible with their budget and simply "buy off"any problems encountered. This is a setback for the SMe as the larger company is competition, which has advantages on its side.. Money! That is why it is essential that the small business has clear understanding potential information that could help them advance further. This would include knowing and understanding customers' buying habits, anticipating cash flow, and the development of good inter communication between businesses Contact is the strong point for a business. Contact involving itself and the consumer. It allows the consumer to get to know the business and how it operates, therefore creating trust between the business and themselves. For a small business, contact is vital for a small business as on the internet customers are more than likely to just discard your website as it is not widely known by a large number of people. For example if you had to pick from Comet, the large electrical goods company, and Goods'r'us, almost by instinct we would shop at Comet as it has a well known eputation and we trust the name. Knowing who you are buying from allows the consumer to evaluate whether the person is trustworthy and respected, as they will be handling data of a personal nature Over the web, it is impossible for the customer to meet the face behind the computer screen who is actually handling data of personal relevance to themselves. It is virtually impossible to know what happening with the data is handed over, which may be handed to someone who has no relevance or is related to the businesses at all. Many customers may want to speak to someone ather then just hand over their credit card number over the net. This arises issues such as personal privacy and data protection. The lack of trust may actually lead the business to lose prospective customers cOn SME's may also lose the advantage of being a part of a local community. Within a close knit munity, trust again is developed, and gradually, by word of mouth, business is created Knowing the people you will be supplying to and having daily interaction is all part of the learning and developing side of the business, and about learning good communication skills on behalf of the employees Overall. SMEs in the UK, are benefiting from the advantages of the web and internet many other businesses are doing worldwide, but it is incredibly important that a small business can effectively understand the barriers which are blocking their chance to expand in this ever developing"E-World"It is also important that they consider the external factors which may be included when deciding to employ the internet. These factors would include: Research and Competition, good internal communications, the ability to create specific priorities relating to what is needed, and the ability to delegate with other companies. They must al so take into consideration that accepting help and combining forces from companies like themselves, may also be of great use to them when conducting actual research for company itself to ensure that using the internet is making its money s worth S, but it is up to the finding the best option to go online. The risks are just has high as the driver 2.2.3 Security environ 1. The legal environment of electronic commerce Introduction commerce. At the same time, this is a challenge to the legal framework of many countries because the legal framework is insufficiently flexible or insufficiently specific in regulating the new relations between business entities. The Internet commerce presents the following problems to the
Another barrier would be that it is less than likely that the business would have a high level of expertise is specific areas such as law which is of great importance to any business, no matter where in the world it is situated. Legal issues which include aspects such as Privacy (Data Protection act), fraud, and Intellectual property rights, are a platform by which each company has to work alongside. It is vital that the company has the knowledge needed in this area as if the daily functions of the business do not comply with the law, the company could face serious problem which would amount to further problems. Another barrier and potential risk is the budget of the actual SME. This leads to the company having a less risk tolerance then a larger company due to many reasons. One would be that the larger company has more money and a higher capital then the smaller one, and has the ability to be more than flexible with their budget and simply “buy off” any problems encountered. This is a setback for the SME as the larger company is competition, which has advantages on its side…Money! That is why it is essential that the small business has clear understanding potential information that could help them advance further. This would include knowing and understanding customers’ buying habits, anticipating cash flow, and the development of good inter communication between businesses. Contact is the strong point for a business. Contact involving itself and the consumer. It allows the consumer to get to know the business and how it operates, therefore creating trust between the business and themselves. For a small business, contact is vital for a small business as on the internet customers are more than likely to just discard your website as it is not widely known by a large number of people. For example if you had to pick from Comet, the large electrical goods company, and Goods’r’us, almost by instinct we would shop at Comet as it has a well known reputation and we trust the name. Knowing who you are buying from allows the consumer to evaluate whether the person is trustworthy and respected, as they will be handling data of a personal nature. Over the web, it is impossible for the customer to meet the face behind the computer screen who is actually handling data of personal relevance to themselves. It is virtually impossible to know what happening with the data is handed over, which may be handed to someone who has no relevance or is related to the businesses at all. Many customers may want to speak to someone rather then just hand over their credit card number over the net. This arises issues such as personal privacy and data protection. The lack of trust may actually lead the business to lose prospective customers. SME’s may also lose the advantage of being a part of a local community. Within a close knit community, trust again is developed, and gradually, by word of mouth, business is created. Knowing the people you will be supplying to and having daily interaction is all part of the learning and developing side of the business, and about learning good communication skills on behalf of the employees. Overall, SME’s in the UK, are benefiting from the advantages of the web and internet as many other businesses are doing worldwide, but it is incredibly important that a small business can effectively understand the barriers which are blocking their chance to expand in this ever developing “E-World” It is also important that they consider the external factors which may be included when deciding to employ the internet. These factors would include: Research and Competition, good internal communications, the ability to create specific priorities relating to what is needed, and the ability to delegate with other companies. They must also take into consideration that accepting help and combining forces from companies like themselves, may also be of great use to them when conducting actual research for finding the best option to go online. The risks are just has high as the drivers, but it is up to the company itself to ensure that using the internet is making its money’s worth. 2.2.3 Security environment 1. The legal environment of electronic commerce Introduction The global spread of Internet creates favorable conditions for the growth of electronic commerce. At the same time, this is a challenge to the legal framework of many countries because the legal framework is insufficiently flexible or insufficiently specific in regulating the new relations between business entities. The Internet commerce presents the following problems to the legal framework of states:
Distance transactions. More often than ever before the buyer-seller relations are losing direct contact. On the Internet it may happen that neither party to the transaction knows about the transaction until it is due to be performed let alone have the written form of the transaction. New conditions and forms for the validity of transactions are necessary. It is also imperative to have means how to define the liability of the parties Payments. New payment methods and means have emerged in the public environment of the wide world web. Almost every transaction of this kind involves, in addition to the buyer or seller, their banks and the operators of the payment systems, if any. Since the number of frauds through the use of electronic payment means is quite considerable these days, the liability of each party must be unambiguously defined International aspects. Although electronic commerce does not recognize national borders they are still recognized by commercial law. The existing specific legal acts, taxation rules and restrictions on imports and exports still remain an important, slow moving issue to lawyers Consumer protection. The population requires guarantees that the presentation of goods and services on the Internet should conform to their qualities, which the buyer should be entitled to eturn the acquired defective product that the consumer should be protected against undesired dvertising or against the improper use of his/her personal data. Protection of trade marks, Internet and intellectual property. The territory-bound character of law related to these forms of property runs counter to the realities of the cross-border nature of the Internet, while the digital form of many products distributed in the cyberspace is especially ulnerable to illegal copying 2. Directive on distance transactions The Directive on Distance Transactions, adopted in 1997, regulates the principles onsumer protection in respect of transactions made without a physical contact of the parties: by telephone, post, electronic means. The main provisions of the Directive are the following Confirmation of the transaction. After the conclusion of the transaction, the consumer should receive a confirmation in the medium acceptable to both parties(e. g. by e-mail or on paper) Right of revocation. The consumer is entitled to withdraw from the transaction within 7 business days without any penalty or requirement to produce reasons Full information. The seller must inform the buyer beforehand of the exact prices for the goods and services offered(as well as any other charges), their validity date, delivery costs and their precise qualities Prohibition on inert transactions. Transactions which are not sanctioned by the consumer are ohibited even if the consumer has been informed of the ways how he may withdraw from the 3. Directive on electronic commerce This latest legal act specially designed for digital business lays down, among other things, the requirements for the provider of information society services(ISS)and the regulatory principles of his business. Identification. The parties must ensure that information on the Iss providers, established on their territory, name, postal and e-mail addresses, registration and VAT code should be easily accessible to consumers and competent institutions Commercial correspondence. If the IVP consists, in part or in whole, of material of advertising nature, the service provider must identify it explicitly as such and indicate the natural person or legal entity represented by it. The same is applicable to rebates, games, special offers gifts, etc. The Directive requires that member states should control the unapproved sources of commercial correspondence distributed via e-mail within their legal framework Electronic transactions. Member States must ensure that their laws should provide for the validity of electronic commercial transactions. The service provider must inform, clearly and unambiguously, the service recipient of all the technical steps necessary to make the transaction After the conclusion of the transaction the service provider must issue the confirmation/receipt of the transaction. Throughout this process, up to the last stage, the recipient of the service must have the possibility of withdrawing from the transaction or correct any mistakes
Distance transactions. More often than ever before the buyer-seller relations are losing direct contact. On the Internet it may happen that neither party to the transaction knows about the transaction until it is due to be performed, let alone have the written form of the transaction. New conditions and forms for the validity of transactions are necessary. It is also imperative to have means how to define the liability of the parties. Payments. New payment methods and means have emerged in the public environment of the wide world web. Almost every transaction of this kind involves, in addition to the buyer or seller, their banks and the operators of the payment systems, if any. Since the number of frauds through the use of electronic payment means is quite considerable these days, the liability of each party must be unambiguously defined. International aspects.Although electronic commerce does not recognize national borders, they are still recognized by commercial law. The existing specific legal acts, taxation rules and restrictions on imports and exports still remain an important, slow moving issue to lawyers. Consumer protection. The population requires guarantees that the presentation of goods and services on the Internet should conform to their qualities, which the buyer should be entitled to return the acquired defective product that the consumer should be protected against undesired advertising or against the improper use of his/her personal data. Protection of trade marks, Internet and intellectual property. The territory-bound character of law related to these forms of property runs counter to the realities of the cross-border nature of the Internet, while the digital form of many products distributed in the cyberspace is especially vulnerable to illegal copying. 2. Directive on distance transactions The Directive on Distance Transactions, adopted in 1997, regulates the principles of consumer protection in respect of transactions made without a physical contact of the parties: by telephone, post, electronic means. The main provisions of the Directive are the following: Confirmation of the transaction.After the conclusion of the transaction, the consumer should receive a confirmation in the medium acceptable to both parties (e. g. by e-mail or on paper). Right of revocation. The consumer is entitled to withdraw from the transaction within 7 business days without any penalty or requirement to produce reasons. Full information. The seller must inform the buyer beforehand of the exact prices for the goods and services offered (as well as any other charges), their validity date, delivery costs and their precise qualities. Prohibition on inert transactions. Transactions which are not sanctioned by the consumer are prohibited even if the consumer has been informed of the ways how he may withdraw from the transaction. 3. Directive on electronic commerce This latest legal act specially designed for digital business lays down, among other things, the requirements for the provider of information society services (ISS) and the regulatory principles of his business: Identification. The parties must ensure that information on the ISS provider’s, established on their territory, name, postal and e-mail addresses, registration and VAT code should be easily accessible to consumers and competent institutions. Commercial correspondence. If the IVP consists, in part or in whole, of material of advertising nature, the service provider must identify it explicitly as such and indicate the natural person or legal entity represented by it. The same is applicable to rebates, games, special offers, gifts, etc. The Directive requires that member states should control the unapproved sources of commercial correspondence distributed via e-mail within their legal framework.. Electronic transactions. Member States must ensure that their laws should provide for the validity of electronic commercial transactions. The service provider must inform, clearly and unambiguously, the service recipient of all the technical steps necessary to make the transaction. After the conclusion of the transaction the service provider must issue the confirmation/receipt of the transaction. Throughout this process, up to the last stage, the recipient of the service must have the possibility of withdrawing from the transaction or correct any mistakes
4. The law on Electronic Signature The only effective legal document specifically designed for electronic data communications is the Law on Electronic Signature, adopted in 2000. Its text is very similar to the eu directive on electronic signatures, however, it also includes some new provisions The electronic signature is a special supplement, formed by a cryptographic algorithm, to a digital document. It is inseparable from the content of the document and the electronic certificate of its author. The purpose of the electronic signature, just as that of a conventional signature, is to ensure the authenticity of the documents author and contents. The recipient of the document uses another algorithm which compares the digital signature to the document and its authors public certificate. This algorithm recognizes if the text of the document has been modified without using the original certificate The Law regulates the procedure for the formation of the electronic signature, equipment and the activities of institutions responsible for the issuance of electronic certificates. For example any natural person or legal entity may issue electronic certificates for its own needs or the needs of its clients, but only the qualified certificates have the legal validity of a written signature. "A secure electronic signature, created by a secure equipment used for the formation of the signature, and certified by a valid qualified certificate, shall have the same legal validity as a signature written documents, and shall be admissible as a evidence before court"(8.1.a Article). However subparagraph 2 of the same Article says that the instruments and procedure for the formation of an electronic signature as such may not be pleaded as grounds for doubting the power of proof other objective criteria must be submitted to the court The State Electronic Signature Supervisory Authority is responsible, among other things, for the accreditation of the service providers and the determination of the main procedural and technical requirements for qualified certificates admissible or for what purposes. This is left for the regulation by further statutory and regulato <s The law does not regulate the rules as to when the electronic form of the documents acts, but we can predict that the provisions of this Law will be important for the realizations of EDI and business-to-business electronic commerce. i.e. for the area where the documents signed 5. Conclusi Due to its universal character, accessibility and infinite options both for the consumer and the seller, the market for electronic commerce did not have anything comparable to it in the past. It may radically change the practice of exchanges of money and goods. For Lithuanian economy, electronic business holds good prospects for the improvement of exports, collection of greater amounts in taxes and to retain the national intellectual potential. Every working day, lost because of the inadequate restrictions or ambiguous legal interpretation is a step back in the race of the new economy Because of the dynamic character of the Internet business, legislation is trying to keep pace and even in Lithuania. Some of the issues have not been sufficiently studied, for example, such.? with the market and regulate relations which are already in place in the USA, the European Unio he collection of VAT and corporate income tax from the participants of electronic commerce, the protection of trade marks and domain names. The program for the development of the legal framework in this area should be based on the following principles 2.2. 4 Electronic Commerce Barriers Survey Results 1. About the Survey Sent to leading companies in the information technology and related industries, this survey looked at the perceived barriers to the emergence of electronic commerce. The survey first gauged respondents perceptions as to the most significant barriers to EC from a list of major topic areas (e.g, trust issues, budget constraints, public policy regulations, etc. ) The survey then delved into each of these major topic areas to determine what aspect of this topic posed the greatest obstacle to EC. For example, the topic of trust broke out into sub-issues that included such items as privacy authentication, security, business risk, etc. Finally, the survey asked respondents how strongly (from"very strongly"to"no impact at all")each particul ar barrier would hinder EC. Therefore
4. The Law on Electronic Signature The only effective legal document specifically designed for electronic data communications is the Law on Electronic Signature, adopted in 2000. Its text is very similar to the EU Directive on electronic signatures, however, it also includes some new provisions. The electronic signature is a special supplement, formed by a cryptographic algorithm, to a digital document. It is inseparable from the content of the document and the electronic certificate of its author. The purpose of the electronic signature, just as that of a conventional signature, is to ensure the authenticity of the document’s author and contents. The recipient of the document uses another algorithm which compares the digital signature to the document and its author’s public certificate. This algorithm recognizes if the text of the document has been modified without using the original certificate. The Law regulates the procedure for the formation of the electronic signature, equipment and the activities of institutions responsible for the issuance of electronic certificates. For example, any natural person or legal entity may issue electronic certificates for its own needs or the needs of its clients, but only the qualified certificates have the legal validity of a written signature. "A secure electronic signature, created by a secure equipment used for the formation of the signature, and certified by a valid qualified certificate, shall have the same legal validity as a signature on written documents, and shall be admissible as a evidence before court" (8.1.a Article). However, subparagraph 2 of the same Article says that the instruments and procedure for the formation of an electronic signature as such may not be pleaded as grounds for doubting the power of proof – other objective criteria must be submitted to the court. The State Electronic Signature Supervisory Authority is responsible, among other things, for the accreditation of the service providers and the determination of the main procedural and technical requirements for qualified certificates. The Law does not regulate the rules as to when the electronic form of the documents is admissible or for what purposes. This is left for the regulation by further statutory and regulatory acts, but we can predict that the provisions of this Law will be important for the realizations of EDI and business-to-business electronic commerce, i. e. for the area where the documents signed electronically may be used. 5. Conclusions Due to its universal character, accessibility and infinite options both for the consumer and the seller, the market for electronic commerce did not have anything comparable to it in the past. It may radically change the practice of exchanges of money and goods. For Lithuanian economy, electronic business holds good prospects for the improvement of exports, collection of greater amounts in taxes and to retain the national intellectual potential. Every working day, lost because of the inadequate restrictions or ambiguous legal interpretation is a step back in the race of the "new economy". Because of the dynamic character of the Internet business, legislation is trying to keep pace with the market and regulate relations which are already in place in the USA, the European Union and even in Lithuania. Some of the issues have not been sufficiently studied, for example, such as the collection of VAT and corporate income tax from the participants of electronic commerce, the protection of trade marks and domain names. The program for the development of the legal framework in this area should be based on the following principles: 2.2.4 Electronic Commerce Barriers Survey Results 1. About the Survey Sent to leading companies in the information technology and related industries, this survey looked at the perceived barriers to the emergence of electronic commerce. The survey first gauged respondents' perceptions as to the most significant barriers to EC from a list of major topic areas (e.g., trust issues, budget constraints, public policy regulations, etc.). The survey then delved into each of these major topic areas to determine what aspect of this topic posed the greatest obstacle to EC. For example, the topic of trust broke out into sub-issues that included such items as privacy, authentication, security, business risk, etc. Finally, the survey asked respondents how strongly (from "very strongly" to "no impact at all") each particular barrier would hinder EC. Therefore
the survey was designed to not only determine what major areas are of concern but to also specify what it is within these major areas that may need to be addressed from a business olicy erspective and how significant the barrier is The survey of 105 information technology executives included responses from thirty nine CEOS, with 66 percent of responses coming from executives at the Vice President level or higher Of these high-level execs, 31 percent represent companies with less than $I million in gross revenues, 30 percent of companies had revenues between $I million and $10 million, 18 percent had revenues between $10 million and $50 million, and 19 percent had revenues exceeding $50 million 2. Overall Barriers According to the survey results, lack of trust has emerged as the overwhelming leading barrier to the continued growth of electronic commerce. Asked to choose their top three perceived barriers to EC, 62 percent of respondents selected, " lack of comfort or trust' with e-commerce within your core business model and among your customers' customers(end users). "Signaling the nascent stage of the EC industry, the second most significant barrier, chosen by 45 percent of respondents, was "lack of definitional clarity(lack of industry concurrence, education and knowledge). The third response appearing most often in respondents'choices of the top three EC barriers was "existing internal business processes, "selected by 36 percent. The rest of the responses included "getting budget money versus other urgent projects(e.g, Y2K )"(28 percent) technology limitations"(24 percent), "emerging public policy regulations"(23 percent), "costs of implementation"(19 percent), and"skilled workers unavailable"(17 percent). Only one percent of respondents saw no barriers to EC. 3. Trust barriers To delve into this most significant overall barrier, the survey offered a number of specific issues within the area of lack of trust with EC in a company's business model and among its customers. Emerging as the top three trust barriers were "privacy: uncertain to what degree information privacy and data integrity is protected"(60 percent), " authentication: unsure of the true identity and credentials of communicating parties"(56 percent), and"security: fear that technology infrastructure is not robust enough to prevent unauthorized attacks"(56 percent) What is the perceived impact of these trust barriers on the growth of electronic commerce? Forty-four percent replied that these barriers would hinder" very strongly"or "strongly"the growth of EC. In addition, 42 percent answered"moderately"and 13 percent said"only slightly or"no impact at all 4. Technological Barriers In terms of the actual technology issues related to implementing electronic commerce, leading barriers included"security: methods to protect transactions and information not widely used or available"(57 percent)and"integration: difficulty integrating new e-commerce products with existing systems"(54 percent). Tied for third were standards: not enough convergence has occurred on e-commerce standards (e.g, SET, JEPI)" and "networking bandwidth communications technology is immature and cannot support the volume of transactions, both selected by 39 percent of respondents Thirty-nine percent of respondents perceived technological barriers as "very strongly"or hindrance,with only 12 percent seeing the issue as having a slight or no impact at all a moderate strongly"hindering the growth of EC. A full 50 percent saw technology issues as a moderate 5. orkforce Barriers The issues of recruitment and retention emerged as the leading issues within the category of workforce barriers to EC. With 57 percent selecting"enough skilled workers are just not available, regardless of compensation offered"and 54 percent answering"skilled workers keep leaving for other companies, opportunities, "workforce recruitment and retention appears to be an issue affecting most sectors of the information technology industry. Tied for third were "difficult to keep skilled workers adequately trained on up-to-date technologies"and"risk adverse nature of business leaders"(both with 39 percent)
the survey was designed to not only determine what major areas are of concern but to also specify what it is within these major areas that may need to be addressed from a business or policy perspective and how significant the barrier is. The survey of 105 information technology executives included responses from thirty nine CEOs, with 66 percent of responses coming from executives at the Vice President level or higher. Of these high-level execs, 31 percent represent companies with less than $1 million in gross revenues, 30 percent of companies had revenues between $1 million and $10 million, 18 percent had revenues between $10 million and $50 million, and 19 percent had revenues exceeding $50 million. 2. Overall Barriers According to the survey results, lack of trust has emerged as the overwhelming leading barrier to the continued growth of electronic commerce. Asked to choose their top three perceived barriers to EC, 62 percent of respondents selected, "lack of comfort or 'trust' with e-commerce within your core business model and among your customers' customers (end users)." Signaling the nascent stage of the EC industry, the second most significant barrier, chosen by 45 percent of respondents, was "lack of definitional clarity (lack of industry concurrence, education and knowledge)." The third response appearing most often in respondents' choices of the top three EC barriers was "existing internal business processes," selected by 36 percent. The rest of the responses included "getting budget money versus other urgent projects (e.g., Y2K)" (28 percent), "technology limitations" (24 percent), "emerging public policy regulations" (23 percent), "costs of implementation" (19 percent), and "skilled workers unavailable" (17 percent). Only one percent of respondents saw no barriers to EC. 3. Trust Barriers To delve into this most significant overall barrier, the survey offered a number of specific issues within the area of lack of trust with EC in a company's business model and among its customers. Emerging as the top three trust barriers were "privacy: uncertain to what degree information privacy and data integrity is protected" (60 percent), "authentication: unsure of the true identity and credentials of communicating parties" (56 percent), and "security: fear that technology infrastructure is not robust enough to prevent unauthorized attacks" (56 percent). What is the perceived impact of these trust barriers on the growth of electronic commerce? Forty-four percent replied that these barriers would hinder "very strongly" or "strongly" the growth of EC. In addition, 42 percent answered "moderately" and 13 percent said "only slightly" or "no impact at all." 4. Technological Barriers In terms of the actual technology issues related to implementing electronic commerce, leading barriers included "security: methods to protect transactions and information not widely used or available" (57 percent) and "integration: difficulty integrating new e-commerce products with existing systems" (54 percent). Tied for third were "standards: not enough convergence has occurred on e-commerce standards (e.g., SET, JEPI)" and "networking bandwidth: communications technology is immature and cannot support the volume of transactions," both selected by 39 percent of respondents. Thirty-nine percent of respondents perceived technological barriers as "very strongly" or "strongly" hindering the growth of EC. A full 50 percent saw technology issues as a moderate hindrance, with only 12 percent seeing the issue as having a slight or no impact at all. 5. Workforce Barriers The issues of recruitment and retention emerged as the leading issues within the category of workforce barriers to EC. With 57 percent selecting "enough skilled workers are just not available, regardless of compensation offered" and 54 percent answering "skilled workers keep leaving for other companies, opportunities," workforce recruitment and retention appears to be an issue affecting most sectors of the information technology industry. Tied for third were "difficult to keep skilled workers adequately trained on up-to-date technologies" and "risk adverse nature of business leaders" (both with 39 percent)
In terms of importance, 26 percent of respondents saw workforce barriers as very strong or ong hindrances to EC. Fifty-two percent perceived these issues as being a moderate hindrance 6. Public Policy Barriers For the most part issues of public policy that respondents identified as most significant barriers echoed the overall concern over trust and EC. While"tax issues regarding sales over the Internet"led with 55 percent, the second and third choices were"authentication standards to ensure businesses and customers are legitimate"(51 percent)and"limits on the use of encryption to secure transactions"(45 percent)-both issues relating to trust and security on the Internet Forty-two percent of respondents saw public policy barriers as hindering "very strongly"or strongly"the emergence of electronic commerce. An additional 38 percent saw a moderate impact of the issues 7. Tax Barriers One issue has emerged as the most significant tax-related barrier to EC: state sales and use taxes on the buying and selling of goods and services over the Internet. An overwhelming 67 percent of respondents chose this issue as one of the most significant barriers to electronic commerce. In addition, touching on the issue of confusing and duplicative tax regulations in the non-traditional business world of the Internet respondents also identified as top tax barriers foreign taxes, such as VAT and other transaction taxes"(45 percent), state franchise or excise (non-income based) taxes"(33 percent), and"other federal taxes(excise taxes)"(32 percent Thirty-nine percent of respondents saw a very strong or strong hindrance presented by these tax barriers to the growth of EC. In addition, 33 percent perceived a moderate impact 8. Internal Business processe es Barriers Once again, trust-related issues emerged in the category of internal business processes barriers. Fifty-one percent of respondents cited an"internal fear of opening corporate systems to suppliers/procurers(business-to-business transactions). " An additional 45 percent of respondents expressed an"internal fear of opening corporate systems to consumers(business-to-customer transactions). "More business-oriented issues that emerged included"exchanging data does not ensure that quality business results will ensue(follow-up, new business leads)"(43 percent)and few accepted business models [ for EC are] in practice"(39 percent How significant are these internal business process barriers? According to the results, 37 percent see a very strong or strong impact of these issues on the growth of EC, with 43 percent additiona perceiving a moderate impact antlers A trio of issues emerged as the most significant cost-related barriers to the growth of electronic commerce. Perhaps somewhat predictably, respondents identified the following adapting existing systems"(56 percent),"changing business processes"(55 percent), and building new systems/buying new products and services"(54 percent). A sizeable proportion of respondents(42 percent)also cited each of the following less commonly discussed cost barriers addressing a changing corporate culture resulting from move to Web-based transactions"an "cost of running dual or hybrid operations(physical sites, Web channels, Web sites, call centers As could be expected, respondents perceived cost barriers as significant risks to EC. A full 48 percent identified a very strong or strong hindrance posed by these cost issues. An additional 36 percent predict a moderate impact. Only I percent saw no impact at all of the cost barriers 10. End User resistance barriers Once again, a trust-related issue emerged as a most significant concern within a major topic-this time in the area of end user resistance barriers. Asked to identify perceived concerns among end users(i.e, the customers of the IT industry's customers), sixty
In terms of importance, 26 percent of respondents saw workforce barriers as very strong or strong hindrances to EC. Fifty-two percent perceived these issues as being a moderate hindrance. 6. Public Policy Barriers For the most part, issues of public policy that respondents identified as most significant barriers echoed the overall concern over trust and EC. While "tax issues regarding sales over the Internet" led with 55 percent, the second and third choices were "authentication standards to ensure businesses and customers are legitimate" (51 percent) and "limits on the use of encryption to secure transactions" (45 percent)-both issues relating to trust and security on the Internet. Forty-two percent of respondents saw public policy barriers as hindering "very strongly" or "strongly" the emergence of electronic commerce. An additional 38 percent saw a moderate impact of the issues. 7. Tax Barriers One issue has emerged as the most significant tax-related barrier to EC: state sales and use taxes on the buying and selling of goods and services over the Internet. An overwhelming 67 percent of respondents chose this issue as one of the most significant barriers to electronic commerce. In addition, touching on the issue of confusing and duplicative tax regulations in the non-traditional business world of the Internet, respondents also identified as top tax barriers "foreign taxes, such as VAT and other transaction taxes" (45 percent), "state franchise or excise (non-income based) taxes" (33 percent), and "other federal taxes (excise taxes)" (32 percent). Thirty-nine percent of respondents saw a very strong or strong hindrance presented by these tax barriers to the growth of EC. In addition, 33 percent perceived a moderate impact. 8. Internal Business Processes Barriers Once again, trust-related issues emerged in the category of internal business processes barriers. Fifty-one percent of respondents cited an "internal fear of opening corporate systems to suppliers/procurers (business-to-business transactions)." An additional 45 percent of respondents expressed an "internal fear of opening corporate systems to consumers (business-to-customer transactions)." More business-oriented issues that emerged included "exchanging data does not ensure that quality business results will ensue (follow-up, new business leads)" (43 percent) and "few accepted business models [for EC are] in practice" (39 percent). How significant are these internal business process barriers? According to the results, 37 percent see a very strong or strong impact of these issues on the growth of EC, with 43 percent additional perceiving a moderate impact. 9. Cost Barriers A trio of issues emerged as the most significant cost-related barriers to the growth of electronic commerce. Perhaps somewhat predictably, respondents identified the following: "adapting existing systems" (56 percent), "changing business processes" (55 percent), and "building new systems/buying new products and services" (54 percent). A sizeable proportion of respondents (42 percent) also cited each of the following less commonly discussed cost barriers: "addressing a changing corporate culture resulting from move to Web-based transactions" and "cost of running dual or hybrid operations (physical sites, Web channels, Web sites, call centers, etc.)." As could be expected, respondents perceived cost barriers as significant risks to EC. A full 48 percent identified a very strong or strong hindrance posed by these cost issues. An additional 36 percent predict a moderate impact. Only 1 percent saw no impact at all of the cost barriers. 10. End User Resistance Barriers Once again, a trust-related issue emerged as a most significant concern within a major topic-this time in the area of end user resistance barriers. Asked to identify perceived concerns among end users (i.e., the customers of the IT industry's customers), sixty-six percent of
respondents selected"fear of sending personal information over the Web(e.g, credit card numbers, addresses, phone numbers). "Tied for second with 40 percent each were"fear of losing money by purchasing goods from unknown companies"and"preference among consumers for ordering in person, over the phone or through the mail. From the survey results, end user resistance to various factors resulting from the movement toward an electronic commerce-based world is a significant issue to the growth of EC. Forty-two percent of respondents perceive these issues as very strong or strong hindrances, with 38 additional percent identifying a moderate impact. Conclusion Overall, the survey results overwhelmingly point to numerous significant trust-related issue as potential risks to the growth of electronic commerce. From concerns over privacy, authentication and security in the trust area, to a perceived lack of network and information security in the technology area, to limits on encryption and absence of authentication standards in the public policy area, and to fears of opening systems to suppliers, procurers and customers in the internal business processes area, the issue of trust emerges time and again as among the top obstacles to EC. According to the survey, with the electronic commerce still in a relatively nascent stage, representatives of business, industry, government and customers have a number of areas to address before EC becomes pervasive on a global level 2. 3 China international e-commerce information center The purpose of CECI is to promote China electronic commerce internationalization processing, and mission is to promote international economic trading development B trategically cooperating with international trading organization, UN Trading and Development Agent, UN Industry Development Organization, the commercial departments of nearly 200 national governments, Embassy and Consulate Commerce Agent, World Trading Association Alliance, Busy Chamber of Commerce, World Chinese Chamber of Commerce, integrated World trading information resources by 3G internet core and key technology, merge the classification of nowledge, industry, product, and internet information, construct the integrated information resources exchanging and sharing platform for world economic and trading. Provide the unified standard and integrated service environment for world trading network to issuing, processing, organizing, storing, seeking, merging and utilizing economic trading information resources for all countries. regions and trades CECI resolves the bottleneck for economic trade information resources sharing, changed the laggard condition of the Information Desolate Island, which information resources could not communicate mutually and effective utilize in current traditional trading and E-trading way. Seek the best trading cooperation chance automatically for world members and enterprises by intelligent trading matching technology, help countries, regional government, trades and enterprises to merge and utilize effectively of economic trading information resources. Combine modern information technology practice and international economic trading organization structure construction; explore new world efficient and low-cost economic development Pattern CECI focus on cultivating and strengthening the international and regional trading alliance, by ptimizing international resources effective utilization, create new type nasalization international trading environment, strengthen commerce unity harmonious and accrete relation in exploring market and seeking economic increasing processing, promote countries trading and investment increase, boost countries economy continual and quickly development. Information drive industrialized, apply modern information technology to promote international world economy ntegrated processing China E-commerce Information Corp(Group) China E-commerce Information Corp.( Group) was founded by special authorized of China government. By the strategy cooperation with international trading organization, UN Trading and nearly pment Agent, UN Industry Development Organization, the commercial departments of ts, Embassy and Consulate Commerce agent, World Tra Association Alliance, Busy Chamber of Commerce, World Chinese Chamber of Commerce, rely
respondents selected "fear of sending personal information over the Web (e.g., credit card numbers, addresses, phone numbers)." Tied for second with 40 percent each were "fear of losing money by purchasing goods from unknown companies" and "preference among consumers for ordering in person, over the phone or through the mail." From the survey results, end user resistance to various factors resulting from the movement toward an electronic commerce-based world is a significant issue to the growth of EC. Forty-two percent of respondents perceive these issues as very strong or strong hindrances, with 38 additional percent identifying a moderate impact. Conclusion Overall, the survey results overwhelmingly point to numerous significant trust-related issues as potential risks to the growth of electronic commerce. From concerns over privacy, authentication and security in the trust area, to a perceived lack of network and information security in the technology area, to limits on encryption and absence of authentication standards in the public policy area, and to fears of opening systems to suppliers, procurers and customers in the internal business processes area, the issue of trust emerges time and again as among the top obstacles to EC. According to the survey, with the electronic commerce still in a relatively nascent stage, representatives of business, industry, government and customers have a number of areas to address before EC becomes pervasive on a global level. 2.3 China International E-Commerce Information Center The purpose of CECI is to promote China electronic commerce internationalization processing, and mission is to promote international economic trading development. By strategically cooperating with international trading organization, UN Trading and Development Agent, UN Industry Development Organization, the commercial departments of nearly 200 national governments, Embassy and Consulate Commerce Agent, World Trading Association Alliance, Busy Chamber of Commerce, World Chinese Chamber of Commerce, integrated World trading information resources by 3G internet core and key technology, merge the classification of knowledge, industry, product, and internet information, construct the integrated information resources exchanging and sharing platform for world economic and trading. Provide the unified standard and integrated service environment for world trading network to issuing, processing, organizing, storing, seeking, merging and utilizing economic trading information resources for all countries, regions and trades. CECI resolves the bottleneck for economic trade information resources sharing, changed the laggard condition of the Information Desolate Island, which information resources could not communicate mutually and effective utilize in current traditional trading and E-trading way. Seek the best trading cooperation chance automatically for world members and enterprises by intelligent trading matching technology, help countries, regional government, trades and enterprises to merge and utilize effectively of economic trading information resources. Combine modern information technology practice and international economic trading organization structure construction; explore new world efficient and low-cost economic development Pattern. CECI focus on cultivating and strengthening the international and regional trading alliance, by optimizing international resources effective utilization, create new type nasalization international trading environment, strengthen commerce unity harmonious and accrete relation in exploring market and seeking economic increasing processing, promote countries trading and investment increase, boost countries economy continual and quickly development. Information drive industrialized, apply modern information technology to promote international world economy integrated processing. China E-commerce Information Corp. (Group) China E-commerce Information Corp. (Group) was founded by special authorized of China government. By the strategy cooperation with international trading organization, UN Trading and Development Agent, UN Industry Development Organization, the commercial departments of nearly 200 national governments, Embassy and Consulate Commerce agent, World Trading Association Alliance, Busy Chamber of Commerce, World Chinese Chamber of Commerce, rely
on the 3G internet corn technology and the standard leading advantage in E-commerce, hammer at promoting China E-commerce international strategy, boost international economic trading development 2.4 the strategy of the development of e-Commerce for enterprise 2.4.1 Strategy and electronic commerce Electronic commerce which in its broader definition includes not just straight sales transactions conducted through computer networks, but also such things as Web promotion and electronic collaboration with other businesses - is already altering the U.S. economy. More traditional job skills are becoming obsolete. Flexible "just-in- time"production scheduling is and outsourcing. Even the distinction of what we think of as a firm is becoming blurred sanming replacing the mass production approach in many areas. Business organizations are stre The Clinton administrations new policy, A Framework for Global Electronic Commerce still in draft stage at this writing- is clearly designed to provide a safe and unbridled network environment that encourages all legitimate forms of American electronic enterprise Many businesses and consumers are still wary of conducting extensive business in cyberspace said an official summary of the new policy, "because of the lack of a predictable legal environment governing transactions and resulting concerns about contract enforcement intellectual property protection, liability, privacy, security and other matters. Bold new initiatives will address these concerns At the same time, cyberspace is to remain an open, unregulated"duty-free zone" where there are no new taxes and where electronic payment systems are allowed to evolve without premature government involvement. "The Clinton administration firmly believes that all parties can gain from a non-regulatory, market-oriented approach to electronic commerce, "the summary stated By acknowledging the unique characteristics of the Internet and avoiding undue restrictions, governments can take advantage of a historic opportunity and contribute to the growth of electronic commerce worldwide The new policy is to serve as a road map to help usher in greater prosperity for both U.S. and world economies through increased business efficiency and reduced operating costs. However, the policy's prominence and good sense should not completely overshadow another important document issued by the U.s. government in 1994--a study entitled Electronic Enterprise Looking to the Future conducted by the now-defunct Office of Technological Assessment (OTA) at the request of the Senate Committee on Commerce, Science and Transportation and the House Committee on Science, Space and Technology This Ota study takes a strategic look at the future of electronic commerce, emphasizing that the way electronic markets evolve and the form they take"will have significant consequences for the functioning of the economy as a whole. "And while it maintains that open, flexible and easily interconnected networks are necessary to allow businesses to move quickly and strategically to respond to changing circumstances in the global marketplace, it also points out that"it is unlike that the future needs of all businesses will be adequately met through competition alone The Clinton administrations policy clearly embraces the global realities of the Internet and seeks to address the immediate concerns that many businesses and other organizations have with its free- Wheeling anarchy. What is missing from the new policy, however, is a balance between these concerns and the long-term economic issues and problems- some of the very things which were examined in great detail in the OTA study As Roger C. Herdman, former assistant director of the OTA Industry, Commerce and International Security Division put it, "If American businesses are to benefit fully from electronic commerce.adequate attention must also be given to the social and economic factors that govern the use of network technologies Much has changed in the three years since the Ota study was released. Yet it remains the most extensive look at the future of electronic commerce so far published by the U.S.government It involved nearly 200 high-level participants representing business, labor, consumer and other private sector groups. And simply touching upon a few of the issues the study raised illustrates why it should not be forgotten
on the 3G internet corn technology and the standard leading advantage in E-commerce, hammer at promoting China E-commerce international strategy, boost international economic trading development. 2.4 the strategy of the development of E-Commerce for enterprise 2.4.1 Strategy and electronic commerce Electronic commerce -- which in its broader definition includes not just straight sales transactions conducted through computer networks, but also such things as Web promotion and electronic collaboration with other businesses -- is already altering the U.S. economy. More traditional job skills are becoming obsolete. Flexible "just-in- time" production scheduling is replacing the mass production approach in many areas. Business organizations are streamlining and outsourcing. Even the distinction of what we think of as a firm is becoming blurred. The Clinton administration's new policy, A Framework for Global Electronic Commerce -- still in draft stage at this writing -- is clearly designed to provide a safe and unbridled network environment that encourages all legitimate forms of American electronic enterprise "Many businesses and consumers are still wary of conducting extensive business in cyberspace," said an official summary of the new policy, "because of the lack of a predictable legal environment governing transactions and resulting concerns about contract enforcement, intellectual property protection, liability, privacy, security and other matters. Bold new initiatives will address these concerns." At the same time, cyberspace is to remain an open, unregulated "duty- free zone" where there are no new taxes and where electronic payment systems are allowed to evolve without premature government involvement. "The Clinton administration firmly believes that all parties can gain from a non-regulatory, market-oriented approach to electronic commerce," the summary stated. "By acknowledging the unique characteristics of the Internet and avoiding undue restrictions, governments can take advantage of a historic opportunity and contribute to the growth of electronic commerce worldwide." The new policy is to serve as a road map to help usher in greater prosperity for both U.S. and world economies through increased business efficiency and reduced operating costs. However, the policy's prominence and good sense should not completely overshadow another important document issued by the U.S. government in 1994 -- a study entitled Electronic Enterprise: Looking to the Future conducted by the now-defunct Office of Technological Assessment (OTA) at the request of the Senate Committee on Commerce, Science and Transportation and the House Committee on Science, Space and Technology. This OTA study takes a strategic look at the future of electronic commerce, emphasizing that the way electronic markets evolve and the form they take "will have significant consequences for the functioning of the economy as a whole." And while it maintains that open, flexible and easily interconnected networks are necessary to allow businesses to move quickly and strategically to respond to changing circumstances in the global marketplace, it also points out that "it is unlikely that the future needs of all businesses will be adequately met through competition alone." The Clinton administration's policy clearly embraces the global realities of the Internet and seeks to address the immediate concerns that many businesses and other organizations have with its free- Wheeling anarchy. What is missing from the new policy, however, is a balance between these concerns and the long-term economic issues and problems -- some of the very things which were examined in great detail in the OTA study. As Roger C. Herdman, former assistant director of the OTA Industry, Commerce and International Security Division put it, "If American businesses are to benefit fully from electronic commerce ... adequate attention must also be given to the social and economic factors that govern the use of network technologies." Much has changed in the three years since the OTA study was released. Yet it remains the most extensive look at the future of electronic commerce so far published by the U.S. government. It involved nearly 200 high-level participants representing business, labor, consumer and other private sector groups. And simply touching upon a few of the issues the study raised illustrates why it should not be forgotten
2.4.2 Implementation of the strategy of e-commerce E-commerce has been rapidly growing since its inception Like any other conventional business, the foundation of successful e-business lies in judicious planning E-commerce strategy provides the necessary framework to change an idea into reality To develop a rationale e-commerce marketing strategy it is crucial to clearly understand the factors affecting your e-business First, analyze the market and track customer's basic pattern of shopping. What kind of products they usually purchase online, how seriously they take e buying. Unlike traditional business, e-commerce involves direct communication with the end consumer, so it is relatively easy to find the information. But be cautious. It is important that you pick up the information from reliable sources. Implementing a strategy based on inaccurate information could prove costly to your organization. After meticulously searching the market, develop the proper marketing strategy. Many online tools are available. For instance, if you have offline business then you should combine your offline business with online mode. This will infuse credibility in customers mind. Also, submitting a website to search engine will allow your products and services to be reached to a wider audience You should also send a newsletter to your potential customers, this will develop a long-term Finally, integrate your strategy with technology. As all business transactions will be done through your website, enhancing your website cosmetically and functionally is very important E-commerce strategy has manifold aspects like (1)Effective web content: Information on products, benefits, specifications, and pricing should be present in a simple yet appealing manner. Customers should enjoy browsing your site Develop easy to use purchase process like shopping cart: It is similar to a shopper in a groo store using a cart to hold purchases while they continue shopping. Develop a customer friendly hopping cart system for your online store (2)Accept credit cards: You should ensure credit card processing system for your online store This will ensure instant digital payment and save you from the trouble of enchasing checks You must remember that these three factors don't work in isolation, but work in tandem to ensure essful online business We at mycart net have the expertise and experience to develop and deliver best e-commerce solutions. Please spent few minutes and browse through our services. In case of any query please feel free to get in touch with us References I.E-commErce-guidehttp://www.ecommerce-guide.com 2.E-busiNessResearchCenter--e-commerce.B2b.B2cresourceshttp://www.cio.com/research/ec/ http://www.theukwebdesigncompanv.com/article.phn?id=452 4. THE LEGAL ENVIRONMENT FOR E-COMMERCE IN http://www.bisnisdocgov/bisnis/bulletin/0005bull2.htm 5. Singan Environment Ecommerce http:/lunpan1.un.org/intradoc/groups/public/documents/apcity/unpano02010.ndf 6.ResourcesforE-commErcePolicyReformhttp:/wwww.iris.umd.edu/adass/proi/ecomresources.as 7. New Zealand Go entE-commErce.Internet:http://www.ecommerce.govt.nzl 9.Webmarketingstrategydesign&develonmentInternethttp://www.multimedia.co.uk/ CommercebuIldingtheStrategyfornEwZealandhttp://www.med.govt.nz/irdev/elcom/strategy/
2.4.2 Implementation of the strategy of e-commerce E-commerce has been rapidly growing since its inception. Like any other conventional business, the foundation of successful e-business lies in judicious planning. E-commerce strategy provides the necessary framework to change an idea into reality. To develop a rationale e-commerce marketing strategy it is crucial to clearly understand the factors affecting your e-business. First, analyze the market and track customer’s basic pattern of shopping. What kind of products they usually purchase online, how seriously they take e buying. Unlike traditional business, e-commerce involves direct communication with the end consumer, so it is relatively easy to find the information. But be cautious. It is important that you pick up the information from reliable sources. Implementing a strategy based on inaccurate information could prove costly to your organization. After meticulously searching the market, develop the proper marketing strategy. Many online tools are available. For instance, if you have offline business then you should combine your offline business with online mode. This will infuse credibility in customers mind. Also, submitting a website to search engine will allow your products and services to be reached to a wider audience. You should also send a newsletter to your potential customers; this will develop a long-term relationship. Finally, integrate your strategy with technology. As all business transactions will be done through your website, enhancing your website cosmetically and functionally is very important. E-commerce strategy has manifold aspects like: (1) Effective web content: Information on products, benefits, specifications, and pricing should be present in a simple yet appealing manner. Customers should enjoy browsing your site. Develop easy to use purchase process like shopping cart: It is similar to a shopper in a grocery store using a cart to hold purchases while they continue shopping. Develop a customer friendly shopping cart system for your online store (2) Accept credit cards: You should ensure credit card processing system for your online store. This will ensure instant digital payment and save you from the trouble of enchasing checks. You must remember that these three factors don’t work in isolation, but work in tandem to ensure a successful online business. We at mycart.net have the expertise and experience to develop and deliver best e-commerce solutions. Please spent few minutes and browse through our services. In case of any query please feel free to get in touch with us. References 1. E-Commerce-Guide http://www.ecommerce-guide.com/ 2. E-Business Research Center -- E-commerce, B2B, B2C resources http://www.cio.com/research/ec/ 3. The business Environment for E-Commerce http://www.theukwebdesigncompany.com/article.php?id=452 4. THE LEGAL ENVIRONMENT FOR E-COMMERCE IN RUSSIA http://www.bisnis.doc.gov/bisnis/bulletin/0005bull2.htm 5. Singapore's Legal and Policy Environment for E-commerce http://unpan1.un.org/intradoc/groups/public/documents/APCITY/UNPAN002010.pdf 6. Resources for E-Commerce Policy Reform http://www.iris.umd.edu/adass/proj/ecomresources.asp 7. New Zealand Government E-Commerce. Internet: http://www.ecommerce.govt.nz/ 8. International Symposium on Government and E-Commerce Development http://unpan1.un.org/intradoc/groups/public/documents/un/unpan001127.pdf 9. Web marketing, strategy, design & development. Internet: http://www.multimedia.co.uk/ 10. E-Commerce: Building the Strategy for New Zealand http://www.med.govt.nz/irdev/elcom/strategy/