Electronic Commerce

Preface

Electronic commerce is not just about buying goods over the Internet, such as ordering books, clothes or tickets on-line or even downloading products like software. When, in 1994, Arthur Andersen (the auditors and financial advisers) used group conferencing tools, to electronically link its world wide partners who were developing a vision for the future, it too was conducting electronic commerce. Businesses, daily, make commercial transactions with customers, and undertake internal activities such as new product development or strategic reviews. If, in performing these actions, they use information and communication technologies to link together different groups, then they are engaging in electronic commerce.
Electronic commerce is of course over promoted and over sold. We are told that the Internet, with its information banks, email and world wide web, etc. will enable entirely new ways of working and that a radically different future awaits us. There is of course some truth in this; the potential of electronic commerce is only limited by the imagination of those who participate in its uptake and application. However, before one can move towards new methods of working, many barriers need to be overcome, not the least of which is our tendency to view information and communication technologies as the means of continuing to do exactly what we do now, only faster and cheaper. But there are also other barriers, and this book addresses some of them - strategic, policy, legal, wider awareness and acceptance, and so on.
Electronic commerce can be of particular importance for small- and medium-sized companies (SMEs). It offers them many possibilities to reach customers world wide, develop their competitive advantage and collaborate effectively with other businesses. However, SMEs can lack adequate resources to overcome the hurdles, such as the complexity of doing business internationally, language and cultural barriers, costs, and others. This book has been supported by the G8 Global Marketplace for SMEs Pilot Project which addresses these issues and sets out to provide SMEs with practical information about electronic commerce in the emerging global digital economy.
This is not an instruction manual telling you what to do and when to do it; that could only be properly compiled after an understanding or each company's individual needs and aims. This book is a basis for understanding; an awareness of the issues, the possible advantages and potential problems. It should stimulate readers to evaluate their own situations and be better placed to make judgements and decisions. The papers have been organised into four sections:

 

• Part one deals with business and policy issues. This aims to give an overview of the potential for electronic commerce, the technical, legal and organisational barriers that still need to be removed, and the requirement to use information and communication technologies within the context of a broader strategy.
• Part two addresses some legal aspects and the issue of security. The problems addressed in this section include new legal liability that might arise from the use of the world wide web and the legislative developments needed to enable electronic manuscripts to have the same legal standing as paper documents. It considers also the importance of using tools such as cryptography to ensure safe and secure electronic transactions, as well as international developments to produce secure electronic links.
• To achieve general acceptance electronic commerce has to be global. Part three deals with electronic commerce in developing nations. Papers here describe work being undertaken to introduce electronic commerce in Eastern Europe as well as the Mediterranean area, including countries in North Africa. Cultural, political, economic, and technological aspects are among the issues discussed in this section.
• The final part examines the ways of achieving greater acceptance. Part four, deals with applications and awareness. There are case studies of applications, descriptions of benefits and lessons learnt and recommendations. Some papers address the issue of awareness, describing actions being taken to inform small business about electronic commerce and the potential benefits, as well as actions being undertaken, sometimes with support from governments and other agencies, to support the implementation of electronic commerce in small firms.

Many of the contributors hold senior positions in their respective companies and organisations. This gives the book both a high level dimension as well as a practical orientation. Taken together these two aspects should provide the reader with a good overview of many of the issues involved, while at the same time providing practical insights into the applications of electronic commerce.
This book was produced as part of a European Commission funded project within the Esprit programme.

Paul Timmers, The European Commission
Brian Stanford-Smith, Stanford Taylor Matchet Ltd
Paul T. Kidd, Cheshire Henbury