E-business – the critical factors Mikael von Otter October, 2001 OECD Motives for e-commerce Expanding market Product shipping CRM Product development SCM Quality control Process costs Lower prices Critical Large x x x x x x x x Public SME some some x x x x x x Requirements for e-commerce Transport mechanism Process standards Information standards System interfaces Trust Process reengineering skill X = sufficient x ? ? (?) ? ? ? = to a certain extent Internet ebXML etc Critical factors • • • • • SME Public sector Trust Information standards Process reengineering SME drivers and barriers • All SMEs are not alike – Specialized – mass market – Local – national – international – ”Supplier” – ”vendor • Different drivers and barriers – What does really motivate a SME? – Affordability – Who is in the drivers seat? SME drivers and barriers • Mobile e-business solutions for the very small (d) • Increase competition for SMEs (d) • Integrating e-business and legacy systems (b) • Different requirements from different ”large customers” (b) Public sector • Has great impact on e business development – Especially SME • Conflicting objectives – Protecting tax payers money – Welfare and education, not ROI – Not a business culture • Size of local authorities, of government Public sector drivers and barriers • • • • • Single Face To Industry standard (d) Demographic situation (d) Benchmarking (d) Management capacity (b) Short term planning period (b) Trust • Necessary for e-business • Regulations not modernized – ”by writing”, ”document” • EU e-signature implementation – Who pays? Unlimited damage? Contract or policy based? • Myths about Internet security – Payment systems Trust drivers and barriers • • • • • • Open e signature implementation (d) Current e-signature situation (b) Micropayment systems (d) Legal issues (b) Public acceptance (d) Copyright and IPR digital products – Technical solutions (b) Information and IT standards • Internet for transport • XML – ”the saviour” – is a language • Where do we standardize processes and information? – Is it possible? • Not a critical barrier – Enough solutions are available – But sometimes expensive for SME Info. Standard drivers and barriers • • • • • • ebXML initiative (d?) Market standards (bank, paper, food etc) (d) Product code standards (b) Revival of EDIfact (d?) Systems interface standards (b) IT industry participation (b and d) Process reengineering • Change Management capacity and knowhow • Acceptance from staff • Competence development • Organizational changes • Top management commitment • Finding the technology Process reengineering drivers and barriers • • • • Public sector (b) SME (b) Demographics force (d) Trade unions (?) E-business summary • We have moved … – From why to how – From news to use • But still … – SME: not only a technical and awareness problem – Public sector: should move much faster, has impact on the rest – Technology: Information standards? Systems interface? – Trust: e-signatures implementation needs understanding