E-Commerce

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Jui Chao
Shih-hao Hsieh
Ryan Fedyk
Tom Turner
10/30/2007
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Session Objective
 Introduce the concept of e-commerce
 Importance of online growth and worldwide usage
 Taiwan’s e-commerce and unique e-commerce
businesses
 Large market of online gambling and legal issues
 Taiwan’s e-government
 The future of e-commerce
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Electronic Commerce
 E-Commerce consists of the buying and selling of
products or services over electronic systems such as
the internet or other electronic systems.
Source: Wikipedia, http://en.wikipedia.org/wiki/E_commerce
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Three Types of e-commerce
 Business-to-Business
- the buying and selling of goods and services between
companies online or by means of other electronic
systems
 Business-to-Consumer
 Customers-to –Customers
- ebay
Source: Pan Western e-business team . http://www.e-future.ca/sask/pdf/b2b_basics.pdf
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Source: Internet World Stats, June 2007
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Source: Internet World Stats, June 2007
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Introduction to Taiwan
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Also Known As: Ilha Formosa, “the beautiful island”.
Area :35,980 square kilometers
Population: 22.7 million
Capital : Taipei City
Language : Mandarin (official), Taiwanese, and Hakka.
Religion : Buddhism/Taoism/Christianity/Islam
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Taiwan E-Readiness
Items
Penetration Rate
Internet Population
65.97%
Broadband Users
59.93%
Internet Households
73.39%
Broadband Households
64.81%
Mobile Phone
99%
Cable TV
84.60%
Remarks:
1. Total population: 22.73 million (22,730,819)
2. Total households: 7.2 million (7245047)
Source: (2006 January)
1. Taiwan Network Information Center
2. Ministry of Transportation and Communications
3. Ministry of Interior
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Penetration Rate
US VS. Taiwan
80.0%
69.7%
65.97%
64.81%
60.0%
42.0%
40.0%
US
Taiwan
20.0%
0.0%
Internet Population
10/30/2007
Broadband Households
Sources:PEW pew /internet http://www.pewinternet.org
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E-commerce Status in Taiwan
53.1%
57%
58.9%
USD
Million
*Currency Rate: 33 NTD = 1 USD
Source: Tamkang University
http://www.lib.tku.edu.tw/esource/webtopic/BusinessClass/ImformationMannage/reports/Inf_reportslist.html
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Unique E-Commerce in Taiwan
1. Fortune-Teller
• Name
http://clickfate.com.tw/namefate/namefate251.shtml
• Birthday
http://mindcity.sina.com.tw/east/MC-ziwai/index.shtml
• Feng-Shui (風水)
http://www.e-rent.com.tw/fengshui/
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Fortune-Teller(Cont.)
 Constellation
http://mindcity.sina.com.tw/index.shtml
 The book of Changes(易經)
http://iching.shoppy.cc/
 Horoscope
http://star.pchome.com.tw/
 The Five Elements & The Eight Diagrams
http://www.czu168.idv.tw/
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Unique E-Commerce in Taiwan
2. On-line Worship
 Buddhism
http://areyo.virtualave.net/cgi-bin/light/lightindexd.htm
http://web.thu.edu.tw/chiu/www/bpray/pray.htm
 Taoism
http://www.intellect.com.tw/temple/
 Confucianism
http://www.tccg.gov.tw/sys/SM_theme?page=455019ae
http://www.tccg.gov.tw/confucian/Chinese/a15.htm
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Higher Traffic
 Constellation
 Horoscope
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Lower Traffic
 Feng-Shui
 The book
of Changes
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Other Interesting E-commerce
Businesses
 M-commerce
 Second Life
 Online Gambling
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Mobile Commerce
 Mobile spending will pass the $500 million mark
in 2008
 Sprint users spend an average of $9.75 on non-
voice services such as downloadable music, ring
tones, TV shows, maps, and directions
 mShopper – use your cell phone to buy any
product by giving product info and customer info
 I-Phone, Blackberry
Source: e-Commerce Times. http://www.ecommercetimes.com/story/59330.html
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2nd Life
 Reportedly over 1 Million “residents”
 Residents can explore, meet other residents, socialize,
participate in individual and group activities, create
and trade items (virtual property) and services
from one another.
 Virtual currency is the Linden Dollar and is
exchangeable for US Dollars
10/30/2007
Source: http://many.corante.com/archives/2006/12/26
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Get a First Life
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Online Gambling Estimates and
Projections
Source: www.cca-i.com/Primary%20Navigation/Online%20Data%20Store/internet_gambling_data.htm
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Casinos
Online
Brick and Mortar
Vs.
 Brick and Mortar have difficulty profiting from poker:
-Opportunity costs by not using space for slot machines.
 Adding another online table doesn’t take up space.
 Low stakes available online attract beginners
Source: http://business.timesonline.co.uk/tol/business/industry_sectors/leisure/article705968.ece
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2006: Unlawful Internet Gambling Act
 Bans American banks and
credit card companies from
completing transactions
with Internet gambling
companies
 Slipped in as rider bill to
unrelated Safe Port Act –
went unread by Senate.
Source: http://www.casinocitytimes.com/news/article.cfm?contentID=161764
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Sen. Bill Frist
Thinks AIDS can be transferred through sweat and tears.
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Casino Lobbyists
 $25 Million spent in donations to
politicians from gambling industry
to ban online betting.
 Online companies responded with
$1.3 Million in lobbying efforts the
first half of 2007 in support of new
legislation.
Source: http://www.casinogamblingweb.com/gambling-news/gambling-law
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Fallout
6 out of top 10 online casinos
stopped accepting US customers
888 stock dropped over 50%
following bill’s passing
PartyGaming(PartyPoker)
dropped 60% in the first 24
hours and 75% overall
10/30/2007
Source: http://business.guardian.co.uk/story/0,,1891049,00.html
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Legal Impact
 Is poker a game of chance?
 Poker sites/Third party
providers offshore - not
necessarily subject to US
regulations.
 Will FTC enforce regulations?
 How does law affect
Affiliates(advertising) and
Search Engines?
Source: http://www.gamblingandthelaw.com/columns/2006_act.htm
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The Real Impact
 US players still play(legal or not).
 Companies, not gamblers, feel the effects.
 Companies use Third Party offshore money transfer
accounts to subvert new law.
-Similar to Paypal and Neteller, only offshore.
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2007 Legislation/News
 Skill Game Protection Act - would legalize Internet
poker, bridge, chess, and other games of skill. Has
35 co-sponsors.
 Internet Gambling Tax Act - would legislate
Internet gambling tax collection requirements.
 US goes against a 1994 World Trade Organization
agreement by not allowing offshore gambling
websites to serve US customers.
 WTO recently ruled against the US, saying they
must comply or pay compensation.
10/30/2007
Source: http://thomas.loc.gov/cgi-bin/query/z?c110:H.R.2610:
http://en.wikipedia.org/wiki/Online_poker
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Definition of e-Government
e-Government refers to government’s use of
i n f o r m a t i o n t e c h n o l o g y t o e xc h a n ge
information and services with citizens,
businesses, and other arms of government.
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Source: wikipedia at http://en.wikipedia.org/wiki/E-government
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E-Government Ranking by Countries
Survey Based on the followings
1.
2.
3.
4.
5.
6.
7.
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Online Information
Electronic Services
Privacy & Security
Disability Access
Foreign Language Access
Ads, Users Fees, and Premium Fees
Public Outreach
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Main Reasons for Using E-Government
Ranking
Searching for Information
88.3%
Downloading Forms
65.9%
Ranking
Viewing Real-time Images of
Taiwan's Scenic Places
37.2%
Expressing Opinions or
Complaints
0.0%
22.1%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
10/30/2007 Source: e-Usage at http://www.find.org.tw/eng/news.asp?msgid=290&subjectid=4&pos=0
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Current Strategies for e-Government
Increasing
Outsourcing
Advancing
towards Mobile
Internet
Services
Adopting Web
Service Platform
e-Government
Expanding
Service Value
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Promoting
Open
Standards
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Why Use Outsourcing?
 Use private sector resources to accelerate e-Government
development
 Bring in external expertise
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Five Outsourcing Models
 Share-in-saving:
 Self-funded:
 Self-funded-hybrid:
 Operation outsourcing:
 Application-service-provider (ASP):
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Investment in e-Government
From 2003 to 2006…….
Taiwan government has invested US$ 370 million in e-Government Project
Averagely spent US$92.5 million per year on e-Government Project
e-government investment as % of 2006 GDP
0.103%
USD 359,363
Millions
2006 GDP
egovernment investment as % of GDP
I USD=33 NTD
10/30/2007
Source:
e-government progress in Taiwan –Report to CIA 40th conference
http://www.zujee.com/data/SiWanLiNian-GDPTaiwan-Annual-GDP1980-2006.htm
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Centralized e-Government Entry Site
10/30/2007
http://english.www.gov.tw/e-Gov/index.jsp
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Administrative Applications
1. Online Vehicle Oversight Service System
 Payment of traffic fines
 Payment of auto fuel taxes
 Reporting of stolen motorcycles
 Reporting of change of motor vehicle ownership or address
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Source: Research, Development and Evaluation Commission http://www.redc.gov.tw
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Administrative Applications
2. Pay your income tax online
Research, Development, and Evaluation Commission
The Progress of Online Income Tax Filing
In 2006, 45.31% of 4.92 million taxpayers filed
individual income tax via the Internet, and
15.58% of them used electronic certificates.
50%
45.31%
40%
34.59%
30%
21.06%
20%
14.46%
10%
0%
10/30/2007
0.20% 0.23% 0.33% 0.44% 0.71% 2.00%
2.67%
4.79%
7.06%
Percentage of Online Tax
Filing (OTF)
Percentage of OTF Using
e-Certificates
1998 1999 2000 2001 2002 2003 2004 2005 2006
Source: Research, Development and Evaluation Commission http://www.redc.gov.tw
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Administrative Applications
3. Online Security
GCA
MOICA
Individual
Government
Agencies
MOEACA
E-Government
Companies
MOICA
Government
Agencies
XCA
Organizations
10/30/2007
Source: Research, Development and Evaluation Commission http://www.redc.gov.tw
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Administrative Applications
4. Electronic Exchange of Official Documents
Central Government
Provincial/Municipal
Government
Country/City
Government
 Reduce document transmission time-2 months to 2 minutes
 Raised the level of automation
 100,000 documents being exchanged every day
 Reduction in annual postage expense of around USD 6.3 million
10/30/2007
Source: Research, Development and Evaluation Commission http://www.redc.gov.tw
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Administrative Applications
5. Online Payments Services
10/30/2007
Source: Research, Development and Evaluation Commission http://www.redc.gov.tw
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Administrative Applications
6. Handicap-free Websites
 Set up web content accessibility guidelines 1.0 in accordance
with the WAI (Web Accessibility Initiative)of W3C
 According to the e-government report of 2006 by Brown
University, Taiwan is continuously leading the other
advanced countries in promoting websites for the disabled
10/30/2007
Source: Research, Development and Evaluation Commission http://www.redc.gov.tw
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Administrative Applications
7. Government Procurement System(GPS)
 Provide contractors government e-procurement services
10/30/2007
Source: Research, Development and Evaluation Commission http://www.redc.gov.tw
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Administrative Applications
8. e-Housekeeper Services
Source: Research, Development and Evaluation Commission http://www.redc.gov.tw
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The impacts on implementation of
e-government
 Government agencies are becoming more flexible and responsive:
 Government becomes able to act faster
 Government service times are extended
 Government service points become ubiquitous:
 An even broader range of government services is turning to be
available:
 The cost of government services is falling:
10/30/2007
Source: Research, Development and Evaluation Commission http://www.redc.gov.tw
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E-Government Service Quality Survey
Conducted by RDEC, 2006
51.10%
100.00%
96.80%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
100%
81.30%
% visited e-government webs in 1 year
79.40%
66.30%
Total Respondents
continue using
easy to use
happy about the
services
helpful in finding
information
20.00%
10.00%
0.00%
10/30/2007
Source: Report to ICA 40th Conference September 2006
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Online Privacy
 Lack of consumer confidence in online privacy is a
major problem hampering the growth of e-commerce
 94.5% of Americans including internet and non-
internet users, are concerned about the privacy of their
personal information when or if they buy online
Source: Malhothra N. Marketing Research: An Applied Orientation 5th ed. p 275
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Legal Issues
 To avoid legal issues, a franchise company should
obtain appropriate authorizations and consents from
its franchisees
 Ex: privacy consents, warnings of online risk,
disclaimers
 Provide order summaries
 Contractual terms with an “I Agree” button
Source: Rogers, J., Bennett, C., Grewal, S.“E-commerce for Successful Franchisors.” Franchising
World. Aug 2007. Vol. 39 Issue 8, p23-24.
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The Future of Ecommerce
 Large companies that implemented new Internet
technologies saw improvements of 13 percent to 21% in
performance measures
 Small businesses with annual revenues of less than $10
million saw improvements of 40 percent to 50%
 Room for growth - Still less than 7% of retail sales
Source: Colorado Springs Business Journal. Aug 3, 2007.
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Upcoming Holiday Sales
 Online retail sales are expected to increase by over
20% this season compared to 2006, surpassing $39
billion
 According to JupiterResearch’s U.S. Retail Holiday Forecast for 2007
Source: Morphy, E. “Report: Cheery Outlook for Holiday E-Shopping Season.” E-Commerce Times
10/30/2007
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How to Succeed
 Adapt as the market changes
 Simplicity
 Users do not want to click numerous times
 Add value to the purchasing process
 Free shipping, special online deals
Source: http://www.school-for-champions.com/ecommerce.htm
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How to Succeed
 Ensure privacy and legalities
 Customer Service
 Purchase assistance, follow-up emails, help desk
 Pick a descriptive, memorable name
-The business name is the web address
-ex: books.com, etrade.com, travelocity.com
Source: http://www.school-for-champions.com/ecommerce.htm
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Overall Message
 E-commerce can prove effective when conducted
properly. It is an area where businesses need to pay
ongoing attention, as developing trends may provide
them with an edge in the electronic marketplace.
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References
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Internet World Stats. http://www.internetworldstats.com Accessed Sep 17,2007
Nielsen Net Ratings http://www.nielsen-netratings.com Accessed Sep 17,2007
Burns, E. The ClickZ Network. “Top 10 Search Providers, 2007.” Aug 30, 2007
http://www.clickz.com/3626904 Accessed Sep 17, 2007
United States Census Bureau. “Quarterly Estimated E-Commerce and Retail Sales.” U.S. Census Bureau
News. Aug 16,2007. http://www.census.gov/mrts/www/data/html/07Q2.html. Accessed Sep 17, 2007.
Wikipedia, http://en.wikipedia.org/wiki/E_commerce. Accessed October 12,2007.
“Assessing Organizational Innovation Capability and its Effect on E-commerce Initiatives.” Journal of
Computer Information Systems, Fall2007, Vol. 48 Issue 1, p133-145.
Bills, Steve. “Citi Launches Two Trials of Mobile P-to-P Technology.” American Banker. Aug 6,2007, Vol. 172
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Rogers, J., Bennett, C., Grewal, S.“E-commerce for Successful Franchisors.” Franchising World. Aug 2007.
Vol. 39 Issue 8, p23-24.
Malhothra N. .Marketing Research: An Applied Orientation. 5th ed. 2007. p 275.
Pan Western e-business team . http://www.e-future.ca/sask/pdf/b2b_basics.pdf Accessed Oct 15,2007.
Dryden, J. “Business to Consumer E-commerce Statistics.” CONSUMERS IN THE ONLINE MARKETPLACE
OECD WORKSHOP ON THE GUIDELINES: ONE YEAR LATER Berlin, 13-14 March 2001.
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Jupiter Internet Shopping Model
Morphy, E. “Report: Cheery Outlook for Holiday E-Shopping Season.” E-Commerce Times. Oct 23, 2007.
http://www.ecommercetimes.com/story/59964.html
Echo H. “Entry to the E-commerce Markets of China and Taiwan: An Application of Content Analysis.”
International, Journal of Management Mar2007, Vol. 24 Issue 1, p82-91.
Isabel, Y. “Eight Tips for Setting Up A Successful E-commerce Website.” Hudson Valley Business Journal. Oct
2, 2006. Vol 17. Iss 19. p6-25.
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Berger, C. “How to Succeed in e-Commerce.” Chartec Magazine. Feb 2002.
http://www.bgatereporter.com/assets/bgate/b88.pdf
School for Champions http://www.school-for-champions.com/ecommerce.htm Accessed Oct 23,2007
Regan, K. “Sprint Cuts Ribbon on Mobile Shopping Service.” E-commerce Times. Sep 13, 2007.
http://www.ecommercetimes.com/story/59330.html
EIU CountryData at shttp://www.nationsonline.org/index.html Accessed Sep 30,2007
Research , Department and Evaluation Commission http://www.rdec.gov.tw Accessed Sep 30,2007
PEW pew /internet http://www.pewinternet.org Accessed Sep 30,2007
Foreseeing Inovative new Digiservices at:http://www.find.org.tw/find/home.aspx
Ecommerce Status in Taiwan at Tamkang
University http://www.lib.tku.edu.tw/esource/webtopic/BusinessClass/ImformationMannage/reports/Inf_
reportslist.html Accessed Sep 30,2007
Directorate General of Budget, Accounting and Statistics, Executive Yuan at
http://eng.dgbas.gov.tw/mp.asp?mp=2
Fortune teller&online-Wroship Accessed Sep 30,2007
ClickFate http://clickfate.com.tw/namefate/namefate251.shtml Accessed Sep 30,2007
Mind City http://mindcity.sina.com.tw/east/MC-ziwai/index.shtml Accessed Sep 30,2007
E-Rent http://www.e-rent.com.tw/fengshui/ Accessed Sep 30,2007
Mind City http://mindcity.sina.com.tw/index.shtml Accessed Sep 30,2007
Asher, A. “Developing a B2B Commerce Implementation Framework: A Study of EDI Implementation for
Procurement.” Information Systems Management, Fall2007, Vol. 24 Issue 4, p373-390.
Eadington, W. “The Future of Online Gambling in the United States and Elsewhere.” Journal of Public Policy
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Iching Shopping http://iching.shoppy.cc/ Accessed October 7,2007
PCHome http://star.pchome.com.tw/ Accessed October 7,2007
Yadav, Manjit S; Prabhu, Jaideep C; Chandy, Rajesh K. “Managing the Future: CEO Attention and Innovation
Outcomes.” Journal of Marketing, Oct 2007, Vol. 71 Issue 4, p84-101.
CZU http://www.czu168.idv.tw/ Accessed October 7,2007
Virtual Ave http://areyo.virtualave.net/cgi-bin/light/lightindexd.htm Accessed October 7,2007
Raymond’s Home http://web.thu.edu.tw/chiu/www/bpray/pray.htm Accessed October 7,2007
Intellect.com http://www.intellect.com.tw/temple/ Accessed October 7,2007
http://www.tccg.gov.tw/confucian/Chinese/a15.htm Accessed October 7,2007
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http://secondlife.com/ Accessed October 7,2007
http://many.corante.com/archives/2006/12/26 Accessed October 7,2007
CCI-A www.cca-i.com/Primary%20Navigation/Online%20Data%20Store/internet_gambling_data.htm
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Business Times Online
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October 7,2007
Bharadwaj, P., Soni, R. “E-Commerce Usage and Perception of E-Commerce Issues among Small firms:
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Johnson, J. “Online Sales Groth Slowing, but Still Double Digits.” Colorado Springs Business Journal. Aug 3,
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Q&A
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