the explosion of e-commerce 24 november, 1998 larry czarnik tovegin pty ltd

The Explosion ofE-Commerce

24 November, 1998Larry Czarnik

Tovegin Pty Ltd

Tovegin Tovegin Pty Ltd Pty Ltd

24 November, 1998 Copyright © 1998 Tovegin P/L ACN 003 568 036

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Tovegin Pty Tovegin Pty LtdLtd


•38 years for 50 million people to tune into 38 years for 50 million people to tune into

radioradio•16 years for the PC to reach 50 million users16 years for the PC to reach 50 million users

•13 years for TV to reach 50 million viewers13 years for TV to reach 50 million viewers

•4 years for public Internet to reach 50 million 4 years for public Internet to reach 50 million

peoplepeople•? years for e-commerce to reach 50 million ? years for e-commerce to reach 50 million

peoplepeopleSource: Telstra Small Business File - 3rd Qtr ‘98Source: Telstra Small Business File - 3rd Qtr ‘98


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Electronic CommerceElectronic Commerce

Definition: The conducting of business communication and transactions over networks and through computers. As most restrictively defined, electronic commerce is the buying and selling of goods and services, and the transfer of funds, through digital communications.

However e-commerce also includes all inter-company and intra-company functions (such as marketing, finance, manufacturing, selling, and negotiation) that enable commerce and use electronic mail, EDI, file transfer, fax, video conferencing, workflow, or interaction with a remote computer.

Electronic commerce also includes buying and selling over the World-Wide Web and the Internet, electronic funds transfer, smart cards, digital cash (e.g. Mondex), and all other ways of doing business over digital networks.

Source: Source: The Free On-line Dictionary of Computing (15Feb98)

is here NOW & to STAY !is here NOW & to STAY !


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Electronic CommerceElectronic Commerce

Definition: Definition: The conducting of business communication and transactions over networks and through computers. As most restrictively defined, electronic commerce is the buying and selling of goods and servicesbuying and selling of goods and services, and the transfer of funds, through digital communications.

However e-commerce also includes all inter- company and intra-company functions (such as marketing, finance, manufacturing, selling, and negotiation) that enable commerce and use electronic mail, EDI, file transfer, fax, video conferencing, workflow, or interaction with a remote computer.

Electronic commerce also includes buying and selling over the World-Wide Web and the Internet, electronic funds transfer, smart cards, digital cash (e.g. Mondex), and all other ways of doing business over digital networks.

Source: Source: The Free On-line Dictionary of Computing (15Feb98)

is here NOW & to STAY !is here NOW & to STAY !


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E-Commerce - then & now E-Commerce - then & now !!

E-Commerce - then & now E-Commerce - then & now !!

B A N K IN GS W IF T & In te rb an k tran s fe rs

C red it C ard sreg ion a l & g lob a l

E F T-P O SD eb it C ard s

E -m a ilF irs t text, n ow G U I

N etw orksP riva te , n ow In te rn e t

W orld W id e W ebp resen ce / ca llin g ca rd s

E lec tron ic C om m ercem erg in g tech n o log ies

B A N K IN GS W IF T & In te rb an k tran s fe rs

C red it C ard sreg ion a l & g lob a l

E F T-P O SD eb it C ard s

E -m a ilF irs t text, n ow G U I

N etw orksP riva te , n ow In te rn e t

W orld W id e W ebp resen ce / ca llin g ca rd s

E lec tron ic C om m ercem erg in g tech n o log ies


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E-CommerceE-Commercetoto

E-CommerceE-Commercetoto

• Amazon.comAmazon.com

• GreenGrocer.com.auGreenGrocer.com.au

• Woolworths Woolworths

HomeShopHomeShop

• Harris TechnologyHarris Technology

• Dick Smith Dick Smith

ElectronicsElectronics

• TradeGate ECATradeGate ECA

• Australasian Trade Australasian Trade

NetworkNetwork

• GE TradeWebGE TradeWeb

• United Nations United Nations

Global Trade Point Global Trade Point

NetworkNetwork

Business to Business to ConsumerConsumer


Business to Business to

BusinessBusiness

Business to Business to

BusinessBusiness


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E-CommerceE-CommerceProfile of SuccessProfile of Success

E-CommerceE-CommerceProfile of SuccessProfile of Success

• niche market / niche market /

productproduct

• small $ transactionssmall $ transactions

• ““simple” securitysimple” security

• USER focusedUSER focused

• ““stick to the knitting”stick to the knitting”

• supply / consolidation supply / consolidation

of trade informationof trade information

• advisory servicesadvisory services

• electronic trade electronic trade

opportunitiesopportunities

• trade facilitation and trade facilitation and

certificationcertification



Business to Business to BusinessBusiness

Business to Business to BusinessBusiness


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E-CommerceE-Commerce.. Niche Niche

MarketsMarkets

E-CommerceE-Commerce.. Niche Niche

MarketsMarkets• Web Super StoresWeb Super Stores

– (Online Department (Online Department

Stores)Stores)

• Computer HardwareComputer Hardware

• SoftwareSoftware

• BooksBooks

• MusicMusic

Business to Business to Consumer -Consumer -

Business to Business to Consumer -Consumer -

• MoviesMovies

• FlowersFlowers

• Auction sitesAuction sites

• Shopping AgentsShopping Agents

– RoboShopperRoboShopper

ZDNet PC Magazine Online - 1 Nov, 1998ZDNet PC Magazine Online - 1 Nov, 1998


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E-CommerceE-CommerceBusiness to Consumer - Business to Consumer - Top 10 < Top 10 <

US$2KUS$2K

E-CommerceE-CommerceBusiness to Consumer - Business to Consumer - Top 10 < Top 10 <

US$2KUS$2K

0

10

20 Commerce Made Simple

IBM HomePage Creator

iCat Commerce Online

Internet Creator Ed 4.05

MerchandiZer 2.03

Netcom Small Biz Pack

SecureMerchant 2.0

ShopBuilder 2.5

Virtual Spin I-net Store 4.5

Yahoo! Store

0

10

20 Commerce Made Simple

IBM HomePage Creator

iCat Commerce Online

Internet Creator Ed 4.05

MerchandiZer 2.03

Netcom Small Biz Pack

SecureMerchant 2.0

ShopBuilder 2.5

Virtual Spin I-net Store 4.5

Yahoo! Store

1st yr $1st yr $PowerPowerEaseEase

1st yr $1st yr $PowerPowerEaseEase

ZDNet PC Magazine Online - 1 Nov, 1998ZDNet PC Magazine Online - 1 Nov, 1998


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• Competitive advantage / idea ?

• Marketable product / service ?

• Solid delivery proposal for the product ?

• Marketing strategy plans ?

• Management expertise ?

• Partner contributing skills and / or funds ?

• Funding ?

Initial Initial FundamentalsFundamentals

• Business IdeaBusiness Idea

• Marketable Marketable ProductProduct

• Product Delivery Product Delivery

• Partner Partner RelationshipRelationship

Develop a Business PlanDevelop a Business Plan• Marketing strategyMarketing strategy• Partner strategyPartner strategy• Operational ManagementOperational Management• FundingFunding

E-CommerceE-CommerceCommercial Commercial

ConsiderationsConsiderations

E-CommerceE-CommerceCommercial Commercial

ConsiderationsConsiderations


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E-CommerceE-CommerceInternational Trade International Trade

TransactionsTransactions

E-CommerceE-CommerceInternational Trade International Trade

TransactionsTransactions

• not for profitnot for profit• business networkingbusiness networking

NSW Trade NSW Trade Efficiency Efficiency

Association Association (NSWTEA)(NSWTEA)

NSW Trade NSW Trade Efficiency Efficiency

Association Association (NSWTEA)(NSWTEA)

Sydney Trade Point Sydney Trade Point (STP)(STP)

Sydney Trade Point Sydney Trade Point (STP)(STP)• United NationsUnited Nations

• Global Trade Point Global Trade Point Network (GTPN)Network (GTPN)


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Role of NSWTEA - Watchdog body- Facilitating and lobbying trade

Roles of STP - Commercial operations- Provider of services- Revenue generator

User Benefits - Revenue growth opportunities - Reduced transaction costs

E-CommerceE-CommerceNSWTEA <-> STPNSWTEA <-> STP

E-CommerceE-CommerceNSWTEA <-> STPNSWTEA <-> STP


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BUSINESS IDEABUSINESS IDEABUSINESS IDEABUSINESS IDEA The key differentiator = UN The key differentiator = UN involvement.involvement.

The key differentiator = UN The key differentiator = UN involvement.involvement.

• Collect trade Electronic Trade Opportunities (ETOs) from around the Collect trade Electronic Trade Opportunities (ETOs) from around the

globe.globe.

• Focus on developing countries with aim to assist in developmentFocus on developing countries with aim to assist in development

• United Nations offers United Nations offers

• advice and bring to bear ministerial level commitment.advice and bring to bear ministerial level commitment.

• focus for support both for network and applicationsfocus for support both for network and applications

• Especially leading edge technology for security, smart cards, Especially leading edge technology for security, smart cards,

etc.etc.

• ensures non-exclusive participationensures non-exclusive participation

• “ “Competitors” can and are encouraged to participateCompetitors” can and are encouraged to participate

• Encompasses ALL parts of a trade transactionEncompasses ALL parts of a trade transaction

•Freight handlers, custom agents, insurance, finance, public & private Freight handlers, custom agents, insurance, finance, public & private

sectorssectors

E-CommerceE-CommerceCommercial Considerations - NSWTEA Commercial Considerations - NSWTEA

/ STP/ STP


/ STP/ STP


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Marketable ProductMarketable ProductMarketable ProductMarketable Product Clear product concept - full trade facilitation.

Clear product concept - full trade facilitation.

Supply of TradeSupply of Trade

informationinformation

Advisory Advisory ServicesServices

Electronic Trade Electronic Trade OpportunitiesOpportunities

Trade facilitation Trade facilitation and and


Supply of TradeSupply of Trade

informationinformation

Advisory Advisory ServicesServices

Electronic Trade Electronic Trade OpportunitiesOpportunities

Trade facilitation Trade facilitation and and


Collection of broad content from public & Collection of broad content from public & private sector members.private sector members.

Makes use of local, experience & knowledge.Makes use of local, experience & knowledge.

Highly rate, widely subscribed ETOs publicly Highly rate, widely subscribed ETOs publicly available.available.

Experienced members assisting non-Experienced members assisting non-experienced.experienced.

Certification under development - ISETO, etc.Certification under development - ISETO, etc.

E-CommerceE-CommerceCommercial Considerations - Commercial Considerations -

NSWTEA / STPNSWTEA / STP




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PRODUCT PRODUCT DELIVERYDELIVERYPRODUCT PRODUCT DELIVERYDELIVERY

Various options under consideration

Various options under consideration

• Observations - Observations -

• The core business is rarely successfully if out-The core business is rarely successfully if out-

sourced.sourced.

• Trade Points have a unique position in trade Trade Points have a unique position in trade

transactions.transactions.

• Risk profile varies depending on the operational Risk profile varies depending on the operational

model used.model used.

• Options for partner fundingOptions for partner funding

• Non-goal of UN to provide product delivery Non-goal of UN to provide product delivery

capabilitycapability


/ STP/ STP


/ STP/ STP


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PARTNER PARTNER RELATIONSHIPRELATIONSHIPPARTNER PARTNER RELATIONSHIPRELATIONSHIP

Seeking, Seeking, Seeking, Seeking, Seeking ...Seeking ...

Seeking, Seeking, Seeking, Seeking, Seeking ...Seeking ...

• Risk AND returnRisk AND return

• Options for public & private sectorOptions for public & private sector

• Multiple levels of interest / Multiple levels of interest /

involvement.involvement.

• Broad exposureBroad exposure

•NSW Trade Efficiency AssociationNSW Trade Efficiency Association

•United NationsUnited Nations

•Global Trade Point NetworkGlobal Trade Point Network






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Watchful Watchful HintsHints

Watchful Watchful HintsHints• ““Bleeding edge” versus “Missed the boat”Bleeding edge” versus “Missed the boat”

• MediaMedia

• Think user, User, USER !Think user, User, USER !

• Not everyone has a highspeed Internet Not everyone has a highspeed Internet connection !connection !

• Network with people not just computers.Network with people not just computers.

• ......

E-CommerceE-CommerceCommercial ConsiderationsCommercial Considerations



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• Merge of mobiles & PDAMerge of mobiles & PDA

• More Internet / Web TV integration along More Internet / Web TV integration along

with phonewith phone

• Proliferation of Internet “appliances”Proliferation of Internet “appliances”

• Credit cards become Smart Cards with HS Credit cards become Smart Cards with HS

InterfacesInterfaces

• Training & Education Training & Education

• Health CareHealth Care

• ......



Possible Possible FuturesFutures

Possible Possible FuturesFutures


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QUESTIONS AND QUESTIONS AND DISCUSSIONDISCUSSION

QUESTIONS AND QUESTIONS AND DISCUSSIONDISCUSSIONThe Explosion of E-CommerceThe Explosion of E-CommerceThe Explosion of E-CommerceThe Explosion of E-Commerce

Larry CzarnikLarry Czarnik

[email protected]@compuserve.com

www.tovegin.com.auwww.tovegin.com.au

Can Can YOUYOU afford to ignore the Internet ? afford to ignore the Internet ?

Larry CzarnikLarry Czarnik

[email protected]@compuserve.com

www.tovegin.com.auwww.tovegin.com.au

Can Can YOUYOU afford to ignore the Internet ? afford to ignore the Internet ?

the explosion of e-commerce 24 november, 1998 larry czarnik tovegin pty ltd

Documents

tovegin pl acn

tovegin pty ltd38 years

electronic funds transfer

transfer of funds

digital networks

electronic mail

file transfer

digital cash