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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
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
24 November, 1998 Copyright © 1998 Tovegin P/L ACN 003 568 036
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Tovegin Pty Tovegin Pty LtdLtd
Tovegin Pty Tovegin Pty LtdLtd
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 !
24 November, 1998 Copyright © 1998 Tovegin P/L ACN 003 568 036
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Tovegin Pty Tovegin Pty LtdLtd
Tovegin Pty Tovegin Pty LtdLtd
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 !
24 November, 1998 Copyright © 1998 Tovegin P/L ACN 003 568 036
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Tovegin Pty Tovegin Pty LtdLtd
Tovegin Pty Tovegin Pty LtdLtd
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
24 November, 1998 Copyright © 1998 Tovegin P/L ACN 003 568 036
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Tovegin Pty Tovegin Pty LtdLtd
Tovegin Pty Tovegin Pty LtdLtd
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 ConsumerConsumer
Business to Business to
BusinessBusiness
Business to Business to
BusinessBusiness
24 November, 1998 Copyright © 1998 Tovegin P/L ACN 003 568 036
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Tovegin Pty Tovegin Pty LtdLtd
Tovegin Pty Tovegin Pty LtdLtd
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 ConsumerConsumer
Business to Business to ConsumerConsumer
Business to Business to BusinessBusiness
Business to Business to BusinessBusiness
24 November, 1998 Copyright © 1998 Tovegin P/L ACN 003 568 036
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Tovegin Pty Tovegin Pty LtdLtd
Tovegin Pty Tovegin Pty LtdLtd
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
24 November, 1998 Copyright © 1998 Tovegin P/L ACN 003 568 036
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Tovegin Pty Tovegin Pty LtdLtd
Tovegin Pty Tovegin Pty LtdLtd
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
24 November, 1998 Copyright © 1998 Tovegin P/L ACN 003 568 036
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Tovegin Pty Tovegin Pty LtdLtd
Tovegin Pty Tovegin Pty LtdLtd
• 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
24 November, 1998 Copyright © 1998 Tovegin P/L ACN 003 568 036
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Tovegin Pty Tovegin Pty LtdLtd
Tovegin Pty Tovegin Pty LtdLtd
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)
24 November, 1998 Copyright © 1998 Tovegin P/L ACN 003 568 036
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Tovegin Pty Tovegin Pty LtdLtd
Tovegin Pty Tovegin Pty LtdLtd
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
24 November, 1998 Copyright © 1998 Tovegin P/L ACN 003 568 036
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Tovegin Pty Tovegin Pty LtdLtd
Tovegin Pty Tovegin Pty LtdLtd
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
E-CommerceE-CommerceCommercial Considerations - NSWTEA Commercial Considerations - NSWTEA
/ STP/ STP
24 November, 1998 Copyright © 1998 Tovegin P/L ACN 003 568 036
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Tovegin Pty Tovegin Pty LtdLtd
Tovegin Pty Tovegin Pty LtdLtd
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
certificationcertification
Supply of TradeSupply of Trade
informationinformation
Advisory Advisory ServicesServices
Electronic Trade Electronic Trade OpportunitiesOpportunities
Trade facilitation Trade facilitation and and
certificationcertification
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
E-CommerceE-CommerceCommercial Considerations - Commercial Considerations -
NSWTEA / STPNSWTEA / STP
24 November, 1998 Copyright © 1998 Tovegin P/L ACN 003 568 036
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Tovegin Pty Tovegin Pty LtdLtd
Tovegin Pty Tovegin Pty LtdLtd
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
E-CommerceE-CommerceCommercial Considerations - NSWTEA Commercial Considerations - NSWTEA
/ STP/ STP
E-CommerceE-CommerceCommercial Considerations - NSWTEA Commercial Considerations - NSWTEA
/ STP/ STP
24 November, 1998 Copyright © 1998 Tovegin P/L ACN 003 568 036
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Tovegin Pty Tovegin Pty LtdLtd
Tovegin Pty Tovegin Pty LtdLtd
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
E-CommerceE-CommerceCommercial Considerations - Commercial Considerations -
NSWTEA / STPNSWTEA / STP
E-CommerceE-CommerceCommercial Considerations - Commercial Considerations -
NSWTEA / STPNSWTEA / STP
24 November, 1998 Copyright © 1998 Tovegin P/L ACN 003 568 036
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Tovegin Pty Tovegin Pty LtdLtd
Tovegin Pty Tovegin Pty LtdLtd
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
E-CommerceE-CommerceCommercial ConsiderationsCommercial Considerations
24 November, 1998 Copyright © 1998 Tovegin P/L ACN 003 568 036
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Tovegin Pty Tovegin Pty LtdLtd
Tovegin Pty Tovegin Pty LtdLtd
• 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
• ......
E-CommerceE-CommerceCommercial ConsiderationsCommercial Considerations
E-CommerceE-CommerceCommercial ConsiderationsCommercial Considerations
Possible Possible FuturesFutures
Possible Possible FuturesFutures
24 November, 1998 Copyright © 1998 Tovegin P/L ACN 003 568 036
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Tovegin Pty Tovegin Pty LtdLtd
Tovegin Pty Tovegin Pty LtdLtd
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 ?