E transaction media in the mining industry a western australian study
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E-Transaction Media in the Mining Industry: A Western Australian Study. Dr. Simpson Poon, Director Murdoch University, Perth, Australia. The Mining Industry in Australia. A key sector in the economic landscape. In 1996, it generates $18,668 million. 4% of national GDP

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E-Transaction Media in the Mining Industry: A Western Australian Study

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E transaction media in the mining industry a western australian study

E-Transaction Media in the Mining Industry: A Western Australian Study

Dr. Simpson Poon, Director

Murdoch University, Perth, Australia


The mining industry in australia

The Mining Industry in Australia

  • A key sector in the economic landscape.

  • In 1996, it generates $18,668 million.

  • 4% of national GDP

  • Western Australia is the most important Mining State

  • 68% metallic mineral production and 45% of total mineral production (ABS, 1999)


History of e commerce in the mining industry

History of E-Commerce in the Mining Industry

  • Originally was only part of the IT infrastructure - usually proprietary inter-organisational systems.

  • In the 1980’s, EDI started to mature and large companies began to increase uptake of EDI (e.g. Broken Hill Petroleum)

  • Large companies started to get their smaller business partners to do so too.


History of e commerce in the mining industry cont d

History of E-Commerce in the Mining Industry (cont’d)

  • By early 1990’s the ‘coerced’ method of EDI adoption was common, small businesses were often hinted:“ Do business with us using EDI or we find someone who will!”

  • Adoption often occurred as the ‘Hub-and-Spokes’ configuration with the large firm dictating what to use and how to use it.


Since then

Since then…

  • EDI systems can be found in all large (and many medium-sized) mining firms.

  • Although a key technology for inter-firm exchange, adoption rate overall remains low.

  • Fairly expensive and unaffordable for small firms because of adoption costs and VAN subscription fees.


Then came the internet

Then came the Internet

  • The era of E-Commerce and Web-based applications.

  • Much cheaper and useable than EDI

  • Multi-purpose applications, not just transaction.

  • Affordable by the smallest firms and no longer in the hands of proprietary providers.


Have this had an impact on the mining industry

Have this had an impact on the Mining Industry?

  • What happened since EDI?

  • Has the industry opened up to the Web?

  • If yes, how much? With whom?

  • What are the barriers?

  • What are their attitudes towards E-Commerce after the EDI experience?


The project

The Project

  • Conducted a survey study on:

    • the technology used for E-Commerce;

    • current enablers/barriers to adoption;

    • whether there is shift from VAN-based EDI to the Internet

    • As a preliminary study for further studies such as:

      • strategic alignment of business and IT strategy

      • quantification of E-Commerce investment


Results demographics

Results - Demographics

  • 250 companies with HQ in Australia from a Mining Directory selected.

  • 71 responded (28.4% response rate).

  • Average firm size: 123 employees (small size firms in Mining terms).

  • Many have interstate operations, some have offshore interests.


Edi vs the internet

EDI vs. the Internet


Enablers of e commerce

Enablers of E-Commerce

  • Low cost business solution

  • Easy to set up and access

  • Provide better services to customers

  • Can use for many purposes (unlike EDI)

  • Easy integration with existing technologies

  • The future way of doing business


The results enablers

The results (Enablers)


Barriers of e commerce

Barriers of E-Commerce

  • Internet is insecure

  • Unreliable data transmission (data losses)

  • New technology and therefore high risk

  • Already using other technologies so no need for Internet

  • No need for adopting E-Commerce

  • Our industry doesn’t use much E-Commerce


The results barriers

The results (Barriers)


Conclusions

Conclusions

  • There is a shift from traditional EDI to both Internet EDI and Web applications and it is happening among SMEs.

  • There is a very positive view on the enablers and less pessimism on the barriers (see the skewness of the histograms).

  • It is likely that Internet-based E-Commerce will have a better penetration compared to EDI given time.


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