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Electronic Commerce by Dr. K.K. Bajaj Deputy Director General National Informatics Centre Electronic Commerce Using electronic methods and procedures to conduct all forms of business activity. EC Volume Estimates US$ 600 billion in the year 2000 (about 10% of all trade)

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electronic commerce
Electronic Commerce

by

Dr. K.K. Bajaj

Deputy Director General

National Informatics Centre

electronic commerce2
Electronic Commerce

Using electronic methods and procedures to

conduct all forms of business activity.

ec volume estimates
EC Volume Estimates
  • US$ 600 billion in the year 2000 (about 10% of all trade)
  • One third ($ 200 billion) of business conducted electronically will be on the Internet
growth in ict sector
Growth in ICT Sector

By the year 2001

  • 40% of US population will be online
  • only 13% in Europe

Estimated that

The EC Market will be three times more

significant to the economy in the US than in

Europe

ec opportunities as we see them
EC opportunities as we see them
  • A pool of talented software professionals and a mature IT industry
  • Government is taking the lead in establishing EC Community Systems
  • Stock Exchanges have been EC-enabled
  • Banks are in the process of acquiring EC capability
  • The private sector is taking the lead
  • The government has embarked upon a major program for electronic governance
employment opportunities created by ec and the internet
Employment opportunities created by EC and the Internet
  • US President’s Council of Economic Advisers estimated 500,000 new jobs in the economy by 1996
  • France : Breton Report estimated the French market for teleservices to be worth 90 - 190 billion Francs by the year 2005
  • Japan’s Ministry of Posts and Telecommunication estimated 2.4 million new jobs by the year 2010 and 56 trillion yens in revenue for new applications
  • India : National IT Task Force estimated that 3 million software professionals required by the year 2008 to achieve software exports of US $ 50 billion
  • Content creation
    • 2.6 million employed in the US
    • 1.8 million employed in Europe
net connectivity
Net Connectivity
  • 300 million PCs today
  • 1 billion PCs by the year 2005 connected to the Internet
global ec framework issues of concern
Global EC Framework : Issues of concern
  • The Internet Corporation for Assigned Names and Numbers (ICANN) was incorporated in USA in November, 1998 as a non-profit company to take over responsibility for Internet managment under direct supervision of the US government
  • Governments have no participation in the control of the structure
  • The security of electronic transactions is of vital importance to all
  • The standards are established by the selected few countries at a pace which means rapid obsolescence, and hence cost for the developing countries
present indicators of it penetration
Present indicators of IT penetration
  • In India
    • PC penetration is 1.53 per 1000
    • Telephone penetration is 1.52 per 100
  • In developed countries
    • PC penetration is 200 per 1000
    • Telephone penetration is 55 per 100
number of internet connections
Number of Internet connections
  • Worldwide population of Internet users is 147 million
    • US has 73 million users
    • Europe has 34 million users
    • Japan has 14 million of users
    • Asia, excluding Japan has some 11 million Internet users
    • India, 0.5 million (China 1 million)
number of internet hosts
Number of Internet Hosts
  • Worldwide 43.23 million
  • gTLDs 28.27 million (Largely in the US)
  • ccTLDs 12 million (US, Canada, Europe, Japan, Australia)
  • Asia less than 1%
  • India 13,000
it penetration target
IT Penetration Target
  • Telephone 7 per 100 by 2005

15 per 100 by 2010

  • Telephone in rural areas
    • Increase from the current 0.4 to 4 by 2010
  • PC 14 per 1000 by 2001
  • PC to Telephone Ratio

From current 1:10

To 1:8 by the year 2000

1:6 by the year 2002

  • Advanced countries Ratio is 1:3 to 1:5
  • Internet connections
    • 2 million by the year 2000
    • 8 million by the year 2002
barriers to ec
Barriers to EC
  • Lack of Payment Facilities
  • Partners' Technology
  • Security
  • Infrastructure Cost
  • Availability of skills
  • Inadequate volumes
  • Availability of Technology
  • Mistrust among partners
it policy regime of goi
IT Policy Regime of GOI
  • Internet connectivity on demand
    • Private ISPs
    • Private Gateways for International Connectivity
  • Telecom Sector Deregulation
    • Corporatisation of DOT
    • Separation of Policy Wing from Services
    • Strong Regulatory Authority
  • Legal Framework for EC
  • Electronic Governance through Citizen-IT Interface
  • Focus on Content creation in Indian languages
  • HRD for IT Penetration