Benefits and Challenges of Measuring e-Commerce and ICT A SEAN e-Measurement Framework and Thailand Case Study

1. Benefits and Challenges of Measuring e-Commerce and ICTASEAN e-Measurement Frameworkand Thailand Case Study Dr. Somnuk Keretho Director, Electronic Commerce Resource Center National Electronic and Computer Technology Center Delegate, e-ASEAN Working Group Co-Shepherd, ASEAN e-Measurement Sub-Working Group UNTAD Commission on Enterprise, Business Facilitation and Development Seventh Session, Geneva, 24-28 February 2003.

2. Outline of presentation • Benefits of Measuring e-Commerce/ICT in developing countries • ASEAN e-Readiness Assessment 2001 • Lack of Statistical Data & Methodology • Challenges for developing countries • ASEAN e-Measurement Framework • Thailand Efforts/e-Measurement Strategy • Recommendations to UNCTAD

3. Benefits of Measuring e-Commerce/ICTin developing countries ASEAN e-Readiness Assessment 2001

4. Categories • Workforce • Localisation • Public Access points • Categories • Home users • Business Users • Education ASEAN e-Readiness Assessment (2001) e-Society • Categories • Communication Infrastructure • Communication Sector • IT Sector • Internet Access Services • ISP Sector • End User devices • Affordability • Categories • Current Status • Taxation • Legal Framework • Payments • Physical Distribution Infrastructure e-ASEAN FrameworkGoals e-Commerce • Categories • Penetration • Use Type • organisation • Promotion Liberalising Trade in ICT Goods and Services e-Government “ASEAN e-Readiness Assessment: Executive Summary,” 2001 wwww.e-asean.info

5. ASEAN e-Readiness Assessment (2001) Overall Mean Scores (infrastructure, e-Society, e-Government, e-Commerce)Varying Stages of e-Readiness

6. ASEAN e-Readiness Assessment (2001) Diversity in E-Commerce Development Levels The countries with similar levels of development were clustered using the four stages of development to identify their common challenges and potential focus areas

7. ASEAN e-Readiness Assessment (2001) Lessons Learned from ASEAN e-Readiness Assessment • Recognizing the needs in monitoring and measuring e-Commerce & ICT development • Lack of many primary data • Lack of appropriate measurement methodologies to collect several reliable statistical indicators • Ambiguity over definitions & scope of coverage

8. Challenges of Measuring and Monitoring e-Commerce/ICT ASEAN e-Measurement Framework

9. ASEAN e-Measurement Framework Recognizing the challenges & benefits of measuring and monitoring the digital economy. • To develop a common reference framework • To set up guidelineson the definitions, data collection and measurement methodologies of ICT and e-commerce indicators (including e-readiness, e-usage and e-impact), • To exchange methodologies & lessons learned • To ensure comparability of data across ASEAN+3 member countries and internationally; *Endorsed bye-ASEAN Working Group & e-ASEAN Task ForceOctober 2002, Bangkok

10. ASEAN e-Measurement Activitiesin 2003 • Establishing ASEAN e-Measurement WG • 1st Meeting of ASEAN e-Measurement WG, 15-16 April 2003, Singapore • The first meeting of ASEAN e-Measurement Working Group • Sharing and agreeing on the regional standard definitions and data collections methodologies • Stocktaking of ICT/e-commerce surveys in each member country • Highlighting the target results of the 2nd ASEAN e-Readiness Assessment • 2nd ASEAN e-Readiness Assessment(e-readiness, e-usage, and partly e-impact)

11. Thailand Efforts Towards Thailand e-Measurement Strategy

12. Stocking of Measuring ICT/e-Commerce Work Programs • e-ASEAN Readiness Assessment (2001) • E-Commerce Web Sites Survey: First Round (2000), Second Round (2001) (ECRC/NECTEC) • Internet User Profiles Survey (2000, 2001, 2002)(NITS/NECTEC) • Household Survey + add-on basic questions for household PC/Internet usage (2001)(NITS/NECTEC+NSO) • Business Survey + add-on basic questions for PC/Internet & e-commerce usage (2002)(ECRC/NECTEC+NSO)

13. E-Commerce Maturity Model3 Levels of Development/2001 Survey 1% c-Business Integrating/Collaborating with the back office information systems, e.g inventory and financial systems, and connecting with business partners 3. 11% t-CommerceOrdering the products online (online transaction), E-Payment could be available online. 2. 88% i-Commerce Products Information available on the web, Buying and selling on the usual (analog) channel e.g. telephone, and fax 1.

14. Key Results of EC Web Survey (2000, 2001) Websites by industry: Type of industry No. of total No. of No. of Proportion of websites informative e-commerce e-commerce websites websites websites 1. Tourism 607 494 113 19% 2. Computer/Internet 393 328 65 17% 3. Apparels/cosmetic 138 102 36 27% 4. Florist 33 5 28 85% 5. Handicraft 102 76 26 26% • Tourism is the type of businesses that most often have e-commerce websites - transaction e-commerce. • Tourism is chosen as the national strategic industry, and as a pilot for B2B collaborative e-commerce standardization.

15. ICT &EC Measuring and Monitoring:Proposed Framework in Thailand “User Sides” “Supply Sides” Business Customers/Citizens Website Survey.co.th และ .com Internet Usage in Households Trade/Service Sectors & B2B e-Business/SCM Internet Users Profile ICT Sectors Farmers Survey Service Providers Government ISP/ASP Providers ICT Usage in Government Cybermall (B2C) &e-Marketplace (B2B) Survey

16. e-Impacts Value added, return on Investment e-Usage employment, R&D and patents in ICT e-Readiness industries, trade in ICT Internet subscribers, PC in goods, cross-border households, Internet use mergers, acquisitions by households and and alliances, job creation, productivity, and social impacts ICT investment, ICT individuals, Internet use by spending, ICT enterprise size and industry, occupations, Internet transactions telecommunication access paths, broadband penetration rates, Internet hosts, number of Websites, Internet access prices Measuring ICT/e-Commerce Development

17. Possible Collaboration with UNCTAD • Collaborate in developing appropriate e-measurement strategy and action-oriented plans • Creating a forum and information exchange between statistical offices from developed countries and developing countries • Sharing models of specific national surveys on ICT and e-Commerce

18. Conclusion • Importance of measuring e-commerce/ICT in developing countries • Develop measurable goals/indicators and data collection methodologies • Create institutional capability towards affordable/sustainable mechanisms • Collaborate regionally and internationally • Quantitative management (continuous improvement framework) should be developed and integrated within the national e-strategies

19. When you can measure what you are speaking about, and express it in numbers, you know something about it; but when you cannot measure it, when you cannot express it in numbers, your knowledge is of a meager and unsatisfactory kind. • —Lord Kelvin