Thailand eCommerce Strategies 1

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Thailand E-Commerce Strategies

• Somnuk Keretho, Ph.D.
• Director, Electronic Commerce Resource Center
  (ECRC)
• National Electronics and Computer Technology
  Center (NECTEC)
• National Science and Technology Development
  Agency (NSTDA)
• Thailand

APEC Workshop on e-Business and Supply Chain
Management 28-30 August 2002Bangkok
Also an assistant professor in Computer
Engineering, Kasetsart University, Thailand.
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Presentation Outline

• National Social Economic Development Plan
• National ICT Policy Framework IT 2010
• National ICT Master Plan (2001-2006)A Vision of
  Knowledge-based and Sustainable Society
• E-Commerce Strategies
• Implementing the Vision
• Conclusion

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Thailand ICT Strategies and Practices
Aligning national ICT policies, strategies and
work programs with The 9th National Economic and
Social Development Plan
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Strategies in developing IT2010

• The Leaders from the very top are needed.
• The Prime Minister is the NITC chairman.
• Government CIOs Program is a strategic move.
• Integration with other development policies
• Stakeholders from both private public
  participate from the beginning
• Implementation/Action Plans are explicit.
• Measuring/Monitoring Mechanisms are used.

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Policy Coherence/Integration

• IT 2010 National IT Policy Framework
• National ICT Master Plan (2001-2006)
• The 9th National Social and Economic Development
  Plan (2001-2006)
• Thailands Vision Towards the
  Knowledge-based and Sustainable
  Society/Economy

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Timeline for IT2010 and the five-year National
ICT Master Plan
Ninth National Economic and Social Development
Plan 2001-2006
Year
96 97 98 99 00 01 02 03 04 05
06 07 08 09 10 11
IT2000 (1996-2000)
IT2010 Policy (2001-2010)
National ICT Master Plan2001-2006
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Guiding PrincipleSufficiency Economy
Through his caring leadership, His Majesty has
earned the abiding love and profound respect of
his people, and through his thinking he has laid
the foundation for and inspired his countrys
development strategy. His Majestys philosophy of
a "sufficiency economy" now lies at the heart of
Thailands development thinking, and indeed it
will serve as the blueprint for the countrys
next economic and social development plan. The
"sufficiency economy" philosophy centres on the
concept of moderation and self-reliance. It sets
out to shield the country from external shocks,
and discourages exploitation of others. Its
values include honesty and integrity. It seeks to
achieve balance and justice. Source UNCTAD X
Conference Statement, Expression of appreciation
to His Majesty the King of Thailand, Bangkok
12-19 Feb 2000. http//www.unctad-10.org/pdfs/ux_t
d388.en.pdf
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National IT Policy Framework IT2010Towards the
Knowledge-based Sustainable Economy/Society
Build Human Capital
Promote Innovation
Knowledge Based Economy
Strengthen Information Infrastructure
Industry
endorsed by National IT Committeein Oct 2001
www.nitc.go.th
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National ICT Master Plan
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Thailand E-Commerce Strategies and Experiences
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E-Commerce Resource Center (ECRC)

• An e-commerce promotion center under the National
  Electronic and Computer Technology Center
  (NECTEC), Ministry of Science, Technology
  Environment since 1998.
• Promote e-Commerce uptake in the country (EC
  national policies, awareness, capacity building,
  information resources, infrastructure and
  standards)
• Develop National e-Commerce Policy Framework,
  already incorporated within the National IT 2010
• Promote e-Commerce Interoperable Standards
  framework based on ebXML Web Services to the
  industries, for example.

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E-Commerce Policy FrameworkEC for Entrepreneurs
Competitiveness EC for Exports of Trade
Services, EC for Domestic Consumption
E-Commerce As the National Trade Strategy
Promote the EC deployment among business
sectors
Build Trust Confidence
Government renovates creates market
Create an environment for fair competition and
protect consumers
Public hearing and government endorsed in 2000
EC Strategy is integrated within IT 20101.
Participate proactively with EC-related
international fora
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E-Commerce Strategies

• International EC Strategy
• EC as the National Trade Strategy
• Sector-Specific Policies to Promote EC
• Integrated International Trade EC Policy
• Awareness Strategy
• Legal Regulatory Strategy
• Payment Security Strategy
• EC Measurement and Monitoring
• EC Promotion for SME
• Human Capacity Building
• Infrastructure
• Network Infrastructure
• Technical Standards Protocols/Interoperability

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Strategic Areas of EC Development
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Legal Framework

• Electronic Transaction Law (incorporating Digital
  Signature) enacted since Nov 2001
• Information Infrastructure Law
• According to Section 78 of Thailand Constitution,
• a Universal Access Law could ensure
  accessibility and equitably for all citizens.
• Data Privacy Law
• Computer Crime Law
• Electronic Fund Transfer Law

.
These bills are under reviewed by the
Cabinet This law is in a drafted stage by
stakeholders
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Some Examples of National EC projects
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Economy at the Grass Roots LevelA
holistic-approach development

• Financial Healthcare
• One million baht loan for each village (70,000
  villages)
• 30-baht Universal Health Care Project
• Infrastructure, Awareness Creation Education
• Internet Tambons Internet Access for all 7,000
  district administrative offices
• Thailand SchoolNet Project (4,500 schools
  already connected)
• Community-Access Services Telecenter Project
• Product Development, e-Marketing, e-Commerce
• One District (Tambon), One Product (OTOP)
• e-Commerce for OTOP e.g. ThaiTambon.com

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Infrastructure Accessibility

• Sustainability Scalabilityto ensure
  expandability, affordability, portability and
  adoptability

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Internet Tambons
Infrastructure

• Internet access centers (PCs, Intranet work for
  Ministry of Interior, and Internet access for
  community) at all district offices (7,000
  tambons)
• End of 2001 1,000 offices already connected.
• End of 2002 3,000 offices more
• End of 2003 the rest of 3,000 offices
• 25 information/database systems are also
  developed to provide useful contents and serve
  the work of Department of Local Administration,
  Ministry of Interior (MoI).

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E-Commerce for the Grass Roots Level

• E-Commerce forLocal Products and Local Tourist
  Attractions

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www.ThaiTambon.com
Content Development For i-Commerce

• Supported by Prime Minister Thaksin Shinawatra,
  and Community Development Department (MoI)
• Content development about products champions of
  each district
• August 2002 5,285 districts - 17,094 products,
  6,978 local tourist attractions
• Products from community (e.g. house wives,
  farmers, local handicraft groups, etc.)
• End of 2002 All 7,000 districts will be
  included.

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Arts and cultural productsReady for the
world-wide markets Quality Standards
Development
Hand-painted benjarong bowls.
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E-Commerce Maturity Model3 levels of Development
c-Business Integrating/Collaborating with the
back office information systems, e.g inventory
and financial systems, and connecting with
business partners
3.
t-Commerce Ordering the products online (online
transaction), E-Payment could be available online.
2.
i-Commerce Products Information available on the
web, Buying and selling on the usual (analog)
channel e.g. telephone, and fax
1.
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TelecentersCommunity-based Access Centers

• ICT e-Commerce for Rural Development

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E-Commerce for Rural DevelopmentCommunity-access
centers - Pilot Projects
Telephone/Fax
E-Commerce of Local Products
E-Mail
E-Education
Printing Services
E-Tourism
News Services
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e-Commerce Telecenter Pilot Project for
Community Products and Local Tourist Attractions

• Community Access Centers
• e.g. telephones, fax, Internet access points
• Collaborative spirit with the community
• Information suitable to the need of the community
• Information available from the community
• Education, e.g. SchoolNet, Community Training
• Products Development, e.g. standards, packaging
• Marketing Management
• Logistics and Delivery
• Payment Transaction
• Research/Study e.g.
• Social and economics impacts of IT in rural areas

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Community owned operated Telecenters Pilot
Projects

• Collaboration between many agencies, such as
  NECTEC, Community Organization Development
  Institute (NGO), Private Company (under the
  project funded by CIDA)
• Pilot implementation prior to the enactment of
  National Information Infrastructure Law

According to Thailands Constitution Section
78 It is the responsibility of the State to
provide information infrastructure universally
and equally accessible to all.
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NECTEC Telecenters Project

• Starting small Learning from communities
• Concerning social issues, not technology issues
• Looking from the community perspectives/needs
• Community Opinion, Ownership Operation
• 4 pilot projects in 4 provinces Lampang,
  Pisanulok, Surin, and Chantaburi.
• Information Access E-Commerce Services
• Business Model Study, e.g. logistics, stocks
• Social Impact Study, e.g. impact analysis

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E-Commerce Strategiesfor specific-industrial
sectors

• E-Commerce for Fashion
• (Gems, Jewelry, Clothes, etc.)
• E-Tourism
• B2B e-Commerce (e-Distribution)
• are among the most successful e-commerce sectors
  in Thailand

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National e-Commerce Portals for Exporters

• A project commissioned byDepartment of Export
  Promotion
• Targeting 8,000 (certified) exporters

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Several success stories are emerging.
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ThaiGem.com B2C e-Commerce

• Capturing the worlds largest market share on
  online gems jewelry

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Trust Confidence Samples Of Some
Successful e-Business Practices
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e-Distribution e-Procurement Business Model
with B2B e-Commerce are flourishing.

• IT Distribution, e.g. www.value.co.th
• Construction-Supply Business, e.g.
  www.cementhaionline.com
• and many other sector specific industries.

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Lessons Learned from successful B2B e-Commerce
Business Models could be adopted, adjusted and
promoted for other industrial sectors.
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Several projects under e-Marketplaces start
capturing real benefits.

• FoodMarketExchange.com
• Pantavanij.com
• with e-procurement e-auctions business models

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Other e-Government Projects

• E-Government Procurement
• National e-Payment Infrastructure
• ebXML Initiative
• New Generation of EDI with Air Cargo Community
  System

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E-Government Projectstowards One-Stop Online
Services

• e-Filing (online tax filing), started in 2001
• GDI Government Data Infrastructure
• Clearinghouse for information about citizens
• Pilot Projects started in 2001
• E-Citizen Project
• EGP E-Government Procurement
• E-Consolidation is already in operation.
• E-Purchasing is under implementation

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National Payment Infrastructure
Information available at www.bot.go.th
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Payment 2004 A Road Map for Thai Payment Systems

• A co-operative effort (the central bank, the
  market, etc.)
• To review the current payment infrastructure
• To chart the road map to lay down strong future
  foundations for the countrys payment systems
• 5 major development directions
• 3 lead institutions
• Bank of Thailand (BOT)
• NECTEC
• Thai Bankers Association
• ebXML IFX (Interactive Financial Exchange) are
  possibly adopted as interoperable standards

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Institute for Innovative IT (I3T)

• A software RD institute of KU (officially by
  July 2001)
• Sponsored by NECTEC Kasetsart Univ (KU)
• Our Objectives
• Develop and Promote e-Commerce Open Source
  Software Components to the software
  community,based on ebXML and Web Services
• Promote and Transfer Software Development Process
  based on CMM to the local software community
• Promote and Transfer e-Commerce Technologies,
  i.e. Web Services Technology, Modeling with UML
• Strategy Collaboration with ECRC/NECTEC,
  Software Park of Thailand, Association of Thai
  SW Industry, etc.

CMM Capability Maturity Model for Software
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ebXML Mission The Next Generation of EDI

• Initiative by UN/CEFACT OASIS
• To provide an open XML-based infrastructure
  enabling the global use of electronic business
  information in an interoperable, secure and
  consistent manner by all parties
• Bring benefits of traditional EDI to SMEs social
  agenda
• To promote B2B e-Commerce Interoperable Standard

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IFX Interactive Financial Exchange

• An XML framework for B2B financial data exchange
• IFX Forum, founded 1997, to develop an open
  interoperable specifications
• 5 working groups
• Electronic bill presentment payment
• Business banking
• Credit application processing
• Insurance
• Aggregation

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Government Structure Reform

• Restructuring the government structure
• Effective by Oct 2002
• Ministry of ICT is emerging.

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Conclusion

• National Policy
• Development at the Grass Roots Level
• Bridge the digital divide gap with IT, but
• Emphasize more on the I than buying the T
• Focus more on content and skills than purchasing
  technology
• Local Heritage/Wisdom and Education Revolution
  towards Knowledge-based Economy
• IT 2010 combined within the 9th National Social
  Economic Plan (2001-2006)

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Conclusion

• E-Commerce as the national trade strategy
• Some large enterprises start to gain benefits
  from e-Distribution e-Procurement Models
• E-Commerce success stories are still exceptions,
  not a norm yet.
• E-Commerce for SMEs, especially exporters
• Legislation Frameworks are in place, but the
  practical business details still develop.
• E-Commerce for the grass root economy is the
  strategy of the government.
• Capacity Building SME Entrepreneurship

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Thank you

• For more information
• www.ecommerce.or.th
• www.nitc.go.th
• www.nectec.or.th
• Somnuk Keretho, Ph.D.
• Director, Electronic Commerce Resource Center
  (ECRC)
• National Electronic and Computer Technology
  Center (NECTEC)
• sk_at_ku.ac.th