ELECTRONIC COMMERCE

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Electronic CommerceEducation and Information
Presentation by T. A. Khan Senior Technical
Director, NIC Ministry of Commerce Industry,
Indiaand UN/CEFACT Rapporteur for Asia
takhan_at_ub.nic.in

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Outline
E-Commerce in IndiaHuman Skills Required for
ECCountry IssuesGovernment InitiativesConclusio
n
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E-Commerce in India
INDIA - GROWTH OF E-COMMERCE Year Total
E-Commerce Transactions (in Million
) 1998-99 31.138 1999-00
103.848 2000-01 489.154 2001-02 1595.066
2002-03 4253.509 2003-04 8507.018
Projections (Ref Nasscom-McKinsey study)
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E-Commerce in India

• INDIA - GROWTH OF INTERNET
• Date Internet Connections Users
• (in million) (in Million)
• Aug 15,1995 0.002 0.01
• Mar 31,1996 0.050 0.25
• Mar 31,1997 0.090 0.45
• Mar 31,1998 0.140 0.70
• Mar 31,1999 0.280 1.40
• Mar 31, 2000 0.900 2.80
• Dec 31, 2000 1.800 5.50

(Ref Nasscom-McKinsey study)
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E-Commerce in India

• Population 1012 Million
• As of December 2000, there was a PC base of 5
  million PCs.
• More than 120 private ISP's operational by March
  31, 2001
• More than 86 percent of top 100 corporate (who
  responded to the survey conducted in January
  2001) have endorsed the Internet and electronic
  commerce as being an integral part of their
  corporate strategic framework for next year

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E-Commerce in India

• The Internet and E-Commerce industry employs
  approximately 82000 people( ref Industry
  association study 1999) which include
• Web Developer, Web Designers, System Analysts,
  ISP Infrastructure Providers, Marketing Staff,
  E-Software professionals etc.,
• It is projected that by March 2003, the Internet
  and E-Commerce industry would employ over
  3,00,000 people.

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E-Commerce in India

• As per NASSCOMs HRD survey, there were
  3,40,000 software professionals employed in the
  country as on 31st March 2000
• By 2008 we would require 2.2 Million IT
  professionals 1.1 Million in the hard core IT
  sector and another 1.1 Million for the IT enabled
  services.

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E-Commerce in India

• Supply of manpower
• There are 1270 colleges (776 colleges awarding
  degrees in Engineering and Technology and 494
  colleges awarding MCA as on 04.05.2000) in the
  country with a total intake of 2,05,153(1999-2000)
  .
• 1032 (81.25) of them offer IT courses with an
  intake of 66,214 (32.17).

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Country Issues

• Telecommunication Infrastructure
• Bandwidth
• PC penetration/Internet penetration
• Legal Framework
• PKI
• Electronic delivery of public services
• Payment gateways
• Education and awareness

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Human skills required for EC

• Developing Electronic Commerce solutions
  successfully across the Organisation means
  building reliable, scalable systems for
• security,
• E-Commerce payments,
• supply-chain management,
• sales force, data warehousing, customer relations
• integrating all of this with existing back-end
  operations.

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Human skills required for EC

• It's not just about E-commerce
• It's about redefining business models,
  Reinventing business processes,
• Changing corporate cultures, and
• Raising relationships with customers and
  suppliers to unprecedented levels of intimacy

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Human skills required for EC

• Internet-enabled Electronic Commerce
• Web site development
• Web Server technologies
• Security
• Integration with existing applications and
  processes

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Human skills required for EC

• Information Technology for Integrated Electronic
  Commerce
• LAN/WAN infrastructure planning
• implementation Internet/Intranet Electronic
• Commerce solutions

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Human skills required for EC

• Security
• Security issues for buying and selling over the
  Internet and approaches for business

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Education and Awareness on EC

• Private Institutes
• Online education through web
• Government Institutes/Colleges
• Conferences/Exhibitions

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Government Initiatives

• Indian Government constituted National Task Force
  on IT SD
• Institutional setup
• EC Council of India
• India EDIFACT Committee
• Technical Assessment Group
• HRD Group constituted

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Government Initiatives

• Message Development Groups for
• Customs
• Ports
• Airports
• Finance
• Private sector
• EDIFACT standards declared as national standards

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Government Initiatives

• On going awareness programs
• Legal backup to EC/EDI documents
• Process re-engineering committees
• Sectoral implementation committees
• Establishment of Article Numbering Bar Coding
  Institution

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Government Initiatives

• Indian Institute of Foreign Trade(IIFT),
  Federation of Indian Export Organisation (FIEO),
  All India Management Association (AIMA), National
  Informatics Centre (NIC) nominated for creating
  education and awareness
• Courses for various level of management were
  structured

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Government Initiatives

• Financial assistance given for setting up
  Electronic Commerce laboratories
• AICTE recommended to include Electronic Commerce
  as an essential part of every technical and
  management program

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Government Initiatives

• Conference and Exhibition on EC is organized on
  regular basis
• Session on EC for CEOs of top Indian companies
  is organized during every conference

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Government Initiatives

• Launch of Auto EC Pilot project
• Pilot EC projects for healthcare and other
  sectors

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Government Initiatives

• Internet based EC
• Web based application
• Internetworking of VANs

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Government Initiatives

• Industry leaders in sectors like
  Pharmaceuticals, Chemicals, Gems Jewelry,
  textiles, Trading etc., are encouraged to start
  pilot EC projects.
• Ministry of Commerce to provide support for
  all pilot EC projects.

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Government Initiatives

• All Trade bodies like CII, ASSOCHAM, FICCI
  etc.., encouraged to start Awareness and
  Education programs on EC/EDI for their members
  for which services of AIMA, NIC, IIFT and FIEO
  could be availed.

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Conclusions

• Education and information on EC has a very
  vital role to play specially in the developing
  countries where most of the players are in SME
  sector. Two main challenges before us are to
  provide the required numbers and improve quality
  to raise productivity and moving up the value
  chain.

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Conclusions

• Governments jointly with private sector need to
  take adequate measures for the promotion and
  propagation of EC to make trade and industry
  competitive in the global trade.

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