Introduction to EBusiness International, Regional and Local Perspective

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Introduction to E-BusinessInternational,
Regional and Local Perspective
Presented by Rabindra Jaggernauth Partner Ernst
Young Caribbean rabindra.jaggernauth_at_tt.ey.com
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Agenda

• What is E-Business
• Prerequisites for a successful E-Business
  Environment
• What does this mean for SMEs

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Definition

• E-Business is the use of information and
  communication technologies to create new business
  relationships, enhance existing ones and increase
  the efficiency of business processes without the
  constraints of time or geographical barriers.

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Relevance of ICT

• According to the Brookings Institute, 85 of
  market value of an enterprise comes from
  intangible assets while only 15 comes from
  tangible assets
• The largest part of the intangibles being
  information.
• Whether Information Technology is important, is
  not a question any more.
• The use of ICT will be the major driver of
  economic wealth in the 21st century

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Opportunity

• Does Trinidad Tobago understand and accept that
  circumstances have created a unique window of
  opportunity?
• Will Trinidad Tobago move to seize this
  opportunity?

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Caribbean are no longer islands

• Rapid changes in telecommunications have changed
  business models and the nature of work
• Time and place are irrelevant for many types of
  intelligent work
• How will this affect Trinidad Tobago and its
  ability to create high paying employment?

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Options

• Trinidad Tobago can
• Make it happen
• Watch it happen
• Wonder what happened
• Who will make it happen?

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Old Vs. New Economy
Old
New
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Consumers Old Vs. New Economy
Old
New

• Conforming to mass needs
• Local orientation
• Used to limited alternatives
• Product oriented

• Need for individual, customised products
• Global orientation
• Convenience oriented, demanding multi-channel
  choice
• Added value, service oriented

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Business Characteristics Old Vs. New Economy
Old
New

• Cost saving through vertical integration
• Consumer visits location/inspects goods
• Market infrastructure constrains quick changes
• Limited choices through predetermined channels
• Business based on distribution network

• Flexibility through outsourcing
• Choice by on-line description
• Market infrastructure enables quick changes
• Many choices through multi-channels
• Business based on content and added value

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The new global reality Technology Innovators

• Globally shift in process of wealth creation
  from old economic model to new digital model
• Technology Innovator countries investing
  heavily in network infrastructure
• Exploiting synergies between computers and
  telecommunications increasing productivity and
  lowering costs
• Supporting research and development and education
  building the base to compete in global
  information technology markets
• Have increased trade with each other through
  E-Commerce, E-Business, and hence more growth

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Enormous challenges to developing countries

• Low income
• The poor ICT infrastructure
• Relatively low bandwidth
• Lack of awareness on E-Business issues
• Inadequate legal and regulatory framework
• Absence of trust
• Network payment and secure transaction services
  not present

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Trinidad Tobagos Goal
To leap full force into the digital economy
and To leave no citizen of Trinidad Tobago out
of the new economic opportunities.
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Prerequisites Scorecard
TT
BB
JM
OECS
Legal framework
Sound ICT infrastructure
Competition in telecoms
Government incentives
National ICT Plan
Payment services
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E-Readiness Needs

• Competition in the telecommunications space
  (including cellular and ISP)
• National broadband policy
• Fiscal incentives to encourage widespread
  adoption of ICT
• A kick-start to ICT development
• Government to provide important services
  electronically, giving people and organizations
  compelling reasons to be online

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E-Readiness Needs

• Skilled IT managers to implement ICT initiatives
• Schools with high-speed Internet connections
• ICT education incorporated into the core
  curricula at the primary and secondary levels
• Educators that are properly trained to provide
  instruction using new tools and techniques
• Firms adopting ICT in a more meaningful way
• Increase innovation and efficiency
• Encourage skilled workers to seek opportunities
  in TT

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Role of Government

• Implementation of legal, economic
  infrastructural framework
• Appropriate treatment of issues such as taxation
  of e-Commerce trade
• Understand and integrate effect of Internet
  technologies in policy formation and planning
• Liberalisation of telecommunications sector to
  spur its development
• Active aggressive implementation of Internet
  technologies in the public service

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What does this mean for SMEs

• Leap of faith
• Cannot stay on the sidelines
• The investment is less than you think
• Do not rely on Government
• If you do not exploit E-Business, others from
  outside our region will
• Just because you may not understand does not mean
  that you should do nothing

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e-Strategies by Sector

• Banking/Finance
• Entertainment/Social
• Logistics/Trade
• Oil Gas
• Travel/Tourism
• Government
• Environment
• Education
• Caribbean to the World
• The World to Caribbean

Technology
Human Resource
Social Impact
Knowledge
Alliances
Etc
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The Big Payoff

• Increase in the quality of life
• Increase in the economic base of TT
• Increase in overall GDP
• Decrease the dependence on the traditional
  contributors to the economies
• New work opportunities

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Consider This.

• Nothing stays the same, and, if you dont want
  to grow, you will soon be passed by those who do!
  If we dont keep the future alive with realistic
  planning, then the alternative looks awfully
  grim
• Herodotus 324 BC