ICT, E-BUSINESS AND SMES ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT 2 FOREWORD This report was undertaken by the Working Party on the Information Economy (WPIE),
and carried out in co-operation with the Working Party on SMES and Entrepreneurship. It was prepared for the second OECD Conference of Ministers Responsible for SMES held in Istanbul 3-5 june 2004
These messages and recommendations provide material from which governments may draw in promoting innovative SMES in the global economy.
4 Business environment...4 Network infrastructure...4 Trust infrastructure...5 Digital products and information services...
5 Skill upgrading...5 Intangible investments and assets...5 Information...5 Government on-line...6 Competition...
6 Intellectual property...7 INTRODUCTION...8 I. BENEFITS AND USE BY SMALL BUSINESSES...9 Benefits of ICT and Internet use...
9 ICT adoption and firm performance...11 Use of ICT and Internet among SMES...11 Adoption of Internet e-commerce by SMES...
44 4 ICT, E-BUSINESS AND SMES EXECUTIVE SUMMARY Information and communication technology (ICT) connectivity (PCS and Internet) is very widespread in businesses of all sizes.
and the structure of their values chains and operations shape opportunities for small and medium size enterprises (SMES).
and little incentive to change business models when returns are unclear. SMES also face generic barriers to adoption including trust and transaction security and IPR concerns,
The issues for governments are to foster appropriate business environments for e-business and ICT uptake (e g. to diffuse broadband,
enhance competition), and target programmes to overcome market failures to the extent that they are needed in particular areas (e g. skill formation, specialised information).
Business environment A healthy business environment is fundamental for firms to thrive and benefit from ICTS.
It accelerates the contribution of ICTS to economic growth, facilitates innovation, and promotes efficiency, network effects and positive externalities.
and effective use of broadband services require policies that: promote effective competition and continued to stress liberalisation in infrastructure, network services and applications across different technological platforms;
encourage investment in new technological infrastructure, content and applications; and technology neutrality among competing and developing technologies to encourage interoperability,
innovation and expand choice. Public financial assistance to expand coverage for under-served groups and remote areas could complement private investment where appropriate,
provided it does not preempt private sector initiative or inhibit competition. 1 1. OECD (2004), Recommendation of the Council on Broadband Development;
OECD (2003) Statement by the OECD Committee for Information, Computer and Communications Policy, Broadband driving growth:
policy responses, 3 october. 5 Trust infrastructure Get the regulatory infrastructure right for trust, security, privacy and consumer protection.
Essential are a culture of security to enhance trust in the use of ICT, effective enforcement of privacy and consumer protection,
Strengthened cross-border co-operation between all stakeholders is necessary to reach these goals. Of particular relevance for small firms are lowcost on-line dispute resolution mechanisms among firms
and between firms and consumers. 2 Digital products and information services These are an increasingly significant part of economic activity
and they offer important opportunities to small firms. Government and the private sector have key roles in facilitating content availability across all platforms
Intangible investments and assets Firms increasingly rely on intangible investments and assets (skills, organisation, software, networks) for competitiveness and growth.
measure and report intangible investments and assets still need to be developed and be accepted widely. There is a significant role for governments in conjunction with business associations
OECD (1980), OECD Guidelines on the Protection of Privacy and Trans-border Flows of Personal data. 6 Government on-line On-line provision of government information and services can increase the efficiency and coverage
As model users of broadband, government can demonstrate the potential of broadband-based services and content, provide demonstration and pull-through mechanism for small firms.
Government demand aggregation to provide services can help spread new services more widely. Education, general government information and services
and provision of government services to businesses and citizens can all potentially benefit from the use of new high-speed infrastructure and services,
and should be given priority in government strategies. Key Policy Recommendations Move beyond policies for basic connectivity and ICT readiness to facilitate more widespread uptake and use of complex ICT applications and e-business uptake by small firms.
and promote broadband competition and liberalisation in network services and applications. Where the needs exist,
and without preempting private initiative or inhibiting competition, complement private investment with public financial assistance to expand coverage for under-served groups and remote areas.
Strengthen the infrastructure for trust, security (including spam and viruses), privacy and consumer protection. Intellectual property protection of ICT innovations and digital products is necessary to build the confidence among SMES that is essential
Strengthen cross-border co-operation between stakeholders and the development of rules with cross-border application.
E-government services to enterprises should be used as a tool to improve efficiency of government interactions and operations with SMES.
Competition Governments and competition authorities need to be aware of the impacts of e-business networks on small firms.
E-BUSINESS AND SMES INTRODUCTION Information and communication technology (ICT) and e-business applications provide many benefits across a wide range of intra-and inter-firm business processes and transactions.
In addition, they are effective tools for improving external communications and quality of services for established and new customers.
The situation is similar for small and medium-sized enterprises (SMES), although they lag behind larger firms in Internet transactions.
benefits must outweigh investment and maintenance costs. Commercial considerations and potential returns drive adoption. Beyond a certain level of connectivity (PC, Internet access, on-line information or marketing), not all SMES will necessarily catch up with large firms,
and availability and cost of appropriate interoperable small-firm systems, network infrastructure and Internet-related support services.
and improve the quality of network infrastructure and legal and regulatory environment, foster technological diffusion and create a favourable business environment.
Beyond these general framework policies, specific policies for SMES have focused on ICT and e-business awareness programmes,
business consultation services and employee and management training to enhance ICT and managerial skills. Policies have shifted over time as firms
and economies have moved from concentrating on ereadiness and connectivity, to diffusion and use, and are moving towards mature e-business strategies
which blend broad policies for the business environment with polices for particular areas such as IPRS and competition.
and providing them with information to assess the opportunities and costs of e-business. However there is no one-size-fits all approach to policy
or lagging countries) and sectoral distribution of economic activity, as well as size factors. 9 I. BENEFITS AND USE BY SMALL BUSINESSES SMES3 have recognised gradually the positive impact that ICTS, such as computer terminals,
most small firms, including micro-enterprises with fewer than ten employees, now have at least one computer terminal, usually with Internet access.
Communication via e-mail and the Internet can help to improve external communication, in either B2c or B2b contexts,
ICT and its applications can make communication within the firm faster and make the management of the firm's resources more efficient.
For example, customer databases with a history of client-specific correspondence help managers and employees to respond more effectively to customers.
Internet-based B2b interaction and real-time communication can reduce information asymmetries between buyers and suppliers and build closer relationships among trading partners (Moodley, 2002.
3. In this document, small and medium-sized enterprises (SMES) are firms with fewer than 250 employees
the sale or purchase of goods or services conducted over the Internet, with the goods and services ordered over the Internet,
and payment and ultimate delivery of the goods or services either on line or off line.
The OECD's broad definition includes transactions conducted over computer-mediated networks, such as the Internet, EDI (electronic data interchange), Minitel and interactive telephone systems. 10 In the B2c context, the Internet and e-commerce can be effective tools for better communication.
A corporate Web site that provides information on products, services or technologies can enhance the quality of a firm's services to customers
and attract new customers. By collecting information on customers'needs it can be used for product development or innovation.
A home page with a direct link to the corporate e-mail account provides an easy-to-access contact point.
For those in different time zones, 24-hour availability of the contact is especially attractive. Eurostat's E-commerce Pilot Survey shows that SMES'motives for Internet commerce include reaching new/more customers, geographic expansion of market and improvement of service quality.
Box 1. ICT use for better internal communications and customer management In SMES, there is often insufficient sharing of business information between managers
and employees and among employees in part because the personnel's daily routine tends to be extremely busy.
To improve a firm's responsiveness to customers client feedback and information on employees'professional experience, such as know-how for winning a contract,
Some SMES have exploited ICT effectively to improve internal communications and have improved their reputation through swift responses to customers'complaints
and an ability to capture clients'(hidden) needs (METI, 2001). A Japanese company with 40 employees,
which allows every sales person to access general information about customers and previous correspondence concerning their complaints.
which customers'claims and inquiries are updated categorised and daily. These companies'intranet and electronically integrated customer database not only provide the latest client-related information,
and marketing capability to gain access to new customers and to expand their markets geographically.
It can therefore provide small players with an opportunity to join and compete in a wide variety of supply chains,
Some small firms with leading-edge technologies and/or unique products and an on-line presence have received substantial capital from larger firms (Sakai, 2002.
Extensive use of ICT can allow micro-enterprises with ideas and technologies to remain small and profitable,
and some micro-enterprises have generated substantial global sales by exploiting their intellectual property over the Internet. 11 ICT adoption
Use of and investment in ICT requires complementary investments in skills, organisation and innovation and investment and change entails risks and costs as well as bringing potential benefits.
While many studies point to the possibility of market expansion as a major benefit for SMES
especially when they used communication technologies, including company-wide and/or inter-company computer networks. Recent OECD analysis shows the impacts of ICTS
expanded product range, customised products and better response to client demand. Moreover, it indicates that ICT may help reduce inefficiency in the use of capital and labour, e g. by reducing inventories,
and that the more customers or firms are connected to the network, the greater the benefits (spillover effects).
However, the analysis shows that complementary investments in skills, organisational change and innovation are key to making ICT work,
and that the use of ICT affects firm performance primarily when accompanied by other changes and investments and that without these,
the economic impact of ICT may be limited. Use of ICT and Internet among SMES The use of ICT by SMES is increasingly common according to survey for OECD countries.
While Internet penetration is generally higher in larger enterprises the gap between larger firms and SMES is narrowing.
Small firms (10-49 employees) have a slightly lower penetration rate, between 60%and 90%(Figure 1). Even in micro-enterprises,
as measured by profit or sales, is associated not with computer use (Bitler, 2001). 12 Differences in Internet access in the 21 countries for
which data are available seem to be greater for smaller enterprises. The Nordic countries have a more homogeneous distribution across firms of different sizes,
-249 250 and more 10 and more Note 1. In European countries, only enterprises in the business sector,
The source for these data is the Eurostat Community Survey on enterprise use of ICT.
and only includes enterprises with NZD 30 000 or more in turnover. Switzerland includes the industry, construction and service sectors.
OECD, ICT database and Eurostat, Community Survey on ICT usage in enterprises 2002, May 2003.
(and e-mail) for better external communications and as a means of obtaining business information. In Japan, the most common use of the Internet is general information searches (Figure 2). Other uses include communication via e-mail,
providing information about a company's products, services and technologies via the corporate Web site, order exchanges with regular customers, recruitment and receiving customer feedback.
Some SMES purchase some standard materials office equipment and software over the Internet, but only a small share conduct B2c and B2b Internet e-commerce for nonstandard products.
Around 60%of the firms with the Internet use it to learn about competitors, customers or suppliers.
Other major uses include providing product information (56%),setting up a Web page (54%),purchasing goods/services (53%)and building customer connections (48%)(Scally et al.
exhanges with regular clients PR of products/services/technologies E-mails with clients Genral information search Note:
it still accounts for a relatively small proportion of economic activity for firms of all sizes.
1. 2%in the United states. Shares for SMES are probably lower than these shares for the whole economy (see OECD 2002b and 2002c).
wholesale and retail trade, hotels and restaurants, transport, storage and communications, financial intermediation, real estate, renting and business activities.
Denmark and Norway also survey personal services. 1. Beginning of 2001 for Internet use; purchases and sales refer to 2000, for Canada,
In Australia, over the period July 1999-June 2001, selling over the Internet by micro-enterprises with 5-9 employees declined from 16%to 13%and by firms with 10-49 employees from 21%to 18,
%In Norway, only 12%of micro-enterprises with 5-9 employees engaged in on-line sales in 2001, down from 21%in 1999,
In mid-2003, e-Choupal services reached more than 1 million farmers in nearly 11,000 villages.
External relations with customers as well as internal processes are being linked. Marketing and sales, logistics and delivery, after-sales service, supply chain management
and countries and are most commonly related to lack of applicability to the business, preferences for established business models,
or services did not lend themselves to Internet transactions. Figure 7. SMES in Europe: Reasons for not using the Internet for selling,
%40%50%Do not trust technology/security Customer's access to Internet is insufficient It w ould not pay off No skilled personnel Does not apply to the type of enterprise/product Micro firms w ith 0
) The most common ICT application used by these firms is automation of communications and none had conducted B2b or B2c e-commerce.
Some SMES in transport services also consider that the Internet does not suit their industry.
Very few of its regular customers had used the Internet, and some preferred receiving confirmation of their order via fax or telephone.
They may wish to retain their current business model and avoid the risks associated with new investments and new business models.
Strong links with customers and suppliers along the value chain as well as the lack of competition in the related market may also discourage businesses from introducing new business models
which would threaten existing transactions channels. Enabling factors: internal ICT and managerial knowledge SMES generally lack the human technological resources needed for ICT and e-commerce,
. If firms can access affordable outside ICT services, lack of ICT expertise within the firm is not necessarily an obstacle to the decision to adopt Internet e-commerce.
However, internal technological capabilities still matter because adoption of e-commerce cannot succeed without an understanding of the e-commerce business model.
Without internal technological capabilities, dependence on ICT support services for system maintenance can be dangerous
If ICT support services especially in an emergency, are needed to minimise the loss from a system malfunction,
The existence of local ICT services is an important issue, especially for small offices in remote areas or emerging economies,
where ICT services are generally scarce and costly. 21 Box 3. A magnet manufacturer's e-commerce success Ni-roku is a Japanese magnet manufacturer with 12 employees,
although they still do not accept customers outside of Japan. In 1996 a company employee bought a personal computer at his own expense to use the Internet.
A free magnet offer campaign on the Web site combined with an on-line questionnaire to (potential) customers lured 1 000 visitors to the site during the peak early month.
and are less sure of the expected returns on the investment. Some SMES cannot afford to adopt sophisticated ICT solutions (e g. a Web site with a secure environment for credit card transactions.
Some small businesses, especially micro-enterprises with 1-9 employees or the self-employed, may adopt a simple Web site without any e-commerce function
if the cost of basic Internet use is well within their marketing Budget for example, in the United states, typical Internet charges USD 10-35 a year for a domain name (i e.
Percentage of total investment in Internet e-commerce. N=34. Source: Ernst & young (2001. Logistics services, e g. package collection and delivery, also matter.
While they can be subcontracted to private delivery services, some may charge higher rates to small businesses because of their location and/or small volume (Phillips, 2002.
This is a real concern for small businesses, especially those in remote districts where private package collection/delivery services may not be available at reasonable cost.
Items such as software, music and books can be delivered over the Internet, but the volume of such on-line delivery is still very small.
They are concerned more about how to increase their profits by using e-commerce than about costs of adoption.
access and interoperability The availability of a wide range of Internet connections and other communication services, preferably at competitive prices, is very important in that it allows small businesses to choose different and appropriate services according to their specific needs and (initial
although the development of reliable fixed communication networks is an important policy area for e-commerce readiness,
especially in the emerging economies (Box 4). Most OECD countries have a similar number of fixed telecommunication access lines,
and globally competitive IT and ICT-enabled services industry. 23 Figure 9. Fixed and mobile phone growth in seven non-OECD countries and the United states per 1, 000 people 1195.6 1
Increased competition in the telecommunications industry has been driving down access costs. For example, prices of leased lines,
have fallen significantly in recent years, following widespread liberalisation in the communications sector in Europe (Figure 12).
OECD, Telecommunications Database, June 2002.26 Box 4. Network infrastructure in developing economies For most developing economies the highest priority is to put in place the network infrastructure and a competitive environment
Developing countries with widespread access to telecommunications and network services (i e. 40 mainlines or more per 100 people) are rare.
for example, telecommunication operators are required to contribute 1%of total revenues to a fund aimed at providing services to those excluded from the market.
but the major target audience was potential clients and investors, not individual customers. Some placed detailed corporate information on the site to illustrate their technology and financial base (Tiessen et al.
As more on-line clients demand secure transaction environments, SMES are likely to face increasing costs for system protection and security measures (Phillips, 2002).
and business environment is developed not well, and these barriers will take precedence particularly for SMES.
and a favourable business environment is established well, concerns are similar to those in OECD countries,
48.6 45.4 44.7 45.3 44.2 Customers do not use the technology 26.9 27.4 26.9 48.5 20.0 47.6 33.6 27.8 32.6 31.4 Finding staff with ecommerce
such as the use of a common currency, differences in legal and regulatory environments are one of the most important.
Legal uncertainties and conflicting regulatory environments for cross-border transactions, especially B2c, may affect SMES particularly strongly.
and hardly justify costly legal procedures or even other (self) efforts, such as insisting on contract fulfilment through available means of communication (e g. phone, fax,
Cost factors (cost of reaching customers, cost of engaging in e-commerce, telecommunication costs) were seen also as largely positive for adopting firms
and the wider business environment. 30 In other areas small and large firms had similar concerns,
For example they were positive about costs of engagement (investment costs) in e-commerce and highly positive about their strategies reducing costs to reach customers,
with small engaged firms being almost as positive as large ones (OECD, 2002a. 31 III.
and possibly more targeted range of customers either locally or globally, either in B2b transactions (automobiles, textiles) or B2c transactions (textiles, tourism, parts of retail
When firms perceive a higher level of market opportunities, they commit more resources to ICTS
A slightly higher percentage of firms in manufacturing, wholesale and business services receive orders over the Web than those in retail and construction.
%80%Construction Retail Wholesale Manufacturing business services Distribute information on products Receiving orders Order confirmation Source:
and business services: 910. Tourism In tourism, an area dominated by SMES in OECD countries, some small tour operators, hotels and inns, restaurants and travel agencies have been active in fostering cross-border Internet e-commerce.
Small players with a Web page can now attract those preferring personalised (and possibly less expensive) services.
Since the Internet and many travel-related sites allow on-line customers to compare the price of 32 air tickets and other travel services,
On the other hand, the number of potential customers, some of whom may prefer a smaller agency's prices
and services, is not small: in the United states, over 64 million people used the Internet for travel planning, little changed from 2002 due to the slower growth of wired households,
and can represent an important last-minute solution for customers. Transaction costs over the Internet can be significantly lower than those of traditional distribution channels.
Retail Use of Internet commerce among SMES in the retail industry is lower than in business services and manufacturing.
because customers may prefer not to make a purchase at a small on-line shop without knowing about its product/service quality and reputation.
Expectations of a higher level of services from better-known retailers, such as swift and reliable delivery of the purchased items,
A strategy for small on-line retailers would be to handle niche products and/or personalised services,
which customers may not receive from larger shops. Some small on-line book retailers have been successful by distinguishing themselves from others through specialisation in particular kinds of (professional) titles
Others have attracted customers worldwide by offering both specialised products and customised services (Box 5). 33 Textiles Textile products,
along with music and video, books and magazines and software, are among the leading consumer products sold over the Internet (OECD, 2002c).
In fact, the small size of B2c e-commerce generally does not justify a small retailer's investment.
The site has attracted customers not only in the United kingdom and Ireland but also throughout the world Australia;
The Web site now includes a customer feedback page that carries comments by customers who have bought an instrument through the site.
Some customers, impressed by the presentation of the instrument on the site visit the physical shop.
Many first-tier suppliers in Europe, Japan and the United states have established real-time connections with large car manufacturers to respond to the latter's requests for design/production processes reflecting their changing demands and specifications for justin
(i e. their customers) and customer push has been a major factor in the adoption of EDI by the sector (Iskandar et al.,
and these benefits of EDI are considered to be largely in favour of their customers. To realise larger benefits by streamlining business information and materials flows,
EDI systems in advanced OECD countries have attempted to integrate different communication networks into a single Internet network.
in part due to problems in designing a global business model for these exchanges and in part due to difficulties attracting small suppliers.
The products of services like tourism, which are intangible in nature and have a high information content,
where firms perceive a higher level of market opportunities, they tend to commit more resources to e-commerce.
Barriers such as lack of technological capabilities and ability to identify business opportunities are greater for SMES than larger firms.
In many countries business and sector organisations are particularly important intermediaries for the diffusion of ebusiness strategies, awareness raising and consultation services,
from fostering technological diffusion to creating a favourable business environment with fair and predictable rules.
These are drawn from both general enterprise policy and from ICT policies. The overall policy framework is no different for SMES than for larger firms except for some areas such as competition where there are differences in impacts between small and large firms.
In addition, the policy agenda has also been evolving, with the focus shifting from connectivity and building simple web presence,
and target smaller enterprises that are potential or low-level users that could further benefit from more extensive use.
The availability of a wide range of high quality Internet and communication services at competitive prices is particularly important
as this allows firms to choose services appropriate to their needs. In particular, broadband, characterised by high-speed, always-on connection and two-way capability, allows faster access and delivery of existing on-line services and new applications and services such as streaming audio and video over the Internet
with much higher quality. In this context, an additional focus on the wireless network infrastructure and the rapid growth of Wifi are also important.
The price and availability of broadband access depends to a large extent on competition in the infrastructure market
Policies to open up incumbent local access networks to competition (e g. unbundling local loops and line sharing) create incentives for new investment in broadband access and drive faster deployment of broadband services (OECD, 2001c).
From 1997 to 2001,26 OECD countries introduced or decided to introduce unbundling. Unmetered pricing is also important for wider use of broadband.
High-speed services are priced advantageous when on a flat-rate monthly basis and service is always on (OECD, 2001b).
so that SMES can choose among various technologies and services for high-speed Internet access. While some large firms use directly connected leased circuits for broadband applications,
smaller enterprises are likely to prefer technologies using a traditional telephone line, such as DSL, as these generally represent the initial opportunity for SMES to obtain affordable higher speed Internet connections (OECD, 2001b).
In developing countries, multi-user services can be a very important tool for increasing coverage
and use of advanced services and could be supported where universal service is difficult to attain (see E-Choupal example in Box 2). Assessing benefits relative to costs SMES will adopt e-commerce
when benefits justify establishing and maintaining the e-commerce system. Firms need to make realistic assessments of e-commerce/e-business opportunities, benefits and costs.
Policy measures that, for example, encourage business associations or other groups to provide awareness-raising and consultation services can be beneficial.
Such initiatives can also encourage SMES to develop niche products and personalised services not provided by larger firms.
On the cost side open source software has been proposed as an economically viable solution for establishing and upgrading ICT systems.
Financing may be an issue even after identifying beneficial e-commerce/e-business opportunities. Many commercial factors inhibit small business debt financing including high transaction costs for small loans, lack of sufficient collateral and high risk in innovative start-ups and micro-enterprises.
To the extent that this is an issue it may be important to minimise discriminatory behaviour to improve small firms access to financial resources.
especially when consultation services are provided to help develop business strategies based on realistic assessments of benefits and costs. 37 Security,
and consumers that their use of on-line services is secure, reliable and verifiable. Businesses need a legal framework that is predictable and practical for domestic and cross-border transactions.
High levels of concern about on-line security, changes in technologies and the overall on-line environment are reflected in the 2002 OECD Guidelines for the Security of Information systems and Networks:
In B2b transactions problems are reduced because of the limited number of suppliers or customers, but cross-border transactions with new and unknown partners still present challenges.
From the SME point of view, ADR advantages include speed, economy, flexibility and neutrality. It is also more effective for smaller cross-border transactions
and customers because it provides an easy-to-access redress procedure and may also save travel costs,
because legal issues are more likely to arise for cross-border transactions between countries with different regulatory environments.
adopting and adapting laws to ensure sufficient consumer protection in the on-line environment. The guidelines also complement other government
including delivery of recommended guidelines for on-line consumer protection. 38 Competition issues Ensuring competition and entry opportunities for other market players,
While Internet commerce provides SMES with opportunities to participate in new supply chains and markets,
Competition authorities need to monitor possible anti-competitive behaviour as the electronic marketplace evolves. Technological factors also come into play.
Most competition authorities in OECD countries, independently or in co-operation with others in different jurisdictions, have examined how on-line markets
and customers that could exercise anti-competitive pressures and lock in..E-government E-government, the provision of government services on line, has high priority in many OECD countries.
Such on-line activities offer benefits for governments, including greater efficiency and transparency and expanded provision of information and services (OECD, 2002b).
Examples include the provision of government services on-line, the simplification of administrative tasks such as value-added tax administration and business tax lodgement and collection.
These on-line activities can also have significant effects on small businesses as they need to ensure access to government services
and obligatory requirements and interoperability with these services, affecting their choice of systems and software.
Technology neutrality and the interoperability of a variety of network infrastructures and software is essential
supply chain management, inventory, logistics and delivery, after-sales services, and other crucial business functions such as knowledge management, and finance.
and focus on self-assessment of opportunities, benefits and costs of e-business. Third is need a to coordinate
In addition to a government portal covering a wide range of e-business issues with links to related support services, seminars and workshops that demonstrate possible integration of ICTS
for example the E-business Guide developed by Australia's National Office of the Information Economy is a comprehensive on-line resource that is aimed at business people who want a quick and easy explanation of e-business;
NET An industry-led, not for profit, national initiative to foster awareness of e-commerce among SMES.
Austria Let's e-Biz The on-line information source established by the Ministry of Economics and the Chamber of commerce covers all aspects of e-business.
Industry Canada works closely with the E-business Opportunities Roundtable, a private sector initiative, on a series of regional events to help SMES understand
In the first place, they should help SMES self-assess the costs and risks as well as opportunities related to ebusiness.
and support services to develop a customised e-business strategy. Free consultation, including (limited) access to private services,
has been available in some countries, while some governments have covered part of charges. In the United kingdom, e-business advisers have provided small firms with free advice
Training is provided increasingly over the Internet and, in some cases, in conjunction with ICT and e-commerce awareness and business consultation services.
The UK Online for Business initiative is an example of such a programme, combining on-line information and consultation services with off-line business support services.
however, might fail to effectively respond where SMES'demands for ICT skills are dramatically changing and more specialised.
Commercial training services may be more sensitive to businesses'changing and specific needs and government training programmes need to cooperate fully with commercially available services.
Governments may also need to encourage a favourable business environment for provision of private ICT training services at a reasonable cost.
Business management capabilities are becoming a new category of generic competency in the context of overall management of business processes, rather than ICT technologies alone.
such as how to effectively integrate e-business processes into existing business models and strategies to change organisational structures. 42 Table 3. Examples of ICT/e-commerce training programmes for SMES Country Programme Description Belgium Forem Forem and the Institute
Spain A programme is designed for micro-enterprises (fewer than 20 employees) in small towns with a special emphasis on training in the use of the Internet, e-mail and new management techniques.
At a state level, various training services are available. Business Information Centres and Small Business Development Centres provide free or low-cost up-to-date training.
The EU covers a wide range of e-business environment, Internet and ICT use issues. eeurope 2005,
and general framework policies including access to infrastructure, a seamless legal/regulatory environment, on-line security,
and economies have moved from concentrating on ereadiness, connectivity and awareness, to diffusion and use, and are moving towards mature e-business strategies
which blend broad policies for the business environment with polices for particular areas such as IPRS and competition.
Encourage business and sector associations to provide tools to assess e-commerce/e-business opportunities benefits and costs,
and the development of niche products and services. Reduce discriminatory access to finance, and improve information regarding financing opportunities.
These issues may be of particular importance in developing non-OECD countries. Training programmes for SME managers
and sector organisations, training institution and commercial training services. Continue to ensure open, competitive telecommunication markets that offer a range of interoperable technological options and network services (particularly broadband) of appropriate quality and price.
This is a crucial factor in developing non-OECD countries. Address security trust and confidence through broad policy frameworks, regulatory and self-regulatory tools, trustworthy technologies and affordable redress mechanisms.
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