Regular internet usage overall Among disadvantaged people 75%by 2015 60%by 2015 60%by 2020
Population that has used never the internet 15%by 2015 30%by 2020 48.0%(2012 Citizens using egovernment
never used the internet Citizens using egovernment Returning completed forms 2. 2. Ensuring social inclusion for growth
Regular internet usage overall Among disadvantaged people Population that has never used the internet Key cross-border public
services, online 4. 2. Improving social inclusion through access to broadband ICT infrastructure IV-Fast and ultra-fast
ï Websites located on Internet Ministry for Information Society (responsible All Ministries offering public services Page 20 of 170
internet regularly Target: 75%by 2020 %individuals from the category of those disfavored using the
internet Target: 50%by 2020 %of pupils trained with TIC skill Target: 75%by 2020
Internet usage at the regional level Promoting the system of â€oelearning together†Involvement of HR services within
Internet usage at the regional level Promoting the system of â€oelearning together†Involvement of HR services within
internet regularly Target: 75%by 2020 %individuals from the category of those disfavored using the
internet Target: 50%by 2020 %of individuals who have never used the internet Target: To be defined
based on Appendix 5 Methodology %of pupils trained with TIC skill Target: 75%by 2020 %education facilities using
internet to order goods and services from other countries members of the UE. Target: 10%by 2020
internet to order goods and services Target: 30%by 2020 #of competency centers developed on a regional
#of broadband internet connections Target: To be defined based on Appendix 5 Methodology #of fixed telephony lines
access to internet broadband (at least 30mbps Target: To be defined based on Appendix 5 Methodology Simplifying the Authorization Ministry for Information
The combination of the use of advanced ICT, especially the Internet, and the support of new ways of
initiative to a restrictive definition of delivering transactional public services over the Internet, but mainly egovernment should mean â€oethe transformational approach enabled by the use of information technology
ï telecom infrastructure (calculated depending on%of internet users,%of subscribers of fixed telephony,%subscribers of mobile telephony,%internet subscribers in fixed line and
%broadband subscribers ï the index of human capital (generated depending on the education level noticed on adults and
European commission Strategy http://ec. europa. eu/digital-agenda/en/news/eu-cybersecurity-plan-protect-open-internet
ï 45%of the Romanian users use the Internet at least once a week ï 52%of the Romanian users are at least fairly confident in buying online or online banking
use of the Internet and computing equipment Responsible: Operative Council for Cyber security (COSC Training Operational
Social media, together with the wider internet have become useful business tools in other countries currently helping governments to be part of the conversation.
However, there is also a generational split as younger people use the Internet less outside social
the same as the percentage of Internet users. The generational split has two main components: 15-39 and
the internet to read newspapers online. Posting messages on social media occupies with 48%the second
place in the classification of the motivation for using the internet, followed by searching for tourist
services, creation of a website and internet banking, the last reason being claimed only by 8%of users
ï Websites located on Internet ï Social media ï Operational systems available The information provided by Big data systems does not include personal information or information
ï Websites located on Internet ï Social media ï Operational systems available Operational ï Definition of the analysis
computers, the Internet, broadcasting technologies and telephony. The benefits are translated into improvement in efficiency and effectiveness of education at all levels and in both formal and non-formal
An advanced digital society requires that most citizens can regularly access the Internet and benefit from
and 60%of people in disadvantaged groups using the Internet on a regular basis, and of reducing the percentage of population that has used never it to below 15
and the Internet in the learning process is the pupil access to these technologies. Besides the horizontal measures of improvement in the number of broadband connections
provided by the Internet will increase student engagement. Using ICT will also allow the adaptation of
telephone lines, Internet, Intranet and satellites. Telemedicine is used by the suppliers in a more and more increased number of medical specialties which include the dermatology, oncology, radiology, surgery
-regular phone lines, Internet Intranet and satellites. Telemedicine is used by providers in an increasing number of specialties including
upload them on the Internet. This investment has led to an unprecedented period of technical research
the â€oebiblionet†Romania programme (including voice recognition software and other specialized Internet functions and capabilities such as email, search engines, online music, chat, and radio broadcasts.
Just 19%of disadvantaged people in Romania are compared regular Internet users to 51%across the EU
browsing the Internet, online banking and commerce, and social media National Indicators pertaining to ICT in Culture
on internet, and with very low preoccupation for traditional occupations †and increasing their interest in traditional practices
ICT infrastructure, easy and affordable Internet usage, generalized ability and easier access to useful information.
Ability to access ICT networks does not involve people capacities to use the Internet and ICT equipment or
Although the tendency of increase of the number of individuals using internet to search for information and
Internet usage at the regional level Strategic Promoting the system of â€oelearning together†Operational Involvement of HR services within
ecommerce (Electronic commerce or EC) is the buying and selling of goods and services on the Internet
electronic funds transfer, supply chain management, internet marketing, social media, electronic data interchange. For online retail selling, the term e-tailing is used sometimes
Online Internet penetration and purchasing still differ in the various parts of Europe, according to the
options, reliable and affordable delivery, Internet-usage and penetration, and consequently, the number of e-shoppers
Europe estimates the share of the European Internet economy at 3. 5%,a percentage that is set to double
2. Lack of information of the online services operators and lack of protection of the internet users
purchasing an item over the internet should be a flexible process, facilitated through e-commerce 4. Too numerous abuses and litigations which are difficult to be solved
Approximately 35%of internet users avoid using online commerce channels due to this factor. Also, the financial costs related to the micro-payments are considered to be
between 16-74 years has used the internet in 2012 for the acquisition of goods and services for personal use
population used the internet for the performance of online shopping, followed by a fluctuant evolution
In Bucharest, 14%of population aged between 16-74 years used the internet for online shopping in 2011
operators and internet Thus, the online services operators can benefit from important and relevant information by means of
15 Eurostat-Individuals making purchases over the internet, 2013; Eurostat-Individuals purchasing over the internet by regions
2012 Page 90 of 170 platforms such as Enterprise Network Europe, and the internet users may be protected through
access to Consumer Protection Cooperation network systems (by assuring the protection of personal data, by promoting the specialized
use of mobile and Wireless internet •Fourthly, the Commission adopts initiatives to ensure that in the European union ther are
subscription of internet connection above 100 Mbps for 50%or more of European households. These goals will only be achieved
Broadband internet connections 10. 6m connections (2012 Number of fixed telephony lines 4. 43m (2012 Subscribers to rebroadcasting services 6. 03 M (2012
According to ANCOM€ s biannual reports, the demand for broadband Internet services recorded a genuine boom starting from 2006 †with respect to both fixed and mobile technologies
%Romania also provides a broadband Internet coverage for 90%of total population, and 78%coverage for rural area
used the internet in 2013 to purchase personal goods and services in Romania was of only 8%,increasing
only 1%of population was using the internet for purchases, followed by a fluctuating evolution during the
internet for shopping in 2011 was of 14, %registering a significant increase opposite to the value of 7
broadband internet connections on fixed points. If in June 2010 the value of such index was of 2, 93 million
within 2 years, until June 2012, the overall number of broadband internet connections on fixed points
20 Eurostat-Individuals making purchases over the internet, 2013; Eurostat-Individuals purchasing over the internet by regions
2012 Page 106 of 170 Penetration rate on every 100 inhabitants 26,1%8, 8 %Broadband internet connections on fixed points(%of overall number
of connections 76,9%23,1 %>144kbps<2mbps 1, 2%0, 5 %>=2mbps<10mbps 15,4%5, 6
In 2013,45%of the population was using the Internet regularly (at least once a week), significantly below
%Internet users on a daily basis has reached in 2013 a 32%score Furthermore, a huge 42%of the population has used still never the Internet,
more than double the rate for the EU average of 20%.%With regard to disadvantaged people, the rate was 24%,30%points below the
broadband internet connections on fixed points. If in June 2010 the value of such index was of 2, 93
million, within 2 years, until June 2012, the overall number of broadband internet connections on fixed
In what concerns the report between the households with access to internet and those with access to
out of 14%households with access to internet only 5%had broadband connection, in 2013,56%of
Access to Internet in Romania 2009 2010 2011 2012 2013 Inhabitants with access to internet(%)38%42%47%54%58
%Access to internet from home(%)28%31%36%N/A 46 %Access to internet from workplace(%)10%11%12%N/A 14
%Access to internet from institutions of education(%)6%6%7%N/A 7 %Access to internet from other places(%)3%2%3%N/A 3
%Source: Eurostat, 201321 Socio-demographic profile of internet users in Romania ï In 2013, just over half of the Romanian households (52.9%)have Internet access at home, the
majority (73.2%)located in the urban area ï In 2013, the Internet connection was most widespread among households located in the region
Bucharest-Ilfov (72.5%of households had followed Internet access at home by the regions West and North West (58.3%and 56.9%),Southeast (51.2%)and Central (49.5%).
%)The lowest share of households with Internet connection is in the North East (45.7%)and South Muntenia (47.2
%ï The main segments of Internet users opposite to their occupational status are those of skilled/unskilled workers (20%),pupils/students (19%)and engineers, physicians, architects
professors and economists (15%.%The proportions are almost identical in case of users using fixed connections, whereas the Internet users using mobile connections come significantly as well from
the category of contractors, free-lancers, managers or administrators (13 %ï Most of internet users come,
without significant differences between those using fixed or mobile connections, from the households formed of 3-4 individuals (59%),with a higher share of those
with three members Mobile broadband penetration has increased but it is still at insufficient quotas and fixed high-speed
Internet remains still a privilege of big cities. In 2012, third generation mobile broadband (HSPA) was
In 2013,5%of citizens in Romania made use of the internet for egovernment services. Out of these, 2%of
On the level of enterprises, 63%of Romanian enterprises are using the Internet up to the 3rd degree of
Household coverage with access to internet %Country 2009 2010 2011 2012 UE-27 66 70 73 76
Increase in the internet use within the rural environment The computerisation of the pre-academic system, by
The development of the infrastructure for internet access in Romania The utilisation of the OER and Web 2. 0 technologies for
internet utilisation among all groups of inhabitants and among all the regions of the country The opportunities which were identified at the ICT level in education will be used partly to propose a
ï Improvement of the level of informing the online service operators and of the internet users ï Support for development and implementation of online payment and delivery systems in order to
older population result in low penetration of Internet connections even in grey and/or black areas;
Romanian Association for Telecom Operators Association for Technology and Internet EOS Foundation Romania First Workshop
-Fast access †internet broadband -Presenting the socioeconomic study for the Digital Agenda Romania -Debate & Conclusions
internet usage overall Population that has never used the internet Citizens using egovernme nt Returning
completed forms %related public services Life Events brought on 4th level of online sophistication (from the 36 Life
internet usage overall Population that has never used the internet Citizens using egovernme nt Returning
completed forms %of citizens/businesses using the online services pertaining to Life Events to obtain information
internet usage overall Population that has never used the internet Citizens using egovernme nt Returning
completed forms %of staff costs related to IT services from an overall budget for each entity direct direct direct indirect indirect indirect indirect indirect indirect indirect indirect
internet usage overall Population that has never used the internet Citizens using egovernme nt Returning
completed forms #of data sets and reports available for public use direct indirect indirect indirect direct direct direct direct direct direct direct
%individuals using the internet regularly direct direct direct direct direct direct direct direct indirect indirect indirect
those disfavored using the internet direct indirect indirect indirect indirect indirect direct indirect direct direct indirect
internet usage overall Population that has never used the internet Citizens using egovernme nt Returning
completed forms #of localities and medical centers benefiting from telemedicine services direct direct direct direct indirect indirect direct direct indirect direct direct
%individuals using the internet regularly direct direct direct direct indirect indirect direct direct indirect indirect indirect
those disfavored using the internet direct indirect indirect direct indirect direct direct direct indirect direct direct
used the internet direct indirect indirect direct indirect direct indirect direct direct direct direct Page 169 of 170
internet usage overall Population that has never used the internet Citizens using egovernme nt Returning
completed forms %of pupils trained with TIC skill. indirect indirect indirect direct direct direct indirect indirect indirect direct direct
%individuals who use the internet to order goods and services from other countries members of the UE
%individuals who use the internet to order goods and services direct indirect indirect direct direct direct direct direct indirect indirect indirect
internet usage overall Population that has never used the internet Citizens using egovernme nt Returning
completed forms %of individuals who have developed competencies, certifications by means of ICT communities developed through the
#of broadband internet connections direct direct direct direct direct direct direct direct direct direct direct
internet broadband (at least 30mbps indirect direct direct direct direct direct direct direct direct direct direct
Digital technologies and the Internet have transformed many areas of business †from Google and Amazon to Airbnb and Kickstarter.
networks †where they connect their devices, such as phones and Internet modems, to collectively share resources and solve
which was founded in 2000 as a response to the lack of broadband Internet in rural Catalonia
and provides Internet connection to those who would otherwise not be able to access it 6 Growing a Digital Social Innovation Ecosystem for Europe
The Internet is approximately 40 years old, and its capacity for generating societal and economic value is understood relatively well, yet its potential for solving large-scale
therefore, exists at the heart of the Internet. Despite the existence of a technical networking layer that could spread power
context of Future Internet in Europe EXPLORING DSI NETWORK EFFECT PART PART PART 4 5 6
Digital Social Innovation in the context of Future Internet in Europe 15growing a Digital Social Innovation Ecosystem for Europe
of the network effect of the Internet i e. that the benefit of a network and its
costs), as the Internet is increasingly the technical underpinning of the sociotechni -cal fabric of our societies
-ed by the Internet and 2) the level of online services built on top of these networks. Metcalfe†s Law,(i e. that the
For example, despite the Internet being a military-funded research project and the web a scientific project at their inceptions
the Internet and web were based on open standards and a radically decentralised architecture that could be harnessed by
Beyond the Internet, many new technol -ogies such as open hardware may have positive network externalities. Â
digital tools such as the Internet There are many cases of DSI being spread throughout society and we attempt to define
Digital Social Innovation in the context of Future Internet in Europe 16 Growing a Digital Social Innovation Ecosystem for Europe
mediated attention, the Internet forms a natural digital substrate for collective intelligence Looking forward, collective intelligence is
-ment, the Internet offers unprecedented opportunities for collective intelligence via its increasing ubiquity and the massive
to the Internet globally in the next ten years, whilst over twenty billion objects will be connected to the Internet, trans
-mitting data coming from people, sensors the environment and objects themselves However, we cannot expect the Internet
by itself to drive innovation to help citi -zens address major societal challenges If we observe the Internet during its early
phases when it was funded primarily by research and defense, its founding princi -ples, such as network neutrality, equita
A main Internet trend-threat is recognised today: an increasing con -centration of power in services in the
INTERNET IN EUROPE The world wide web became successful because it was built on a set of royalty-free open stand
The future of the Internet should remain pluralistic, so that there is space for DSI alongside commercial services in the
Digital social innovation could play a central role in the development of the Future Internet and
align the capacities of the Internet better to social needs and that decentralise power to citizens
A major risk for the Future Internet is the realisation of the †Big Brother†scenario, with big industrial
Internet ecosystem. Even more worrying, the latest NSA data-gate showed that intelligence agencies and governments have been engaging in mass
Nesta research documented how 25%of UK adults used Internet technologies to share assets and resources in 2013 †20146
-serving decentralised infrastructure for the open Internet constituted by open standards open data, free and open software and open hardware
Important developments to re-decentralise the Internet, leveraging P2p open technolo -gies, are happening at many levels.
and accessibility of the Internet infrastructure Many activities in this space are driven by grassroots networks, like Observe Hack
of the Internet infrastructure. It includes projects that are using bottom up privacy-preserving and
model for the Future Internet across Europe and beyond, where communities of citizens build, operate and own open IP-based networks, a key infrastructure for individual and
Internet networks have become a key infrastructure for the development of the digital economy due to the †democratisation†of the access technologies, reducing
and obstacles regarding Internet specifications that are exposed by these edge networks The Guifi. net initiative is developing a free,
Guifi. net is connected to the Catalan Internet Exchange (CATNIX) as an autonomous system (AS) via optical fibre with IPV4 and IPV6
The work by Tor on creating secure, privacy-aware and crypto tools that bounce Internet users†and websites†traffic
-tidisciplinary research projects are the Network of Excellence on Internet Science EINS), that aims to integrate multidisciplinary scientific understanding of Internet
networks and their co-evolution with society, and the Knowledge and Innovation Communities (KICS), promoted by the European Institute of Innovation and Technology
Internet of Thingst Open-source hardware consists of hardware whose blueprints are made publicly avail -able so that anyone can study,
anywhere/anytime access to the Internet, and to new services So-called Cyber Physical Systems (CPS),
-ing of embedded ICT systems both with one another and with the Internet, is giving rise to what has been named as Industry 4. 019
Internet in order to accomplish innova -tion at scale by the network effect. We can define scale in terms of †scale-freeâ€
Internet of things Innovation and innovation policy are not new to the European union. Delivering on the Europe 2020 objectives of smart
Smart Cities, the Future Internet Public -Private Partnership Programme (FI-PPP and the European Cloud computing
The development of the Future Internet is addressed mainly through a number of technical projects, such as the FI PPP23
Internet of things Bottom up and grassroots approaches A counterpoint to the top-down strategy is
Internet needs to continue to be a neutral space where creativity can continue to flourish
The Internet ecosystem today is highly centralised The current Internet is dominated by a handful of mainly US companies
that control all the layers of the ecosystem (app store, cloud machine learning, devices), and are imposing their rules of the
the creation of the internet, the R&d fund -ing at CERN led to the invention of the
Magna carta for the Internet Enabling open infrastructures Innovation Labs Incubators & accelerators Knowledge sharing & networking
Magna carta for the Internet Enabling open infrastructures Innovation Labs Incubators & accelerators Knowledge sharing & networking
The Internet is the best example of the power of interoperability. Its open architecture has given billions of
OPEN PLATFORMS Users of the Internet ecosystem include the independent application and service provid -ers who have the right to use the future Internet infrastructure (including both data in
a raw and processed form, as well as access to computing resources). Any privileged access provided to the owner/managers of the infrastructure would alter free competi
Future Internet users must be able to come (no barriers to entry) and go (no barriers
A Magna carta for the Internet Tim Berners Lee, the inventor of the Web is advocating for a sort of Magna carta for the Internet to estabilish basic rights
and freedoms, to keep the Internet open, without surveillance and censorship, and to halt power abuses from Governments
and corporations. The Magna carta for the Internet goes along with recent UN General assembly (UNGA) resolution on The
Right to privacy in the Digital Age. 68. A Magna carta for all Web users could be directly crowd-sourced from the Web itself
Community and bottom-up networking is an emerging mode of the Future Internet, where communities of citizens can
and future Internet infrastructures At regulatory level, The Digital agenda emphasises the need to adopt open standards and interoperable solutions to
Daniel Kaplan Founder and CEO, The next-Generation Internet Foundation Simona Levi Founder, Forum for the Access to Culture and Knowledge
/25 http://www. internet-of-things -research. eu 26 https://ec. europa. eu/digital-agenda
/files/field/image/internet-of-things-2. jpg Page 35 Brendan Lea (2013) â€oeopen Data Institute
the Internet Safety Group†s survey of teenage mobile phone use. Netsafe: Wellington, NZ Norman, D. A. 1988.
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...13 Towards e-business integration...18 II. BARRIERS TO USE...
19 Unsuitability for business...19 Enabling factors: internal ICT and managerial knowledge...20 Cost of developing
Information and communication technology (ICT) connectivity (PCS and Internet) is very widespread in businesses of all sizes.
-business and Internet use programmes. However commercial considerations and potential returns are the principal drivers of small business adoption and profitable use.
Despite these advantages, rapid growth in businesses†purchases and sales over the Internet has yet to materialise.
Broad definitions of e-commerce (including established EDI as well as Internet transactions suggest that in 2000 total on-line transactions were generally 10%or less of total business sector sales and
behind larger firms in Internet transactions For small firms to adopt e-business and e-commerce strategies and tools,
small-firm systems, network infrastructure and Internet-related support services. Lack of reliable trust and
e-mail and the Internet and their applications can have on their business. 4 In advanced OECD countries
Communication via e-mail and the Internet can help to improve external communication, in either B2c or B2b contexts,
Benefits of ICT and Internet use ICT and e-commerce offer benefits for a wide range of business processes.
At inter-firm level, the Internet and e-commerce have great potential for reducing transaction costs and increasing the speed and reliability of transactions.
Internet-based B2b interaction and real-time communication can reduce information asymmetries between buyers and suppliers and build closer
Internet, with the goods and services ordered over the Internet, and payment and ultimate delivery of the goods
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.
SMES€ motives for Internet commerce include reaching new/more customers, geographic expansion of market and improvement of service quality
Internet and e-commerce enable SMES that remain in local and regional markets because of a lack of information and marketing capability
Internet technology makes it possible to transmit order information seamlessly between different systems. It can therefore provide small
Moreover, the Internet can convey the ideas of knowledge-based small businesses. Extensive use of ICT can allow micro-enterprises with ideas and
sales by exploiting their intellectual property over the Internet 11 ICT adoption and firm performance
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.
countries, Internet penetration rates for medium-sized firms (50-249 employees) are the same and
while in countries with lower Internet penetration (Portugal, Greece, Mexico) there are larger dispersions across firms in different size classes (OECD, 2002c
Figure 1. Internet penetration by size class, 2001 or latest available year Percentage of businesses using the Internet
50 60 70 80 90 100 Fin lan d Sw ed en De nm ar
Note 3. Internet and other computer-mediated networks Source: OECD, ICT database and Eurostat, Community Survey on ICT usage in enterprises 2002, May 2003
Data available from surveys in some countries indicate that SMES use the Internet (and e-mail
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
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. A study of 484 SMES with
fewer than 250 employees in Lanarkshire (Scotland) shows a similar pattern of Internet use. Around 60
%of the firms with the Internet use it to learn about competitors, customers or suppliers.
Figure 2. Internet use by SMES in Japan, 2001 6 %8 %17 %18 %20 %23
Percentage of responses of 1 700 SMES with 300 or fewer employees using the Internet as of August 2001
Adoption of Internet e-commerce by SMES Computers and access to the Internet have become common in most OECD countries, but sales
and purchases over the Internet have yet to take off. While available data suggest that electronic commerce
is growing, it still accounts for a relatively small proportion of economic activity for firms of all sizes
Purchasing over the Internet is more common than selling. For 16 countries for which both Internet purchasing and Internet sales data are available, only one
in eight on average reported making Internet sales. Twice as many businesses on average use the Internet for purchases as for sales (Figure 3), with between 63%and 93%of businesses reported using the Internet
except in Greece and Luxembourg (OECD, 2002c 14 Figure 3. Businesses using the Internet for purchasing and selling, 20011
Percentage of businesses with ten or more employees 0 20 40 60 80 100 De
nm ar k Ja pa n 2 Fin lan d Sw ed en Au str
alia Ne w Ze ala nd Au str ia No rw ay Ne the rla
%Businesses using the Internet Businesses receiving orders over the Internet Businesses ordering over the Internet
Note: The results of the Eurostat survey are based on a selection of industries that changes slightly across countries
The main sectors covered are manufacturing, wholesale and retail trade, hotels and restaurants, transport, storage and
1. Beginning of 2001 for Internet use; purchases and sales refer to 2000, for Canada,
for Denmark and Norway, Internet use refers to 2002 and purchases and sales refer to 2001
and placed refer to Internet and other computer-mediated networks 4. All businesses 5. Orders received
and placed over the Internet and other computer-mediated networks Source: OECD, ICT database, August 2002;
larger firms is greater for Internet purchases than for Internet sales. In Norway, for instance, more than
Internet purchasing seems to be sensitive to firm size, with the largest firms having the highest percentages
However, the propensity to sell over the Internet seems less sensitive to firm size. The
Denmark and Sweden, smaller businesses that use the Internet appear to have roughly same propensity to
sell over the Internet as larger ones (Figure 4 15 Figure 4. Internet purchases and sales by size class, 2000
Percentage of businesses in each size class 80 60 40 20 0 20 40 60 80
or placed over the Internet and other computer-mediated networks Source: OECD, ICT database, August 2002;
In terms of volume, Internet sales by SMES are far below those of larger firms. In the case of
more than 5%of sales originating on the Internet in 2000, and a maximum of 1. 2%of businesses (in
Denmark) had Internet sales whose value was more than 50%of overall sales. However, for smaller
businesses, Internet sales are lower relatively, with around 11%of businesses having a share of Internet
sales greater than 1%,compared to over 19%in the case of larger firms (in Sweden)( OECD 2002c
Percentage of businesses for any given country whose sales over the Internet as a share of total sales are greater
2001, selling over the Internet by micro-enterprises with 5-9 employees declined from 16%to 13%and by
Most Internet e-commerce transactions are domestic rather than cross-border transactions Figure 6). The Eurostat†s E-commerce Pilot Survey indicates that European companies mainly sell over
the Internet to locations within Europe. In Austria, Denmark and Finland, exports to Europe represent
between 55%and 63%of total exports of goods. The share of international Internet sales is particularly
house, is linked to the Internet via phone lines or, increasingly by a VSAT connection. It serves an average
Figure 6. Share of Internet sales in domestic and international markets, 2000 or latest available year
There is a wide range of reasons why SMES do not make more active use of the Internet and e
19 European countries shows that around 40%do not use the Internet for selling because they consider that
Internet e-commerce does not suit their type of business and/or products (Figure 7). Other reasons for not
costs and benefits, insufficient customer access to Internet and technology concerns, such as on-line security. In Canada, among businesses that did not buy
or sell over the Internet, 56%believed that their goods or services did not lend themselves to Internet transactions
Figure 7. SMES in Europe: Reasons for not using the Internet for selling, 2001 3
%5 %16 %16 %40 %2 %9 %14 %20 %40 %3 %6 %18 %17 %43 %0%10%20%30%40%50
Customer's access to Internet is insuff icient It w ould not pay off No skilled personnel
Percentage of 1 427 firms with fewer than 250 employees not using the Internet in 19 countries (15 EU member
In sectors such as construction and among some small retailers, the view that Internet e-commerce is unsuitable for their business is relatively strong.
Some SMES in transport services also consider that the Internet does not suit their industry.
firm with 90 employees and an emphasis on personal contact with clients decided not to adopt the Internet
Very few of its regular customers had used the Internet and some preferred receiving confirmation of their order via fax or telephone
The firms that adopt Internet and e-commerce are likely to have within the firm someone who has a reasonable amount of knowledge of the specific technology and/or technology
A study of small ICT companies with 3-80 employees suggests that the Internet was adopted by
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
In 1996 a company employee bought a personal computer at his own expense to use the Internet
were encouraged to engage in Internet e-commerce SMES may also lack managerial understanding and skills for e-business.
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. Web site address) and USD 10-100 a month
Percentage of total investment in Internet e-commerce. N=34 Source: Ernst & young (2001 Logistics services, e g. package collection and delivery, also matter.
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.
with a slow Internet connection and small download capacity rather than a high-speed (broadband connection For the SME leaders in e-commerce, narrow cost factors are likely to become less important
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
Slow Internet connections and data transfer have discouraged in fact some SMES from adopting Internet: a majority of
SMES with 10-249 employees in Austria, Greece, Italy, Luxembourg, Spain, Portugal and the United
Kingdom indicated excessively slow or unstable data communication as a major hindrance to Internet use Eurostat, 2002
Business use of the Internet via broadband connection (xdsl) by firm size, 2001 Percentage of businesses with ten or more employees using the Internet
0 10 20 30 40 50 60 70 80 Finland Italy Austria Spain Portugal United
Internet access prices are a key determinant of Internet and e-commerce use by individuals and businesses (Figure 13.
Countries with lower access costs typically have a greater number of Internet hosts and electronic commerce has developed rapidly in countries with unmetered (flat-rate) access (OECD
Price of 40 hours of Internet use at peak times, August 2001, in PPP dollars
Internet use with almost double the users (almost 8) per 100 inhabitants in 2002, even if China has
but less than five Internet users per 100, presumably for cultural and political reasons Internet access charges relative to income also matter.
%but inequalities in income distribution means the Internet is not affordable for a large proportion of the population.
In 2002,8%of the population in Brazil were Internet users and almost 10 %in Mexico, very much lower than Europe and the US (ITU data, 2004
among the most important perceived barriers to Internet use by businesses (B2b and B2c), although large
and have a larger share of transactions over the Internet (OECD, 2002c). Barriers to Internet commerce for businesses included payment uncertainties and contract, delivery and guarantee
uncertainties, with very wide variations in perceived barriers across countries, and unsuitability the major barrier. Payment uncertainties were relatively important in Italy, Spain, Austria, the United kingdom, and
Small and large businesses facing barriers to Internet payments, 2000 Percentage of businesses using a computer with ten or more employees
Concerns about privacy and legal protection for Internet purchases are the two first obstacles pointed out in
use in the country, taxation of Internet sales), while large firms are more sensitive to international strategy
the Internet as part of business strategy 21.5 27.0 21.8 22.3 24.8 22.4 31.8 27.9 31.1
Taxation of Internet sales 28.5 23.6 28.3 27.1 17.6 26.8 19.9 15.6 19.1 16.5 Inadequate legal
protection for Internet purchases 42.6 63.5 43.6 41.6 34.4 41.4 55.7 49.1 54.5 34.1 Source:
Most Internet e-commerce transactions are domestic rather than cross-border. Although there may be other reasons,
reason for not using the Internet (European commission, 2002a The fear of being left with no satisfactory recourse against a transaction counterpart has been
remarkably persistent among Internet users. In the United states, 60%of Internet users indicate difficulties in obtaining satisfactory redress as a reason for reluctance to buy on line (OECD, 2002d.
Most B2c transactions are relatively small (e g. less than USD 100) and hardly justify costly legal procedures or even
organisational structures and restructure business processes to make better use of the Internet and the
interviews with 217 firms that were early adopters of Internet and e-business strategies (OECD, 2002a
less well-formed opinions about factors affecting their Internet efforts, either positively or negatively Interestingly enough, this group of early adopters was concerned not particularly about general cost
and Internet strategies. Internet e-commerce can enable businesses to reach a wider and possibly more
targeted range of customers either locally or globally, either in B2b transactions (automobiles, textiles) or
Cross-sector surveys show that there are some differences in the use of the Internet by SMES
In Europe, only around a third of SMES receive orders over the Internet. Their most common use of the Internet is for distribution of product/service information (Figure 15.
A slightly higher percentage of firms in manufacturing, wholesale and business services receive orders over the Web
Some SMES send order confirmations via the Internet, although it is not clear how many of these orders were received over the Web rather than through other means, such as
commercial activities using the Internet, 2001 58%63%63 %68%71 %26%33 %37%38%35
Percentage of responses of firms with fewer than 250 employees using the Internet in 19 countries (15 EU
and inns, restaurants and travel agencies have been active in fostering cross-border Internet e-commerce The Internet allows travellers direct access to travel recommendations, reviews and local tourism
information, many of which was distributed previously only through the physical offices of (large) travel agencies. Small players with a Web page can now attract those preferring personalised (and possibly less
Since the Internet and many travel-related sites allow on-line customers to compare the price of
The volume of Internet e-commerce in tourism, has grown very rapidly, but still largely involves ticketing for passenger transportation and accommodation.
The Internet is used mainly for travel-related information and promotion. In the United states, where on-line travel sales grew rapidly from
people used the Internet for travel planning, little changed from 2002 due to the slower growth of â€oewiredâ€
households, but over 42 million people (30 percent of the adult population) used the Internet to book travel
suited for purchase over the Internet. In addition, most travel products, like air travel and hotel rooms, are
Transaction costs over the Internet can be significantly lower than those of traditional distribution channels
However, use of Internet commerce in the tourism sector is likely to concentrate on B2c rather
Use of Internet commerce among SMES in the retail industry is lower than in business services
Several studies suggest that even the most price-sensitive Internet consumers respond very strongly to well-known, heavily branded (large) retailers, such as amazon com.
An early study of Internet brand establishment analysing 20 000 on-line consumers who compared and purchased books from
leading consumer products sold over the Internet (OECD, 2002c. Projections for on-line apparel sales in
the adoption of costly EDI or the Internet. Some small textile producers consider that a Web site which
It uses the Internet to receive orders and to send digital images of products only to known clients (which then sell to other
Brian decided to use the Internet to reach much a wider market without radically increasing his overhead costs.
its recent Internet forms) as a strategic necessity for not losing business with car producers (i e. their
attempted to integrate different communication networks into a single Internet network. This should allow high quality, high speed and security measures to protect the transmission of confidential data and other
The Internet-based EDI, ANX (Automotive Network Exchange) was started in 1994 and operated in the United states from 1998-2002 and was aimed at EDI integration involving ENX (Europe
The adoption and use of Internet and e-business strategies depend on sector characteristics. The products of services like tourism,
well-suited for purchase over the Internet. In addition, in sectors such as tourism and parts of retail and
Barriers to Internet commerce also vary among sectors. In tourism, incompatibility of systems and the dominance of relatively small agents with less capability impedes efficient Internet transactions
along the supply chain, especially for B2b transactions. In the retail sector, the problem of confidence
SMES have been slower than larger firms to adopt Internet and e-business strategies despite the potential benefits.
All OECD countries have introduced programmes to speed SME e-business and Internet development. However, the recent features of e-business and Internet use will also structure policy.
First and foremost, most e-commerce is B2b rather than B2c, which means government policy needs to focus
Next, most Internet e-commerce transactions are domestic rather than cross-border. Finally, use varies widely among sectors,
Governments have used many policies to encourage the diffusion of e-business and Internet use from fostering technological diffusion to creating a favourable business environment with fair and
Firms will stay with traditional business processes if Internet commerce is unsuitable for their business,
Some are sophisticated as users of the Internet and e-business as larger firms, while others make no use at all.
The largest benefits for the Internet -using firms may derive from generating internal process efficiencies
The availability of a wide range of high quality Internet and communication services at competitive prices is particularly important,
applications and services such as streaming audio and video over the Internet with much higher quality.
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
The open architecture of the Internet does not necessarily result in more open markets, because e-commerce among businesses is initiated usually by dominant companies in value
E-business and Internet strategies appear to be reinforcing market structures and the role of these
While Internet commerce provides SMES with opportunities to participate in new supply chains and markets, they may compete
SMES with new incentives to adopt Internet and e-commerce in order to enter new markets. Governments establish new e-market models through e-procurement initiatives
and Internet programmes focused on SMES Three new directions are emerging in such policies. These are in addition to initiatives that aim at
Internet and e-commerce adoption. National branches and 250 consultants help SMES and entrepreneurs prepare and implement their ICT action plan.
Training is provided increasingly over the Internet and, in some cases, in conjunction with ICT and e-commerce awareness and business consultation services.
the Internet. Forem†s Web site provides a meeting place for businesses (e g. job vacancy advertising), a list of training programmes and aids for training
customised Internet and e-commerce training to SMES. Since its start in 1996, more than 3 000 students have been hired
a special emphasis on training in the use of the Internet, e-mail and new management
Turkey KOSGEB KOSGEB, with more than 40 service centres and 25 Internet cafã s across the country contributes to building computer and Internet literacy in SMES
United kingdom Learndirect SMES are a priority group for the on-line service. Each course, looking at a specific business
wide range of e-business environment, Internet and ICT use issues. eeurope 2005, Helping SMES to go
and exploit e-business and Internet strategies. In addition, specific policies have been common in areas seen to be crucial for initial uptake (e g. awareness, managerial and ICT
on Internet Use by SMES, Tokyo, November Council of the European union (2000), eeurope 2002 Action Plan, June (available at
Gertner, R. H. and R. S. Stillman (2001), â€oevertical Integration and Internet Strategies in the Apparel
Mehrtens, J.,P. B. Cragg and A m. Mills (2001), â€oea Model of Internet Adoption by SMES€, Information
Scally, T.,M. Stansfield and K. Grant (2001), â€oean Investigation into the Use of the Internet and
Scupola, A. 2002), â€oeadoption Issues of Business-to-business Internet Commerce in European SMES€, in Proceedings of the 35th Hawaii International Conference on System Sciences 2002 (available at
Smith, M d. and E. Brynjolfsson (2001), â€oeconsumer Decision-making at an Internet Shopbot: Brand Still Mattersâ€, The Journal of Industrial Economics, December, pp. 541-558
Zixiang, A t. and O. Wu (2004), â€oediffusion and Impacts of the Internet and E-commerce in Chinaâ€, GEC
Overtext Web Module V3.0 Alpha
Copyright Semantic-Knowledge, 1994-2011