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Measuring eBusiness: Definitions, Indicators & Surveys Andrew Wyckoff OECD UNCTAD Expert Meeting

Measuring eBusiness: Definitions, Indicators & Surveys Andrew Wyckoff OECD UNCTAD Expert Meeting Measuring Electronic Commerce 8-10 September 2003. Overview. Definitions Model Surveys Current / Future work “Lessons Learned”. Mainframe and PC price indices. GII / GIS :

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Measuring eBusiness: Definitions, Indicators & Surveys Andrew Wyckoff OECD UNCTAD Expert Meeting

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  1. Measuring eBusiness: Definitions, Indicators & Surveys Andrew Wyckoff OECD UNCTAD Expert Meeting Measuring Electronic Commerce 8-10 September 2003

  2. Overview • Definitions • Model Surveys • Current / Future work • “Lessons Learned”

  3. Mainframe and PC price indices

  4. GII / GIS: “Information Highway”1996 OECD IS Ministerial Milestones

  5. GII / GIS “Information Highway”1996 WPIIS OECD IS Ministerial Milestones

  6. Definitions ICT sector GII / GIS

  7. Share of ICT value added in business sector value added, 1999 Source: OECD, STI Scoreboard, 2001

  8. GII / GIS1996 E-commerce 1998 Identify, assess and monitor GIS WPIIS OECD IS Ministerial Milestones

  9. GII / GIS1996 E-commerce 1998 Identify, assess and monitor GIS WPIIS methodology and apparatus for measuring OECD IS Ministerial Milestones

  10. Definition E-Commerce

  11. Definition Broad & narrow, nested definition E-Commerce Narrow = orders over the Internet (payment and delivery can be off line) (including EDI / XML over the Internet) Broad = orders over “computer mediated networks” (payment and delivery can be off line) (EDI, Minitel, EDIFACT)

  12. E-commerce Definition • The Debate in 1999 / 2000 • Issues today

  13. Official estimates of Web, Internet and electronic commerce transactions. Percentage of total sales or revenues. BROADER 1.8% 5.20% (UK) (UK) 2.00% (Sweden) Business sector 0.40% (Canada) 13.30% (Sweden) (Australia, 1999-2000) 0.40% 0.90% 5.95% (UK) 0.94% (UK) (Denmark) Business sector (excluding 0.40% (Italy) financial sector) (Finland) 0.70% 1.04% 1.2% (UK) (USA, 4rd Q 2001) (Canada) (USA, 4th Q 2000) 0.40% 1.1% Retail sector 0.20% (France, 1999) (Austria) (UK) 0.10% 1.4% BROADER Web commerce Internet commerce Electronic commerce

  14. Private v. Public data % Official data Private source in December 1999 8 7 2003 2003 6 2003 5 2002 4 2002 3 2002 2001 2001 2 2001 2000 2000 2000 1 0 Denmark Finland United Kingdom

  15. E-Commerce • Definitions • Methodologies • ICT sector • Business Use

  16. OECD Model Survey of ICT Usage in the Business Sector • General Information about ICT systems • Devices, networks and use • Use of the Internet • Type of connection & speed, type of use • E-commerce • Internet sales & purchases • Other computer mediated networks • Barriers • Skills, cost, security,

  17. Business Access and Use of the Internet

  18. Internet penetration by size class.Percentage of businesses using the Internet Source: OECD, STI Scoreboard, 2001

  19. Internet penetration by industryPercentage of businesses using the Internet, 2000 Source: OECD, STI Scoreboard, 2001

  20. GII / GIS1996 E-commerce 1998 New Economy1999 Identify, assess and monitor GIS WPIIS methodology and apparatus for measuring OECD IS Ministerial Milestones

  21. ICT investment as a Share of GFCF

  22. Contribution of ICT investment to GDP (growth accounting)

  23. OECD IS Ministerial Milestones • GII / GIS1996 • E-commerce 1998 • New Economy1999 • Seizing the Benefits of ICT2003 • Identify, assess and monitor GIS • WPIIS • methodology and apparatus for measuring • Identifies role of skills, org. change

  24. High-skilled workers and ICT

  25. The sophistication of e-activity increases with experience in ICT use: UK Source: Clayton & Waldron, 2002

  26. Policy implications • The business environment matters… …in particular, the level and nature of competition. • Investing in ICT is much more than hardware. It involves a constellation of complimentary investments. • ICT is both a source and a tool for more innovation.

  27. Current / Future Work on eBusiness • Addition of an eBusiness module to the model survey on Business Use of ICT • Improved measurement of ICT investment by businesses (esp. software) • Non-technical innovation (Organisational Change)

  28. Business ICT Access Business ICT Use eBusiness Processes Broad e-comm Narrow e-comm

  29. eBusiness processes identified as of common interest. • Customer acquisition & retention • E-commerce • Finance, budget and account management • Human resource management • Product design & development • Order fulfilment and order tracking • Logistics (inbound & outbound) and inventory control • Product service and support • Knowledge management

  30. Lessons • be aware of the technology • Stay close to the policy issues • Be pragmatic (creatively use existing data resources and do easy things first) • Proceed in a flexible (modular) way • Feedback: stay open to revisions, breaks in series.

  31. Leverage scarce resources by partnering…

  32. A few ideas for applying the OECD model to non-OECD countries… • Use available data sources • Add a few “core” questions to existing business surveys • Undertake a small survey of known performers • Combine with other work (BR, LFS)

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