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13:15 - 13:50 Friday 15/12/95 Wentworth Hotel Sydney

THE SIGNIFICANCE OF SMEs FOR ELECTRONIC COMMERCE. 13:15 - 13:50 Friday 15/12/95 Wentworth Hotel Sydney. Stephen GOULD Secretary OPEN INTERCHANGE CONSORTIUM. Electronic Information Interchange (EII). Significance of SMEs The Problem European Telematics Projects

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13:15 - 13:50 Friday 15/12/95 Wentworth Hotel Sydney

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  1. THE SIGNIFICANCE OF SMEs FOR ELECTRONIC COMMERCE 13:15 - 13:50 Friday 15/12/95Wentworth Hotel Sydney Stephen GOULD Secretary OPEN INTERCHANGE CONSORTIUM

  2. Electronic Information Interchange (EII) • Significance of SMEs • The Problem • European Telematics Projects • Australians establishing the standards • Australian EDI Projects • Commonwealth Electronic Commerce Service (CECS)

  3. Significance of SMEs EDI was originally developed to reduce administration costs for large companies particularly through the Purchasing cycle. 80% of a company’s purchases may be from 20% of your suppliers. However the cost of producing an invoice for $ 100 is the same as an invoice for $ 1,000,000. Thus 80% of companies purchasing administration costs is spent on the 80% Small and Medium Businesses that produce 20% of the sales items and 20% of the purchasing items. Hence to reduce the administration costs these SMEs have to adopt Electronic Commerce. Electronic Commerce now encompasses Electronic Catalogues hence the move towards multi-media and electronic marketing.

  4. The Problem • All EDI initiatives world-wide have the same problem when linking electronically with Small and Medium Size Enterprises.The problem is: • Developing a generic solution that can be utlilised by any SME • Ensuring that it provides many-to-many linkages with all facets of business • Interfacing with SME application software • Ensuring that start-up costs and on-going costs are acceptable to SMEs • Promoting and implementing the Electronic Commerce with SMEs

  5. Telematics Projects in Europe • 3rd Framework for R&D program 1990-1994 • 3 major areas total funds A$ 19.7 Billion • I Enabling Technologies • Information Technologies • Communications Technologies • Development Telematics Systems • II Management of Natural Resources • III Management of Intellectual Resources

  6. Identified Projects • 6 Major programmes • Projects • ORA - Industry 62 • AIM - Health 37 • ENS - Administration 14 • DRIVE - Transport 56 • DELTA - Education 43 • CUSTOMS 20

  7. TEDIS Conference 1989 • Legal Workshop • Recommendations • Electronic Notary • Information Trustees • Electronic Contracts

  8. RINET • Established by the Re-insurance industry in 1987 • Co-operative non-profit company comprising • The Mercantile & General Reinsurance Company (London) • Munich Reinsurance Company (Munich) • National de Resseguros SA (Madrid) • Nederland Ressurantie Group MV (Amsterdam) • Skandia International Insurance Corporation (Stockholm) • Societe Commerciale de Ressaurance (Paris) • Swiss Reinsurance Company (Zurich) • Unione Italiene di Riassiourazione (Rome)

  9. Linking with Insurance & Broker Networks • Establishing electronic Networks with Associations • LIMNET (Lloyd's Insurance Market Network) • BROKERNET (UK Broker Network) • IVANS (US Broker Network) • CELIA (French Broker Network) • ASSURNET (French & Belgium Underwriter Network) • ADN (Dutch Broker Network) • RITA (Italian Broker Network)

  10. UN/EDIFACT Rapporteurs • Australia 19 Belgium 12 UK 7 USA 6 • Canada 6 New Zealand 5 France 5 Sweden 4 • Netherlands 4 Germany 4 Austria 4 Denmark 4 • Switzerland 3 Poland 2 Norway 2 Finland 2 • Luxembourg 1 Japan 2 Hungary 1 Bulgaria 1 • Czechoslovakia 1 Romania 1 Iceland 1 Russia 1

  11. Australian UN/EDIFACT Rapporteurs 1990 - 1994 Jonathan KNIGHT KNIGHT STRATEGIC SERS Maintenance Group Margaret WRIGHT KPMG PEAT MARWICK Security & Audit David BOTHERWAY COLES MYER Retail Karl ROMMEL BHP STEEL Heavy Engineering Randy AUSTIN ANZ BANK Banking Mark FULLER BHP STEEL Steel Jan BYLSTRA NATIONAL MUTUAL Life Insurance Bruce DAWSON ERICSSON Communications Barry KEOGH TRADEGATE Transport Terry BROWN NISSAN MOTOR Automotive Tony MORRIS QANTAS Tourism Richard STANDFORD JAMES HARDIE IND Hardware Graham BEHRENDORFF ALH AUSTRALIA Wh’sale/Distrib Alan CUNNINGHAM ADL CONSULTING Agriculture

  12. Customs Co-operation Council Secretary General: Tom HAYES (AUSTRALIA) Deputy Sec Gen: P. BENET (France) Head Fin Services: R. TRIEST (Belgium) Head Administration: Bill REID (AUSTRALIA) Dir Nomenclature: H ASAKURA (Japan) Dir Customs Techniques: A RIGDON (USA) 6 Deputy Directors 7 Senior Technical Officers (28 different 19 Technical Officers 10 Technical Attaches nationalities) USA 5 UK 4 Belgium 4 Japan 4 France 3 Australia 2

  13. Working Nation Strategy 04/05/94 1994/95 - A$ 1,058.7 M 1995/96 - A$ 1,725.7 M 1996/97 - A$ 1,888.1 M 1997/98 - A$ 1,869.6 M

  14. ADCONNECT - 1990 • Anthony FITZGERALD Seven Network • Stephen WRIGHT Nine Network • Sirkanth NANDIGAM Network Ten • David GREEN MOJO • Don WOOD Clemenger • Roger BICK George Patterson • Alan MEDFORTH McCann Erickson • Paul DAVEY DDB Needham • Ross HOWARTH Merchants

  15. AEROS - Australian Electronic Retail Ordering System Australian Records Industry Association - ARIA Members: EMI } Orders BMG } Acknowledgments Sony } Catalogues Updates Polygram } Weekly Charts Warner

  16. Customs Electronic Commerce Programs Formation TRADEGATE - 1989 ACS, QANTAS, AAPMA and Austrade contributed $ 250,000. 6 SME associations contributed $ 50,000.

  17. Members Tradegate Aus Customs Service QANTAS AAPMA Austrade Customs Brokers Council of Australia (CBCA) Aus Forwarders EDI Association (AFEDIA) Aus Road Transport Federation (ARTA) Aus Chamber of Shipping (ACOS) Aus Ship Owners Association (ASOA) Railways of Australia Tradegate manages 3 year contract for Value Added Network Service Current Service provider: AT&T EASY LINK

  18. CUSTOMS NATIONAL CONSULTATIVE COUNCIL Members CNCC Electronic Commerce charge review panel: Australian Customs Service Law Council of Australia Customs Brokers of Australia (CBCA) Aus Federation of Air Freight Forwarders (AFAFF) Aus Chamber of Shipping (ACOS) Aus Chamber of Commerce (ACC) International Air Couriers Association (IACAA) Institute of Chartered Accountants (ICA) Aus Aviation Industry Customs Committee (AAICC) Aus Society of Certified Practicing Accountants (ASCPA)

  19. COMMONWEALTH ELECTRONIC COMMERCE SERVICE (CECS) July 1995 - 2 contracts I Primary contractor - Tendering system II Additional Products and Services Contract I 96 respondents - stage 1 RFI 19 submissions - stage 2 RFP 4 shortlist - stage 3 RFO

  20. 7 Lead Agencies 1 Department of Defence (DoD) 2 Department of Employment, Education and Training (DEET) 3 Department of Administrative Services (DAS) 4 Department of Veteran Affairs (DVA) 5 Department of Human Services and Health (DHSH) 6 Department of Social Security (DSS) 7 Australian Taxation Office (ATO) There are 25 Portfolio Departments with 95 administrative units together with an additional 80 other agencies within those portfolios.

  21. Prime Contractor Contract There are 4 full bids that have progressed to the CECS Request for Offers (RFO) stage: Telstra ISSC EDS Australia Australian Business On-Line The Strategic Partner contract will be awarded May 1996.

  22. Addition Products and Services Contract Contract II This contract requires the following services: EDI Software and Services for SMEs Automatic Data Capture (ADC - bar code, scanning, OCR) Systems integration & re-engineering Business process re-engineering Security products and services

  23. Requirement of CECS -numbering schemes A range of identifiers including: People Organisations Locations Products and Services The RUBAC (Relational Universal Business Automation Code) Information Management Methodology was researched to fulfill the code identifier requirements for Electronic Commerce and Electronic Information Interchange (EII).

  24. The OIC Vision • Australian Companies and expertise • Establishing the Standards • Implementing Electronic Commerce software that conforms to international standards • Marketing the products internationally • Implementing and supporting products internationally • All linked electronically to provide the highest standards of service at a minimum on-going cost

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