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E-Commerce

E-Commerce. Jui Chao Shih-hao Hsieh Ryan Fedyk Tom Turner. Session Objective. Introduce the concept of e-commerce Importance of online growth and worldwide usage Taiwan’s e-commerce and unique e-commerce businesses Large market of online gambling and legal issues Taiwan’s e-government

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E-Commerce

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  1. E-Commerce Jui Chao Shih-hao Hsieh Ryan Fedyk Tom Turner

  2. Session Objective • Introduce the concept of e-commerce • Importance of online growth and worldwide usage • Taiwan’s e-commerce and unique e-commerce businesses • Large market of online gambling and legal issues • Taiwan’s e-government • The future of e-commerce

  3. Electronic Commerce • E-Commerce consists of the buying and selling of products or services over electronic systems such as the internet or other electronic systems. Source: Wikipedia, http://en.wikipedia.org/wiki/E_commerce

  4. Three Types of e-commerce • Business-to-Business - the buying and selling of goods and services between companies online or by means of other electronic systems • Business-to-Consumer • Customers-to –Customers - ebay Source: Pan Western e-business team . http://www.e-future.ca/sask/pdf/b2b_basics.pdf

  5. Source: Internet World Stats, June 2007

  6. Source: Internet World Stats, June 2007

  7. Introduction to Taiwan • Also Known As: Ilha Formosa, “the beautiful island”. • Area :35,980 square kilometers • Population: 22.7 million • Capital : Taipei City • Language : Mandarin (official), Taiwanese, and Hakka. • Religion : Buddhism/Taoism/Christianity/Islam

  8. Taiwan E-Readiness Remarks:1. Total population: 22.73 million (22,730,819) 2. Total households: 7.2 million (7245047) Source: (2006 January) 1. Taiwan Network Information Center 2. Ministry of Transportation and Communications 3. Ministry of Interior

  9. Sources:PEW pew /internet http://www.pewinternet.org

  10. E-commerce Status in Taiwan 53.1% 57% 58.9% USD Million *Currency Rate: 33 NTD = 1 USD Source: Tamkang University http://www.lib.tku.edu.tw/esource/webtopic/BusinessClass/ImformationMannage/reports/Inf_reportslist.html

  11. Unique E-Commerce in Taiwan 1. Fortune-Teller • Name http://clickfate.com.tw/namefate/namefate251.shtml • Birthday http://mindcity.sina.com.tw/east/MC-ziwai/index.shtml • Feng-Shui (風水) http://www.e-rent.com.tw/fengshui/

  12. Fortune-Teller(Cont.) • Constellation http://mindcity.sina.com.tw/index.shtml • The book of Changes(易經) http://iching.shoppy.cc/ • Horoscope http://star.pchome.com.tw/ • The Five Elements & The Eight Diagrams http://www.czu168.idv.tw/

  13. Unique E-Commerce in Taiwan 2. On-line Worship • Buddhism http://areyo.virtualave.net/cgi-bin/light/lightindexd.htm http://web.thu.edu.tw/chiu/www/bpray/pray.htm • Taoism http://www.intellect.com.tw/temple/ • Confucianism http://www.tccg.gov.tw/sys/SM_theme?page=455019ae http://www.tccg.gov.tw/confucian/Chinese/a15.htm

  14. Higher Traffic • Constellation • Horoscope

  15. Lower Traffic • Feng-Shui • The book of Changes

  16. Other Interesting E-commerce Businesses • M-commerce • Second Life • Online Gambling

  17. Mobile Commerce • Mobile spending will pass the $500 million mark in 2008 • Sprint users spend an average of $9.75 on non-voice services such as downloadable music, ring tones, TV shows, maps, and directions • mShopper – use your cell phone to buy any product by giving product info and customer info • I-Phone, Blackberry Source: e-Commerce Times. http://www.ecommercetimes.com/story/59330.html

  18. 2nd Life • Reportedly over 1 Million “residents” • Residents can explore, meet other residents, socialize, participate in individual and group activities, create and trade items (virtual property) and services from one another. • Virtual currency is the Linden Dollar and is exchangeable for US Dollars Source: http://many.corante.com/archives/2006/12/26

  19. Get a First Life

  20. Online Gambling Estimates and Projections Source: www.cca-i.com/Primary%20Navigation/Online%20Data%20Store/internet_gambling_data.htm

  21. Casinos Online Brick and Mortar • Brick and Mortar have difficulty profiting from poker: -Opportunity costs by not using space for slot machines. • Adding another online table doesn’t take up space. • Low stakes available online attract beginners Vs. Source: http://business.timesonline.co.uk/tol/business/industry_sectors/leisure/article705968.ece

  22. 2006: Unlawful Internet Gambling Act • Bans American banks and credit card companies from completing transactions with Internet gambling companies • Slipped in as rider bill to unrelated Safe Port Act – went unread by Senate. Source: http://www.casinocitytimes.com/news/article.cfm?contentID=161764

  23. Sen. Bill Frist Thinks AIDS can be transferred through sweat and tears.

  24. Casino Lobbyists • $25 Million spent in donations to politicians from gambling industry to ban online betting. • Online companies responded with $1.3 Million in lobbying efforts the first half of 2007 in support of new legislation. Source: http://www.casinogamblingweb.com/gambling-news/gambling-law

  25. Fallout 6 out of top 10 online casinos stopped accepting US customers 888 stock dropped over 50% following bill’s passing PartyGaming(PartyPoker) dropped 60% in the first 24 hours and 75% overall Source: http://business.guardian.co.uk/story/0,,1891049,00.html

  26. Legal Impact • Is poker a game of chance? • Poker sites/Third party providers offshore - not necessarily subject to US regulations. • Will FTC enforce regulations? • How does law affect Affiliates(advertising) and Search Engines? Source: http://www.gamblingandthelaw.com/columns/2006_act.htm

  27. The Real Impact • US players still play(legal or not). • Companies, not gamblers, feel the effects. • Companies use Third Party offshore money transfer accounts to subvert new law. -Similar to Paypal and Neteller, only offshore.

  28. 2007 Legislation/News • Skill Game Protection Act - would legalize Internet poker, bridge, chess, and other games of skill. Has 35 co-sponsors. • Internet Gambling Tax Act - would legislate Internet gambling tax collection requirements. • US goes against a 1994 World Trade Organization agreement by not allowing offshore gambling websites to serve US customers. • WTO recently ruled against the US, saying they must comply or pay compensation. Source: http://thomas.loc.gov/cgi-bin/query/z?c110:H.R.2610: http://en.wikipedia.org/wiki/Online_poker

  29. Definition of e-Government e-Government refers to government’s use of information technology to exchange information and services with citizens, businesses, and other arms of government. Source:wikipedia at http://en.wikipedia.org/wiki/E-government

  30. E-Government Ranking by Countries • Survey Based on the followings • Online Information • Electronic Services • Privacy & Security • Disability Access • Foreign Language Access • Ads, Users Fees, and Premium Fees • Public Outreach

  31. Main Reasons for Using E-Government Source: e-Usage at http://www.find.org.tw/eng/news.asp?msgid=290&subjectid=4&pos=0

  32. Increasing Outsourcing Advancing towards Mobile Internet Services Adopting Web Service Platform e-Government Promoting Open Standards Expanding Service Value Current Strategies for e-Government

  33. Why Use Outsourcing? • Use private sector resources to accelerate e-Government development • Bring in external expertise

  34. Five Outsourcing Models Share-in-saving: Self-funded: Self-funded-hybrid: Operation outsourcing: Application-service-provider (ASP):

  35. Investment in e-Government • From 2003 to 2006……. • Taiwan government has invested US$ 370 million in e-Government Project • Averagely spent US$92.5 million per year on e-Government Project I USD=33 NTD Source: e-government progress in Taiwan –Report to CIA 40th conference http://www.zujee.com/data/SiWanLiNian-GDPTaiwan-Annual-GDP1980-2006.htm

  36. Centralized e-Government Entry Site http://english.www.gov.tw/e-Gov/index.jsp

  37. Administrative Applications 1. Online Vehicle Oversight Service System • Payment of traffic fines • Payment of auto fuel taxes • Reporting of stolen motorcycles • Reporting of change of motor vehicle ownership or address Source: Research, Development and Evaluation Commission http://www.redc.gov.tw

  38. Administrative Applications 2. Pay your income tax online Source: Research, Development and Evaluation Commission http://www.redc.gov.tw

  39. GCA Individual MOEACA Companies XCA Organizations Administrative Applications 3. Online Security MOICA Government Agencies E-Government MOICA Government Agencies Source: Research, Development and Evaluation Commission http://www.redc.gov.tw

  40. Central Government Provincial/Municipal Government Country/City Government Administrative Applications 4. Electronic Exchange of Official Documents • Reduce document transmission time-2 months to 2 minutes • Raised the level of automation • 100,000 documents being exchanged every day • Reduction in annual postage expense of around USD 6.3 million Source: Research, Development and Evaluation Commission http://www.redc.gov.tw

  41. Administrative Applications 5. Online Payments Services Source: Research, Development and Evaluation Commission http://www.redc.gov.tw

  42. Administrative Applications 6. Handicap-free Websites • Set up web content accessibility guidelines 1.0 in accordance with the WAI (Web Accessibility Initiative)of W3C • According to the e-government report of 2006 by Brown University, Taiwan is continuously leading the other advanced countries in promoting websites for the disabled Source: Research, Development and Evaluation Commission http://www.redc.gov.tw

  43. Administrative Applications 7. Government Procurement System(GPS) • Provide contractors government e-procurement services Source: Research, Development and Evaluation Commission http://www.redc.gov.tw

  44. Administrative Applications 8. e-Housekeeper Services Source: Research, Development and Evaluation Commission http://www.redc.gov.tw

  45. The impacts on implementation of e-government • Government agencies are becoming more flexible and responsive: • Government becomes able to act faster • Government service times are extended • Government service points become ubiquitous: • An even broader range of government services is turning to be available: • The cost of government services is falling: Source: Research, Development and Evaluation Commission http://www.redc.gov.tw

  46. E-Government Service Quality SurveyConducted by RDEC, 2006 Source: Report to ICA 40th Conference September 2006

  47. Online Privacy • Lack of consumer confidence in online privacy is a major problem hampering the growth of e-commerce • 94.5% of Americans including internet and non-internet users, are concerned about the privacy of their personal information when or if they buy online Source: Malhothra N. Marketing Research: An Applied Orientation 5th ed. p 275

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