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COPAFS Quarterly Meeting

COPAFS Quarterly Meeting. Measuring Electronic Business March 10, 2000 tmesenbo@census.gov. Measuring E-Business. Census Bureau Programs E-Business Strategy E-Business Definitions E-Business Measurement Plans Partnership Opportunities. Census Bureau Programs.

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COPAFS Quarterly Meeting

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  1. COPAFS Quarterly Meeting Measuring Electronic Business March 10, 2000 tmesenbo@census.gov

  2. Measuring E-Business • Census Bureau Programs • E-Business Strategy • E-Business Definitions • E-Business Measurement Plans • Partnership Opportunities

  3. Census Bureau Programs • Economic Census every 5 years • Annual and Quarterly Economic Surveys • Principal Economic Indicators What We Do

  4. Census Bureau Statistics • Profile the economy -- widely used by gov’t. & industry • Industry-based (new NAICS) • Employ various statistical units • firm vs. location • Collect information from accountants • Baseline measures, but not at Internet speed

  5. Census Bureau E-Business Strategy • Partner with gov’t., ind., & academia on definitions, measurement plans, and priorities • Focus first on e-commerce (B2C & B2B) • Contract for e-business process expertise • Adopt e-business processes to facilitate reporting and reduce reporting burden • Use first mover status to help secure additional budget resources

  6. E-Business Overview • E-Commerce • Transactions • E-Business • Infrastructure • E-Business • Processes $ Infrastructure

  7. E-Business Infrastructure Definition E-business infrastructure is the share of total economic infrastructure used to support e-business processes and conduct e-commerce transactions.

  8. Underlying ConceptsE-Business Infrastructure • Broadly defined to include expenditures for: • Hardware • Application Software • Telecommunications • Purchased support services • Support services provided by the firm

  9. Computer-Mediated Networks Definition Computer-mediated networks are electronically linked devices that communicate interactively over network channels.

  10. Underlying ConceptsComputer-Mediated Networks • Electronic devices communicating interactively with other electronic devices, for example: • computers • personal digital assistants • webTV • internet-enabled cellular phones • interactive telephone systems • Minimal human intervention • Networks include internet, intranets, extranets, EDI networks, and telecommunication networks. Networks may be either open or closed.

  11. Electronic Business Definition Electronic business is any process that a business organization conducts over computer-mediated network channels.

  12. Underlying ConceptsE-Business Processes • Some examples include: online purchasing vendor managed inventory production design, scheduling & control online sales payment processing online logistics customer management & support employee training recruiting

  13. Underlying ConceptsE-Business Processes (continued) • E-business processes of interest because • change the ways organizations operate and conduct business • lower transaction costs, improve efficiency • change relationships with suppliers and customers • change industry structure • affect economic measures

  14. Electronic Commerce Definition Electronic commerce is any transaction conducted over computer-mediated network channels that transfers ownership of, or rights to use goods or services.

  15. Underlying ConceptsE-Commerce Transactions • Transaction is an event; won’t measure all • transactions • E-commerce transactions occur within selected e-business processes • Agreement between buyer and seller to transfer ownership or rights to use goods or services occurs over computer-mediated networks.

  16. Underlying ConceptsE-Commerce Transactions (continued) • Electronic agreement is the trigger for an e-commerce transaction, not the payment. • Commitment and payment often occur concurrently for B2C transactions. • Payment generally lags commitment in B2B transactions. • Will not measure zero priced transactions

  17. Census Bureau FY2000 Survey Plans • 1999 Monthly Retail Trade Survey • 1999 Annual Retail Trade Survey • 1999 Annual Accommodations and Food Services • 1999 Annual Wholesale Trade Survey • 1999 Services Annual Survey • 1999 Annual Survey of Manufactures Supplement

  18. Census BureauFY 2000 Survey Plans • 1999 Monthly Retail Survey • Internet sales collected starting October 1999 • Quarterly data releases • First official measure of Holiday 1999 retail sales available March 2000

  19. Census Bureau FY2000 Survey Plans • 1999 Annual Retail Trade Survey • For all industries: • E-commerce sales 1999 & 1998 • E-business purchases indicator • Additional info for non-store retailers, computer & office supply stores: • total e-commerce sales by class of customer • total e-commerce sales to non U.S. customers • total sales & e-commerce sales for 11 selected commodity categories

  20. Census BureauFY2000 Survey Plans • 1999 Annual Wholesale Trade Survey • E-commerce sales data for 1999 & 1998 • E-business purchases indicator • 1999 Annual Services Survey • E-commerce sales for 1999 & 1998 • Product data for selected industries • 1999 Accommodations & Food Services • E-commerce sales for 1999 & 1998

  21. Census BureauFY2000 Survey Plans • 1999 Annual Survey of Manufactures Supplement • Supplement to Plant Manager May 2000 • E-commerce shipments as a percent of total • E-purchases as a percent of total purchases • Information on e-business process use -- now & future • Information on integration with suppliers & customers • Will help assess data availability issues associated with establishment surveys

  22. FY2000 Other E-Business ActivitiesResearch • Pembroke Consulting (Adam Fein) • Supply chain changes • Classification of manufacturers sales offices • Recommendations for 2002 Economic Census • IBM (IBM, Sampler, Varian) • Develop e-business impact framework • Identify changing business models • Implications for industries & measurement • Develop of e-business taxonomy • Supplemental classifications & new aggregations to better describe e-business activity • Develop e-business taxonomy • Recommendations for 2002 Economic Census

  23. Future E-Business Plans • FY 2001 Budget -- E-Business Initiative ($8.5M) • Targeted e-commerce surveys • Monthly Wholesale Trade • electronic market places • supply chain survey • E-business process measurement • extend ASM supplement • Begin work on infrastructure measures • Implement e-business methods • expand Internet reporting • establish Customer Relationship Management Group for largest companies

  24. Partnership Opportunities • Feedback on Definitions and Concepts • What e-commerce questions do you want answered? • Understand E-Business Processes • Suggestions re 1999 ASM Supplement • What processes should we focus on? • What questions do you want answered? • Existing studies on e-business processes? • Methodology suggestions

  25. Partnership Opportunities(continued) • E-business infrastructure • What questions do you want answered? • Key technologies to target • What measures should we collect?

  26. Questions and Answers tmesenbo@census.gov

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