As a symbol of globalisation and in many ways its leading feature, e-commerce represents the cutting edge of success in this digital age. Electronic Commerce is, however, less about electronics and technology and more about strategy and management. E-Commerce in India: Assessments and Strategies for the Developing World, is a pioneering study on the policy and strategy of e-commerce as it evolved in India. Tracing the story of India as it emerged as the IT superstar on the global digital stage, this book presents a framework to assess the success of such strategies across economies and enterprises and uses it to present the status across fourteen developing economies. In doing so it finds that several of the developing countries (including India) still lack wholly appropriate and fully assimilated policies and strategies that have restricted their potential for success in the digital economy. The book serves both as a tool and a guide for strategic planning for policy makers, professionals and managers that seek to understand the principal issues concerning e-commerce from standards and capacity concerns to legal and financial frameworks and the taxation and international trade issues that especially impact developing economies.
Preface ..................................................................................................... vii
List of Abbreviations ................................................................................ xiii
Contents ..................................................................................................xvii
CHAPTER 1
Introduction .................................................................................. 1
PREAMBLE .................................................................................... 1
WHY E-COMMERCE ...................................................................... 2
The Phenomenon of the ‘Internet’ ............................................. 4
Economic Dimensions of the Internet ........................................ 9
DEFINING ELECTRONIC COMMERCE ............................................. 10
OTHER ‘E’ EXPRESSIONS ............................................................. 14
THE WHEN OF THE NEW ECONOMY MODEL: SOME
PROSPECTS FOR THE FUTURE ............................................. 16
CHAPTER 2
E-Commerce, Development and E-readiness.............................. 21
INTRODUCTION ......................................................................... 21
ICTS AND DEVELOPMENT .......................................................... 22
The Reality of the Digital Divide .............................................26
E-Commerce Readiness .............................................................31
Key Factors of Preparedness for Electronic Commerce .............37
A Framework for E-Commerce Policy .......................................40
RATIONALE OF THE BOOK ......................................................... 42
Methodology of the Study ........................................................44
CONCLUSION ............................................................................. 48
CHAPTER 3
Significant Issues of E-Commerce for
Developing Countries ........................................................... 49
INTRODUCTION ......................................................................... 49
DIGITAL DISPARITIES FOR DEVELOPING COUNTRIES ...................... 50
Information Infrastructure ........................................................53
Technology and Standards ........................................................55
Key Issues of Electronic Commerce ..........................................58
Legal and Financial Framework .................................................61
An E-Commerce Fiscal Implication ..........................................65
E-Commerce Taxation ...............................................................66
Human Resource Issues .............................................................69
Issues of Privacy and Security ....................................................72
International Trade Issues ..........................................................76
The Issue of Classification .........................................................81
Intellectual Property Rights and E-Commerce .........................85
CONCLUSION ............................................................................. 88
CHAPTER 4
E-Commerce in Praxis: Government Policy and E-Commerce
in Selected Developing Countries ......................................... 89
INTRODUCTION ......................................................................... 89
POLICY IMPERATIVES AND INITIATIVES .......................................... 90
E-COMMERCE USAGE BY FIRMS IN DEVELOPING COUNTRIES ......... 93
ANALYSIS OF DEVELOPING COUNTRY ENTERPRISE SURVEY .............. 95
Country Surveys: E-Commerce Balance Sheet Analysis ...........95
STRATEGY AND STATUS FROM COUNTRY BALANCE SHEETS:
E-COMMERCE POLICY PREPAREDNESS MATRIX ....................... 98
Evaluation of the Success Level Matrix .................................. 101
E-Commerce Preparedness Ranking ...................................... 106
TOWARDS GLOBAL E-COMMERCE PREPAREDNESS FOR
DEVELOPING COUNTRIES ...................................................106
Common Issues and Challenges from the
Survey Results .................................................................. 107
An Alternate Proposition for Framework Issues and their
Importance for Enterprises during Transition ................. 108
CONCLUSION ............................................................................110
CHAPTER 5
E-Commerce in India .................................................................111
INTRODUCTION ........................................................................111
THE ECONOMIC ENVIRONMENT IN INDIA ...................................113
SOFTWARE TO E-COMMERCE: THE INDIAN EXPERIENCE ...............114
Tracking the Indian Success Story .......................................... 117
The Indian Competitive Advantage ....................................... 118
THE FUTURE OF E-COMMERCE IN INDIA ....................................123
IT/E-Commerce Surveys ........................................................ 124
ICT Usage by Small and Medium Enterprises in India ........ 125
WHAT EXACTLY DID INDIA DO? ................................................126
Government Initiatives: Towards an E-Vision ....................... 126
EDI to E-Commerce .............................................................. 126
Other Key Initiatives .............................................................. 127
The Indian Legal Framework for E-Commerce ...................... 129
Responses to the Legislation .................................................. 130
Telecom Policy and Administration: The
Indian Experience ............................................................ 131
Key Telecom Policy Issues ....................................................... 132
Industry Initiatives for E-Commerce ..................................... 134
Providing the Human Resources ............................................ 136
SO WHAT CONTRIBUTED TO THIS SUCCESS? ..............................138
Intermediate Development Strategy Model .......................... 138
Inherent and Acquired Factors ............................................... 139
Environmental Factors ............................................................ 140
A SWOT ANALYSIS FOR INDIA ....................................................143
Status of E-Commerce Preparedness for India ....................... 144
India E-Commerce Balance Sheet .......................................... 145
Micro Level (Enterprise Level) ............................................... 145
Meso Level (E-Trade Support Level) ...................................... 146
Macro Level (Policy Framework) ............................................ 147
India’s E-Commerce Preparedness Matrix ............................. 148
Survey Results ......................................................................... 148
Some Key Issues Still to be Addressed ................................... 154
Impact of Security and Privacy Issues on
E-Commerce in India ...................................................... 155
CONCLUSION ............................................................................157
CHAPTER 6
E-Governance in India: Assessing National Initiatives
and in Three States ..............................................................159
INTRODUCTION ........................................................................159
UNDERSTANDING E-GOVERNANCE ..............................................160
Defining E-Governance .......................................................... 161
E-COMMERCE AND E-GOVERNANCE ...........................................162
E-Governance Initiatives in India ........................................... 164
IT and E-Governance Administration in
Government Itself ............................................................ 164
Government Websites ............................................................. 164
E-Governance Services ............................................................ 166
Financial Allocations for E-Governance .................................. 166
How Does E-Governance Help India? ................................... 167
Obstacles to Ushering in E-Governance in India .................. 168
Stakeholder Views Regarding E-Governance in India ........... 169
E-Governance Models ............................................................ 171
E-COMMERCE /E-GOVERNANCE READINESS OF
THREE STATES IN INDIA ....................................................172
Andhra Pradesh ...................................................................... 173
Delhi ....................................................................................... 175
E-Commerce Preparedness Matrix for Andhra
Pradesh, Delhi and Punjab .............................................. 177
A Report on IT, E-Commerce and E-Governance in
Punjab .............................................................................. 178
Lessons from the Policy Environment .................................... 185
CONCLUSION ............................................................................186
CHAPTER 7
E-Commerce in India: Key Findings and Recommendations ....187
INTRODUCTION ........................................................................187
THE ASSUMPTIONS ....................................................................189
THE ROLE OF GOVERNMENT .....................................................193
LESSONS FROM THE INDIAN EXPERIENCE ....................................194
Steps Towards a Conducive National E-Commerce
Environment .................................................................... 196
Vision ...................................................................................... 196
Policy ...................................................................................... 196
Strategy ................................................................................... 197
Management ........................................................................... 197
SUMMARY OF RECOMMENDATIONS..............................................197
CONCLUSION ............................................................................201
ANNEXURES
ANNEXURE I
Fifteen Country Study Summaries/ E-Commerce
Balance Sheets ......................................................................207
ANNEXURE II
Important Definitions in the Information Technology
Act 2000 ...............................................................................253
ANNEXURE III
India: E-Commerce Support Network and Resources on
the Web ................................................................................255
ANNEXURE IV
Important IT Initiatives of Government of India ......................261
ANNEXURE V
Glossary .....................................................................................269
ANNEXURE VI
Reference Guide to Literature on E-Commerce .........................275
Bibliography ..................................................................................... 287
Index ................................................................................................ 299
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