E-Commerce Readiness for SMEs in Developing Countries

e-Commerce
A convergence of different methods of business communication into a single concept Use linked to the re-engineering of business processes Driven by business to control costs, enhance efficiency & gain competitive advantage

e-Commerce Supports SME Supply Chain Activities in Wales

The Changing Business Environment

New market conditions:
Specialisation Subcontracting Global Sourcing

Technological developments in the areas of production, transportation and communications More elaborate capabilities of people to exploit the possibilities

e-Commerce Supports SME Supply Chain Activities in Wales

Global Sourcing Trends

Increase in supplier/purchaser relationships mediated by computer networks - little face to face interaction and low costs; Increase in strategic alliances and partnerships through use of Electronic Communications leads to:
long term and more co-operative relationships expanded use of electronic commerce and EDI early involvement by suppliers in new product development a dramatic reduction in the supplier base agreements on a schedule of price reductions by suppliers

Achievement of best price, quality, delivery and flexibility

e-Commerce Supports SME Supply Chain Activities in Wales

e-Commerce improves Business Performance

Global Sourcing & Selling Strategic Partnerships

Electronic Commerce

Cost Control

Customer Service

e-Commerce Supports SME Supply Chain Activities in Wales

Implementing e-Commerce
Building the business case
customer / supplier analysis business analysis and cost justification - not just paper procedures but strategic improvements evaluation of technology and systems options

Secure commitment - internally & externally

e-Commerce Supports SME Supply Chain Activities in Wales

Implementing e-Commerce
Develop an Implementation Strategy
agree objectives that support business needs identify individual and joint responsibilities spell out timescales and milestones

Review business processes

understand the process flows document methods of operation identify process improvements

e-Commerce Supports SME Supply Chain Activities in Wales

Main Inhibitors
Cultural Resistance - changing Lack of management awareness - improving Reluctance to invest business not technology Weak commercial incentive understanding business opportunity and benefits Systems development - complexities Bureaucracy - Public Sector improving Security secure trading issues

e-Commerce Supports SME Supply Chain Activities in Wales

Supply Chain Performance Improvements

Increased market transparency through use of electronic catalogue; Business activities and structures re-engineered to provide a more competitive partnership position Closer and more efficient co-operation in production and scheduling activities Long term strategic benefits through locking in main customers via e-Commerce.

e-Commerce Supports SME Supply Chain Activities in Wales

Supply Chain Performance Improvements

Increased market transparency through use of electronic catalogue; Business activities and structures re-engineered to provide a more competitive partnership position Closer and more efficient co-operation in production and scheduling activities Long term strategic benefits through locking in main customers via e-Commerce.

e-Commerce Supports SME Supply Chain Activities in Wales

10