The problems encountered in using ICT for enhancing business services

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The problems encountered in using ICT for
enhancing business services
Prepared by L.Hay, m.b.a
E-Business development for small Medium
Enterprises
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Introduction

• Running a business today is not as easy as during
  the year seventy or eighty.
• The challenges we are now facing are different
• -The globalization of the market, the fierce
  competition, the change in consumer's
  behaviours, the complex trade rules
  regulations, the unprecedented progress of (ICT)
  Information Communication Technologies and
  the rapid development of
• E-business, etc...adding more and more
  burden and complexity to SMEs and business
  community.
• A globalize economy creating more hazards and
  more opportunities for everyone, forcing firms to
  make a dramatic improvement not only to compete
  and prosper but to survive...
• ICT is an ideal solution for firms to compete
  more efficiently.

E-Business development for small Medium
Enterprises
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E-Business ? E-Commerce?

• Before moving so far, let's Clear it up
• E-Business Integration within an enterprises a
  series of tools infrastructure based on ICT to
  facilitate
• -Internal communication employee, internal
  process... and exIntranet
• -External communication Customer, suppliers,
  partners, shareholders, public sectors,...
  ex Extranet
• E-Commerce always mix up with E-Business BUT
  it's just a facet of entire E-business
  infrastructure by utilizing some electronic
  business tools to promote or sale a product
  service.
• An e-Business application aimed at Commercial
  transaction
• Ex EDI, EFT, Online Marketing, Online
  Transaction Marketing,
• eBay, Dell Computer, expedia travel, etc..
• E-commerce in Cambodia is very limited.

E-Business development for small Medium
Enterprises
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E-Business Infrastructure

• An Enterprise who engage in the process of
  E-Business must know how exploit new technologies
  to implement an ICT infrastructure.
• Here's some principal solutions
• Intranet / Extranet
• Groupware (ex shared agenda, shared documents,
  electronic forum, videoconference, etc..)
• WorkFlow
• E-Commerce
• EAI (Enterprise Application Integration)
• CRM (Customer Relationship Management)
• KM (Knowledge Management)
• SCM (Supply Chain Management),
• ERP (Enterprise Resource Planning)
• Business Intelligence (BI)

E-Business development for small Medium
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Emergence of e-Enterprise

• We generally characterized an Enterprise by the
  type of commercial
• relation they entertain with their internal or
  external communities
• using ebusiness technologies
• - Here's some jargons
• B To B (Business To Business, often used B2B)
• - Ex e-procurement, e-spices, e-textiles,
  e-coffee, eBidding, e-handicraft, efund transfer
  (EFT), etc..
• B To C (Business To Consumer, often used B2C)
• - Ex e-Bay, Amazon, Google, Yahoo, etc..
• gt eBay, San Jose giant e-commerce (Sales start
  from 3,3 B at 2004, 2006 6 Billion, 1,12 B
  Bnet).
• B To A (Business To Administration, often used
  B2A) designate a business relation between an
  Enterprise with Public sector
• - Ex e-Exportdesign, e-Legislation,
  e-competitiveness, Trade facilitation (World Bank
  project in Cambodia)...
• B To E (Business To Employees, often used B2E)
• - Ex e-Learning, e-recruit, e-procedure,
  e-travel, etc...

E-Business development for small Medium
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Early B2B e-Business Business Models

• Typically
• -One-to-one relationship
• -Parallel process inefficiencies
• -Lack of integration into business processes /
  internal systems
• -Supply chain still as slow and rigid as
  its weakest
• link
• Supplier Manufacturer
  Distributor Retailer Consumer

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Enterprises
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Structural Changes to Business Relationship

• 80s-90s
• ERP for separate enterprises
• 1990s
• Supply Chain Optimization linear solutions
• 2000s
• "The network is the computer"
• "The network is the business"

ScottMcNeally CEO Sun Microsystems
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Enterprises
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New Business Model Dynamic Trading Communities

• Collaborative trading exchanges/communities
• Many-to-many relationships for both supply and
  demand
• Visibility/information sharing across entire
  value chain (ex fair trade..)
• Real-time
• Private or hosted
• ERP WMS ERP WMS

Communicate/connect
Communicate/connect
Communicate/connect
Retailer
Supplier 1
Customer
Supplier 2
Manufacturer
Hub Server
Distributor hub
Collection point
Supplier 3
E-Business development for small Medium
Enterprises
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Enterprise Information System Management

• ICT infrastructure
• Customer don't have access
• Internal process
• (production, logistic, inventory,
• sales, accounting, HR,.. )

Front Office
Back Office
Customers
Partners
ICT infrastructure Customer can have, price
list, point of sales, commercial policy, etc..
Suppliers
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Enterprises
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Needs of SMEs to Implement ICT ?

• ICT enable SMEs
• -To target more customers and increase Business
  opportunities by accessing to multiple
  sourcing alternatives not visible before
• - To reduce Purchase cost enable to benchmark
  raw material or semifinish products via B2B
  network
• - To decrease operational cost P.O
  processing, Inventory, Marketing, etc...
• - To improve asset utilization synchronize
  logistics, manufacturing and suppliers
• - Speed to market and cycle time reduction
• - To provide visibility/information sharing
  across entire value chain
• - To provide Real response time
• - To Adapt to Trading Partners in Hours not
  Months
• - To integrate Internet Strategy with Core
  Business
• - To increase competitiveness and market share
  in the world of market's globalization.

E-Business development for small Medium
Enterprises
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Types of indicators surveyed for households
Obtaining a reliable statistics in Cambodia is
difficult !!!. Heres some essential data related
to ICT
E-Business development for small Medium
Enterprises
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Types of indicators surveyed for business
E-Business development for small Medium
Enterprises
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Cambodia ICT at a glanceSource World Bank
Development Data Group IMF

• Households with electricity ??
• GDP per capita (2005)
• - Cambodia 500 (152th / 180 countries) (after
  Lao, Haiti, VN)
• Literacy rate ( ages 15 and over)
• - Cambodia 73,6, East Asia Pacific 87,3
• Service provider charge
• - Cambodia50 to 100/month (limited usage from
  0,5 to 1 Gig)
• - East Asia Pacific (approx.) 20/month
  (sometimes unlimited usage)
• There is a huge discrepancy between the number of
  mobile subscribers compared with fixed-line
  subscribers, the former totaling more than 1.1
  million by end-2005 or (70 for 1000), while fixed
  lines remained at less than 40,000.

E-Business development for small Medium
Enterprises
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Cambodia ICT at a glance
E-Business development for small Medium
Enterprises
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Cambodia ICT at a glance
Internet Usage and Population Statistics
Note Per Capita GDP in US dollars, source
United Nations Department of Economic and Social
Affairs.
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Enterprises
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Cambodia ICT at a glance
Source Computer Industry Almanac Inc.
Cambodia 2005/2006 70 3 (?) 3
(?) (Source 2003 ITU))
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Enterprises
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Cambodia ICT at a glance
E-Business development for small Medium
Enterprises
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The Problems Encountered in Using ICT

• - Certain SME cannot just afford the ICT
  deployment cost are
• very high !!!
• gt In Cambodia,
• - The cost of internet (DSL) is still high and
  unaffordable for certain SMEs
• - The Telecom industry is not in perfect
  competition Telephone usage charge is
  still high (comparing to neighboring
  countries)
• - Lack of capacity building national
  networking infrastructure
• (cabling, servers, hub...)
• - Culture of 'FMS'
• - ICT language mostly in English
• - Low rate of computer usage Internet
  accessibility (see ICT at a glance).

E-Business development for small Medium
Enterprises
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The Problems Encountered in Using ICT

• - Limited usage of credit card for B2C
• - Banking system still need to be improved to
• gain business communitys trust and to
  privilege EFT
• - Low IT penetration
• - Low e-Trade awareness
• - Cultural and mindset issues
• - For certain, ICT is too complex, not
  flexible enough, not 'fit' well with
  Cambodia's context and not really confident
  on ICT...
• - Lack of qualified Human resources to support

E-Business development for small Medium
Enterprises
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The Problems Encountered in using ICT

• - Challenge to get them around to e-trade !!!
• Initiate paradigm shift in the minds of
• policymakers, practioners and users from
• conventional to digital economy
• Embrace e-enabling technologies to increase
• business competitiveness
• Create a conducive regulatory environment
• Encourage private sector leadership in
  e-business
• investment and transformation

E-Business development for small Medium
Enterprises
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The Problems Encountered in Using ICT

• The Public sector can play an 'active' role in
• Creating awareness
• Creating a sense of urgency among businesses
• Strengthening University program and encourage
  more students to opt for IT studies
• In spite the predominance of English, the
  Internet local langage still play an important
  role in increasing Internet penetration
• Playing a facilitator role in driving the shift
  towards e-Trade and stimulating public-private
  partnership
• Facilitating trade with partner countries.

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Enterprises
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Conclusion

• The countries in the region have given top most
• priority to ICT development
• Whereas, in Cambodia we are at the stage of
  defining our aims and objectives and formulating
  a policy in ICT ?
• Where are we now?
• Reliance on ICT is the foundation of on-line
• development.

E-Business development for small Medium
Enterprises