13:15 - 13:50 Friday 15/12/95 Wentworth Hotel Sydney

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1315 - 1350 Friday 15/12/95Wentworth Hotel
Sydney
THE SIGNIFICANCE OF SMEs FOR ELECTRONIC COMMERCE

• Stephen GOULD
• Secretary
• OPEN INTERCHANGE CONSORTIUM

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Electronic Information Interchange (EII)

• Significance of SMEs
• The Problem
• European Telematics Projects
• Australians establishing the standards
• Australian EDI Projects
• Commonwealth Electronic Commerce Service (CECS)

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Significance of SMEs

• EDI was originally developed to reduce
  administration costs for large companies
  particularly through the Purchasing cycle. 80
  of a companys purchases may be from 20 of your
  suppliers. However the cost of producing an
  invoice for 100 is the same as an invoice for
  1,000,000.
• Thus 80 of companies purchasing administration
  costs is spent on the 80 Small and Medium
  Businesses that produce 20 of the sales items
  and 20 of the purchasing items. Hence to reduce
  the administration costs these SMEs have to
  adopt Electronic Commerce.
• Electronic Commerce now encompasses
  Electronic Catalogues hence the move towards
  multi-media and electronic marketing.

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The Problem

• All EDI initiatives world-wide have the same
  problem when linking electronically with Small
  and Medium Size Enterprises. The problem is
• Developing a generic solution that can be
  utlilised by any SME
• Ensuring that it provides many-to-many linkages
  with all facets of business
• Interfacing with SME application software
• Ensuring that start-up costs and on-going costs
  are acceptable to SMEs
• Promoting and implementing the Electronic
  Commerce with SMEs

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Telematics Projects in Europe

• 3rd Framework for RD program 1990-1994
• 3 major areas total funds A 19.7 Billion
• I Enabling Technologies
• Information Technologies
• Communications Technologies
• Development Telematics Systems
• II Management of Natural Resources
• III Management of Intellectual Resources

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Identified Projects

• 6 Major programmes
• 
  Projects
• ORA - Industry
  62
• AIM - Health
  37
• ENS - Administration
  14
• DRIVE - Transport
  56
• DELTA - Education
  43
• CUSTOMS
  20

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TEDIS Conference 1989

• Legal Workshop
• Recommendations
• Electronic Notary
• Information Trustees
• Electronic Contracts

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RINET

• Established by the Re-insurance industry in 1987
• Co-operative non-profit company comprising
• The Mercantile General Reinsurance Company
  (London)
• Munich Reinsurance Company
  (Munich)
• National de Resseguros SA
  (Madrid)
• Nederland Ressurantie Group MV
  (Amsterdam)
• Skandia International Insurance Corporation
  (Stockholm)
• Societe Commerciale de Ressaurance
  (Paris)
• Swiss Reinsurance Company
  (Zurich)
• Unione Italiene di Riassiourazione
  (Rome)

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Linking with Insurance Broker Networks

• Establishing electronic Networks with
  Associations
• LIMNET (Lloyd's Insurance Market
  Network)
• BROKERNET (UK Broker Network)
• IVANS (US Broker Network)
• CELIA (French Broker Network)
• ASSURNET (French Belgium Underwriter
  Network)
• ADN (Dutch Broker Network)
• RITA (Italian Broker Network)

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UN/EDIFACT Rapporteurs

• Australia 19 Belgium 12 UK 7 USA 6
• Canada 6 New Zealand 5 France 5 Sweden
  4
• Netherlands 4 Germany 4 Austria 4
  Denmark 4
• Switzerland 3 Poland 2 Norway 2
  Finland 2
• Luxembourg 1 Japan 2 Hungary 1
  Bulgaria 1
• Czechoslovakia 1 Romania 1 Iceland 1
  Russia 1

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Australian UN/EDIFACT Rapporteurs 1990 - 1994

• Jonathan KNIGHT KNIGHT STRATEGIC
  SERS Maintenance Group
• Margaret WRIGHT KPMG PEAT MARWICK Security
  Audit
• David BOTHERWAY COLES MYER Retail
• Karl ROMMEL BHP STEEL Heavy Engineering
• Randy AUSTIN ANZ BANK Banking
• Mark FULLER BHP STEEL Steel
• Jan BYLSTRA NATIONAL MUTUAL Life Insurance
• Bruce DAWSON ERICSSON Communications
• Barry KEOGH TRADEGATE Transport
• Terry BROWN NISSAN MOTOR Automotive
• Tony MORRIS QANTAS Tourism
• Richard STANDFORD JAMES HARDIE IND Hardware
• Graham BEHRENDORFF ALH AUSTRALIA Whsale/Distri
  b
• Alan CUNNINGHAM ADL CONSULTING Agriculture

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Customs Co-operation Council

• Secretary General Tom HAYES (AUSTRALIA)
• Deputy Sec Gen P. BENET (France)
• Head Fin Services R. TRIEST (Belgium)
• Head Administration Bill REID (AUSTRALIA)
• Dir Nomenclature H ASAKURA (Japan)
• Dir Customs Techniques A RIGDON (USA)
• 6 Deputy Directors 7 Senior Technical
  Officers (28 different
• 19 Technical Officers 10 Technical Attaches
  nationalities)
• USA 5 UK 4 Belgium 4
• Japan 4 France 3 Australia 2

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Working Nation Strategy 04/05/94

• 1994/95 - A 1,058.7 M
• 1995/96 - A 1,725.7 M
• 1996/97 - A 1,888.1 M
• 1997/98 - A 1,869.6 M

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ADCONNECT - 1990

• Anthony FITZGERALD Seven Network
• Stephen WRIGHT Nine Network
• Sirkanth NANDIGAM Network Ten
• David GREEN MOJO
• Don WOOD Clemenger
• Roger BICK George Patterson
• Alan MEDFORTH McCann Erickson
• Paul DAVEY DDB Needham
• Ross HOWARTH Merchants

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AEROS - Australian Electronic Retail Ordering
System

• Australian Records Industry Association - ARIA
• Members EMI Orders
• BMG Acknowledgments
• Sony Catalogues Updates
• Polygram Weekly Charts
• Warner

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Customs Electronic Commerce Programs

• Formation TRADEGATE - 1989
• ACS, QANTAS, AAPMA and Austrade
• contributed 250,000.
• 6 SME associations contributed 50,000.

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Members Tradegate

• Aus Customs Service
• QANTAS
• AAPMA
• Austrade
• Customs Brokers Council of Australia (CBCA)
• Aus Forwarders EDI Association (AFEDIA)
• Aus Road Transport Federation (ARTA)
• Aus Chamber of Shipping (ACOS)
• Aus Ship Owners Association (ASOA)
• Railways of Australia
• Tradegate manages 3 year contract for Value Added
  Network Service
• Current Service provider ATT EASY LINK

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CUSTOMS NATIONAL CONSULTATIVE COUNCIL

• Members CNCC Electronic Commerce charge review
  panel
• Australian Customs Service
• Law Council of Australia
• Customs Brokers of Australia (CBCA)
• Aus Federation of Air Freight Forwarders
  (AFAFF)
• Aus Chamber of Shipping (ACOS)
• Aus Chamber of Commerce (ACC)
• International Air Couriers Association (IACAA)
• Institute of Chartered Accountants (ICA)
• Aus Aviation Industry Customs Committee
  (AAICC)
• Aus Society of Certified Practicing
  Accountants (ASCPA)

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COMMONWEALTH ELECTRONIC COMMERCE SERVICE (CECS)

• July 1995 - 2 contracts
• I Primary contractor - Tendering system
• II Additional Products and Services
• Contract I
• 96 respondents - stage 1 RFI
• 19 submissions - stage 2 RFP
• 4 shortlist - stage 3 RFO

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7 Lead Agencies

• 1 Department of Defence (DoD)
• 2 Department of Employment, Education and
  Training (DEET)
• 3 Department of Administrative Services (DAS)
• 4 Department of Veteran Affairs (DVA)
• 5 Department of Human Services and Health (DHSH)
• 6 Department of Social Security (DSS)
• 7 Australian Taxation Office (ATO)
• There are 25 Portfolio Departments with 95
  administrative units together with an additional
  80 other agencies within those portfolios.

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Prime Contractor Contract

• There are 4 full bids that have progressed to
  the CECS Request for Offers (RFO) stage
• Telstra
• ISSC
• EDS Australia
• Australian Business On-Line
• The Strategic Partner contract will be awarded
  May 1996.

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Addition Products and Services Contract

• Contract II
• This contract requires the following services
• EDI Software and Services for SMEs
• Automatic Data Capture (ADC - bar code,
  scanning, OCR)
• Systems integration re-engineering
• Business process re-engineering
• Security products and services

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Requirement of CECS -numbering schemes

• A range of identifiers including
• People
• Organisations
• Locations
• Products and Services
• The RUBAC (Relational Universal Business
  Automation Code) Information Management
  Methodology was researched to fulfill the code
  identifier requirements for Electronic Commerce
  and Electronic Information Interchange (EII).

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The OIC Vision

• Australian Companies and expertise
• Establishing the Standards
• Implementing Electronic Commerce software that
  conforms to international standards
• Marketing the products internationally
• Implementing and supporting products
  internationally
• All linked electronically to provide the highest
  standards of service at a minimum on-going cost