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Emerging issues on E-commerce growth

Telecommuting With Albert Chinamano

The increasing globalization of industry, and the extensive adoption by business of internet-based data communications systems are fundamentally changing the way firms relate to their suppliers, customers and other stakeholders.

At the start of 2000, the promise of e-commerce began to be felt. For Government, productivity improvements and economic growth seemed assured; for industry, growth in profits and stock valuations seemed equally assured. As 2000 unfolded, the benefits of e-commerce seemed just as strong, but no one has really promoted it and all economic players are to blame.

Over time, the balance of power in the supply chain is shifting from manufacturers and retailers towards consumers, and forcing companies to find new collaborative ways of delivering specific products and services. The common Zimbabwean customer still has to become knowledgeable about the benefits of e-commerce. We have witnessed a trend in industry where consumers are coming to expect greater customization of products and services to suit their individual needs. At the same time, they are also used to a constant stream of innovations in the goods and services they use that either reduces the cost or improves the benefits they receive.

This, added to globalization and technological change, are forcing a change to the way we are interacting with the rest of the business world. Companies are recognizing that the Internet is becoming a virtual flea market, where it’s a one-stop shop for every commodity.

In response to this, data and voice communication technologies have resulted in a rapid growth in e-commerce, especially business to business (B2B) e-commerce. The banking sector in Zimbabwe has gone further in making e-commerce available to the end user. They have realized that because of the nature of their target markets, the only way to do so is via the Internet media.

The Internet is global and it will result in further globalization of the economy, possibly as great as that resulting from tariff and land reforms, while for some sectors (education, health, finance), the effects will be far greater.

The telecom providers of both data and voice services should be striving to make the platform for e-commerce to the ordinary consumer a reality. With the liberalization of the telecom sector, we should see a major shift in improving the economy through e-commerce.

We need to addresses the following concerns to as we try to build a platform for e-commerce. We are unfortunate that we fall behind in terms of technology access. European and United States companies are the creators of most of the technology we use, so we often adopt it 12 or more months after the date of launch.

Our businesses’ logistics and tracking systems require development to integrate with B2B trading systems, in particular the integration of spatial information and real time location information into these systems. Few firms have moved their inventory, sales and supply systems onto web compatible platforms.

The role of government should be felt in developing the platform for e-commerce. We have seen the development of e-commerce being led primarily by the private sector. In an environment where technology and related systems are evolving rapidly, an appropriate role for government is to work in partnership with the private sector to ensure that Zimbabwe is world-class in its standards, infrastructure, research and technology, awareness and regulation. The government is responsible for developing of national and international protocols for interoperability, security and privacy. Such developments are necessary to lower the entry cost for widespread business and consumer adoption of e-commerce and to increase business and consumer confidence.

In addition, it is important for governments to apply the benefits of the Internet to increase the effectiveness and efficiency of their own activities. Opportunities for improving the delivery of programs and services, and the administration of regulatory and compliance functions exist, or are being implemented, in a wide range of fields.

These emerging issues need to be addressed so we know the full potential of e-commerce. For comments contact chinamanoa@afri-com.com

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