Shih-hao Hsieh
Ryan Fedyk
Tom Turner
10/30/2007 1
Session Objective
Introduce the concept of e-commerce
Importance of online growth and worldwide usage
Taiwan’s e-commerce and unique e-commerce
businesses
Large market of online gambling and legal issues
Taiwan’s e-government
The future of e-commerce
10/30/2007 2
Electronic Commerce
E-Commerce consists of the buying and selling of
products or services over electronic systems such as
the internet or other electronic systems.
Business-to-Consumer
Customers-to –Customers
- ebay
Source: Pan Western e-business team . http://www.e-future.ca/sask/pdf/b2b_basics.pdf
10/30/2007 4
10/30/2007 5
Source: Internet World Stats, June 2007
10/30/2007 6
Source: Internet World Stats, June 2007
10/30/2007 7
Introduction to Taiwan
Also Known As: Ilha Formosa, “the beautiful island”.
Area :35,980 square kilometers
Population: 22.7 million
Capital : Taipei City
Language : Mandarin (official), Taiwanese, and Hakka.
Religion : Buddhism/Taoism/Christianity/Islam
10/30/2007 8
Taiwan E-Readiness
Items Penetration Rate
Internet Population 65.97%
Broadband Users 59.93%
Internet Households 73.39%
Broadband Households 64.81%
Mobile Phone 99%
Cable TV 84.60%
Remarks:
1. Total population: 22.73 million (22,730,819)
2. Total households: 7.2 million (7245047)
Source: (2006 January)
1. Taiwan Network Information Center
2. Ministry of Transportation and Communications
3. Ministry of Interior
10/30/2007 9
US VS. Taiwan
80.0% 69.7%
Penetration Rate
65.97% 64.81%
60.0%
42.0%
US
40.0%
Taiwan
20.0%
0.0%
Internet Population Broadband Households
57%
58.9%
USD
Million
*Currency Rate: 33 NTD = 1 USD
1. Fortune-Teller
• Name
http://clickfate.com.tw/namefate/namefate251.shtml
• Birthday
http://mindcity.sina.com.tw/east/MC-ziwai/index.shtml
• Feng-Shui (風水)
http://www.e-rent.com.tw/fengshui/
10/30/2007 12
10/30/2007 13
Fortune-Teller(Cont.)
Constellation
http://mindcity.sina.com.tw/index.shtml
Horoscope
http://star.pchome.com.tw/
10/30/2007 14
Unique E-Commerce in Taiwan
2. On-line Worship
Buddhism
http://areyo.virtualave.net/cgi-bin/light/lightindexd.htm
http://web.thu.edu.tw/chiu/www/bpray/pray.htm
Taoism
http://www.intellect.com.tw/temple/
Confucianism
http://www.tccg.gov.tw/sys/SM_theme?page=455019ae
http://www.tccg.gov.tw/confucian/Chinese/a15.htm
10/30/2007 15
Higher Traffic
Constellation
Horoscope
10/30/2007 16
Lower Traffic
Feng-Shui
The book
of Changes
10/30/2007 17
Other Interesting E-commerce
Businesses
M-commerce
Second Life
Online Gambling
10/30/2007 18
Mobile Commerce
Mobile spending will pass the $500 million mark
in 2008
Sprint users spend an average of $9.75 on non-
voice services such as downloadable music, ring
tones, TV shows, maps, and directions
mShopper – use your cell phone to buy any
product by giving product info and customer info
I-Phone, Blackberry
Source: http://many.corante.com/archives/2006/12/26
10/30/2007 21
Get a First Life
10/30/2007 22
Online Gambling Estimates and
Projections
Source: www.cca-i.com/Primary%20Navigation/Online%20Data%20Store/internet_gambling_data.htm
10/30/2007 23
Casinos
Online Brick and Mortar
Vs.
Source: http://business.timesonline.co.uk/tol/business/industry_sectors/leisure/article705968.ece
10/30/2007 24
2006: Unlawful Internet Gambling Act
Bans American banks and
credit card companies from
completing transactions
with Internet gambling
companies
Source: http://www.casinocitytimes.com/news/article.cfm?contentID=161764
10/30/2007 25
Sen. Bill Frist
10/30/2007 26
Casino Lobbyists
$25 Million spent in donations to
politicians from gambling industry
to ban online betting.
Online companies responded with
$1.3 Million in lobbying efforts the
first half of 2007 in support of new
legislation.
Source: http://www.casinogamblingweb.com/gambling-news/gambling-law
10/30/2007 27
Fallout
6 out of top 10 online casinos
stopped accepting US customers
PartyGaming(PartyPoker)
dropped 60% in the first 24
hours and 75% overall
Source: http://business.guardian.co.uk/story/0,,1891049,00.html
10/30/2007 28
Legal Impact
Is poker a game of chance?
Poker sites/Third party
providers offshore - not
necessarily subject to US
regulations.
Will FTC enforce regulations?
How does law affect
Affiliates(advertising) and
Search Engines?
Source: http://www.gamblingandthelaw.com/columns/2006_act.htm
10/30/2007 29
The Real Impact
US players still play(legal or not).
Companies, not gamblers, feel the effects.
Companies use Third Party offshore money transfer
accounts to subvert new law.
-Similar to Paypal and Neteller, only offshore.
10/30/2007 30
2007 Legislation/News
Skill Game Protection Act - would legalize Internet
poker, bridge, chess, and other games of skill. Has
35 co-sponsors.
Internet Gambling Tax Act - would legislate
Internet gambling tax collection requirements.
US goes against a 1994 World Trade Organization
agreement by not allowing offshore gambling
websites to serve US customers.
WTO recently ruled against the US, saying they
must comply or pay compensation.
Source: http://thomas.loc.gov/cgi-bin/query/z?c110:H.R.2610:
10/30/2007
http://en.wikipedia.org/wiki/Online_poker 31
Definition of e-Government
e-Government refers to government’s use of
i n f o r m a t i o n t e c h n o l o g y t o e xc h a n ge
information and services with citizens,
businesses, and other arms of government.
10/30/2007 33
Main Reasons for Using E-Government
Ranking
Expressing Opinions or
22.1%
Complaints
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0%
Advancing
Adopting Web towards Mobile
Service Platform Internet
Services
e-Government
Promoting
Expanding Open
Service Value Standards
10/30/2007 35
Why Use Outsourcing?
Use private sector resources to accelerate e-Government
development
Bring in external expertise
10/30/2007 36
Five Outsourcing Models
Share-in-saving:
Self-funded:
Self-funded-hybrid:
Operation outsourcing:
Application-service-provider (ASP):
10/30/2007 37
Investment in e-Government
From 2003 to 2006…….
Taiwan government has invested US$ 370 million in e-Government Project
Averagely spent US$92.5 million per year on e-Government Project
0.103%
USD 359,363
Millions
I USD=33 NTD
Source:
e-government progress in Taiwan –Report to CIA 40th conference
10/30/2007 http://www.zujee.com/data/SiWanLiNian-GDPTaiwan-Annual-GDP1980-2006.htm 38
Centralized e-Government Entry Site
10/30/2007 http://english.www.gov.tw/e-Gov/index.jsp 39
Administrative Applications
1. Online Vehicle Oversight Service System
Payment of traffic fines
Payment of auto fuel taxes
Reporting of stolen motorcycles
Reporting of change of motor vehicle ownership or address
40%
34.59%
30%
21.06%
20% Percentage of O nline Tax
14.46%
Filing (O TF)
7.06%
10% 2.67%
4.79% Percentage of O TF U sing
0.20% 0.23% 0.33% 0.44% 0.71% 2.00% e-C ertificates
0% 1998 1999 2000 2001 2002 2003 2004 2005 2006
MOICA Individual
Government
Agencies
MOEACA
E-Government
Companies
MOICA
Government
Agencies
XCA
Organizations
10/30/2007 42
Source: Research, Development and Evaluation Commission http://www.redc.gov.tw
Administrative Applications
4. Electronic Exchange of Official Documents
Central Government
Provincial/Municipal
Government
Country/City
Government
Reduce document transmission time-2 months to 2 minutes
Raised the level of automation
100,000 documents being exchanged every day
Reduction in annual postage expense of around USD 6.3 million
10/30/2007 Source: Research, Development and Evaluation Commission http://www.redc.gov.tw 43
Administrative Applications
5. Online Payments Services
50.00%
happy about the
40.00% services
helpful in finding
30.00% information
20.00%
10.00%
0.00%
Source: Rogers, J., Bennett, C., Grewal, S.“E-commerce for Successful Franchisors.” Franchising
10/30/2007
World. Aug 2007. Vol. 39 Issue 8, p23-24. 51
The Future of Ecommerce
Large companies that implemented new Internet
technologies saw improvements of 13 percent to 21% in
performance measures
Small businesses with annual revenues of less than $10
million saw improvements of 40 percent to 50%
Room for growth - Still less than 7% of retail sales
10/30/2007 52
Upcoming Holiday Sales
Online retail sales are expected to increase by over
20% this season compared to 2006, surpassing $39
billion
Source: Morphy, E. “Report: Cheery Outlook for Holiday E-Shopping Season.” E-Commerce Times
10/30/2007 53
How to Succeed
Adapt as the market changes
Simplicity
Users do not want to click numerous times
Source: http://www.school-for-champions.com/ecommerce.htm
10/30/2007 54
How to Succeed
Ensure privacy and legalities
Customer Service
Purchase assistance, follow-up emails, help desk
Source: http://www.school-for-champions.com/ecommerce.htm
10/30/2007 55
Overall Message
E-commerce can prove effective when conducted
properly. It is an area where businesses need to pay
ongoing attention, as developing trends may provide
them with an edge in the electronic marketplace.
10/30/2007 56
References
Internet World Stats. http://www.internetworldstats.com Accessed Sep 17,2007
Nielsen Net Ratings http://www.nielsen-netratings.com Accessed Sep 17,2007
Burns, E. The ClickZ Network. “Top 10 Search Providers, 2007.” Aug 30, 2007
http://www.clickz.com/3626904 Accessed Sep 17, 2007
United States Census Bureau. “Quarterly Estimated E-Commerce and Retail Sales.” U.S. Census Bureau
News. Aug 16,2007. http://www.census.gov/mrts/www/data/html/07Q2.html. Accessed Sep 17, 2007.
Wikipedia, http://en.wikipedia.org/wiki/E_commerce. Accessed October 12,2007.
“Assessing Organizational Innovation Capability and its Effect on E-commerce Initiatives.” Journal of
Computer Information Systems, Fall2007, Vol. 48 Issue 1, p133-145.
Bills, Steve. “Citi Launches Two Trials of Mobile P-to-P Technology.” American Banker. Aug 6,2007, Vol. 172
Issue 150, p18-18.
Rogers, J., Bennett, C., Grewal, S.“E-commerce for Successful Franchisors.” Franchising World. Aug 2007.
Vol. 39 Issue 8, p23-24.
Malhothra N. .Marketing Research: An Applied Orientation. 5th ed. 2007. p 275.
Pan Western e-business team . http://www.e-future.ca/sask/pdf/b2b_basics.pdf Accessed Oct 15,2007.
Dryden, J. “Business to Consumer E-commerce Statistics.” CONSUMERS IN THE ONLINE MARKETPLACE
OECD WORKSHOP ON THE GUIDELINES: ONE YEAR LATER Berlin, 13-14 March 2001.
http://www.oecd.org/dataoecd/34/36/1864439.pdf
Jupiter Internet Shopping Model
Morphy, E. “Report: Cheery Outlook for Holiday E-Shopping Season.” E-Commerce Times. Oct 23, 2007.
http://www.ecommercetimes.com/story/59964.html
Echo H. “Entry to the E-commerce Markets of China and Taiwan: An Application of Content Analysis.”
International, Journal of Management Mar2007, Vol. 24 Issue 1, p82-91.
Isabel, Y. “Eight Tips for Setting Up A Successful E-commerce Website.” Hudson Valley Business Journal. Oct
2, 2006. Vol 17. Iss 19. p6-25.
10/30/2007 57
References
Berger, C. “How to Succeed in e-Commerce.” Chartec Magazine. Feb 2002.
http://www.bgatereporter.com/assets/bgate/b88.pdf
School for Champions http://www.school-for-champions.com/ecommerce.htm Accessed Oct 23,2007
Regan, K. “Sprint Cuts Ribbon on Mobile Shopping Service.” E-commerce Times. Sep 13, 2007.
http://www.ecommercetimes.com/story/59330.html
EIU CountryData at shttp://www.nationsonline.org/index.html Accessed Sep 30,2007
Research , Department and Evaluation Commission http://www.rdec.gov.tw Accessed Sep 30,2007
PEW pew /internet http://www.pewinternet.org Accessed Sep 30,2007
Foreseeing Inovative new Digiservices at:http://www.find.org.tw/find/home.aspx
Ecommerce Status in Taiwan at Tamkang
University http://www.lib.tku.edu.tw/esource/webtopic/BusinessClass/ImformationMannage/reports/Inf_
reportslist.html Accessed Sep 30,2007
Directorate General of Budget, Accounting and Statistics, Executive Yuan at
http://eng.dgbas.gov.tw/mp.asp?mp=2
Fortune teller&online-Wroship Accessed Sep 30,2007
ClickFate http://clickfate.com.tw/namefate/namefate251.shtml Accessed Sep 30,2007
Mind City http://mindcity.sina.com.tw/east/MC-ziwai/index.shtml Accessed Sep 30,2007
E-Rent http://www.e-rent.com.tw/fengshui/ Accessed Sep 30,2007
Mind City http://mindcity.sina.com.tw/index.shtml Accessed Sep 30,2007
Asher, A. “Developing a B2B Commerce Implementation Framework: A Study of EDI Implementation for
Procurement.” Information Systems Management, Fall2007, Vol. 24 Issue 4, p373-390.
Eadington, W. “The Future of Online Gambling in the United States and Elsewhere.” Journal of Public Policy
& Marketing, Fall2004, Vol. 23 Issue 2, p214-219.
10/30/2007 58
References
Iching Shopping http://iching.shoppy.cc/ Accessed October 7,2007
PCHome http://star.pchome.com.tw/ Accessed October 7,2007
Yadav, Manjit S; Prabhu, Jaideep C; Chandy, Rajesh K. “Managing the Future: CEO Attention and Innovation
Outcomes.” Journal of Marketing, Oct 2007, Vol. 71 Issue 4, p84-101.
CZU http://www.czu168.idv.tw/ Accessed October 7,2007
Virtual Ave http://areyo.virtualave.net/cgi-bin/light/lightindexd.htm Accessed October 7,2007
Raymond’s Home http://web.thu.edu.tw/chiu/www/bpray/pray.htm Accessed October 7,2007
Intellect.com http://www.intellect.com.tw/temple/ Accessed October 7,2007
http://www.tccg.gov.tw/confucian/Chinese/a15.htm Accessed October 7,2007
Alexa http://www.alexa.com/ Accessed October 7,2007
http://secondlife.com/ Accessed October 7,2007
http://many.corante.com/archives/2006/12/26 Accessed October 7,2007
CCI-A www.cca-i.com/Primary%20Navigation/Online%20Data%20Store/internet_gambling_data.htm
Accessed October 7,2007
Business Times Online
http://business.timesonline.co.uk/tol/business/industry_sectors/leisure/article705968.ece Accessed
October 7,2007
Bharadwaj, P., Soni, R. “E-Commerce Usage and Perception of E-Commerce Issues among Small firms:
Results and Implications from an Empirical Study.” Journal of Small Business Management, Oct2007, Vol. 45
Issue 4, p501-521.
Johnson, J. “Online Sales Groth Slowing, but Still Double Digits.” Colorado Springs Business Journal. Aug 3,
2007. Aug Issue.
10/30/2007 59
Q&A
10/30/2007 60