Decoding the Secrets of Success in Global Electronic Commerce

download report

Transcript Decoding the Secrets of Success in Global Electronic Commerce

Oxford University
University of Washington
Cape Town Convention Project
The Cape Town Convention’s International Registry:
Decoding the Secrets of Success in
Global Electronic Commerce
Roksana Moore
Soton
Decoding the International Registry’s Success
• Introduction
• Examples of older global e-commerce systems
– Slow, painful process of building a global network
• Cape Town Convention
– Governance and technology design decisions
• Success Factors
–
–
–
–
–
–
Concrete “Value Proposition”
Mandatory, Formal Regime
Collective Action Problems
Mature Technology
Organic Development
Responsive Governance
• But is this a model that can be reproduced in other fields?
Introduction
• Cape Town Convention based on central
registry for security interests
• Many examples of successful electronic
commerce systems for reference
– International Registry is uniquely “organic”
• Law, technology & business factors all
contribute to success
• Compare and contrast with other systems to
isolate specific success factors
Airline Reservation System
• Adoption of jet aircraft triggered “paperwork
crunch” in airline industry
– Isolated islands of computerization inside airlines
• Deregulation unleashed competition, airlines
with CRS wanted to exploit leverage
– National regulators intervened
• Rise of Internet travel sites dis-intermediated
travel agents
– End-to-end electronic processes replace paper
• Regulations abolished as competition among
“global distribution systems” grows
Tested Telex to SWIFT
• Banks were early adopters of information &
communication technology
– Telegraphs transmit instructions, but how to authenticate
• Encryption systems based on paper code books, physical
controls, separation of functions inside banks
– Inefficient but reasonably secure
• Bankers for global association to develop global
communication network
– Only messages, clearing and settlement by other means
• SWIFT functions regulated by private law in each country
– Service organization supports banks
– Continuous innovation in information security and standards
Digital Signatures
• Technological answer in search of a question
– Business case for adoption weak, 1990s electronic signature
laws did not create statutory mandate for adoption
• US FDA requires signatures on all documentation related
to testing of pharmaceuticals before marketing
– SAFE BioPharma trade association developed to replace
paper with electronic records
– US FDA remains silent on compliance
• Slow uptake by industry of standards-based solutions
– Reinvent SAFE as something else? Cloud computing for
electronic health records?
• What happened to Identrust? BOLERO? Covisint?
Payment Cards
• ATM cards permit consumers to access bank services
after hours
– Slow development and adoption of standards create global
network
• Credit cards permit consumers to access line of credit
for any retail purchase
– Slow replacement of paper-based clearing and settlement
creates global network
• Platform operator of two-sided market sets pricing
policies for banks, merchants and consumers
– National regulators now intervening to limit prices
International Registry I
• Governance
– CTC authorizes creation of International Registry
• No international interest unless recorded in International
Registry
– CESAIR and AWG provide continuous feedback
– Third party customer surveys/market discipline
• Organization
– 24/7 global access
– Notice based registry, mere ministerial function
– Registrar liable for negligence, but not responsible for
content of documents filed
International Registry II
• Technology
– Classic Public Key Infrastructure
– International Registry opens “accounts” for user entities
– User entities store credentials on one computer
• Loss of computer means new credentials must be issued
• Experience since 2006 launch
– Initial boom in activity, slow down during Global Financial
Crisis, slow recovery
– Continuous technological and service innovations in
response to stakeholder feedback
– Continuously rising customer satisfaction survey results,
continuously falling liability insurance premiums
Success Factors
• Concrete Value Proposition
– Like CRS, SWIFT, card networks, unlike digital signatures
• Mandatory formal public international law regime
– Hard law simplifies technology and business models
• Small number of manufacturers and airlines reduce collective
action problems
– Unlike CRS, SWIFT, card networks
• PKI is mature technology that is cheap relative to cost of aircraft
equipment
• Organic development (“born digital”)
– No business process reengineering/migration from paper required
• Responsive governance
– Transparent processes, active dialogue with stakeholders
– Cost recovery, non-profit business model
Conclusion
• International Registry is an extraordinarily
successful global electronic commerce system
• Success factors can be readily identified
• But are very difficult to reproduce…
– Interests in maritime equipment
• J.K Winn, The Cape Town Convention’s
International Registry: Decoding the Secrets
of Success in Global Electronic Commerce
• http://papers.ssrn.com/sol3/papers.cfm?abstr
act_id=2118963