Transcript The International Nature of Electronic Commerce

The International Nature of
Electronic Commerce
• Any business that engages in
electronic commerce instantly becomes
an international business.
• When companies use the Web to create
a corporate image, or build a
community, they are automatically
operating in a global environment.
The International Nature of
Electronic Commerce
• Businesses engaging in electronic
commerce must be aware of the
differences in language and customs
that make up the culture of any region
in which they do business.
• The barriers to international electronic
commerce include language, culture,
and infrastructure issues.
Language Issues
• Researchers have found that
– Customers are more likely to buy products and services
from Web sites in their own language http://www.bol.com
• Localization
– Translation that considers multiple elements of local
environment
• About 70% of the content available on the Internet
today is in English.
• More than 50% of current Internet users do not read
English.
• The most-used non-English languages for U.S.
companies are Spanish, German, Japanese, French,
and Chinese.
Language Issues
• Global Reach offers Web site globalization services and
maintains current information about languages on the Web.
• One approach is to have a Web server that can detect the default
language setting of the browser and automatically redirect the
browser to the set of Web pages created in that language.
• Another approach is to include links to multiple language
versions on the home page. Yahoo China from Yahoo Home
• Firms that provide Web page translation services include Alis
Technologies, Berlitz, Rubric, Ltd., ScanSoft, Transparent
Language, and Worldpoint Interactive.
• Idiom Technologies sells software that automates the process of
maintaining Web pages in multiple language versions.
Cultural Issues
• Important element of business trust
– Anticipate how the other party to a transaction will act in
specific circumstances
• Culture
– Varies across national boundaries
– Varies across regions within nations
• The combination of language and customs is often
called culture.
• Some errors stemming from subtle language and
cultural standards are culture issues.
Entre
Cultural Issues
• On the Web, designers must be very careful when choosing icons
that represent common actions.
• Even colors or Web page design elements can be troublesome.
• A site that strongly reflects a cultural design preference is the
Bol.com, which is an online bookstore for several different
countries.
• Softbank has devised a way to introduce electronic commerce to
a reluctant Japanese population.
• Nike realized that it had to create special Web pages for foreign
customers. One such site is the Nike Football site.
• Some parts of the world have cultural environments that are
extremely inhospitable to electronic commerce initiatives.
• The People’s Republic of China and Singapore are wrestling with
the issues presented by the growth of the Internet as a vehicle for
doing business.
Infrastructure Issues
• Internet infrastructure includes
– Computers and software connected to Internet
• IBM Tools
– Communications networks over which message packets travel
• Regulations in some countries have inhibited the development of
the telecommunications infrastructure or limited the expansion of
that infrastructure.
• Organization for Economic Cooperation and Development’s
(OECD)
– Statements on Information and Communications Policy
• Deal with telecommunications infrastructure development issues
• Flat-rate access system
– Consumer or business pays one monthly fee for unlimited telephone
line usage – no available in many countries.
– Contributed to rapid rise of U.S. electronic commerce
• Targets for technological solutions
– Paperwork and processes that accompany international transactions
Web Resources
Globalizing your web site:
• http://www.onlinewbc.gov/docs/market/InternationalBusiness.ht
ml
• http://www.godfrey.com/idea_base/global.asp
• http://www-306.ibm.com/software/globalization/rss/index.jsp
• http://www.zeromillion.com/business/ib/globalize-website.html
Avoid culture clashes when going global:
• http://www.entrecs.com/org23.asp?orgid=23&storyTypeID=&sitel
ang=1&sid=&
Language Issues:
• http://www.schreibernet.com/sti/basics/globalizing-your-websitepart1.htm
Infrastructure Issues:
• http://www306.ibm.com/software/globalization/lotus/overview.jsp