Transcript Session 3a: Integrating Regional Markets Trade Facilitation and ICT ICTs as a tool to support competitiveness in emerging and transition economies Mr.

Session 3a:
Integrating Regional Markets Trade
Facilitation and ICT
ICTs as a tool to support
competitiveness in
emerging and transition
economies
Mr. Frank McCosker
Global Senior Director,
EU, Multilateral Organisations & Bilaterals
Microsoft
Overview: ICT as a tool to support competitiveness
in emerging and transition economies
Successful national strategies
Benefits of e-commerce and e-business
strategies
Case study
What needs to be done?
Point of departure
ICT has significantly contributed to increasing the productivity and
competitiveness of the enterprise sector
Benefits have so far accrued largely to developed countries, and a
small group of advanced developing countries in transition
Internet-based business methods have enabled economies to use their
resources more efficiently, achieving faster productivity growth
Data from the OECD countries points to a strong link between
investment in ICT and faster growth.
On average, OECD countries invest around 7% of their GDP in ICT,
twice as much as developing countries.
Global e-business market is estimated around US$ 2.3 trillion (2002),
and 30 OECD countries accounted for 95% of total value.
Successful national strategies to promote the
competitiveness of the enterprise sector
E-business environment
Industry, enterprise and SME levels
1. e-Leadership by
4. Awareness, managerial skills
& pre-competitive
investments among MSMEs
governments
2. Market competition in ICT
3. Trust & security policies
5. Human capital
6. Complexity in ICT hardware
and software solutions
Benefits of e-commerce and e-business in
emerging and transition economies
Most economic benefits begin with:
Transactions – “front office” relational &
product innovation to improve market
reach & productts
Integration –“back office” process &
organizational innovation to improve
production and management
• Product input integration and
production solutions
• Procurement and supply chain
management
• Finance, online banking and
accounting solutions
• eLearning solutions to upgrade
employee skills
•
Customer development & e-marketing
solutions
• Market research
• Business profile information
• Catalogues, pricing, advertising
•
E-business solutions to buy & sell
services via Internet
• Ordering
• Billing
• Payment
•
Customer service and support solutions
• Feedback
• Reference and referral building
• New product promotion
Case Study: Need for simplifying trade forms
to reduce data and document requirements
7-10% of value of international trade is spent on custom
formalities today
A typical international transaction involves:
• 30 parties, 40 documents
• 200 data elements – 60% of which need to be retyped at least once
• Delay of 88-208 days between delivery and payment
Low government operational efficiency to collect customs
revenue
Lack of uniform trade procedures making trading with
neighboring countries (natural market) often more difficult
than with OECD countries
Reduced FDI opportunities
UNeDocs: Using the Internet for efficient
international trade
A set of international trade forms in electronic
format (and paper) format
Based on international trade standards (GATT,
WTO, WCO, UNCITRAL, UNLK, UN/EDIFACT)
and best business practices
Toolkit available to any trader with Internet
connection
Benefits of UNeDocs: success stories
Balkanpharma e-business benefits/now can:
Plan production to meet consumer need and market
demand
Manage stock more efficiently
Cut inventory costs while increasing sales
P & P benefits from e-customs process:
Expansion into more EC air and sea routes
Now clears 15,000 consignments through customs
annually
GE Hungary’s online auctions with suppliers cut
procurement costs by 9%, saving $680 million
Benefits of UNeDocs: Success stories
Czech Republic:
75% trade documents for in-transit goods
processed electronically
$2 million cost, but higher trade revenues
expected
Example of efficiency in Central and Eastern
Europe
Poland’s CELINA System:
Trader registration in only 2 minutes
Error rate dropped 95%
What needs to be done to promote the use of
ICT as a tool to support competitiveness?
Requires leadership and public-private partnerships
Challenge existing ways of working
Public sector managers need e-trades, e-commerce and e-business
planning skills
Involving multi-stakeholder public-private partnerships (PPPs), as
implementing can be risky, expensive and difficult
Develop a culture of e-business among SMEs
Promote the development of trade in goods and services via ecommerce
Promote strong protection for intellectual property made available over
digital networks
Resource mobilization
Mainstream ICT into development programmes
Monitoring and evaluation
Increase technical assistance through multilateral institutions, which
are an indispensable source of expertise, advice and assistance.