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How was the projectcarried out?2.9 A multi-disciplinary Team, from both thepublic and private sectors, was drawn togetherto carry out the project. 4 Central to the Team’sapproach was openness and the need toinvolve industry practitioners in its work.Approaching its task in seven stages, the Team:defined a ‘vision’ for the future of UKe-commerce;developed a framework within which toanalyse barriers to the achievement of thisvision;explored and tested this framework inroundtable seminars with keyrepresentatives of government, industry,consumer bodies, trade associations andthe voluntary sector; 5proposed immediate action to theChancellor of the Exchequer for his 1999Budget and to the Secretary of State forTrade & Industry for inclusion in hispending Electronic Communicationslegislation;sought specific regional requirements ordifferences, through open consultationmeetings in Scotland, Wales and NorthernIreland;developed preliminary recommendations;andproduced this detailed final report andrecommendations.2.10 The study has been informed by theTrade and Industry Select Committee’senquiry into e-commerce, which wasconducted in parallel with the work ofthe PIU Team. The Team found evidencesubmitted to the Committee invaluable,and reviewed its own analysis andrecommendations in the light of theCommittee’s report before finalisingthis study.2.11 In producing its recommendations,the PIU Team has been mindful of theGovernment’s existing broadercommitments. These include those onpublic expenditure, the need to refrain fromunnecessarily burdensome regulation(particularly for small firms) and theimportance of understanding thedisproportionate impact policies can haveon some sectors of society, including women,ethnic minorities and the elderly.2.12 More details on the Team and on theapproach and methodologies used arecontained in Appendix two.Note: Appendices are not attachedto the printed version of this report.Copies may be obtained on-line atwww.cabinet-office.gov.uk/innovations.Appendices are included with theCD-ROM version of this report.4See Appendix Two for more details5Detailed reports available on the PIU website http://www.cabinet-office.gov.uk/Innovation and in Appendix ThreeE-commerce@its.best.uk9
3. THE ECONOMIC IMPORTANCEOF E-COMMERCEE-commerce@its.best.uk10Summary3.1 This chapter examines the wide rangeof definitions of e-commerce. It endorsesthe approach currently proposed in OECDof a very broad definition. This encompassesthe process activities of e-commerce, longrecognisedunder the label Electronic DataInterchange (EDI), and the more recentdevelopments of transactional e-commerce.3.2 The chapter moves on to establish theeconomic importance of e-commerce,outlining its dramatic growth and potential,the major impact it will have on barriers tomarket entry, its impact on the efficiency andits ability to enable transformation of existingbusiness models.3.3 The chapter closes by exploring theimpact of e-commerce on the macroeconomyand argues that the UK needs tomove now to capture opportunities, throughexamination of ‘first mover advantage’.What is E-Commerce?3.4 E-commerce is one of the buzz words ofthe late 1990s, attracting an increasingamount of hype and media attention. Butwhat is it? Most press coverage focuses onInternet shopping, such as the purchase ofbooks from Amazon.com – the world’s firstInternet book-shop. Such retail e-commerce,involving business-to-consmer purchases,is only the tip of the iceberg. Moste-commerce (some four-fifths) takes placebusiness-to-business. But e-commerce doesnot just involve financial transactions – it hassignificant implications for the whole of thebusiness process. In this report we haveadopted the broad definition of e-commercewhich the DTI has recommended to theOECD. This seeks to capture the wide impactwhich e-commerce can have on all aspects ofbusiness and society (the definition ofe-commerce is elaborated in chapter 12):“Electronic commerce is the exchange ofinformation across electronic networks, at anystage in the supply chain, whether within anorganisation, between businesses, betweenbusinesses and consumers, or between thepublic and private sectors, whether paid orunpaid”3.5 The Team expect the Internet (accessedvia the telephone networks) to remain thedominant core network for e-commerce,with interactive digital TV and new mobileservices providing different access options.Increasingly, private networks (such as‘Extranets’) will provide the improvedreliability required for process e-commerce,whilst continuing to use the common coreInternet technology.Why is E-Commerceimportant?3.6 The PIU Team believes that electroniccommerce is important, because of:its dramatic growth and potential;the major impact it will have on barriersto market entry;the way it enables increased efficiency andeffectiveness within existing businessmodels; and, most importantly,the way it enables transformation ofexisting business models.
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THE CASE OF GODFREY V DEMON INTERNE
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APPENDICESA1. Role of the PIUA2. Pr
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