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1.10 To achieve this vision, the UK mustovercome the triple challenges depicted inthe 'pillars' of:Understanding - getting business,individuals and Government to appreciatein a timely way the opportunities availableand the actions to be taken;Access - giving businesses, individuals andGovernment access to all the elementsrequired for full participation in theInformation Age; andTrust - getting business, individuals andGovernment to accept the new tools of e-commerce and new styles of doingbusiness.1.11 As a 'foundation' for this vision, the UKwill have reinforced its commitment to openand competitive markets, striking a delicatebalance between a necessary degree of 'lighttouch' regulation and freedom to innovate. Itwill have demonstrated the power of industryself-regulation - backed by Government. Itwill have led the successful internationalresolution of key tax and regulatory issues. Itwill have put in place the mechanisms to coordinateindustry and Government actionsinto a single drive for success and the meansto measure and track that success.1.12 As a result, the UK will have achievedthe goal of becoming the best environmentin the world for e-commerce. Key indicatorsof success will be that, by 2002:For individuals:a higher percentage of people in the UKwill have access to e-commerce networksfrom home than in any other G7 country;total cost of Internet access will be lower inthe UK than in any other G7 country; anda higher percentage of the population willuse multi-function smartcards than in anyother G7 country.For business: a higher percentage ofbusiness-to-business and business-toconsumertransactions will be carried out one-commerce networks than in any other G7country.For Government: a higher percentage oftotal Government services may be transactedthrough e-commerce networks than in anyother G7 country.The barriers1.13 This report identifies the key barriers as:Foundations: the lack of a clear,internationally agreed, regulatoryframework and of clarity in some areas oftax policy. The sheer speed of developmentof e-commerce, within a competitive andinnovative environment that is rapidlychanging, has outstripped the normalinternational processes, despite significantleadership already shown by the UK.Understanding: at the heart of thechallenge of limited adoption is lowunderstanding of the potential benefits andchallenges at all levels. These range fromthe impact on company profitability to theability to create entirely new services andforms of market. Many small companies,for whom day-to-day survival is challengeenough, have little time or inclination toaddress issues that seem complex,technical and irrelevant. Many largercompanies appear 'frozen in the headlights'- aware of the likely impact, yet paralysedby the potential for reduced margins andunwilling to address a majortransformation of business practice. Thereare serious skill shortages, both in technicalareas and in the management of change inboth private and public sectors.Government is not fulfilling its potentialvital role as both purchaser and exemplar.Many individuals do not yet appreciate thescope for cost savings and improvementsin quality of life possible with e-commerce.Access: the challenges of access are multilayered,just like a Russian doll: when one issolved (and the doll opened) there is afurther one inside. The first challenge isaccess to communications and computingtechnology. Much has already beenachieved: by competition driving downpersonal computer and software prices; byOftel's 'Access to Bandwidth' plans to openthe BT local access system to competitiveuse with new technologies; by accesscentre initiatives from DTI, DfEE, Treasuryand DCMS; and through innovativecommunity programmes such as the BBC's'Web Wise'. However the challenge remainsof delivering local telecommunicationsaccess competition for new, high quality,high-bandwidth services and of fundingsuccessful local access centres in the longterm for those who cannot afford, or chosenot to have, access from home. The nextchallenge is access to electronic paymentE-commerce@its.best.uk3
E-commerce@its.best.uk4systems for the more than one millionadults without access to conventionalbanking services. Policy Action Team 14(PAT14) is addressing this issue as part ofthe Social Exclusion Unit's workprogramme. Finally, access for those whothrough disability or limited literacy willneed technological help such as pictogramor voice recognition and guidanceinterfaces.Trust: businesses and consumers must beable to use e-commerce systems withoutundue fear of fraud and with the same, ora greater, degree of confidence than theyassociate with physical transactions. Thereare also barriers related to the privacy ofpersonal and business data. The lifebloodof e-commerce is the ability to use detailedinformation about individuals' (andcompanies') purchasing patterns toachieved highly targeted and effectivefollow up marketing. This immediatelyraises a potential conflict between personalprivacy and existing business practice. Afurther barrier is that of redress. Simple andappropriate means of dispute resolutionneed to be established for transactions thatspan continents. Effective means must beavailable to avoid unpleasant or offensivecontent and to limit the potentiallyexpensive nuisance of unsolicitedcommercial e-mail ('spam').What actions need to betaken?1.14 A full list of the PIU team's sixty detailedrecommendations is contained in chapterfourteen, and the three key priorities set outin paragraph 1.2 above.1.15 Many of these recommendations willrequire industry's action as the prime mover,with Government in support. This summarybrigades the recommendations into fourgroups, as illustrated in figure 1.2:those that can be taken quickly and willhave an immediate impact;those that are also highly important, butwill take longer to bring to fruition and arethus longer-term priorities;those that can be taken quickly and willmaximise the profile of the e-commercemessage; and finallythe necessary longer term, but stillimportant, background actions.All these are detailed below:Immediate impact1.16 To have an immediate impact on e-commerce, it is important to galvanise andco-ordinate Government action, to inspirebusinesses to take up the challenges andopportunities and to get access right.Galvanise and co-ordinateGovernment. There needs to be strongerpolitical and managerial leadership at thecentre of Government - driving forward theUK's objectives and co-ordinating actions.This should be achieved through theimmediate appointment of an e-Ministerand e-envoy. There is great scope forGovernment to show leadership in e-commerce, both through earlyintroduction in Government's own servicedelivery, and through Government'spurchasing role at the head of a majorsupply chain. Whilst some early wins areessential for Government's credibility withIndustry, much work will need to continuein the longer term.Galvanise business. Launching aconcerted marketing campaign, inpartnership with industry, to generate an e-commerce 'buzz' in the UK is an immediatestep which will not only raise awareness ofthe threats and opportunities for UKbusiness, but also demonstrate theimportance the Government places on therole of e-commerce for the future of theUK economy.Get access right. This can be achieved,for example, by ensuring that thetelecommunications regulatory frameworkencourages tariff structures which reflectthe different usage patterns of e-commercecompared to traditional voice telephony,minimising the cost penalties of 'always on'access and encouraging the developmentof broadband services. OFTEL has alreadymade vital steps through its 'Access toBandwidth' proposals, but must beresourced to meet the major challenge ofindustry's rapid implementation of thesechanges.
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vary the balance between rental and
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60E-commerce@its.best.ukIN PARTICUL
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66E-commerce@its.best.ukPENETRATION
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within the context of the overall m
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E-commerce@its.best.uk- Recommendat
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of the negotiations between the US
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THE CASE OF GODFREY V DEMON INTERNE
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Recommendations andanalysisImplemen
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E-commerce@its.best.uk78£29bn is s
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E-commerce@its.best.uk80SMARTCARD U
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E-commerce@its.best.ukand in librar
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10.53 In February 1998 the Home Off
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SOFTWARE FOR FILTERING INTERNET CON
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TITLE 11. GOVERNMENT ASEXEMPLARSumm
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25% INITIATIVE: SPRING ‘99 PROGRE
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making and effective delivery. Tech
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and HM Treasury the recommendations
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TITLE 12. MONITORING ANDEVALUATING
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foundations for e-commerce (acompet
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as with all recommendations, pilot
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12.25 Increased use of e-commerce w
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106E-commerce@its.best.ukIMPACT OF
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TITLE 13. ACTIONS BY THEDEVOLVED AD
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comprehensive action plan aimed at
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COUNTRYUnited StatesCO-ORDINATION M
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small core group of departments wit
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TITLE 15. ACTION PLAN15.1 This chap
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APPENDICESA1. Role of the PIUA2. Pr
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