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E-commerce for SMEs Facilitated by Low Cost Devices, Cloud Computing, and Social Networking ICT Learning Days World Bank - March 1, 2012 by Daniel Salcedo,

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Presentation on theme: "E-commerce for SMEs Facilitated by Low Cost Devices, Cloud Computing, and Social Networking ICT Learning Days World Bank - March 1, 2012 by Daniel Salcedo,"— Presentation transcript:

1 E-commerce for SMEs Facilitated by Low Cost Devices, Cloud Computing, and Social Networking ICT Learning Days World Bank - March 1, 2012 by Daniel Salcedo, Founder & CEO of OpenEntry.com - tel: OpenEntry.com 1

2 Early Promise of E-commerce Poor people generally produce stuff to sell or work for somebody who does. More efficient markets help the poor as producers as well as consumers. Development experts in the 1990’s, “level the playing field for the little guy” Bill Gates – disintermediation will enable “friction free capitalism” 2

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4 Everybody thought it was a technical challenge of getting SMEs online Complicated - needed to know HTML or hire an expert or buy software Laborious – had to hand code every catalog page instead of pulling from a database Expensive – own domain and hosting, credit card payment required English required Logistics of international payment and shipping 4

5 Even if a SME managed to build a beautiful catalog… Buyers couldn’t find it among the billions of websites on the Internet Even if they did, they wouldn’t trust it So, besides the technical obstacles, the main challenge of e-commerce is visibility, credibility, and trust 5

6 Conventional Wisdom: Though e-commerce worked for the big guys, it didn’t work for SMEs in international trade in spite of billions of dollars spent Dot-com bubble burst and formerly infatuated experts fell out of love The development fashion pendulum swung from way too positive to way too negative – the reality is somewhere in between WSIS Forum – e-government, e-health, e- agriculture but no e-commerce for the poor 6

7 Recent Advances Change Everything Proliferation of low cost devices (mobile phones, netbooks, tablets) greatly expands the hardware choices for Internet access Internet costs continue to drop while its reach/speed increase. Corporations now offer powerful "cloud computing" services Social networking services enable millions to publish their information with images and demonstrate the power of trusted networks 7

8 OpenEntry is a Development Organization Mission – to help artisans and SMEs to benefit from e-commerce Support from World Bank, USAID, IDB, Rockefeller, Oracle, eBay, individuals, more Developed an e-commerce platform for artisans and SMEs worldwide 8

9 Free Catalogs in 44 Countries on Google Cloud Computing Gmail - account security Docs – information storage Picasa - image storage Picnik – image editing Translate – instructions in 57 languages Checkout - also PayPal, 2Checkout Apps Engine - execute programs on powerful/reliable Google severs Android - offline mobile operation 9

10 Catalog Features Build in an hour from any computer or smart phone Multi-lingual instructions and output Personalize with own banner/logo, choice of templates, fonts, colors Enabled for credit cards or RfQ Live User Support, chat from Nepal FREE (100 products), $200/year for more products and catalog features 10

11 Low Cost Offline Operation Also designed for poor individuals and communities without Internet Apps for Windows and $100 Androids Capture product images and related information (code, name, price, description, key word – 90% of the work of preparing a catalog) offline For later WiFi upload (don’t need 3G) Key mobile insight – only need to concentrate on one data point at a time 11

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23 However, even if a SME builds a beautiful catalog… Buyers can’t find it among the billions of websites on the Internet Even if they do, they won’t trust it The main challenge of e-commerce is visibility, credibility, and trust 23

24 OpenEntry Network Markets Amazon.com EC2 Cloud Computing Facility enables scaling for mainstream businesses Any high profile business network – Chamber of Commerce – Export Promotion Agency – Industry Association – Trade Show Aggregates the catalogs of all its members (large & small) into a network market Generating visibility, credibility, trust 24

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34 Does it Work? 34

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36 UNDP Conclusions The largest impact of implementing this “pro-poor” e-commerce approach was on income and employment. Firms using it reported jobs directly attributable to on-line promotion women A relatively inexperienced group of young IT professionals could, with the proper tools, create employment for themselves while providing e-commerce services to local SMEs. 36

37 Additional Considerations Don’t need credit card payments – for every $1 transacted online, $4 are influenced by the Internet Can start with local CoD sales, 2CheckOut.com works everywhere Most international sales are B2B Shipping easier now - consolidated shipments can cut costs by 80% 37

38 Potential Impact is Huge Compared to the Costs International trade promotion Women and youth entrepreneurs earn income building catalogs for local SMEs 100 million SMEs will need help moving online in next 10 years Modest marginal cost of including e- commerce in projects for youth, women, employment, trade 38

39 OpenEntry Seeking Implementation Partners Business networks helping their members sell online Governments promoting exports Development agencies generating income and employment 39

40 E-commerce for SMEs Facilitated by Low Cost Devices, Cloud Computing, and Social Networking ICT Learning Days World Bank - March 1, 2012 by Daniel Salcedo, Founder & CEO of OpenEntry.com - tel: OpenEntry.com 40


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