1 Measuring eBusiness: Definitions, Indicators & Surveys Andrew Wyckoff OECD UNCTAD Expert Meeting Measuring Electronic Commerce 8-10 September 2003

2 Overview Definitions Model Surveys Current / Future work “Lessons Learned”

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4 Mainframe and PC price indices

5 OECD IS Ministerial Milestones GII / GIS : “ Information Highway” 1996

6 OECD IS Ministerial Milestones GII / GIS “ Information Highway” 1996 WPIIS

7 GII / GIS Definitions ICT sector

8 Share of ICT value added in business sector value added, 1999 Source: OECD, STI Scoreboard, 2001

9 OECD IS Ministerial Milestones GII / GIS 1996 E-commerce 1998 Identify, assess and monitor GIS WPIIS

10 OECD IS Ministerial Milestones GII / GIS 1996 E-commerce 1998 Identify, assess and monitor GIS WPIIS methodology and apparatus for measuring

11 E-Commerce Definition

12 E-Commerce DefinitionBroad & narrow, nested definition Narrow = orders over the Internet (payment and delivery can be off line) (including EDI / XML over the Internet) Broad = orders over “computer mediated networks” (payment and delivery can be off line) (EDI, Minitel, EDIFACT)

13 E-commerce Definition The Debate in 1999 / 2000 Issues today

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1.8% (UK) 5.20% (UK) 0.40% (Canada) 0.40% (Australia, ) 0.90% (Denmark) 0.94% (UK) 5.95% (UK) 0.70% (Finland) 1.04% (UK) 1.2% (USA, 4rd Q 2001) 0.40% (Canada) 1.1% (USA, 4th Q 2000) 0.10% (France, 1999) 0.20% (Austria) 1.4% (UK) Web commerce Internet commerce Electronic commerce Business sector Retail sector Business sector (excluding financial sector) BROADER Official estimates of Web, Internet and electronic commerce transactions. Percentage of total sales or revenues. 0.40% (Italy) (Sweden) 13.30% 2.00% (Sweden)

16 Private v. Public data DenmarkFinlandUnited Kingdom % Official dataPrivate source in December

17 Definitions Methodologies ICT sector Business Use E-Commerce

18 OECD Model Survey of ICT Usage in the Business Sector General Information about ICT systems –Devices, networks and use Use of the Internet –Type of connection & speed, type of use E-commerce –Internet sales & purchases –Other computer mediated networks Barriers –Skills, cost, security,

19 Business Access and Use of the Internet

20 Internet penetration by size class. Percentage of businesses using the Internet Source: OECD, STI Scoreboard, 2001

21 Internet penetration by industry Percentage of businesses using the Internet, 2000 Source: OECD, STI Scoreboard, 2001

22 OECD IS Ministerial Milestones GII / GIS 1996 E-commerce 1998 New Economy 1999 Identify, assess and monitor GIS WPIIS methodology and apparatus for measuring

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24 ICT investment as a Share of GFCF

25 Contribution of ICT investment to GDP (growth accounting)

26 OECD IS Ministerial Milestones GII / GIS 1996 E-commerce 1998 New Economy 1999 Seizing the Benefits of ICT 2003 Identify, assess and monitor GIS WPIIS methodology and apparatus for measuring Identifies role of skills, org. change

27 High-skilled workers and ICT

28 The sophistication of e-activity increases with experience in ICT use: UK Source: Clayton & Waldron, 2002

29 Policy implications The business environment matters… …in particular, the level and nature of competition. Investing in ICT is much more than hardware. It involves a constellation of complimentary investments. ICT is both a source and a tool for more innovation.

30 Current / Future Work on eBusiness Addition of an eBusiness module to the model survey on Business Use of ICT Improved measurement of ICT investment by businesses (esp. software) Non-technical innovation (Organisational Change)

31 Narrow e-comm Broad e-comm Business ICT Use Business ICT Access eBusiness Processes

32 eBusiness processes identified as of common interest. Customer acquisition & retention E-commerce Finance, budget and account management Human resource management Product design & development Order fulfilment and order tracking Logistics (inbound & outbound) and inventory control Product service and support Knowledge management

33 Lessons be aware of the technology Stay close to the policy issues Be pragmatic (creatively use existing data resources and do easy things first) Proceed in a flexible (modular) way Feedback: stay open to revisions, breaks in series.

34 Leverage scarce resources by partnering…

35 A few ideas for applying the OECD model to non-OECD countries… Use available data sources Add a few “core” questions to existing business surveys Undertake a small survey of known performers Combine with other work (BR, LFS)