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Page updated:
4 February 1997
Page owner:
ETO Site Team
Opportunities and Challenges
There are no shortages of opportunities for teletrade. Once you have access to the right technologies and enabling mechanisms, the rest is up to your imagination and a systematic approach to developing teletrade strategies. Many observers will see obstacles and issues, such as lack of network access, bandwidth, poor security on the Internet, lack of authentification and payment mechanisms. However, Rome wan't built in a day, nor were the trading mechanisms, such as credit cards, that we take for granted today. In a remarkably short space of time, technologies such as electronic mail, the Internet have become well established. Even EDI, once the preserve of those with large budgets and having high volumes of standard transactions is now more open and accessible.
But perhaps the best way to explore opportunities is to look at cases of what others have done. This page gives a few examples, but we always welcome additional submissions from other successful European companies and individuals who are successfully trading online. Please email eto-info@eto.org.uk citing Teletrade Example in the subject line.
Opportunities for Teletrade
Some Articles and Papers
A useful starting point is to look at what has been written by various experts and researchers in the field. Here are a couple of useful starting points:Supplier opportunities and customer benefits - from the ESPRIT Electronic Commerce pages.
Electronic Commerce on the World Wide Web - an executive presentation by Blake Ives introducing the concepts, the benefits, opportunities and threats. Also an accompanying case study.
Doing Business in the Information Society - Pages by the UK DTI Information Society Initiative, with a particular focus on the opportunities for Small and Medium Enterprises.
Some Selected Cases
There are examples in many fields. To illustrate the range and breadth, here are a few examples to investigate for ideas. You will note that size is not a substitute for effectiveness when it comes to effective use of the World Wide Web for teletrade. You might think this is too UK biassed, but after the US, UK businesses are generally the most prolific on the net. However, if you have some good examples in yourt country, please let us know - send an email to eto-info@eto.org.uk with subject line: Teletrade Example. Please note that mention of these suppliers does not constitute a reccomendation or endorsement of their goods and services.Travel - As well as household names like Eurostar and Virgin Atlantic, you will find small specialist operators like Powder Byrne (skiing)
Retail - Again the small specialists have an effective presence vs. the large comapnies. IBM runs an example of an online retail centre at World Avenue - a place where retailers can take space rather than mounting their own web sites and electronic trading facilities.
Media - Well known publications such as The Times rub shoulder to shoulder with focused services like NewsDesk .
Shopping Malls - There are a growing number of these, but BarclaySquare has some up-market stores and uses a secure transaction system. At MarketNet you can click your way to sellers of books, flowers, travel, chocolate, hotel rooms and other such delights. Works in several languages and currencies.
Regional Interest - There are many sites trying to attract you to the produce of a locality. Scotland has been to the fore in such sites e.g. Rampant Scotland and The Virtual Business Park listing a wide range of businesses including accountants, booksellers and marketing agencies.
Cars - You'll certainly find Mercedes and Volvo, but also smaller specialist motor marts.
Property - What better way to view than a tele-visit, such as PropertyNet.
Recruitment - As well as large companies like Reed recruitment and Price Jamieson, there are new ventures specifically specialising on online recruitment.
Books and Art - Specialist high value itesm offer significant opportunities. View Art Network, browse through Kenny's Bookshop or sample tele-bidding at Auctions-On-Line
Music - Certainly Sony is there but so are smaller labels like Hyperion
and if after all that you need to sell some shares, then there's always ESI competing with your traditional broker.
It is important to realise that not all cases use the World Wide Web. The UK Information Society Initiative gives cases from a variety of IT perspectives.
Directories
These give pointers to useful sites, and are themselves examples of enterpreneurs who have found opportunities in online markets - that of providing classified information.UK Directory - An effectively designed directory organised by category, both commercial and non-commercial entries, including business, education, employment, government, news, shopping, travel etc.
Yahoo - Points to many business and regional directories for Europe and other parts of the world.
Challenges
There are a number of challenges facing the online enterpreneur, but most with the right information and advice are solvable. Even challenges that seemed insurmountable a year or so ago, such as payments and secure transactions, are receiving sufficient attention from major suppliers that solutions are in sight. Some challenges and potential solutions are:- Bandwidth - There is concern
that as usage of the Internet grows exponentially, that there will be insufficent
bandwidth and it will grind to a halt. However, various analysts have shown
that, in general, market forces will enable capacity to keep up with demand,
though it may be patchy in places. Solutions: Some suppliers are talking
of multi-tiered services with premium pricing guanteeing faster levels of
service.
- Authentification - When orders
are placed over a network the buyer needs reassurance that it was an authorized
transaction and actually comes from who it purports. Solutions: Electronic
signatures, trusted third party validation .
- Security - Both parties want
assurance that their confidential transaction details have not been intercepted.
Solutions: Encryption, secure servers.
- Legislation Harmonisation - Under which jurisdiction
does a transaction take place- the location of buyer, seller or server?
Issues like these are the subject of policy debate.
- Payment - How can someone set
up simple, reliable and risk free mechanisms for payment, in multiple currencies
and without hefty bank charges? Solutions: Electronic cash mechanisms,
new Internet prorocols, virtual banks.
- Online Skills - Trading online has different expectations, patterns of work and needs new skills and an appreciation of netiquette. Solutions: Skills programmes, joining lists and sharing experiences.